This phase happens alongside the Budget Execution phase. Through Budget Accountability, the DBM monitors the efficiency of fund utilization, assesses agency performance and provides a vital basis for reforms and new policies.
- What are Performance Targets and Outcomes?
- What are Budget Accountability Reports (BARs)?
- What does No Report, No Release mean?
- What does Review of Agency Performance mean?
- What is an Audit?
- What is the Performance-Based Incentive System?
1. Performance and Target Outcomes
Agencies are held accountable not only for how these use public funds ethically, but also on how these attain performance targets and outcomes using available resources. These performance measures are set alongside the preparation of the National Budget; and these are indicated in the OPIF Book of Outputs (See previous section on Public Expenditure Management). Prior to the execution of the enacted National Budget, these performance targets are firmed up during the preparation of BEDs.
2. Budget Accountability Reports (BARs)
Submitted by agencies on a monthly and quarterly basis, BARs are required reports that show how agencies used their funds and identify their corresponding physical accomplishments. These include quarterly physical and financial reports of operations; quarterly income reports, a monthly statement of allotments, obligations and balances; and monthly report of disbursements.
No Report, No Release
Starting 2012, the DBM will be withholding certain fund releases to agencies if these fail to submit their Budget Accountability Reports. In particular, these will be funds from the Miscellaneous Personnel Benefits Fund (MPBF) for compensation adjustments under the Salary Standardization Law, provisions for unfilled positions and employee clothing allowances. These funds to be withheld are only limited to agencies’ MPBF allotments so that only the agencies are penalized and that the implementation of critical programs and projects will not be disrupted. Errant and compliant agencies will also be posted online for public scrutiny.
3. Review of Agency Performance
The DBM regularly reviews the financial and physical performance of agencies. Actual utilization of funds and physical accomplishments, as indicated in the agencies’ BARs, are evaluated against their targets as identified via OPIF and in the agencies’ BEDs. Agency Performance Reviews (APRs) are conducted quarterly or every semester, as the case may be. An annual Budget Performance Assessment Review (BPAR) is conducted to determine each agency’s accomplishments and performance by the year-end. The DBM regularly reports results to the President.
Auditing is not within the DBM’s jurisdiction, and is instead lodged under the Commission on Audit (COA). Nonetheless, auditing is critical in ensuring agency accountability in the use of public funds. The DBM uses COA’s audit reports in confirming agency performance, determining budgetary levels for agencies and addressing issues in fund usage.
5. Performance-Based Incentive System
The DBM is also in the process of establishing a performance-bas
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