program expenditure classification
DESCRIPTION
Presented in the DBM-NEDA Workshop on April 1, 2016TRANSCRIPT
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The Program Expenditure Classification (PREXC) ApproachThe Next Phase of the Performance Informed Budgeting
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What is PREXC?1. Re-classification of the budget items
into outcome areas2. Improvement of the performance
measurements of government agencies
3. A better budget system for M&E 4. A basis for organizing units in an
agency for better accountability
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Reclassification: From MFOs to Programs
- A program is an integrated grouping of activities and projects that contributes to a particular outcome of an agency.
- As long as the Activities & Projects contribute to the same outcome, they’re part of the same Program
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STO
MFO1 MFO2
MFO3
LFP FAP
OO1 OO2 OO3
AGENCY
Activities (Level 1) & Projects / PAP Activities (Level 2) & Projects / Sub-PAP
OPERATIONS
Current MFO- based Budget Structure
Line Items of the Budget
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STO
MFO1
MFO2 MFO3
LFP FAP
OO1 OO2 OO3
AGENCY
OPERATIONS
AGENCY
GAS STO Operations
OO1 OO2
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AGENCY
GAS STO Operations
OO1 OO2
ProgramSub-ProgramActivity / Projects
Program Expenditure Classification
Line Items of the Budget
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Example ProgramPS MOOE CO TOTAL
Coastal & Marine Resource Management Program
301,333,000 53,700,000 355,033,0001. Management of Coastal & Marine Resources 198,533,000 6,500,000 205,033,000
National Capital Region 54,843,000 54,843,000Central Office 46,949,000 46,949,000Protected Areas & Wildlife Bureau 7,680,000 7,680,000NCR - Proper 214,000 214,000
insert the various regional offices and PENROs here
2. Development, updating & implementation of the Manila Bay Coastal Management Strategy 102,800,000 47,200,000 150,000,000
National Capital Region 102,800,000 47,200,000 150,000,000Central Office 102,800,000 47,200,000 150,000,000
Program Name
Activity
Project
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Why put Activities & Projects together?
1. Projects are part of a bigger Program that a department / agency is delivering.
2. A complete analysis of a Program can only be done by including Projects in the accomplishments.
3. The main difference between the two is that Projects are time-bound.
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Societal Goal
Sectoral Outcomes
Organizational Outcomes
Program Outcome
Sub-Program Outcome
Hierarchy of Outcomes
PDP
GAA
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Measuring Performance: Program Profiles
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The Program Objective Statement
1. The Program Objective Statement captures, in a few words, the RESULTS or OUTCOMES of the Program.
2. Avoid using words such as: PROVIDE, FORMULATE, CONDUCT, DRAFT, ISSUE
3. Instead use words that describe what will happen to the intended beneficiaries / clients / sectors: IMPROVE, ENHANCE, PROTECT, DECREASE
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Refinement of Output Indicators
1. Preference for Quantity Indicators that are programmable before budget execution
2. Focus on output levels that agencies have more control over.
3. Application of Timeliness Indicators for critical frontline services.
4. Consideration for the “audit-ability” of reports on Output
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Specifying Program Outcome Indicators
- Outcome Indicators measure the effectiveness of the program to deliver its objective/s
- They are usually subsets of the larger Organizational Outcome
- These should measure the effect of the program on external clients
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On-Going Roll-Out- April: Final review of agency
submissions for approval- June: Encoding of all Programs, Sub-
Programs, Activities, and Projects to a Reference Library
- August / September: User testing of modified, PREXC-compliant OSBP
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Lessons & Observations1. The level of detail of the Program Profiles
varies across and within agencies. 2. Some confuse Objective with Activity3. Many agencies do not measure program
outcomes.4. Ownership over outcomes is weak.5. Coordination between Budgeting /
Finance, Planning, and Operations in some agencies remain weak.
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PREXC: Linking Budgeting & Planning
1. How to align Programs to the PDP and the RM?
2. How to help agencies plan their Programs along a medium-term timeframe?
3. How to relate Agency Programs to cross-cutting Convergence Programs?
4. How to ensure “results-orientedness” extends beyond planning offices?