2016年-世界发展银行全球_Republic_of_the_Philippines_Public_Financial_Management_and_Accountability_Assessment___PFM_Strategy_Implementation_Support_176页_2mb

Summary of the Republic of the Philippines PFM Strategy Implementation Support Public Financial Management and Accountability Assessment

Core Content

This report presents the results of the 2016 Public Expenditure and Financial Accountability (PEFA) assessment of the Philippines' Public Financial Management (PFM) system. Conducted by the World Bank with support from the Australian Government, the Asian Development Bank (ADB), and the International Monetary Fund (IMF), the assessment evaluates the effectiveness of the PFM system in achieving fiscal discipline, strategic resource allocation, and efficient service delivery. The report is structured around seven core pillars of PFM performance, each with specific performance indicators (PIs), and includes a comprehensive review of the legal, institutional, and operational frameworks.

Main Objectives

• To evaluate the performance of the PFM system across seven key pillars.
• To assess the effectiveness of internal control and financial reporting processes.
• To identify areas for reform and improvements to enhance fiscal accountability and management.
• To compare performance with the 2010 assessment and track progress over the past eight years.

Key Findings

Core Pillars of PFM Performance

PFM Dimensions

Main Strengths and Weaknesses

• Transparency of public finances is a strong area, with good performance in budget preparation and management. However, there is a need for better alignment with Government Finance Statistics (GFS) classifications and improved data on financial assets.
• Policy-based fiscal strategy and budgeting shows good performance, reflecting improvements in the budget formulation process.
• Predictability and control in budget execution has mixed results, with some weaknesses that impact other pillars. The internal control framework is extensive, but implementation is inconsistent, and automation is lacking.
• Budget reliability is weak, with significant variances between budgeted and actual expenditures. The lack of consolidated and comparable data for actual disbursements hampers accurate evaluation.
• Accounting and reporting and external scrutiny and audit are among the weakest pillars, with many indicators rated C or D. Audit reports are frequently qualified or issued with disclaimers, raising concerns about financial information integrity and compliance with internal controls.

Key Issues Identified

• Fiscal discipline: Weaknesses in reconciliations between budget execution and accounting systems hinder the ability to monitor and facilitate budget delivery.
• Resource allocation: Despite increased budget allocations, execution capacity remains limited. An integrated Financial Management Information System (FMIS) is still under development.
• Service delivery: Internal control deficiencies and inadequate financial reporting and oversight undermine the assurance of service delivery as intended.

Main Recommendations

• Develop a comprehensive and integrated financial information system to improve monitoring and analysis.
• Strengthen the capacity of the accounting system to provide timely and accurate information for budget managers.
• Implement a robust PFM law to ensure adherence to financial regulations and procedures.
• Improve the timeliness of annual financial reports for extra-budgetary agencies.
• Enhance the transparency of the medium-term debt management strategy.
• Address internal control weaknesses, particularly in procurement and payroll management.
• Ensure effective implementation of audit recommendations to improve the quality of financial reporting.

Conclusion

The PEFA assessment highlights the need for urgent reforms in the budget reliability, accounting and reporting, and external scrutiny pillars. While the Philippines has made progress in transparency and policy-based budgeting, the system still lacks the necessary capacity and coordination to ensure effective and efficient service delivery. Continued investment in PFM systems and processes is essential to meet the Government's fiscal and budgetary goals.