Association of Government Accountants of the Philippines

Association of Government Accountants of the Philippines

2017 Annual National Convention

Waterfront Hotel, Cebu City

October 18 to 21, 2017

Theme: “Transforming the Government Financial Sector in the Era of ASEAN Integration”

DAY 1: October 18, 2017 (Wednesday)

Master of Ceremonies: Ms. Liberty M. Toledo and Mr. Romeo C. Castro

OPENING CEREMONIES

Declaration of Opening of AGAP Convention

Ms. Marietta M. Lorenzo

Convention Chair

President’s Messageof the AGAP President

Undersecretary Tina Rose Marie L. Canda

AGAP National President

Welcome Address

Mayor Tomas R. Osmeǹa

Cebu City

KEYNOTE ADDRESS

AsCom Winnie Rose H. Encallado

Commission on Audit (COA)

It was highlighted that the ASEAN integration requires a great deal of reform in the Public Finance Management (PFM). Aside from the development of the Bureau of Treasury Management System (BMTS) as precursor to the Government Information Financial Management Information System (GIFMIS), the COA has been working to implement the following accounting and auditing reforms as part of its 2016-2022 Strategic Plan:

Harmonization of Philippine Public Sector Accounting Standard (PPSA) with the International Public Sector Accounting Standards (IPSAS) to provide quality accounting standards and enhance uniformity in financial reporting by government entities to ensure accountability and transparency in financial information.

Implementation of the Revised Chart of Accounts for National Government Agencies (NGA), Local Government Units (LGU) and Government Corporations.

Implementation of the Government Accounting Manual for NGAs and Manuals for LGU and Government Corporations.

Preparation of Primer for barangay officials to provide simple and easy to understand rules on receipts and disbursements, and financial responsibilities.

Enhancement of Electronic New Government Accounting System to provide computer-based tools that are compliant with PPSAS, Revised Chart of Accounts and the Government Accounting Manual- to continue until full blown transition to Government Information Financial Management Information System (GIFMIS).

Devolution of the power to authorize write offs. Resident auditors were given authority to recommend write off for accounts up to P100,000.00. In excess of P100,000 up to P1,000,000 was delegated to Directors.

Cleansing of the Property, Plant and Equipment (PPE) to address mismatch between paper and physical inventory.

Streamlining of process for money claims of government employees for various entitlements such as Representation and Transportation Expenses (RATA), overtime pay, etc.

Capacity building on conduct of performance audit

Citizen Participatory Audit Program in which the citizens undergo training and are then sent to the field under the direct supervision of government auditors.

Particularly, in terms of ASEAN integration, the COA is actively participating on the following:

Implementation of the International Standards for Supreme Audit Institutions (ISSA).

Capacity building and knowledge sharing in public sector audit through the ASEAN Supreme Audit Institutions.

AWARDING OF OUTSTANDING ACCOUNTING OFFICES IN THE GOVERNMENT

Ascom Winnie Rose Encalado

Commission on Audit (COA)

The selection of the twenty-six (26) outstanding Accounting Offices in the government for C.Y. 2016 were based on the following criteria:

Timeliness of Submission of Financial Reports
Reliability of the Financial Reports
Accuracy and Completeness of the Financial Reports
Unqualified Audit Opinion

The AGAP awardees are the following:

Local Government Units:

Bontoc, Mt. Province, Region CAR
Hungduan, Ifugao, Region CAR
Quirino, Isabela, Region II
Albay, Region V
Legaspi City, Region V
Camarines Norte, Region V
Castillo, Sorsogon, Region V
Gubat, Sorsogon, Region V
Irosin, Sorsogon, Region V
Juban, Sorsogon, Region V
Danao, Cebu, Region VII

Government Corporation

Employee’s Compensation Commission
Home Mutual Development Fund, Bicol Area

State Universities and Colleges

Isabela State University, Region II
Bulacan Agricultural State College, Region III
Don Honorio Ventura Technological State University, Region X
University of Science and Technology of Sorsogon Philippines-CDO Campus, Region X

National Government Agencies

National Book Development Board- DepEd
Ligao City Division Office-DepEd
National Tax Research Center- DOF
Parole and Probation Administration- DOJ
National Defense College of the Philippines- DND
Tariff Commission- NEDA
Governance Commission for GOCCs
Housing and Urban Development Council

Hall of Fame Awardee:

Home Development Mutual Fund

INSPIRATIONAL MESSAGE

Chief Atty. Persida V. Rueda-Acosta

Public Attorney’s Office (PAO)

The Guest Speaker stressed that the PAO has assisted thousands of clients relative to the drug campaign of this Administration, a testament that there are no extrajudicial killings in the country. Further, she emphasized the following recent gains of the Office relative to its pending legal cases, among others:

Public Attorneys are not required to be Career Executive Service Officer (CESO) to become permanent in the government service, under the PAO Law (Republic Act No. 9406)
Retirement Pay for PAO Retirees

DAY 2: OCTOBER 19, 2017 (Thursday)

Master of Ceremonies: Ms. Charie Sarah D. Saguing and Mr. Alejandro B. Coscos

Moderators: Ms. Cecilia B. Camon and Mr. Nilo B. Abrigar

TECHNICAL SESSION

Implication and Impact of Maintaining the Peace in a Borderless ASEAN

Dir. Gen. Ronald “Bato” Dela Rosa

Philippine National Police (PNP)

The Resource Speaker highlighted that upholding law and order within the borders primarily hinges on economic and social development and political stability.

PNP as member of the ASEANA POL[1] has access to ASEAN-wide communication network and database for national police agencies which is hosted in Singapore and linked to the International Police Organization (INTERPOL). The database broadens the horizons of crime fighting capability as a united multi-national police force and facilitates the following:

Timely exchange of intelligence and information
Accurate processing of information
Coordinated operations between international police forces

Further, it was pointed out that the PNP is a signatory to a tripartite agreement with the Indonesian National Police and the Royal Malaysian Police. The strong tri-agency maritime police presence has effectively deterred piracy, smuggling of drugs and contraband, human trafficking and border infractions.

ASEAN Integration: Effects and Implications to the Philippine Government Financial Sector

Treasurer Rosalia V. De Leon

Bureau of Treasury (BTr)

The discussion revolved around the what, why, how and when relative to the effect and implication of the ASEAN integration on the financial sector of the Philippines.

What: Objective is to create a stable, prosperous, and highly competitive ASEAN where there is free flow of goods and services and where capital land investments flow easier between member states.

Why: Successful integration of the ASEAN community will result in increased opportunities in our financial sector. Greater foreign equity participation is expected to lead to better competitiveness for our financial services industry. Regional integration can boost the capitalization of local industry players, thus allowing them to be more resilient against financial shocks. It is also expected that the integration will result to improvements in the domestic financial infrastructure, reductions in the cost of financial intermediation, mobilization of more savings, and generation of more employment opportunities.

How and When: The ASEAN has jointly put timeline to further this vision. The ASEAN Economic Community (AEC) blueprint 2025 has three strategic objectives: first, the strengthening of financial integration aimed at facilitating intra-ASEAN trade and investment; second, promoting financial inclusion through the delivery of financial products and services to underserved communities; and lastly, ensuring financial stability through the continuous strengthening of regional infrastructure.

Updates on PhilHealth Benefit

Gregorio Rulloda

The former AGAP President highlighted that the PhilHealth has increased its disbursement rate in view of the increased awareness of its members on the benefits. Significant reforms were recently adopted such as the increased provision for dialysis and chemotherapy from45 days to 90 days, and the implementation of the Electronic Premium Remittance System, among others. He also emphasized the new provisions of the proposed GAA for CY 2018.

An Open Forum subsequently followed the discussion.

Right Sizing Bill: Making the Philippine Bureaucracy Competitive

Assistant Secretary Myrna S. Chua

Department of Budget and Management (DBM)

The rightsizing of the NGAs will improve effectiveness, efficiency, responsiveness and progressiveness. It aims to address government dysfunction such as:

Agencies with redundant, duplicating or overlapping functions
Agencies that have outlived their functions
Agency funds that could be better undertaken by the private sector or the LGU

Challenge is finding the right mix of organizational structure, staffing and systems that will simplify operations, reduce processing time, facilitate service delivery. It was clarified that the program is not outright downsizing, not a forced retirement/separation of personnel and not an early retirement program

Mandatory Coverage: All departments/agencies of the Executive Branch and GOCCs covered by the DBM. Excluded in the program are:

Teaching and teaching-related positions in schools
Medical and allied medical items in hospitals/medical facilities
Military and uniformed personnel
Positions in GOCCs/GFIs covered by GCG (RA 10148, s. 2010)

Optional Coverage:

Legislature (Senate and House of Representatives)
Judiciary
Constitutional Offices
Office of the Ombudsman
LGUs

Procedure/Timeline of Program Implementation (whole program will take a span 2 to 3 years)

Executive Order (EO) on rightsizing organizational structure of agency within 250 dys from effectivity of the IRR.

Detailed Organizational Structure and Staffing Pattern within 90 days after the approval of the EO.

Availability of Benefits: Within sixty (60) days after DBM approval of organizational and staffing pattern

Benefits of Affected Personnel:

Retirement Benefits under existing laws (R.A 1616 [Take-All], R.A. 660 [Magic 87], R.A. 8291 [ The GSIS Act of 1997])

Separation Incentives (with required five [5] years minimum government service), computed as follows:

5 to 11 years: ½ of actual monthly basic salary[2]

11 to 21 years: ¾ of actual monthly basic salary

21 to 31 years: actual monthly salary

31 years and above: 1 ¼ of actual monthly basic slaary

Commutation of Unused Vacation Leave and Sick Leave Credits

Refund of Pag-IBIG contributions

Other provisions:

Number of personnel to avail of separation incentives shall not exceed of positions declared by agency for abolition

Affected personnel, if with permanent appointment, who will not opt to retire will be placed in the Civil Service Commission (CSC) manpower pool

CSC to retool them and deploy to agencies

DAY 3: OCTOBER 20, 2017 (Friday)

Master of Ceremonies: Ms. Myrna K. Sebial and Mr. Gregorio C. Rulloda

Moderators: Ms. Marichu Palafox and Mr. Renato L. Limsauco

TECHNICAL SESSION

Investment Options: How to Make Your Money Grow

Prospects of the Philippine Financial Market

Mr. Jed Velarde

Mr. Alfredo B. Reyes

Bro. Eugenio “Bo” Sanchez

Mr. Edward K. Lee

Wise Investing Towards a Richer Life (Mr. Jed Velarde)

The Resource Speaker emphasized the importance of being financially WISE (i.e., Welcome Learning Opportunities, Invest Intentionally, Strategize Consistently, Enjoy Purposely).

WELCOMING LEARNING OPPORTUNITIES

Simply saving is not enough. Save to invest.

Why Invest? The most effective way to build your personal wealth and reach your financial goals.

INVEST INTENTIONALLY

Stock market explained to a 3-year old: It is a place where ordinary people like you and I will partner with successful businessmen. You make money through price appreciation (e.g., JBC P15/share in 2002; P101/share in 2010; P247/share in 2017) and earning dividends.

STRATEGIZE CONSISTENTLY

Don’t place your short term money in a long term investment

Peso Cost Averaging: a personal wealth building strategy that involves investing a fixed

amount of money at regular intervals over a long term period. It is designed to reduce market risk by stretching out the purchase of stocks over time, buying more when prices are low and buying less when it is high, effectively keeping your average cost.

Recommended list of good companies to buy (GEMSS)

Growing industry
Earnings visibility / predictability
Management credibility
Superior products or services
Strong Balance Sheet

ENJOY PURPOSEFULLY

A richer life is an overflowing life

Investing in a More Diversified Aspect(Mr. Alfredo Reyes)

The Resource Speaker discussedan effective wealth approach which is to (1) Set aside fixed amount of money every month; (2) Strengthen commitment at regular intervals; and (3) Focus on the long term horizon. The discussion focused on addressing the following questions:

Why: Financial Independence

What: Invest in the Stock Market (PSE Index Fund[3])

How: Peso Cost Averaging (Easy Investment Program)

It was emphasized that the easiest and least costly mode of investment is through an Index Fund. In determining how much money should be ideally invest- the prescribed formula to compute the equivalent value of a portfolio after 25 years is based on one’s monthly salary multiplied by 1,000.

How to grow truly rich?

Bro. Bo Sanchez

The Resource Speaker shared how he journeyed and changed his mindseton becoming rich. He realized that the ultimate purpose of wealth is to love others. It is not to serve you, not only to have comfort and convenience in life. If you get that- then you would be wealthy and happy. It is important that we earn as much as you can so that you can give as much as you can.

Importance of Financial Literacy

Chairman Edward Lee

The Resource Speaker explained the value of being financial independent. The reason why people fail financially is because there is lack of knowledge on the basic laws of money (i.e., Save 10-20% of your income; Invest it; Reinvest it to benefit from the power of compounding).

To prove that investment in stock is a viable option in the long term, a comparative computation of the compounded rate of return in time deposit vs stocks was presented. For Time Deposits, an investment value of P1 million in year 2007 became P1.4million in 2017; Investment in BDO became P8.67million in 2017; Investment in BPI became P5.27 million in 2017.

Investing is not complicated. The most difficult is the savings part, it is the discipline to invest it for one’s future. He explained how compounding works. However, the rule is to invest only 20% of your income because of the inherent volatility of stock investment.

Budget Reform Bill

Atty. Maria Paula B. Domingo

DBM

Objectives: To strengthen government’s accountability to the people for its use of public funds through greater transparency and facilitates the delivery of public goods and services through a more efficient budget system.

It is a landmark law that modernizes the public financial management system by addressing key gaps and aligning with international standards and best practices
It strengthens Congress’ power over the purse and enables it to better authorize and oversee the Budget
It secures the irreversibility of budget reforms so far established by COA, DBM, DOF, NEDA.
It supports the implementation of the New Budget Reform.
It supports citizen’s participation and access to public information.

Key Features:

Fiscal Responsibility Principles

Financial Management

Shift from accrual based to cash basis budgeting
Shift from two-year to one-year validity of appropriations
Introduction on the Extended Payment Period
Unified Accounting Code Structure (UACS)
General Appropriations Act (GAA) as Allotment Order
Multi-Year Contracts
Early Procurement
Program Budget Structure

Planning, Budgeting and Performance

NGAs produces Annual Plan and Proposed Budgets

Monitoring and Evaluation of Projects to cover planned versus actual performance, citing reasons for deviation and/or poor absorptive capacity as inputs for the review of annual plan and proposed budget

Government Owned and Controlled Corporation (GOCC) submits Corporate Budget to the DBM and Department of Finance (DOF)
Upholds people empowerment through participatory budgeting

Budget Execution and Congress’ Power of the Purse

Rationalization of Funds (i.e., Special Appropriations Bill and Three-Year Sunset for New Special Account in General Fund [SAGF])
One Fund Concept
Savings and Modification
Savings can only be declared due to completion, discontinuance, or abandonment and improved service and delivery. Discontinued or abandoned projects cannot be proposed for the next two (2) years. However, it cannot be considered savings if incurred due to fault or negligence of the agency.

Augmentation can only be made if there is an item of appropriation that is deficient.

Modification can be done to change allotment within existing project, activity or program.

Congress’ Shared Responsibility (i.e., shared fiscal responsibility, re-enacted budget and impoundment of appropriations)

Automation of PFM Process

Treasury Single Account (TSA): unified structure of government bank accounts enabling consolidation and optimum utilization of the National Government’s cash resources
Integrated Financial Information Management System (IFMIS)
Establishment of the Office of the Comptroller General

Accountability and Reporting
Delineated functions of the Congress, Commission on Audit, Office of the Comptroller General and the Agency Comptroller
Participatory Budgeting

Enforcement and Implementation

Sanctions for non-compliance with reporting and posting requirements
IRR to be issued by the DBM in consultation with the DOF, BTr, National Economic Development Authority (NEDA), COA and other agencies concerne

[1]Other member countries are Brunei, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, Singapore, Thailand and Vietman

[2]Actual monthly basic salary shall refer to the salary of the affected personnel as of the date of approval of his/her agency’s detailed organizational structure and staffing by the DBM.

[3]Index Fund is a type of mutual fund with a portfolio constructed to match or track the components for a market index.