Data Gathering and Business Process Mapping for BTMS
Data Gathering and Business Process Mapping for BTMS
A series of activities is being done by the Joint Venture Team (JVT) in close coordination with the Project Management Office (PMO) to get BTMS up and running.
Since February of 2016, several interviews and focused group discussions were conducted with the officers and staff of every bureau, division, and/or unit of the Department of Budget and Management (DBM) and Bureau of the Treasury (BTr) involved in the performance of the financial management functions of the government. These meetings were called for to gather data for the JVT’s system developers to understand and map the existing business processes.
Two separate JVT groups were deployed, one for DBM and another for BTr. The DBM group documented the processes on the budget management as oversight function and the budget execution as spending function of DBM. The existing processes in budget management function revealed the following:
• the information about preparations of annual budget towards final and approved appropriations were managed by the Budget Preparation Management System (BPMS);
• the updates on appropriations, such as supplemental, adjustments, or transfers were handled separately and manually;
• the release of Allotments, except for the General Appropriations for Comprehensive Release, the creation of orders and its corresponding adjustments and transfers was managed by the eBudget System;
• the Monthly Disbursement Program (MDP) that plans the cash requirement of all spending agencies for the year and distributes them over 12 monthly period of the fiscal year was maintained in the budget accountability system called Unified Reporting System (URS);
• the eBudget System also handled the preparation and release of the disbursement authority for all government agencies in the form of Notice of Cash Allocations; and,
• the forms, registries and reports are manually prepared using preformatted excel files.
The BTr group documented the processes on the treasury management as an oversight function and the budget execution as a spending function of the agency. The existing processes in treasury management function revealed the following:
• the Treasurer of the Philippines (TOP) bank accounts are multiple physical and notional bank accounts held in different banks across the country: Treasury Single Account (TSA) at Bangko Sentral ng Pilipinas (BSP); accounts used to collect revenues on behalf of the Central Government at Authorized Agent Banks (AABs); Modified Disbursement Scheme (MDS) accounts used to disburse most payments for the National Government Agencies (NGAs) at Authorized Government Servicing Banks (AGSBs); accounts used to hold tax deposits and other collections at Authorized Government Depository Banks (AGDBs), etc.;
• in relation to foregoing, there is more than one reconciliation process because of the different bank accounts maintained by TOP, particularly reconciling the TSA with BSP, reconciling the MDS accounts with AGSBs, and reconciling tax and non-tax revenue collection accounts with AGDBs;
• the recording of receipts and disbursements includes recording revenue remittances to TSA, recording disbursements initiated by bank, and processing disbursements initiated by Treasury as an oversight;
• the cash forecasting process includes updating the MDPs and revenue targets, determining daily cash position and cash flows to/from sinking funds;
• to manage the cash balances of the government, the processes include replenishment of MDS accounts; transfers between TOP bank accounts; currency exchanges, recording government investments, and addressing fund deficit; and,
• to record debt transactions, the processes included the recording of loan disbursements and on-lending, processing of loan repayments, recording of issuance, servicing and redemption of government securities.
The consolidated documentation about the existing budget execution processes for both DBM and BTr revealed the following:
• the purchasing functions include the creation of Purchase Requests (PR), Purchase Orders (PO) and Receipt of Goods or Services in pre-formatted forms;
• there are functions that include creation of commitments without creating PRs or obligations without PRs in a pre-formatted Obligation Request and Status (ORS);
• the expenditure management functions basically include a creation and approval of Disbursement Vouchers (DV);
• the payments management includes functions on payments through preparation of manual checks or Advice to Debit Account (ADA), and manual preparation of monthly bank reconciliations; and,
• the general ledger functions include manual preparation and approval of pre-formatted Journal Entry Voucher (JEV), while the maintenance of ledgers and registries and financial reports are managed by the electronic National Government Accounting System (eNGAS or NGAS).
It was gathered that the agencies were currently using multiple standalone systems like the eBudget System and URS for budget management, eNGAS or NGAS for accounting and financial reporting, eMDS for cash disbursement, Debt Management and Financial Analysis System (DMFAS) for loan repayments, and electronic Registry of Scriptless Securities (nROSS) for servicing and redemption of government securities, and more.
Consultation workshops were also held with Power Users to confirm the above documented processes, arrive at acceptable parameters, and solicit more undocumented considerations. This was to ensure accurate system design and configuration. The As-Is, To-Be Process documentation came out in May 2016 and was finalized in August 2016.