The Budget and Treasury Management System (BTMS) is an integrated, web based information management system that will replace the existing budget management, execution, accounting and reporting systems. It will initially be utilized by the Department of Budget and Management (DBM) and the Bureau of the Treasury (BTr) under the Department of Finance for budget execution and accountability. BTMS will be implemented to improve the convenience, efficiency, accuracy and timeliness in fiscal management and reporting through the establishment of a centralized system covering budget execution and reporting in the oversight agencies, DBM and BTr.
According to the 2010 Public Expenditure and Financial Accountability (PEFA) Assessment, gaps and weaknesses of the Philippines’ public financial management (PFM) were identified as follows:
- lack of budget credibility
- not results-based budget
- lack of funding predictability
- weak budget oversight by Congress and the public
- weak cash management system
- no common budgetary and accounting classification
- weak monitoring of contingent liabilities
In addition, recent findings of World Bank’s 2016 Public Expenditure and Financial Accountability (PEFA) Assessment Report states the country’s PFM would be more efficient given the existence of an integrated financial management system that will provide a more accurate view of the government’s financial performance and management of public funds.
BTMS is the key technical component of the overall PFM Reform Program to simplify, harmonize, and improve the country’s financial management processes and related information systems. BTMS plays a vital role to carry forward, sustain, and actualize the gains of recent reforms, such as treasury cash management (i.e., the Treasury Single Account) and financial reporting to meet performance standards (i.e., the Unified Accounts Code Structure).
BTMS will be used to collect and organize government financial information through a central database that supports the following crucial PFM functions:
- Budget Management
- Commitments Management
- Payments Management
- Receipts Management
- Cash Management
- Property, Plant and Equipment
- Accounting and Fiscal Reporting
The BTMS portal is also included to serve as a point of contact between the Government of the Philippines (GOP) and the public audience. It features relevant information, documents, publications, and reports related to the Project and Public Financial Reforms of the country.
There are multiple PFM systems that are currently used by DBM and BTr . These are the following:
Debt Management and Financial Analysis System (DMFAS and nROSS) of BTr
Tax and Revenue Management Systems (e-TIS/Customs Systems/NCS) of BIR, BOC and BTr respectively
Budget Preparation Management System (BPMS) of DBM
Systems at banking institutions (Bangko Sentral ng Pilipinas /
Authorized Government Servicing Banks)
Budget Accountability System (URS) of DBM
One main objective of the BTMS project implementation is automation of manual processes, specifically for the following functions:
- Creation of forms such as Purchase Request, Purchase Order, Obligation Request and Status, Disbursement Voucher, Journal Entry voucher, and Payment Orders;
- Generation of Electronic Fund Transfers (EFT) in replacement of checks and ADA,
- Updating of registries and ledgers; and,
- Bank reconciliation.
BTMS will initially be implemented in the DBM and BTr as both oversight and spending agencies. COA will have access to support their oversight and auditing functions.
Once implementation is successful, the solution will be rolled-out to all government agencies for budget execution and accountability.
BTMS implementation aims to achieve the following key improvements in the PFM processes:
- The application of common budget controls and standards in the DBM and the BTr (and eventually the entire government) for transactions across the PFM lifecycle;
- Capturing the data once, at the source, and generation of reports as per specific needs of users, which avoids redundant efforts in data recording, data exchange, validation, formatting and reporting;
- Providing online and ready access to information on allocations, expenditure, liability, payments, balances, etc.; and,
- Improved transparency in the entire budget execution process.
The system will be implemented in phases: the BTMS Portal will be launched in March 2017, Budget Execution will also be launched in May 2017, Treasury Management in July 2017, and Budget Management in September 2017. The target date for the integrated BTMS Solution to be fully operational will be on 1 January 2018.
A series of activities is being done to get BTMS up and running. These include interviews and workshops with the solution provider and the GOP to ensure correct system design as well as capacity building and training of the system for the intended users in government. All stakeholders directly involved in the project are encouraged to become aware, provide feedback, and participate where needed in support of these activities.
Questions, comments, and suggestions can be sent to the BTMS Project Management Office (BTMS-PMO) through the following:
Address: ICTSS Office, 3/F DBM Boncodin Hall, Gen. Solano St., San Miguel, Manila
Tel No.: 735-4837; 791-2000 local 2660
Email Add: firstname.lastname@example.org
Information about BTMS will be posted and updated periodically on the portal, www.btms.gov.ph.