Program expenditure classification - Cristina CLASARA, Philippines

Program Expenditure Classification (PREXC) Restructuring an agency’s

budget by grouping all recurring activities and projects under the Program they contribute to

Understanding a Program’s Objective and providing performance indicators (outputs and outcomes) for each

Presenter

Presentation Notes

The Program Expenditure Classification (PREXC) approach is a 2-step process: (1) restructuring an agency’s budget by aligning all recurring activities and projects under programs; and (2) providing performance indicators (outputs and outcomes) for every program. PREXC is a refinement of the PIB. An MFO has become a general grouping of various outputs produced through different programs of an agency. In both the 2014 and the 2015 GAA, the performance indicators of the MFOs of many agencies do not capture the whole range and variety of the programs being delivered. We needed to get more performance information at a lower level in order to better understand how well an agency is operating. According to the OPIF, Programs are the level lower than the MFOs.

Objective Effect Through 1. Simplify the

budget structure Reduce the enormous information requirement of budget preparation and ease the burden of both the DBM and agency staff involved in budget formulation.

Grouping of the PAPs into Major Final Outputs (MFOs)

2. Linking planning and budgeting to provide a strategic perspective

Shift the focus of budget analysis in the DBM and discussion in Congress from detailed line-item inputs to what the allocations will achieve

Integration of performance information

Why do PREXC? Objectives of the PIB

Presenter

Presentation Notes

Now let us see why we need to do PREXC. The slide shows the objectives of PIB. First it wants to simplify the budget structure. Prior to PREXC, this is done by grouping the PAPs into MFOs or Major Final Outputs. This reduces the enormous information requirement of budget preparation and eases the burden of both DBM and agency staff involved in budget formulation. Second, PIB links planning and budgeting to provide a strategic perspective by integrating performance information. This intends to shift the focus of budget analysis both in DBM and in Congress from detailed line-item inputs to what the allocations will achieve.

Objective Through 1. Re-focus the grouping of

budget items from Outputs to Outcomes

Shift the grouping of PAPs from MFOs to Programs Include Outcome Indicators for every Program

2. Include Projects in measuring performance

Align Projects under Programs together with Activities

3. Simplify the budget Remove Sub-PAPs to ensure that all items of expenditure are in the same level in the UACS code

4. Respond to the lessons learned in terms of measuring performance indicators

Revise Performance Indicators based on an improved criteria

Why do the PREXC Approach?

Presenter

Presentation Notes

The objectives of PREXC are as follows: Refocus the grouping of budget items from outputs to outcomes. This is by shifting the grouping of PAPs from MFOs to Programs and including outcome indicators for every program. Include projects in measuring performance by aligning the projects (LFPs and FAPs) together with the activities under programs. Simplify the budget by removing sub-PAPs to ensure that all items of expenditure are in the same level in the UACS code. Respond to lessons learned in measuring performance indicators by revising the PIs based on improved criteria which include checking against the PDP-RM and the Sustainable Development Goals (SDGs) indicators.

Program An integrated grouping of activities and projects that contributes to a particular outcome of an agency

Should have the following: • Unique expected results/outcomes • A clear target population/client group external • A defined method of intervention (strategy/ies)

to achieve the desired result/s • A clear management structure that defines

accountabilities

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Presentation Notes

A Program should have at least one activity or project in it. Activity - a recurring work process that contributes to the implementation of a program or sub-program Project - a special undertaking carried out within a definite time frame and intended to result in some pre-determined measure of goods and services A Program’s appropriation is the total of the appropriations of the activities and projects in it

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A program with either a more specific method of intervention or more defined target clients that is contained within a bigger program of an agency Applicable when: - Program is too big - Program provides service to different groups of the same beneficiary type - There are different forms of interventions within the Program

PROGRAM NAME REGULAR ACTIVITY PROJECT (LFP)

Example of Program DOH- OSEC

310300000000000 Public Health Program 478,245,000 19,065,769,000 19,544,014,000

310303000000000 National Immunization Sub Program 7,437,044,000 7,437,044,000

310303100001000 National Immunization 7,437,044,000 7,437,044,000

Outcomes and Programs

Activities and projects contribute to the same outcome, they are part of the same program

Any item of expenditure that have the same objective falls under the same program

Any change, effect, or result brought about by an agency’s programs or strategies upon individuals, social structures or the physical environment

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Presentation Notes

As long as the activities and projects contribute to the same outcome, they are part of the same program. The items of expenditure that have the same objective fall under the same program.

DOH OSEC

GAS

General Management and

Supervision

Administration of Personnel Benefits

SUPPORT TO OPERATIONS

Health information

systems and technology dev’t

Support to regional delivery

to services

OPERATIONS

MFO 1: Health Sector Policy

Services

Formulation and development of National Health

Policies and Plans including

essential National Health Research

Dev’t of policies, support

mechanisms and collaboration for

int’l health cooperation

Health system dev’t program

including policy support

Formulation of policies,

standards and plans for

hospitals and other health

facilities

Nat’l Pharmaceutical Policy Dev’t including provision of drugs and

medicines , medical and dental supplies to make affordable quality drugs

available

Public health dev’t program Health policy

development

MFO 2: Technical Support Services

Health Human Resource

Development

Health Human Resource

Development

HHR Policy Dev’t and Planning for LGU and

regional support

Implementation of the Doctors to the Barrios

and RH Practice Program

Local health systems dev’t

and assistance Health care assistance

Assistance to private sector health centers

Disease prevention and

control

Epidiomology and disease surveillance

Elimination of disease as public

threat

Rabies control EPI

TB control Other infectious diseases

Environmental and occupational

health

Non-communicable

diseases

Family health and responsible parenthood

Operation of PMAC secretariat Health promotion

Health emergency

management HFEP

Barangay Health Stations

Rural Health Units

Public/LGU Hospitals

Special Hospitals

Operation of Regional Medical

Centers Operation of

Dangerous Drug Abuse Treatment

and Rehab Centers

Other Health Care Facilities

MFO 3: Hospital Services

National voluntary blood

services program and operation of

blood centers

Operation of special hospitals

Operation of regional medical

centers

Operation of drug abuse treatment

and rehab centers

MFO 4: Health Sector Regulation

Services

Implementation of health

regulations

Regulation of health facilities and services

Regulation of devices and

radiation health

Regulation of food and drugs

Operations of satellite

laboratories

Quarantine services

Regional health regulations

Access to preventive primary health care services improved

Access to quality hospital services improved

Safe and quality health commodities, health devices, health facilities and food

ensured

Department of Health - Office of the Secretary

Legend: Agency Name Cost Structure Organizational Outcome

MFO Activity/Project

Based on 2017 GAA

Presenter

Presentation Notes

Example: Organization Outcomes/Performance Indicators Access to promotive and preventive health care services improved Performance Indicators and Targets Percentage of children fully immunized (with BCG, OVP3, DPV3, HepaB, measles vaccines) before 12 months of age increased – Targets 95% Percentage of birth delivered in health facilities increased (RHUs, birthing homes, district and provincial hospitals, DOH hospitals and private hospitals) –Targets 85% Treatment success rate of Tuberculosis increased – Targets 95% MFO 2: Technical Support Services (Disease Prevention) Performance Indicators and 2017 Targets Number of commodities and services to LGUs: Vaccination, Doctors Hours, Nurses and Midwives – Targets 2,828,493,944 % of stakeholders who rate the commodity supply/service good or better – Targets 89% % of requests for commodities and human resource services met in full within 48 hours – Targets 90%

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Presentation Notes

Example: Organization Outcomes (OOs) Access to promotive and preventive health care services improved Public Health Program Output Indicators and Targets 1. Percentage of external clients who rated the technical assistance provided as satisfactory or better – Targets 85% 2. Percentage of fully immunized children – Targets 95% 3. Modern contraceptive prevalence rate – Targets 32.50% 4. Number of malaria-free provinces – Targets (Additional 13 provinces (cumulative: 45 provinces) 5. Number of filariasis-free provinces – Targets (Additional 6 provinces (cumulative: 41 provinces) 6. Number of rabies-free areas – Targets (Additional 6 provinces (cumulative: 47 areas) 7. Percentage of Anti-Retroviral Treatment (ART) eligible people living with HIV on ART – Targets 90% 8. Treatment success rate for all forms of Tuberculosis – Targets 90% 9. Premature mortality rate attributed to cardiovascular disease, cancer diabetes, and chronic respiratory diseases – Targets No annual target Output Indicators 1. Percentage of LGUs and other health partners provided with technical assistance on public health programs – Targets 80% 2. Average percentage of LGUs provided with at least 80% of commodities – Targets 80%

Example: Difference between old PIB (2017) vs PRECX Structure (2018)

OLD PIB (FY 2017)

Organization Outcomes/Performance Indicators

Access to promotive and preventive health care services improved

Percentage of children fully immunized (with BCG, OVP3, DPV3, HepaB, measles vaccines) before 12 months of age increased

95%

Percentage of birth delivered in health facilities increased (RHUs, birthing homes, district and provincial hospitals, DOH hospitals and private hospitals)

85%

Treatment success rate of Tuberculosis increased 95%

Example: Difference between old PIB (2017) vs PRECX Structure (2018)-cont.

MFO 2: Technical Support Services (Disease Prevention) Performance Indicators 2017 Targets

Number of commodities and services to LGUs: Vaccination, Doctors Hours, Nurses and Midwives

2,828,493,944

% of stakeholders who rate the commodity supply/service good or better

89%

% of requests for commodities and human resource services met in full within 48 hours

90%

Example: Difference between old PIB (2017) vs PRECX Structure (2018) – cont.

PRECX Structure 2018 Organization Outcomes (OOs)

Access to promotive and preventive health care services improved Public Health Program

Output Indicators 1. Percentage of external clients who rated the technical assistance provided as satisfactory or better

85%

2. Percentage of fully immunized children 95% 3. Modern contraceptive prevalence rate 32.50%

4. Number of malaria-free provinces Additional 13 provinces (cumulative: 45

provinces)

5. Number of filariasis-free provinces Additional 6 provinces (cumulative: 41

provinces)

6. Number of rabies-free areas Additional 6 provinces (cumulative: 47

areas)

Example: Difference between old PIB (2017) vs PRECX Structure (2018)-cont.

7. Percentage of Anti-Retroviral Treatment (ART) eligible people living with HIV on ART 90%

8. Treatment success rate for all forms of Tuberculosis 90% 9. Premature mortality rate attributed to cardiovascular disease, cancer diabetes, and chronic respiratory diseases No annual target

Output Indicators 1. Percentage of LGUs and other health partners provided with technical assistance on public health programs 80% 2. Average percentage of LGUs provided with at least 80% of commodities 80%

Program expenditure classification - Cristina CLASARA, Philippines

Government & Nonprofit

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