President Ferdinand "Bongbong" Marcos Jr. has issued Executive Order (EO) No. 29, tasking all government offices and local government units (LGUs) to adopt and implement an integrated financial management information system (IFMIS) in their transactions with the general public.

President Ferdinand 'Bongbong' Marcos Jr. (Ali Vicoy)

The EO, signed by Executive Secretary Lucas Bersamin on Thursday, June 1, aims to strengthen the integration of the Public Financial Management (PFM) information systems, therefore streamlining processes in government transactions.

"The Administration is committed to improving bureaucratic efficiency by capitalizing on digitalization initiatives to ensure swift and efficient delivery of services to the public," Marcos said in his newest order.

The President added that IFMIS would enable greater financial management and control of oversight and government agencies and ensure strict compliance with existing laws.

The continued use of IFMIS would also significantly improve treasury cash management, facilitate the generation of financial reports, and ease reportorial requirements from the various government levels.

With this, President Marcos ordered government offices, LGUs, and government-owned or -controlled corporations to adopt and implement an IFMIS in their transactions.

The EO was issued based on the recommendation made by the Private Sector Advisory Council (PSAC) for the Digital Infrastructure group to help promote efficiency, transparency, and ease of doing business with the government.

JUST IN: In line with his campaign to improve bureaucracy through digitalization, President Marcos orders all government offices and LGUs to adopt and implement an integrated financial management information system in their transactions with the general public. @manilabulletin pic.twitter.com/yTzTNGDElJ

— Argyll Cyrus Geducos (@argyll_mb) June 1, 2023

Public Financial Management Committee

The EO entails the creation of a PFM Committee, composed of representatives from the following agencies to help in the transition to full digitalization of the PFM processes via the IFMIS:

• Department of Budget and Management (DBM)
• Department of Finance (DOF)
• Commission on Audit (COA)
• Bureau of Treasury (BTr)

Under the EO, the PFM Committee will conduct a policy and process review of key PFM processes, including budget management and its execution, cash management, and accounting and reporting to pinpoint bottlenecks and update corresponding policies.

It is likewise tasked to re-engineer PFM processes and maximize the use of financial systems to ensure seamless government transactions and devise a strategic plan through a "PFM Reforms Roadmap" to expedite the development of IFMIS while ensuring harmonization of policies across oversight agencies. 

The PFM Committee will also develop a five-year plan for developing and implementing the IFMIS that links national government agencies with DBM, DOF, COA, and BTr. It shall oversee, coordinate, and build integration, simplification, and harmonization of the government's financial management processes and information systems and develop, manage, and conduct a comprehensive mid-term review of the implementation of the PFM Reforms Roadmap.

According to the EO, the PFM Committee must "shepherd and champion the passage of supporting legislation in Congress; coordinate budgetary and donor funding to support PFM reform efforts; provide comprehensive annual reports on all project milestones, findings, and recommendations to the Office of the President; and, issue necessary implementing policies, mechanisms, and procedures to carry out the objectives of the Order."

The Committee is also directed to issue guidelines about the transitional arrangement to be followed by the concerned government agencies in the full adoption of the IFMIS.

"The Department of Information and Communications Technology is at this moment directed to provide technical and policy support in the development and implementation of the IFMIS," the EO read.