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Program Expenditure Classification

The document discusses the Program Expenditure Classification (PREXC) approach, which aims to reclassify budget items into outcome areas, improve performance measurements, and create a better budgeting and monitoring & evaluation system. It involves reclassifying agencies' budget structures from mission-focused organizations (MFOs) to programs, activities, and projects that contribute to specific outcomes. The PREXC seeks to link budgeting and planning by aligning programs with national development plans and results matrices, and helping agencies plan programs medium-term. It also discusses lessons learned from its implementation so far.

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OmiCastañar
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384 views

Program Expenditure Classification

The document discusses the Program Expenditure Classification (PREXC) approach, which aims to reclassify budget items into outcome areas, improve performance measurements, and create a better budgeting and monitoring & evaluation system. It involves reclassifying agencies' budget structures from mission-focused organizations (MFOs) to programs, activities, and projects that contribute to specific outcomes. The PREXC seeks to link budgeting and planning by aligning programs with national development plans and results matrices, and helping agencies plan programs medium-term. It also discusses lessons learned from its implementation so far.

Uploaded by

OmiCastañar
Copyright
© © All Rights Reserved
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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The Program

Expenditure
Classification
(PREXC) Approach
The Next Phase of the
Performance Informed

What is PREXC?
1. Re-classification of the budget items
into outcome areas
2. Improvement of the performance
measurements of government
agencies
3. A better budget system for M&E
4. A basis for organizing units in an
agency for better accountability

Reclassification: From MFOs to


Programs
- A program is an integrated grouping
of activities and projects that
contributes to a particular outcome
of an agency.
- As long as the Activities & Projects
contribute to the same outcome,
theyre part of the same Program

AGENCY
OO1

OO2

OO3

OPERATIONS

ST
O

MFO1 MFO
2

Current
MFO- based
Budget
Structure

LFP

FAP

MFO
3

Activities (Level 1)
& Projects / PAP
Activities (Level 2)
& Projects / SubPAP

Line
Items of
the
Budget

AGENCY
OO1

ST
O

OO2

OO3

OPERATIONS
MFO
1

MFO2

LFP

FAP

MFO3

AGENCY

GAS

Operatio
ns

STO
OO1

OO2

AGENCY

GAS

STO

Operations

OO1

Program
Expenditur
e
Program
Classificati
onSub-Program
Activity /
Projects

Line Items of the


Budget

OO2

Example Program
PS
Coastal & Marine Resource
Management Program
1. Management of Coastal &
Marine Resources
National Capital Region
Central Office
Protected Areas & Wildlife
Bureau
NCR - Proper

MOOE

CO

TOTAL

Program Name

301,333,0 53,700,0
00
00 355,033,000
198,533,0 6,500,00
00
0 205,033,000
54,843,00
0
54,843,000
46,949,00
0
46,949,000

Activity

7,680,000
214,000

Project

7,680,000
214,000

insert the various regional offices


and PENROs here
2. Development, updating &
implementation of the Manila Bay
Coastal Management Strategy
National Capital Region

102,800,0 47,200,0
00
00 150,000,000
102,800,0 47,200,0
00
00 150,000,000

Why put Activities &


Projects together?
1. Projects are part of a bigger
Program that a department / agency
is delivering.
2. A complete analysis of a Program
can only be done by including
Projects in the accomplishments.
3. The main difference between the
two is that Projects are time-bound.

Hierarchy of Outcomes
Societal Goal

PDP
Sectoral Outcomes
Organizational
Outcomes

GAA

Program
Outcome
Sub-Program
Outcome

Measuring Performance: Program


Profiles

The Program Objective


Statement
1. The Program Objective Statement
captures, in a few words, the RESULTS or
OUTCOMES of the Program.
2. Avoid using words such as: PROVIDE,
FORMULATE, CONDUCT, DRAFT, ISSUE
3. Instead use words that describe what
will happen to the intended beneficiaries
/ clients / sectors: IMPROVE, ENHANCE,
PROTECT, DECREASE

Refinement of Output
Indicators
1. Preference for Quantity Indicators that
are programmable before budget
execution
2. Focus on output levels that agencies
have more control over.
3. Application of Timeliness Indicators for
critical frontline services.
4. Consideration for the audit-ability of
reports on Output

Specifying Program Outcome


Indicators
- Outcome Indicators measure the
effectiveness of the program to
deliver its objective/s
- They are usually subsets of the larger
Organizational Outcome
- These should measure the effect of
the program on external clients

On-Going Roll-Out
- April: Final review of agency
submissions for
approval
- June: Encoding of all Programs, SubPrograms, Activities, and Projects to
a Reference
Library
- August / September: User testing of
modified,
PREXC-compliant
OSBP

Lessons & Observations


1. The level of detail of the Program Profiles
varies across and within agencies.
2. Some confuse Objective with Activity
3. Many agencies do not measure program
outcomes.
4. Ownership over outcomes is weak.
5. Coordination between Budgeting /
Finance, Planning, and Operations in
some agencies remain weak.

PREXC: Linking Budgeting &


Planning
1. How to align Programs to the PDP and
the RM?
2. How to help agencies plan their
Programs along a medium-term
timeframe?
3. How to relate Agency Programs to
cross-cutting Convergence Programs?
4. How to ensure results-orientedness
extends beyond planning offices?

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