Performance-Based Allocation Scheme Approved by DIDP Board
A landmark policy on project implementation was recently approved by the DIDP Board during its meeting last November 23, 2011. This is the Performance-Based Allocation (PBA) of project funds that the DIDP receives from the National Government through the Department of Agriculture for the implementation of the DIDP Integrated Food Security Program (IFSP). The implementation of the PBA will start with the CY 2014 budget of the DIDP IFSP based on the performance of the projects funded under the CY 2012 budget.
The PBA seeks to increase the effective use of scarce government resources for better delivery of public services through improved budget utilization and accountability, and strengthened incentives for good performance by defining sanctions and benefits that are linked to the achievement of expected results. This policy is likewise supportive of the National Government's reform agenda for a performance-based management of priority projects.
Under the PBA scheme, 3 factors will be considered in determining how the project funds from DA will be shared among the 10 member LGUs. These are: 1) submission of requirements for obligation of funds, 2) physical accomplishment vis-à-vis approved implementation schedule, and 3) liquidation of fund transfers.
Prior to its presentation to the DIDP Board, the PBA was refined through 2 cycles of consultative meetings with the DIDP member LGUs and DA RFU XI. Two options for the implementation of the PBA were deliberated, and the option that was approved by the Board has the following provisions:
- Funds will be forfeited if the complete requirements for obligation are not submitted within the deadline set by the PMO;
- The ratio of sharing between the provinces and component cities will still be factored since the LGU share will be based on the equitable sharing formula followed in the previous fund releases. However, only a percentage of this share will be allocated to the LGU to be computed as follows:
- (___% physical accomplishment at end of approved implementation schedule) x 0.85
- (___% liquidation of 1st and 2nd tranches of fund transfers under current year's release) x 0.05
- (___% liquidation of fund transfers under previous year's releases) x 0.1
- If the LGU gets a 100% accomplishment for all 3 conditions stated above, it will get its full share based on the original formula plus its share of the incentive funds, if any.
- The PMO and DA RFU XI will evaluate the performance of the LGUs in implementing their FMR projects, and rank them based on an agreed grading system and criteria. The top 2 LGUs from the Provinces and top 2 LGUs from the Component Cities will receive the incentive funds collected from the balances of the LGU shares.
- If all LGUs are able to complete their projects within the approved implementation schedule and have liquidated all fund transfers, there will be no changes in the equitable sharing of funds followed in the previous years.