Scope of Administrative Supervision
- DOF oversees general operations to ensure effective, efficient, and economical management without interfering in daily activities.
- It conducts management audits, performance evaluations, and inspections to determine compliance with DOF policies, standards, and guidelines.
- DOF can initiate corrective actions against violations, abuses, and maladministration.
- Budgets proposed by the GFIs are reviewed by the DOF but cannot be increased or added to by the Department.
- Limitations of DOF's authority include no control over personnel appointments/actions, governance over loans and contracts (subject to applicable laws and regulations), and no power to review or modify regulatory or quasi-judicial decisions made by GFIs.
Coordination of Policies, Plans, and Programs
- DOF reviews and coordinates policies, plans, and programs of GFIs, providing general policies either through its board representatives or directly to the boards.
- The Secretary of Finance may send observers to board or committee meetings if no DOF representative is appointed.
- Upon vacancies in the Development Bank of the Philippines board, DOF recommends a representative for appointment.
- General policies set by DOF serve as a framework for internal GFI policies.
- GFIs must comply with reporting systems that reflect program and project progress.
- Disagreements on policy interpretation unresolved between DOF and GFI leadership are escalated to the President for resolution.
- Coordination does not include day-to-day administration or internal operations, which remain under the GFI's executive officers.
Reporting Requirements
- GFIs’ operational reports mandated by their charters to be submitted to the President must be routed through the DOF.
- DOF reviews these reports and forwards recommendations to the President.
Implementation and Regulation
- The Secretary of Finance is authorized to promulgate rules, regulations, orders, circulars, and memoranda necessary to enforce this Order.
Creation of the GFI Monitoring Office
- Established under the Office of the Secretary of Finance to monitor GFIs.
- The Department of Finance, in coordination with the Department of Budget and Management, will reassign or transfer existing plantilla positions from DOF proper or GFIs to staff this office.
- Up to fifteen new plantilla positions may be created and funded upon DOF’s request, with appropriate salary grades, within sixty days.
Relation to Previous Orders and Effectivity
- This Order supplements Executive Order No. 211 s. 2000 and supersedes inconsistent executive orders, rules, and issuances.
- It took effect immediately upon signing on May 25, 2000.