Title
Guidelines for Streamlining Agency Operations
Law
Dbm National Budget Circular No. 427
Decision Date
Sep 1, 1992
DBM National Budget Circular No. 427 outlines the guidelines for streamlining government agency operations, focusing on the rationalization, abolition, or expansion of functions, activities, and projects to enhance efficiency and align with government priorities.
A

Definitions of Key Terms in Streamlining Functions, Activities, and Projects

  • Program: Major purpose-related functions and activities requiring agency establishment.
  • Project: Component of a program with identifiable output implemented within a timeframe.
  • Abolition: One-time elimination of a function, activity, or project.
  • Phase-out: Gradual elimination through sequential abolition of components.
  • Scale down: Reduction in intensity, coverage, services, or outputs.
  • Strengthening/Expansion: Increase in targets, outputs, resources, or widened coverage.

General Principles for Streamlining Functions and Projects

  • Prioritization based on contribution to agency mandate and government priorities.
  • Exclusion of functions devolved to local government by the Local Government Code.
  • Abolitions must not violate existing laws or enabling agency acts.

Specific Guidelines for Abolition or Phase-out

  • Remove functions/projects irrelevant to agency mandate or government priorities.
  • Eliminate duplicative, overlapping, redundant, or outdated functions.
  • Abolish functions/projects not achieving objectives or cost-inefficient.
  • Consider abolishing areas unnecessarily duplicated by the private sector.

Criteria for Scaling Down Functions and Projects

  • Reduce geographical coverage, focusing on priority areas.
  • Limit demographic or clientele coverage to most urgent needs.

Criteria for Expansion or Strengthening

  • Incorporate necessary but currently unaddressed functions under related programs.
  • Strengthen priority functions by expanding coverage, types of services, quality, and resource inputs.

Department/Agency Formal Structure: Definitions and Principles

  • Organic units: Internal parts of departments such as bureaus and offices.
  • Attached agencies: Entities attached for coordination but with separate budgets.
  • Clear function distribution among units required.
  • Units created by law may be rendered dormant but not abolished if their functions cease.
  • Units without legal creation may be abolished if functions removed.
  • Internal structure may be streamlined or expanded without increasing total organic units.

Guidelines on Structural Changes

  • Merge or consolidate overlapping units with redefined functions and resources.
  • Expand units receiving transferred functions or expanded programs.
  • No creation of new attached agencies; existing ones cannot be abolished or merged.
  • Structure adjustments must not increase supervisory levels.

Staffing Pattern General Principles

  • Conform to Salary Standardization Law and position classification rules.
  • Promote unity of command and alignment of authority and responsibility.
  • Prioritize frontline and substantive function units for position distribution.
  • Salary budget should not exceed 1992 authorized levels.

Specific Staffing Guidelines

  • Regular positions must not exceed incumbents as of January 1992.
  • Vacant positions filled only with Civil Service Commission approval, aligned to streamlining goals.
  • Positions may be reclassified, merged, abolished, or created subject to laws.
  • All vacant or vacated positions from streamlining must be abolished.
  • Personnel transfers between units allowed under Civil Service rules.

Use of Savings from Streamlining

  • Savings defined as unencumbered balances after completion or abandonment of work or from unpaid costs.
  • Savings may augment agency programs, prioritizing salary standardization, bonuses, and retirement benefits.
  • Restrictions apply: no funds for unauthorized vehicles, foreign travel (except specific cases), unauthorized honoraria, or investment in non-government securities.
  • Budget modifications require DBM approval within 15 days.
  • Realignments must conform to approved work and financial plans.

Streamlining Process Recommendation

  • Agencies may adopt a planned process to facilitate streamlining of functions, structure, and staffing.

Reporting Procedure

  • Departments must submit comprehensive Streamlining Reports for all units and attached agencies.
  • Deadline for submission to DBM: October 3, 1992.

Provision of Technical Assistance

  • Department of Budget and Management to provide requested technical support.
  • Cooperation of agency officials is critical for success of streamlining efforts.

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