WHEREAS, Section 28, Article II of the Constitution declares it a policy of the State to adopt and implement full public disclosure of all its transactions involving public interest;

WHEREAS, Section 7, Article III of the Constitution provides that the right of the people to information on matters of public concerns shall be recognized;

WHEREAS, under Section 2 of Republic Act No. 11032 or the "Ease of Doing Business and Efficient Government Service Delivery Act of 2018," the State shall promote integrity, accountability, and proper management of public affairs and public property, and establish effective practices to ensure efficient turnaround of delivery of government services and prevention of graft and corruption by mandating national government agencies (NGAs) to reengineer systems and procedures;

WHEREAS, Executive Order No. 55 (s. 2011) directed the integration and automation of government financial management systems to facilitate generation of vital information on any and all aspects of government financial transactions, and greater participation of civil society organizations in fiscal governance, as well as the effective and efficient delivery of public services;

WHEREAS, the continued development and implementation of the Integrated Financial Management Information System (IFMIS) will: (i) enable greater financial management and control of oversight and government agencies; (ii) ensure strict compliance with existing appropriations laws, rules and regulations, as well as government accounting standards and policies; (iii) significantly improve treasury cash management; (iv) facilitate the generation of financial reports; and (v) ease reportorial requirements from the various levels of government;

WHEREAS, the Administration is committed to improve bureaucratic efficiency by capitalizing on digitalization initiatives to ensure swift and efficient delivery of services to the public; and

WHEREAS, Section 17, Article VII of the Constitution vests in the President the power of control over all executive departments, bureaus and offices, and the mandate to ensure the faithful execution of laws;

NOW, THEREFORE, I, FERDINAND R. MARCOS, JR., President of the Philippines, by virtue of the powers vested in me by the Constitution and existing laws, do hereby order:

Section 1. Coverage. All departments, agencies, and instrumentalities of the National Government, including government-owned or -controlled corporations (GOCCs), are hereby directed, and all local government units are hereby directed, and all local government units are hereby encouraged, to adopt and implement the IFMIS in the processing of government financial transactions, consistent with Section 4 hereof.

Section 2. Reengineering of Public Financial Management (PFM) Processes and IFMIS. In the transition to full digitalization of PFM processes through the IFMIS, the PFM Committee, composed of representatives from the Department of Budget and Management (DBM), Department of Finance (DOF), Commission on Audit (COA), and Bureau of the Treasury (BTr), is hereby directed to:

a. Conduct policy and process review of key PFM processes, including budget management, budget execution, cash management, and accounting and reporting, to pinpoint prevailing bottlenecks and update corresponding policies accordingly;

b. Reengineer PFM processes and maximize the use of financial systems to ensure seamless government transactions; and

c. Devise strategic plan through the development of a PFM Reforms Roadmap to expedite the development of IFMIS, while ensuring harmonization of policies across oversight agencies.

Section 3. PFM Committee. The PFM Committee shall continue to lead the development and implementation of PFM reforms. For this purpose, the Committee shall perform the following functions:

a. Devise a five (5)-year plan for the development and implementation of the IFMIS that links NGAs with DBM. DOF, COA, and BTr to enable generation of comprehensive, accurate, reliable and timely consolidated financial and budgetary reports for oversight and implementing agencies;

b. Oversee, coordinate, and develop integration, simplification, and harmonization of the government's financial management processes and information systems, which shall cover all transactions of government in a systematic manner, and shall apply uniformly to all government oversight and implementing agencies;

c. Develop, oversee, and conduct comprehensive mid-term review of the implementation of the PFM Reforms Roadmap;

d. Shepherd and champion the passage of supporting legislation in Congress;

e. Coordinate budgetary and donor funding to support PFM reform efforts;

f. Provide comprehensive annual reports on all project milestones, findings, and recommendations to the Office of the President; and

g. Issue necessary implementing policies, mechanisms, and procedures to carry out the objectives of this Order.

Section 4. Transition to the Full Implementation of the IFMIS. The PFM Committee shall issue guidelines as to the transitional arrangement to be followed by covered agencies in the transition to full adoption of the IFMIS. The transitional arrangement shall take into account the results of the PFM policy and process review, technological infrastructure requirement, and capacity development interventions needed.

Section 5. Technical and policy Support. The Department of Information and Communications Technology is hereby directed to provide technical and policy support in the development and implementation of the IFMIS.

Section 6. Funding. The initial funding requirements necessary for the implementation of this Order shall be charged against the respective appropriations of NGAs, and respective corporate operating budgets of GOCCs, subject to availability thereof and compliance with pertinent budgeting and accounting laws, rules and regulations. thereafter, the funding requirements necessary for the continued implementation of this Order shall be included in the budget proposals of the covered agencies, subject to the usual budget preparation process.

Section 7. Separability. If any provision of this Order is declared invalid or unconstitutional, the other provisions not affected thereby shall remain valid and subsisting.

Section 8. Repeal. All orders, rules and regulations, issuances or parts thereof, which are inconsistent with the provisions of this Order, are hereby repealed, amended or modified accordingly.

Section 9. Effectivity. This Order shall take effect immediately upon its publication in the Official Gazette or in a newspaper of general circulation.

DONE, in the City of Manila, this 1^st day of June, in the year of Our Lord, Two Thousand and Twenty Three.