Dear Colleagues in the Accountancy Profession,

Warmest greetings and peace.

INTRODUCTION and PGS ROADMAP HISTORY

For almost eight (8) years now since 2006, it is important to note that the Professional Regulations Commissions (PRC) with the Board of Accountancy (BOA) and the Philippine Institute of Certified Public Accountants (PICPA), through its Performance Governance System (PGS) Committee and with the Accountancy Profession's Stakeholders , have been continuously working with the Institute for Solidarity in Asia (ISA) for the Institutionalization of the Accountancy Profession.

ISA is a non stock, non profit , non government organization that advocates good corporate governance reforms and believes in making governance a shared responsibility. Its ultimate aim is to maintain a cutting edge and international recognition for our country. ISA is also the international accredited organization which recognizes and awards various organizations for complying with the PGS Pathway for Good Governance.

The Performance Governance System (PGS) is a governance framework that utilizes a balanced scorecard as a tool to incorporate good governance, best practices and principles into the practice of different professions, as well as government agencies and interested private companies, with the ultimate goal of contributing to national development.

We will recall that through the years starting its kick off in 2006 when the Roadmap for the Accountancy Profession was designed, the Institute for Solidarity in Asia subsequently and continuously recognized the Accountancy Profession for its commitment to comply with the PGS Pathway for Good Governance. There are four stages in the PGS Pathway for Good Governance and they are the Initiated, Compliant, Proficient and Institutionalized Stages.

In 2007, ISA recognized that the Accountancy Profession has responded to the call to come up and adopt a Roadmap for the Profession. In 2008, ISA awarded the Initiated and Compliant stages to the Accountancy Profession when PRC - BOA had started working closely with PICPA and brought the strategy execution to the level of PICPA chapters and developed mechanisms to adopt strategy alignments and strategy monitoring systems in the attainment of its Vision, Mission and Goals

VISION, MISSION , CORE VALUES

To recap, the 2015 Roadmap of the Accountancy Profession state our Vision, Mission, Core Values and Strategies and they are as follows:

VISION : A dynamic force towards national prosperity and excellence with a global perspective.

MISSION : The Accountancy Profession, being in the forefront of all activities related to the economic growth and development of the country and attainment of national growth and objectives , commits to implement the Code of Good Governance for the Professions in the Philippines. Towards this end, the Accountancy Profession shall endeavor to:

1. Build a growing pool of accountants who are dynamic, proactive, responsive and innovative leaders in the advancement of knowledge and the improvement of the quality of life;
2. Direct the Accountants toward a higher level of competence in their field of work and strict adherence to the code of conduct , and in this regard, to have ethical commitment , ethical awareness and ethical competency; and
3. Provide a culture of excellence so that accountants could develop strong values of commitment, rationality, expertise and responsibility.

Core Values - Service to Others, Integrity, Professional Excellence / Competence, Innovation, Solidarity and Teamwork, Spirituality

In 2009, we were recognized and awarded by ISA with the PROFICIENT stage in the PGS Pathway Journey of the Accountancy Profession because of our continuous commitment in implementing and accomplishing our Strategies to achieve our Vision, Mission and Goals as stated in our Roadmap. Enclosed herewith is our detailed 2015 Roadmap for the Accountancy Profession for your reference.

CURRENT PROGRESS OF THE PGS ROADMAP AND STRATEGIES

Currently, we are now working on the INSTITUTIONALIZATION stage of the Accountancy Profession. And our target timetable for this is on September 2014. To finally achieve this, ISA had allowed us to have Focused Strategies to achieve Breakthrough Results and they are included in the 2015 Strategy of the Accountancy Profession slides attached herewith , details of which are for your reference and they are as follows:

1. Strategic Outcome
   1. Increase in the number of compliant companies with PFRS by 50 % of 500 target corporations by 2015 (50 in 2013, 75 in 2014, 110 in 2015)
   2. Increase in the number of accredited auditors subjected to Quality Assurance Review (QAR) through SEC Review and Inspection from 0 to 100 by 2015 ( 10 in 2014, 90 in 2015 )
   3. Increase in the number of practitioners trained for QAR from 0 to 300 by 2015 (30 in 2014, 270 in 2015)
2. Core Process Strategies
   1. Promote collaboration of individual practitioners for QAR purposes - (From 1 Firm in 2013 to 5 Firms in 2015)
   2. Audit practitioners establish a competitive range of audit fees to improve service delivery - ( From 1 Firm in 2013 to 5 Firms in 2015)
   3. Development of QAR guidelines for cascading to the chapters and other sectors of the Accountancy Profession - Done
3. Support Process Strategies
   1. Install an integrated database system of all practitioners - ( From 100 % in 2013 to 100 % in 2015 )
   2. Enhance training for all professional accountants in view of the changing landscape in corporate finance - (From 100 CPAs in 2013 to 300 CPAs in 2015)
   3. Tap funding sources from government, business, and the donor community to support QAR. - (From P3M in 2013 to P7M in 2015)

URGENT CALL for SUPPORT and COOPERATION

We will need all PICPA chapters and various sectoral organizations (units) implement strategies to achieve above targets. We will have our Office of Strategy Management (OSM) Head PICPA Technical Director Eugene Villaceran circulate Scorecards to measure performance of each unit.

As we can see, there is a high probability that we can achieve these targets if all sectors of the Accountancy Profession support and cooperate in the attainment of our commitments above and work on the achievement of these Breakthrough results, we could achieve this long overdue stage of INSTITUTIONALIZATION for the Accountancy Profession.

We have just recently seen in the newspapers of national circulation that the Philippines has obtained its highest credit rating in history (BBB classification from S & P, one notch above minimum investment grade rating for the country which was previously "BBB-"), in recognition of the reforms undertaken by our government allowing the country to outperform its Southeast Asian neighbors in terms of economic growth. And of course, this also became possible for the country with and through the professional and excellent performance of CPAs in the various sectors of the Accountancy profession.
Truly our vision in the Roadmap that by 2015, the Accountancy Profession's Vision becomes a reality - " A Dynamic Force Towards National Prosperity and Excellence with a Global Perspective ."

We can make this happen with everyone's support and cooperation! Let us make this Happen!
Mabuhay and God bless us ALL,

The PICPA PGS Committee FY 2013-2014

(SGD)
Ma. Asuncion Golez, Chair

(SGD)
Normita Villaruz, Co-chair

(SGD)
Violeta J. Josef, PICPA National President