Report about Fiscal Management

OVERVIEW
 Managing physical assets is a constant balancing act for operational
efficiency.
 Understanding the true requirements of the different offices requires a holistic
view of the entire supply chain to minimize cost without compromising quality.
 Considering the significant investment of public funds in procuring these
resources, they have to be properly managed, controlled and recorded.
 Organizational units (Central, Regions, Divisions/Districts and Schools) of
DepEd are constantly faced with significant fluctuations in demand, supply
and movement of resources that require swift action based on determined
priorities.
 Likewise, uncertainty in transportation (e.g., most especially in far flung and
mountainous areas of the country) leads to higher inventory costs as the units try
to buffer their stock to meet demand.

What Is Procurement?
 Procurement is the act of obtaining goods or services, typically for
business purposes.
 Procurement is most commonly associated with businesses because companies
need to solicit services or purchase goods, usually on a relatively large scale.
 Procurement generally refers to the final act of purchasing but it can also include
the procurement process overall which can be critically important for companies
leading up to their final purchasing decision.
 Companies can be on both sides of the procurement process as buyers or sellers
though here we mainly focus on the side of the soliciting company.
 KEY TAKEAWAYS
o Procurement is the process of purchasing goods or services and is usually
in reference to business spending.
o Business procurement requires preparation, solicitation, and payment
processing, which usually involves several areas of a company.
o Procurement expenses can fall into several different categories,
depending on the procurement demand.
o Competitive bidding is usually a part of most large-scale procurement
processes involving multiple bidders.

Basic Concepts, Principles and Procedures

 Effective resources allocation based on implementation priorities rests on
Section 2 of Presidential Decree No. 1445 where it is the “declared policy of
the State that all resources of the government shall be managed, expended
or utilized in accordance with law and regulations, and safeguarded against
loss or wastage through illegal or improper disposition, with a view to
ensuring efficiency, economy and effectiveness in the operations of
government.”
  Strength and stability are very important ingredients of how proper
implementation of strategic initiatives leads to successful delivery of expected
outcomes.
 These two ingredients keep decision-making transparent and consultative in the
face of big and tough calls.

Procurement Manual
 DepEd has developed the Customized Agency Procurement Manual (CAM)
which is a generic procurement manual to systematize the procurement
process, ensure transparency and avoid confusion.
 This was subsequently approved by Government Procurement Policy Board
(GPPB) on May 30, 2008 in compliance with the provisions of Section 6 of R.A.
9184 and its IRR.

CAM Roll-out
 Through DepEd Order No. 69 s.2008 and its nationwide roll-out, the CAM
consists of:
1. Volume 1 - Establishment of Procurement Systems and Organization;
o The establishment of principles in a procurement system and organization
helps prevent fraud and conspiracies.
o Good principles to employ include accountability, transparency and fair
competition.
o Accountability helps ensures an entity's best interests, as well as those of
its business partners, are always considered.
o Transparency through the act of proper documentation helps show that
procurement methods were sound.
2. Volume 2 - Manual of Procedures for the Procurement of Goods and Services;
o Preparing for procurement basically involves three (3) activities:
procurement planning,
preparation of the bidding documents, and the conduct of the pre-
procurement conference.
 Procurement planning entails ensuring that plans for procurement
are linked to budgets, preparing the Project Procurement
Management Plan (PPMP) and consolidating all PPMPs into the
Annual Procurement Plan (APP). Formulating the PPMP involves
identifying the procurement project requirements, writing the
technical specifications, determining the ABC, identifying the
schedule of milestone activities, and determining the method of
procurement.
 The PPMP is then transformed into the bidding documents, which
ought to contain all the information a prospective bidder needs to
prepare its bid. Therefore, in preparing the bidding documents, one
has to ensure that these accurately and comprehensively reflect the
main elements of the PPMP.
  The pre-procurement conference is the forum where all officials
of the Procuring Entity involved in the project meet to discuss all
aspects of the said project to determine the readiness of the
Procuring Entity to undertake the procurement. The conference
focuses on the technical specifications, the Approved Budget for
the Contract (ABC), the appropriateness and applicability of the
recommended method of procurement, and the availability of
appropriations and programmed budget for the contract, the
procurement schedule, among others.
3. Volume 3 - Manual of Procedures for the Procurement of Infrastructure
Projects;
o What is the purpose of Procurement Planning?
 The purpose of procurement planning is for the Procuring Entity to
schedule its procurement activities in advance, consistent with its
approved budget and its target date of implementation.
 For infrastructure projects, the Annual Procurement Plan
(APP) shall consider the appropriate timing/phasing of related
project activities such as engineering design and acquisition of
ROW to reduce/lower project costs, among others.
4. Volume 4 - Manual of Procedures for the Procurement of Consulting Services.
o CONSULTING SERVICES are services for infrastructure projects and
other types of projects or activities of the government requiring adequate
external technical and professional expertise that are beyond the
capability and/or capacity of the Government to undertake such as, but not
limited to: (i) advisory and review services; (ii) pre-investment or feasibility
studies; (iii) design; (iv) construction supervision; (v) management and
related services; and (vi) other technical services or special studies. (IRR-
A Section 5 [i])
 The use of the manual is mandatory to all procuring entities as it was rolled-out to
regions, divisions, schools and other attached agencies for its adoption and
official use.