FISCAL

MANAGEMENT
And THE ROLE OF THE SCHOOL HEAD AS FISCAL
MANAGER

1
 OPENING PRAYER
“In Our Hands” by David Pomeranz

2
 IN OUR HANDS
Like a little child, I've done lots of wishing Sometimes when I read the morning paper
Hoping it would make the world "OK" Something in my heart just wants to scream
I have wished upon a star Thought the world a better place
Then watched it moving farther away Till one dying child's face makes that seem
'Til today Still a dream

Nothing comes from waiting for tomorrow Then I hear my children's morning laughter
Hoping someone else will make it bright And I know there's still a choice that's mine
It's because of you and me After all the blinding smoke
I see a future flooded with light The fires of tomorrow still shine on

In our hands In our hands

There's a world in our care There's a world in our care
In our hands In our hands
Lies the power we share Lies the power we share
In our hands, it can grow In our hands it can grow
Even more than we know Even more than we know
When we all understand When we all understand
All that is in our hands All that is in our hands

There's a world in our care

In our hands
Lies the power we share
In our hands it can grow
Even more than we know
When we all understand
All that is in our hands
In our hands
In our hands
In our hands 3
 Objectives of the Session
Explain the basic concepts and principles of fiscal
management systems and processes
Identify the roles of the School Head as Fiscal Manager
Explain the different financial systems and processes
Identify the school financial operations as they relate to
government financial systems and processes;
Relate Planning, Budgeting & Accounting to ensure
alignment;
Strengthen commitment to principles of integrity,
transparency and accountability in managing public funds
and resources.
4
 ACTIVITY GAME

WHO WANTS TO BE A MILLIONAIRE

5
WHO WANTS TO BE A MILLIONAIRE

Sa Letrang E

THE A TEAM

Let’s Get FISCAL

WHO WANTS TO BE A MILLIONAIRE

LET’S GET FISCAL

An act providing for the

modernization, standardization and
regulation of the procurement
activities of the government and for
other purposes
A41R98

RA 9184
8
WHO WANTS TO BE A MILLIONAIRE
Sa Letrang E
It is the incurring of a liability, the payment
of cash, or the transfer of property for the
purpose of acquiring an asset or service or
settling a loss, when unqualified, the
accrual basis of accounting is assumed.
UPXENITEEDR

10
WHO WANTS TO BE A MILLIONAIRE

THE A-TEAM
An authorization made by law or other
legislative enactments of obligations to be
incurred and allowing payments to be
made with funds of the government under
specified conditions and/or specified
purposes.
ONPARORPIAPTI

APPROPRIATION

12
WHO WANTS TO BE A MILLIONAIRE

LET’S GET FISCAL

the ability to develop and manage

financial systems through
responsible stewardship of fiscal
resources.
 CISALF
EMATNGMENA

FISCAL MANAGEMENT

14
WHO WANTS TO BE A MILLIONAIRE

Sa Letrang E
It is the data source for the MOOE;
comprised of information such as number
of students, number of teachers.
SBEIE

EBEIS
16
WHO WANTS TO BE A MILLIONAIRE
THE A-TEAM
Supplies, Cash, School Buildings are
just some example of this accounting
term
SATSE

ASSET
18
WHO WANTS TO BE A MILLIONAIRE

LET’S GET FISCAL

It is the role that the school

principal takes in ensuring the
resources are accounted for
accurately
 AFLISC
GNAMERA

FISCAL MANAGER

20
WHO WANTS TO BE A MILLIONAIRE
THE A-TEAM
An authorization issued by the DBM
which allows agencies/offices to incur
obligations up to a specified amount
that is within a legislative
appropriation as reflected in the
Advice of Allotment.
ETALOTMLN

ALLOTMENT

22
WHO WANTS TO BE A MILLIONAIRE

Sa Letrang E
It is part of the guidelines on Internal
Control System and defines how we should
operate in the schools.
(The 4 Es in Fiscal Management)
 TEFICENFI
FVEFETICE
HTICLAE
EMCOCNLOIA

EFFICIENT
EFFECTIVE
ETHICAL
ECONOMICAL

24
 WHAT IS FISCAL
MANAGEMENT?

25
 26
FISCAL MANAGEMENT
keeping an organization running efficiently within
its allotted budget.
Accessed on March 16, 2016: http://www.wisegeek.org/what-is-fiscal-management.htm

the ability to develop and manage financial systems

through responsible stewardship of fiscal resources.
Access on February 26, 2016: https://www.acui.org/About_ACUI/Core_Competencies/10192/
 27
GOVERNMENT PRIVATE ORGANIZATION
Fiscal management Financial management
Deals with
money
management

by properly planning, using procedural

recording, and performing guidelines and tools, such
procedures that relate to as budget spreadsheets,
the budget. accounting software

to improve the way the

organization operates
 28

COVERAGE OF FISCAL MANAGEMENT

Laws & policies

Structures
Systems
Processes
Officials and Personnel
 29
COVERAGE OF FISCAL MANAGEMENT
Fiscal management covers the following areas

1. Proper planning of the School Improvement Plan (SIP)

2. Sourcing of funds and other resources (whether it is
from government subsidy or private sector donations)
3. Proper allocation of funds and other resources
4. Actual uses of resources and their care
5. Proper recording of all the transactions and
safekeeping of all records pertaining to the transactions
6. Monitoring and controlling of uses of resources in the
interest of efficiency and effectiveness towards
achievement of desired outcomes as well as of
accountability.
 30
WHAT CONSTITUTES POOR
FISCAL MANAGEMENT?
Unnecessary
expenditures
RESULTS
Unplanned Lack of record- BUDGET
expenditures keeping DEFICIT
Misspent FAIL TO MEET
budget TARGET

Pilferage Inferior record-

keeping

Unspent
budget
 A Sample Framework of Knowledge and 31

Skills for Fiscal Managers

Association of FINANCIAL MANAGEMENT
College Unions COMPETENCY: The ability to develop and
International manage financial systems through responsible
(ACUI), one of the stewardship of fiscal resources.
oldest associations
of higher education KNOWLEDGE & SKILLS SET:
in the US, has been 1. Basic Accounting
able to summarize 2. Technology Related to Financial Management
succinctly the skills 3. Policies and Procedures
needed to be a 4. Budget Development and Management
credible fiscal 5. Contracting and Contract Negotiation
manager. 6. Fund raising

Accessed on March 18, 2016: https://www.acui.org/About_ACUI/Core_Competencies/10192/

Basic Education Sector Transformation (BEST)

THE ROLE OF THE

PRINCIPAL AS FISCAL
MANAGER

BEST is supported by the Australian Government

3
3
 34
ROLE OF THE PRINCIPAL AS
FISCAL MANAGER

BASIC PRINCIPLES
 35
ROLE OF THE PRINCIPAL AS
FISCAL MANAGER

BASIC PRINCIPLES
 36

Principals as fiscal managers of

schools are responsible and
accountable for the school
resources that include funds,
facilities, equipment and other
assets of the school.
Make sure you
know what you
As head of school, you are the are signing
signatory of practically all
important documents.
 37
Responsibilities of School Principal
As Fiscal Manager
Leads in the crafting of the SIP/AIP that laid down a realistic set of
programs and activities based on an exhaustive study of both the
external and internal environments and which identified the
resource requirements;

Ensures funds are budgeted, made available, and spent

according to fiscal policy and in alignment with account purpose;

Underscores to his/her team that the budget provides orderly

execution of the needs related to the account and serves as one
of the control mechanisms to compare planned receipts and
disbursements with the actual fiscal activities and, therefore, must
be complied with;
 38
Responsible for under-standing and ensuring compliance with
the regulations, policies, and procedures.

Ensures that the procurement activities are properly and

adequately staffed and are functioning efficiently following all
the policies, procedures and are governed by the highest
ethical standards

Ensures that the school systems are covering property

management to include receiving, recording, releasing
immediately to the to school units the items asked for,
maintaining and repairing of items procured;

Makes certain that assets are well maintained and repaired on

a regular basis;
 39
Makes sure that all donations, out of budget funds such
earnings from the canteen operations or income generations
from other school activities be recorded regularly

Provides daily oversight on how the funds are spent and

managed;
Takes care that processes and controls are in place;

Sees to the proper and accurate recording, analyzing and

reporting of transactions;

Checks the accuracy and reliability of accounting data;

Monitors reconciliation of accounts on a monthly, quarterly,
annual basis; making sure that the expenditures are in
conformity with the budget, or appropriate budget changes
have been made to reflect a change in the original budget.
 40

Must be able to connect each unit with one another -

Instructional/Academic Offices, Property, Purchasing, Human
Resources, General Services, Facilities Management, Risk
Management, Administrative Accounting, Accounts
Receivables and Accounts Payable;

Safeguards assets;

Signs on all financial transactions as the highest ranking official

in school;
Because of signature authority, the School Principals are
enjoined to understand the Government Budgeting System
and to acquire the skill to navigate in the most updated
National Accounting System adopted by government.
 41

When approving documents, the School Principal is

responsible for verifying or having processes in place to ensure
the following:

1. Charges to the account correctly represent materials received

or services rendered;
2. Charges represent activities which are established, and should
comply with the fiscal plan that is established for the account;
3. Funds are available in the account to cover authorized
charges
4. The transaction in the account complies with all relevant
internal or external regulations, policies and procedures.
5. The transaction is accurate, timely and completely recorded
6. The original copies of financial records are kept orderly and
safely retained in the Administrative Accounting Office to
satisfy legal and audit requirements. These include original
documents such as attendance records, payroll vouchers and
other supporting documentation.
 42

The School Head

ensures
efficient,
effective,
economical and
ethical operations
 LOCATING THE
PRACTICE OF
FISCAL
MANAGEMENT IN
THE OPERATIONS
OF SBM
 44
School Instructional
Operations Leadership
Instructional Leadership (right)
Generally, school principals rose from
the ranks of a teacher bringing:
Familiarity in instructional leadership;
More confidence to move within
instructional operations

School Operations (left)

Teachers who become school principals
Very little familiarity to the rigor & management
of compliance to numerous rules and
regulations.
 Not enough confidence to act decisively and
fast to manage school operations
 45
CONNECTING TO THE PREVIOUS SESSIONS
 46
SCHOOL BASED MANAGEMENT
A strategy adopted by DepEd to effectively and efficiently
deliver quality basic education to as many students as
possible.

Decentralized the levels of authority from the central

office to the regional office, to the division office and
finally to the school level.

Transferred responsibility and decision-making over

school operations to principals, teachers, parents,
sometimes students, and other school community
members.

Required conformity of the school-level actors to operate,

within a set of centrally determined policies.
 47
NATURE OF SBM MANAGEMENT
Management in education - a “process of relating
resources to objectives required in organization which
explicitly exist to provide education” (Paisley, 1992).
Resources range from labor or human resources
(teachers, non-teaching staff), financial resources (from
government subsidy as well as from private sector funds),
equipment, facilities, and even land.
Fiscal management was devolved to the level of the
school to see to it that the school obtains and uses
its funds judicially to meet its instructional
goals for the exclusive use of the activities
programmed.
 48

HOW DO WE ACHIEVE THE

BALANCE SUCH THAT
INSTRUCTIONAL
LEADERSHIP AND SCHOOL
OPERATIONS
MANAGEMENT WOULD
YIELD THE SAME HIGH
LEVEL AND HIGH QUALITY
OF SUCCESS IN
SUPPORTING THE
EFFECTIVE AND EFFICIENT
DELIVERY OF QUALITY
EDUCATION?
 49
IMPORTANCE OF QUALITY FISCAL MANAGEMENT
“There are many decisions at the top that
are dependent on school based inputs.”
“Information on financials sought from
schools are for a higher purpose
decision-making in the bureaucracy ;
not for compliance purposes only.”
“Any resource that gets inside the school is
USEC REYNALDO LAGUDA a DEPED property and therefore must be
DEPARTMENT OF EDUCATION
recorded. “
In an interview, USEC
Laguda shared some of
his thoughts on Fiscal “Quality education is borne out of
Management
quality spending.”
ACTIVITY: GOOD OR
BAD? WHY?
Each group will be handed 2 sets of symbols to be raised
in response to the scenarios that will be flashed on the
screen.
Good Poor
practice practice

For each scenario, the group must agree if it is good

practice or poor practice.

Within 10 seconds, each group must discuss and decide

and flash their decided symbol.

First group to raise a symbol will explain why. If the

explanation is valid, they get a point.
 Good Poor
practice practice

1.Using savings from PS for improvement of

school canteen
2. The School Head accepted cash donation from
alumni amounting to P200K for construction of
school stage. The following day, the SH bought
materials for the stage construction.
3. The principal sent a teacher to a training
which she thinks suitable for the teacher but
she’s not included in the memo.
 Good Poor
practice practice

4. The school paid the supplier for the office

supplies she ordered from a store; the following
day, said supplies were delivered to the school.
5. The SDO called up the principal for the
submission of the SIP which is already due. To
comply with the required submission, the SH
worked overtime and submitted the said report on
the next day.
 Good Poor
practice practice

6. The roof of one of the school buildings of the elementary

school was destroyed during typhoon Lando. The principal
utilized the MOOE of the school for the major repair of the
roofing though it is not included in his SIP and APP.

7. The laptop owned by the school that was purchased 6

years ago was stolen. The SH included the said property in
the list of condemned properties.

8. The SH canvassed from 3 suppliers and awarded it

to the lowest bidder.
Financial System &
Processes
(PLANNING &
BUDGETING)
 56
The Financial System and Processes:
Government Budgeting
1. Determination of overall economic targets,
expenditure levels and budget framework by the
DBCC;

2. Issuance by the DBM of the Budget Call which defines

the budget framework; sets economic and fiscal
targets; prescribe the priority thrusts and budget
levels; and spells out the guidelines and procedures,
technical instructions and the timetable for budget
preparation;
 57
The Financial System and Processes:
Government Budgeting
3. Preparation by various government agencies of their
Principals directly detailed budget estimates ranking programs,
participate at projects and activities using the capital budgeting
this levels by approach and submission of the same to DBM;
doing their
SIP/AIP
4. Conduct a budget hearings were agencies are called
to justify their proposed budgets before DBM
technical panels;

5. Submission of the proposed expenditure program of

department/ agencies/special for confirmation by
department/agency heads.
 58
The Financial System and Processes:
Government Budgeting

6. Presentation of the proposed budget levels of

department/ agencies/ special purpose funds to the DBCC
for approval.

7. Review and approval of the proposed budget by the

President and the Cabinet;

8. Submission by the President of proposed budget to

Congress.
 59
The Financial System and Processes
School Level: Planning & Budgeting
The School Improvement Program (SIP) is the
repository of all the activities that cover the ff:
Student Population Planning
•Population of school-age in the area
• Population of likely enrollees
•Population of cohorts moving to next grades
Human Resource Planning
•Number of teachers needed
•Number of non-teaching staff needed
•Number of technical/auxiliary staff needed
•Number of employees scheduled for promotion
 60

Capital Planning
• Required amount of space needed
• Physical condition and adequacy of facilities to meet projected
program needs
• Facilities management, institutional policies, and other influencing
factors

Financial Planning
• Assess possible financing alternatives and potential funding sources
• Includes an overview of past funding practices and prospects for
feasible funding from various new sources
• Traditionally self-funded projects (auxiliary operations, housing and
dining facilities, athletic facilities)
PLANNING AND BUDGETING LINKAGES

Headed by the School Principal, the school prepares

their respective Work and Financial Plan (WFP) for
their different Programs, Projects and Activities as
annex to the Budget call.

The Procurement Entity’s Budget proposal embodies

the school’s thrusts and resources needed to
produce the quality education to be delivered to the
public

REMINDER : Procurement planning should be done

within the budgetary context, reflecting the school’s
priorities and objectives for the budget period
61
PLANNING AND BUDGETING LINKAGES

The Work and Financial Plan must be treated as a serious

endeavor and not just done for compliance purposes.

It must contain the initial list of projects/ requirements of the

school and the corresponding budgetary requirements. If
done well with proper laying down of priorities and timetables,
this serves as the proposed PPMP.

It helps if the school does several scenarios of the kind of

possible budget cuts it may have so that a program of seeking
partnerships may be laid down already.

REMINDER: Treat your planning seriously so that you have a

better control of your operations during the year.
62
PLANNING AND BUDGETING LINKAGES

When GAA becomes final, the school must refine the

proposed PPMP, adjusting the PPMP to reflect the budgetary
allocation for their respective PPA as provided by the Agency
Budget Matrix.

The final PPMP shall be submitted to the BAC Secretary for

the finalization of the proposed APP to be submitted to the
HOPE for confirmation or approval.

REMINDER: When you plan well, you do not have to invent

or arbitrarily decide what you need to procure for the year.
Everything you do becomes a purposive step to attain the
targets you have laid down for the year.

63
 Appropriations,
1 Allotment,
Preparation of estimates,
Budget forms Obligation and
and Instructions Disbursement
Process (National
2 Government Agencies)
Preparation of Revenue
And Expenditure
Estimates

3
Review and Consolidation
of Agency Request
by Department

4
Transmission of Department
Request to DBM
 5
Negotiation between
Department and
DBM Preparation
of Draft Budget

6
Cabinet review of Draft
Budget
President’s Approval

7
Final Budget submitted to
Congress for approval
(within 30 days)

8
Approval of the House of
Representatives/Senate
 9
Signing of the
General
Appropriations Act

10
Submission of Budget Execution
13
Documents (BEDs)
Pay Obligations
by Agency to DBM
(Disbursements)

11
Issuance of Allotment
Release Order (ARO)
by DBM to Agencies
(with corresponding NCA)

12
Incur Obligations
(Expenditures)
Preparation of the Project Procurement
Management Plan (PPMP)

The Project Procurement Management Plan (PPMP)

deals primarily with :
a. planning for procurement of project requirements
b. bidding or procurement strategy
c. source selection
d. delivery and payment schedules
e. contract administration
f. contract termination and
g. other major milestones, in an effort to obtain
goods, infrastructure, contractors and
consultants

68
QUIZ TIME
• Questions will be flashed on the screen.
• Participants will answer individually
• Answers will be revealed at the end of the quiz
 FILL IN THE BLANKS
1. Principals as fiscal managers of schools are
___________ and ___________ for the school
resources that include funds, facilities, equipment and
other assets of the school. (2 points)

2. As head of school, you are the ____________ of

practically all important documents. (1 point)

3. When approving the documents the SH ensures

that the transaction is _________, ___________ and
completely recorded. (2 points)
• Questions will be flashed on the screen.
• Participants will answer individually
• Answers will be revealed at the end of the quiz
• Tally individual scores
• Tally group scores. RIGHT MINUS WRONG
QUESTION
GATHERING
MOOE
 DepEd Order 13 s. 2016
dated: march 11, 2016

IMPLEMENTING GUIDELINES ON THE

DIRECT RELEASE AND USE OF MOOE
ALLOCATIONS OF SCHOOLS
INCLUDING OTHER FUNDS MANAGED
BY SCHOOLS
 Rationale
Starting 2016, the financial assistance previously
downloaded to the recipient schools (SSES, SPED, STE,
DICP) are now part of the regular MOOE.

Aims to provide guidance to all public school on

derivation , release and utilization of school MOOE,
ensure timely and optimal use of school resources, and
institute mechanisms for transparency and
accountability.
 Responsibilities of Implementing Units

SDO

Inform in writing the heads of ESs & SSs without financial

staff of their annual MOOE allocation.

Ensure that, by end of the year, the MOOE allocations of

ESs and Non-Implementing IUs have been fully
downloaded to the respective heads through CA using the
replenishment method.

Replenishment must be made within 3 working days upon

receipt of the liquidation report.
 Responsibilities of Implementing Units

The SDO’s are prohibited in undertaking centralized procurement

of any good and services out of school MOOE, except:

SHs has unliquidated CA and cannot receive additional cash

advance, the SDO may procure items using MOOE of the
school.
A report shall be submitted to RO and OSEC, thru the Usec for
Finance and Administration and Usec for Governance and
Operations within 30 days after the conduct of the
procurement.
 Responsibilities of implementing units
SCHOOL HEADS
Apply for bonding with the BTr.
Draw cash advance from the SDO for MOOE requirements
Submit to the SDO on or before 5th day of the following
month the liquidation report.
Disburse fund in accordance with the existing budgeting,
accounting and auditing rules and regulations
Comply with the reporting requirements
 USES of MOOE

To fund activities as identified in the approved SIP

for implementation in the current year and
specifically determined in the AIP;
To support expenses for the school-based training
and activities that are selected or designed to
address the most critical needs that will improve
learning outcomes in the school as well as official
school meetings;
 USES of MOOE
• To support expenses on special curricular programs (e.g
advocacy, assessment, capacity building, learning
environment, learner development and research) and co-
curricular activities of special curricular program (e.g.
travel expenses);
• To finance expenses pertaining to graduation rites, moving
up or closing ceremonies and recognition activities;
• To procure school supplies and other consumables for
teachers and students deemed necessary in the conduct
of classes;
 Uses of MOOE
To fund minor repair of facilities, building, and grounds maintenance and the upkeep
of the school;
To fund rental and minor repairs of tools and equipment deemed necessary for the
conduct of teaching and learning activities;
To pay for wages of full-time janitorial, transportation/mobility and security services;
To pay for utilities and communication expenses;
 Uses of MOOE
To pay for reproduction of teacher-made activity sheets or exercises that were
downloaded from LRMDS, which support differences in learning among students;
To procure small capital expenditure items worth below P15,000.00 as provided in
new GAAM issued by COA. This shall be subject to separate guidelines to be issued by
DepEd; and
In No case shall the school MOOE be used for the procurement of school furniture
and textbooks and other instructional materials, even if these expenditures are
contained in the SIP.
 84
The Financial System and Processes
School Level: Operations
90
91
92
93
QUESTION
GATHERING
APPLICATION PART 1:
BUDGET PROPOSAL
MAKING
Based on eBEIS (Number of pupils/ students; Number
of teachers; Number of classrooms; Number of
graduating students) --

1) Compute your MOOE

2) Present to the class
97
98
99
End of Day 1
 FISCAL
MANAGEMENT
And THE ROLE OF THE SCHOOL HEAD AS
FISCAL MANAGER
DAY 2

1
0
MANAGEMENT OF
LEARNING

1
0
Basic Education Sector Transformation (BEST)

APPLICATION PART 2:
BUDGET
PRESENTATION

BEST is supported by the Australian Government

Basic Education Sector Transformation (BEST)

USES OF FUNDS

BEST is supported by the Australian Government

 PLANNING FOR MOOE REQUIRES DIAGNOSING THE
TREND OF THEIR USAGE FOR A PERIOD OF TIME
Problems in Fiscal Management can be best addressed if the
school heads are able to diagnose their operations by using
simple comparisons of events.
By looking at the behavior over time of the various expenditure
items, the school heads can be guided to look at the changes and
inspect the causes of any movement in the behavior of the
expenditure.
Ex. How is the behavior of the electrical consumption of the school
in the last five years? Is there a correlation between the population
size of the school and the movement of electrical consumption.
Formula: (Period 2 data – Period 1 data)/Period 1 data
The expenditures in the following slides, except for the
personnel services, are the items included in the MOOE.

EXERCISE:
Using the data of your school in the last five years, analyze
your MOOE data and compare the behavior of the
expenditures on an annual basis. Using Excel program, put
your data in chart forms (bar graphs with data table)

Based on your comparisons, what sort of programs and

projects would you undertake.
 107
PERSONNEL SERVICES
Salaries and wages Requirements
• Payment of govern- Submission every 16th of the month
 Form 48 and DTR
ment employees for  Form 6 for absences
services rendered.  Updating of leave card
 Accomplished Form 7

• Disbursement report Dependent on sustained

School Level monitoring of
for salary includes Net tardiness, absences and
Salary, Govt/ Personal leaves
Share, Private loans,
Provident Fund
 108
MAINTENANCE AND OTHER OPERATING EXPENSES

Travelling Expenses Requirements

• Expenses incurred in the All in original copies
movement of persons  Travel Order or Authority to Travel
 Certificate of Appearance
such as transportation,  Fare tickets (Bus, plane, taxi, etc)
 Itinerary of Travel (Appendix A)
subsistence, lodging and  Certificate of Travel Completed
travel per diems, and all (Appendix B)
 Travel Report – narrative
other related expenses
such as tolls, parking
 109
MAINTENANCE AND OTHER OPERATING EXPENSES

Guide in the Computation of Allowable Per Diem

(EO No. 298 dated March 23, 2004)

Board and Lodging

P400.00 (50%) Determination of
allowable per diem
Depends on the
Time of departure
Meal allowance of P80.00 /meal From place of
Per Diem Residence and time
P800.00 Or P240.00 / day (30%) of arrival to the
Venue of the activity
and vice versa.

Miscellaneous / incidental Expenses

= P160.00 / day (20%)
 110

MAINTENANCE AND OTHER OPERATING EXPENSES

Training & Seminar Requirements
External
• Expenses incurred for  Official Receipt of the
Registration fee payment
participation of  Certificate of Participation
personnel in training, (xerox copy only)
Internal
seminars and  Memorandum/Directive of
workshops Seminar
 Contract
 Original Invoice
 Delivery Receipt
 List of Participants
 Certificate of Business
 111

MAINTENANCE AND OTHER OPERATING EXPENSES

Water, Light, Power Requirements

• Cost of water and  Statement of Account
electricity or gas for or Billing from the utility
lighting in connection company
with government  Official Receipt
operations and
projects
 112

MAINTENANCE AND OTHER OPERATING EXPENSES

School Supplies Requirements
 Purchase Request
 Abstract of Canvass, Price
Quotation of at least 3 suppliers
 Purchase Order
 Delivery Receipt
 Charge Invoice
 Inspection and Acceptance Report
 Requisition Issue Slip
 Sales Invoice, or Official Receipt
 113

MAINTENANCE AND OTHER OPERATING EXPENSES

Repair & Maintenance of Requirements
Government Vehicles Approved Request for Repair
and/or Servicing of Vehicle (Pre-
• Cost of repairing and repair Inspection Report)
maintaining motor Report of Waste Material
vehicles owned by Purchase Request
government to include Canvass from at least three (3)
Repair Shops
spare parts Post-inspection Report
Warranty Certificate
Request for Payment
Bill/Charge Invoice
Inspection & Acceptance Report
 114

MAINTENANCE AND OTHER OPERATING EXPENSES

Rent Requirements
Contract
• Charges for use of
Statement of
facilities or equipment
accounts
belonging to others
Certificate of Liability
from the End-user
 Official Receipt in
case of
reimbursements
 115

MAINTENANCE AND OTHER OPERATING EXPENSES

Repair & Maintenance of Requirements
(Major Repair)
Government Facilities Perfected Contract
Notice of Award
• Cost of repairing and Notice to Proceed

maintaining buildings Program of Works

Statement of Work Accomplishment

owned by government Photograph of Accomplishments

Certificate of 100% Completion
to include construc- Certificate of Acceptance
Certificate of Final Inspection & Acceptance
tion issued for the Billing Request of the Contractor

repair
(Minor Repair)
Estimate Cost/ Bill of Materials
Pre & Post Repair Inspection/Management
Inspection Report
Inspection & Acceptance Report
Billing Request of the Contractor
Certificate of Business
SOURCES OF FUNDS
 117

SOURCES OF FUNDS
The problem with government grants is that they
are never enough – there is usually a large
financing gap that has to be met and this is where
the challenge generally occurs with fund raising
activities and systems to ensure accountability

Faced with shortage of funds,

what do you do as school heads?
 Points to Note

A register of all donations received should be

maintained.

To safeguard the proper use of public funds,

proper accounting arrangements should be
taken to avoid cross-subsidisation of any self-
financing activities without government
subventions.

118
 Sources of Income
GAA

School
Income

Non-
GAA

119
 Canteen School
Activities
Others

SEF / LGU

PTA

GAA

120
 Points to Note

The acceptance of donations by schools should

be approved.

All donations to the school should be expended

on the school and for educational purposes only.

121
122
Donations

123
 Donations

• Authority

• Accounting

• Accountability

124
125
126
 127

the same time record such transfer of accountability to the

recipient office via JEV preparation (Property Ledger Card to be
updated also).

Accounting Division/Unit will provide copy of the JEV to the

recipient’s accounting office for proper recording of the donated
properties/items in their Book of Accounts.
 • Return to your SIP and budget allocation

• Determine where and how to source

additional funds

School Heads’ Development Program: 132

Advanced Course for SHS School Heads
 MANAGEMENT OF
SCHOOL CANTEEN
IN ELEMENTARY
SCHOOLS

133
 Elementary Schools in the rural areas
with “500 pupils or less and those in urban
areas with 1,000 pupils or less” shall have
only one canteen to be operated and
managed by the school under the general
supervision of the School head/ principal.

134
 Where the enrollment size in rural elementary
schools is more than five hundred(500) pupils and
in urban elementary schools, more than one
thousand (1,000) pupils, the existing duly registered
teachers’ cooperative, shall manage and operate
the school canteen.

When there is no duly registered teachers’

cooperative that is interested or qualified to
operate and manage the canteen, the school shall
operate and manage the same.
135
 MANAGEMENT OF
SCHOOL CANTEEN
IN SECONDARY SCHOOLS

136
Regardless of enrollment size, there shall
be a laboratory canteen , in all secondary
schools.
When the student population is less
than 1,500, the laboratory canteen shall
also be the school- managed canteen
 Laboratory Canteen

The canteen operated and managed by the

secondary students as part of their H. E
classes.
It can make use of the facilities of the school-
managed canteen or the teachers’ cooperative
managed canteen in the absence of a separate
room that they can use.
Where the population is more than 1,500, the
existing duly registered and interested teachers’
cooperative in the school shall be allowed to
operate and manage another school canteen
other than Laboratory canteen.
The same manner shall be observed for Special
Schools with more than 500 students.
Only nutrient-rich foods such as root crops, noodles, rice
and corn products in native preparation, fruits and
vegetables in season, and fortified food products
labeled rich in protein, energy, vitamins and minerals
shall be sold in the school canteen. Beverages shall
include milk, shakes and juices prepared from fruits and
vegetables in season.

The sale of carbonated drinks, sugar-based synthetic

or artificially flavored juices, junk foods and any food
product that may be detrimental to the child’s health
and that do not bear the Sangkap Pinoy seal and/or
did not pass BFAD approval is prohibited. 141
Iodized salt shall be used, in controlled quantity, in
the preparation of cooked foods to ensure that
the iodine requirement of the clientele shall be
met and to eliminate iodine deficiency disorders.
The use of monosodium glutamate (vetsin) shall
be regulated.

A reasonable mark-up price for all merchandise in

the canteen shall be allowed, provided that the
selling retail price does not exceed the prevailing
prices in the locality.
Sub-leasing the whole or part of the school
canteen premises or sub-contracting the operation
of the school canteen to concessionaires is
prohibited.
Vendors shall not be allowed to bring in food items
inside the school canteen/premises. Teachers and
school personnel are likewise prohibited from
selling food items within the school premises,
except through the school canteen and unless
authorized and covered by a written agreement
with the school head/principal and/or the teachers’
cooperative.
 Procedural Guidelines
1. a. Sanitation Clearance/Permit from the
local Health Department
b. Health Permit of canteen personnel/staff
from the city/municipal health office
c. Authority from the School Head/Principal
to Operate and Manage the School Canteen
(For teachers’ Cooperatives Only)
Clearances/Permit shall be permanently
displayed in a conspicuous place in the school
canteen and shall remain valid for the duration
of the school year.
2. All canteen personnel/staff are required to
wear clean and proper attire (white
shirt/polo/blouse, colored pants/skirts, hairnet,
apron and appropriate footwear) at all times.
They shall also wear I.D. with photo inside the
premises of the canteen.
 146

REPORTORIAL
REQUIREMENTS
 Category of Types of Report Date of
Reports Submission
CATEGORY A-1
To be submitted to 1. Statement Quarterly
the DepEd, of Financial Con submission with
specifically to the dition deadline dates
School head in 2. Statement of May 15, August
case of teachers’ Operations 15, November 15
cooperative and 3. Statement of and February 15
division in case of Cash Flows
school-managed 4. Notes to FS
canteens 5. Summary of
Cost of Sales

School Heads’ Development Program:

Advanced Course for SHS School Heads
 Category of Reports Types of Report Date of Submission

CATEGORY A-2
To be prepared 1. Bank Reconciliation
2. Schedule of Cost of Sales Monthly
and maintained 3. Schedule of Operating Expenses with
at all times and 4. Schedule of Utilization of School
posted on the Share Program Received from the
deadline
School’s bulletin Cooperative date of
board and/or in 5. Schedule of Utilization Of Gross every 10th of
Income Generated from the Canteen
any Laboratory the
conspicuous 6. Statement of Receipts and following
place within the Disbursements month
school premises 7. Statement of Reports on
Cooperatives’ School Program
Support
8. Schedule of Capitalization on the
Operation of School Canteen

School Heads’ Development Program:

Advanced Course for SHS School Heads
 Category of Reports Types of Report Date of Submission
CATEGORY B
To be submitted 1. Audited Financial May 15
on an annual Statement including notes
basis to or as & disclosure
required by the 2. Financial Performance May 15
Cooperative Standards
Development 3. Annual Report to CDA 60 days after the end
Authority (CDA) of the fiscal year
(For teachers’ 4. List of Directors and 30 days after the GA
cooperative Officers meeting; and 15 days
only), copy following assumption
furnished the of office
school head/ 5. Report on Crimes and To be submitted as
principal Losses crime/ incident occurs,
on the 5th business day
after knowledge of
crime or incident
 Accounting of Funds
1. A book of accounts and statement of
sales and disbursements be maintained for
recording daily transactions related to the
operations of the canteen. Receipts and
other similar documents shall be kept to
support sales, purchases and disbursements
made.
The books of accounts must be up-to-date
and made available for examination and
inspection at any appropriate time by the
schools level auditing committee or the COA
representative based in the division office.
2. For purposes of transparency and
accountability, the school head/principal shall
organize a school level auditing committee to be
headed by a Mathematics department head/
teacher, and Home Economics department
head/teacher and the president of the faculty
club as members. The committee shall look into
the books of accounts at least once a month. The
audited statement shall be posted on the
school’s bulletin board.
3. Canteen Funds shall be audited by the school
level auditing committee on a quarterly basis and by
the Division COA Resident Auditor or his/ her
authorized representative twice a year. Audit
findings shall be submitted to the Schools Division
Superintendent through the School Head/ Principal.
Audited FS shall be posted on bulletin boards for
the information of everybody.
Incentives received in cash or in kind from private
suppliers of food items and beverages shall form
part of the Gross Income of the School Canteen
and shall be part of the financial statement.
 ADHERENCE TO FOOD SAFETY

1. Availability of potable drinking water and hand

washing facilities;
2. Well-maintained, clean, well-ventilated and pest-
free environment;

3. Availability of food covers and containers for

safekeeping; and

4. Hygienic practices on food preparation, cooking

display, serving and storage.
All canteen personnel, including practicum
students, shall undergo training on proper and
safe handling of food before they are allowed to
work in the canteen.
No portion of the net income derived from
canteen operations shall be set aside and in
any manner, in favor of the Regional, Division
or District Offices.
 157

The Net Income derived from the operation of the canteen shall
be utilized for, but not limited to:
Supplementary feeding program for undernourished 35%
pupils/students
Schools Clinic Funds 5%
Faculty and student development fund 15%
H.E. Instruction fund 10%
School Operations Fund 25%
Revolving Capital 10%
TOTAL 100%
Earnings and cash received from canteens operations
shall be deposited daily in the nearest government
depository bank or a reputable commercial bank.

A school-managed canteen shall have a bank account

“in trust for” the name of the school, whereby the
School Head/Principal and the Canteen Teacher shall
be the joint signatories.

158
Based on the expected income of the School
Canteen, the school head/ principal shall prepare an
Annual Budget to be submitted to and approved by
the SDS or his/ her representative at the start of
every school year.

Disbursement of canteen funds shall be in

accordance with the approved budget and existing
accounting and auditing rules and regulations.
Teachers and canteen personnel shall be required
to secure clearance from money and property
accountabilities in relation to their involvement in
the operation and management of the School
Canteen before they are allowed to retire and/or
resign from government service, or transfer to
other posts for purposes of re-assignment or
promotion to a higher position.
 Guidelines for Laboratory Canteens
(All Secondary Schools)
Where students shall be trained on food
planning, preparation, retail trade, selling and
safety as part of their H.E classes. It shall be
supervised by the designated H.E. canteen
teacher.
H.E Canteen Teacher shall prepare the
schedule of service of the practicum students,
approved by the H.E. Department
Head/School Head/Principal.
 Guidelines for Laboratory Canteens
(All Secondary Schools)
The designated H.E. canteen teacher shall ensure the full participation of the pupils/students
in the planning, purchasing, handling, storage, preparation, serving and sale of safe and
nutritious foods/meals.
The schedule of the practicum students shall be posted on a bulletin board within the school
canteen premises and no student shall serve in the canteen beyond his/her practicum
schedule.
Income derived from the laboratory canteen shall be utilized as
follow:
Supplementary feeding program for 40%
undernourished pupil/students

Student development fund (laboratory subsidy, 30%

skills , training, contests)

H..E Development Fund 30%

TOTAL 100%
163
 ACTS considered as detrimental and
prejudicial to the students and pupils

Any deviation from the guidelines particularly the

operational practices that prove detrimental and
prejudicial to the welfare of the pupils/students,
teachers and the school in general that may be
committed by the school or the teachers’ cooperative.

Any violation of the terms stipulated in the MOA

 ACTS considered as detrimental and
prejudicial to the students and pupils

Failure and/or neglect to submit financial report

Sub-leasing the whole or part of the school canteen
premises
Selling of cigarettes and/or intoxicating beverages

Failure to secure necessary permits including annual

health and sanitation permits
 Failure to report and account for donations and
incentives received
Use or disbursement of canteen funds contrary to
the provisions of the rules and guidelines
Compelling the pupils/students to buy or consume
all food items from the canteen and prohibiting
them to bring their own “baon” or food to school

Compelling a pupil/student to perform canteen

related tasks that are detrimental to his/her welfare
  Failure to deposit the proceeds of the canteen in
the account that is “in trust for” the school.
 Failure to present upon request of the proper
authorities the financial documents pertaining to the
operations of the school canteen

 The use of the canteen premises for any other

endeavor not included or sanctioned by the
guidelines

167
 All other violations of the terms and conditions of the Memorandum of Agreement or any of the
provision of the guidelines
 169

ACTIVITY: PROCUREMENT
FLOW
 170
Procurement
RA 9184
THIS ACT SHALL BE KNOWN AS THE
“GOVERNMENT PROCUREMENT REFORM ACT”
An act providing for the modernization,
standardization and regulation of the
procurement activities of the
government and for other purposes.
 What is Procurement?
Procurement refers to the acquisition of goods, consulting services, and the
contracting for infrastructure projects by procuring entity. (Sec. 5(aa), IRR, R.A.
9184)
 172
Procurement Methods
 All Procurement shall be done through
competitive bidding except as provided for in
R. A. 9184
 Resorting to alternative methods shall be made
only:
 In highly exceptional cases
 To promote economy and efficiency
 Justified by conditions specified in R.A. 9184
and its IRR
 MOST ADVANTAGEOUS PRICE TO
THE GOV’T IS OBTAINED Government Procurement Reform Act
RA 9184
 173
Procurement Methods
Method Goods Infra Cons
1. Competitive Bidding   

2. Limited Source Bidding  

3. Direct Contracting 

4. Repeat Order 

5. Shopping 

6. Negotiated Procurement   

Government Procurement Reform Act

RA 9184
 GOVERNING PRINCIPLES IN PROCUREMENT 174

Public Monitoring
Awareness & Vigilance

Streamlined Process Accountability

Uniformly Applicable to all
Sense of Responsibility
government agencies

Transparency Competitiveness
Wider dissemination of Extends Equal Opportunity
bid to all eligible bidders
 GENERAL PREPARATIONS FOR PROCUREMENT
PROCUREMENT PLANNING
Entails ensuring that plans for procurement are linked to budgets, preparing the Project
Procurement Management Plan (PPMP) and consolidating all PPMPs into Annual
Procurement Plan, Formulating the PPMP involves identifying the procurement project
requirements, writing the technical specifications, determining the Approved Budget of
the Contract, identifying the schedule of milestone activities and determining the method
of procurement

PREPARING THE BIDDING DOCUMENTS

Documents issued by the procuring entity as the basis for bids, furnishing all information
necessary for a prospective bidder to prepare a bid for the infrastructure projects, goods
and/or consulting services required by the procuring entity (Section 5.f of the revised IRR)

CONDUCT OF PRE-PROCUREMENT CONFERENCE

Forum where all officials involved in the procurement and discuss all aspects of a specific
procurement activity which includes the technical specifications, the ABC, the
applicability and appropriateness of the recommended method of procurement and the
related milestones, the bidding documents, and availability of the pertinent budget
release for the project
175
 176
GENERAL PROCUREMENT PROCESS
Infrastructure / Goods and Services
CALL A PRE BID
ADVERTISE AND POST ISSUE BIDDING CONFERENCE AND ISSUE
INVITATION TO BID DOCUMENTS SUPPLEMENTAL BID
BULLETINS

RECEIVE AND OPEN BID

CONDUCT BID CONDUCT POST-
PROPOSALS (TECHNICAL &
EVALUATION QUALIFICATION
FINANCIAL ENVELOPES)

AWARD THE CONTRACT

SIGN AND APPROVE THE ISSUE THE NOTICE TO
AND ISSUE NOTICES OF
CONTRACT PROCEED
AWARD
 GENERAL PROCUREMENT PROCESS 177
Consulting Services
ADVERTISE AND POST SUBMISSIN OF THE
SHORTLIST ELIGIBLE
REQUEST FOR EXPRESSION ELIGIBILITY
CONSULTANTS
OF INTEREST REQUIREMENTS

CONDUCT PRE-BID RECEIVE AND OPEN

ISSUE THE BIDDING
CONFERENCE AND ISSUE TECHNICAL AND
DOCUMENTS
BID BULLETINS FINANCIAL PROPOSAL

CONDUCT BID EVALUATON AWARD THE CONTRACT

CONDUCT POST
OF THE SHORTLISTED AND ISSUE THE NOTICE
QUALIFICATION
CONSULTANTS AWARD

HAVE THE CONTRACT ISSUE THE NOTICE TO

SIGNED AND APPROVED PROCEED
178
 179

FIVE “RIGHTS” IN PUBLIC PROCUREMENT

Source – Did we get it from

the right source?
Quantity – Did they give us
the right number?
Quality – Is the delivery
according to specs”
Price – Was the price fair and
reasonable?
Time – Were the items
delivered on time?
 180

PROCUREMENT, when done properly

efficiently, and timely and without any
ethical breaches, allows for the school
to get the best value for its money and
eases any undue delays that may affect
the delivery of quality service in
education
 MEANS OF
DISBURSEMENT
 182

Petty Cash

• Purchase of non-regular
expenses that are of small
amounts
• No more than P15k
• P1k canvass
• Periodic cash
replenishment
183
 184

Cash Advance

• DO’s must be bonded

• Specific legal purpose

• Must be liquidated
immediately
 185

Disbursements by Cash
• Only transactions authorized under existing regulations issued
by the COA may be paid out of the cash advance granted to a
duly authorized disbursing officer.
• Cash payments should be supported by approved payrolls and
disbursement vouchers and other documentary requirements.
• Payroll, vouchers and supporting documents should be stamped
“PAID” upon payment.
• Accounting Division to stamp “to credit cash advance”
 186

Purposes of Special Cash Advances

Travel expenditures including transportation

fare, travel allowance, hotel room/lodging
expenses and other expenses incurred by
officials and employees in connection with
official travel.
 187

Check
• Pre-numbered voucher

• Counter-sign

• Bank reconciliation
(for IUs)
 188

Disbursements by Checks
• Checks should be countersigned; the signing and countersigning
of checks should not be made in advance.
• Disbursement vouchers should be designed to ensure that
payment is received by the correct party.
• Safes and other facilities should be provided to ensure protection
of unused checks and other documents.
• Vouchers and supporting papers should be stamped “PAID” upon
payment.
• DVs and supporting documents should be stamped “pre-
audited-Accounting Division/unit”
Modified Disbursement
Implementing Treasury Single
Account
Executive Order No. 55 (2011)
mandated the implementation of
the Government Integrated
Financial Management Information
System and the Treasury Single
Account

190
 191

Disbursement under TSA

The Government implements a Modified

Disbursement Scheme for all its payment
obligations.

1. MDS Checks (issuance of MDS checks by NGAs to

suppliers/payees for negotiation to MDS AGSB)

2. Advice to Debit Account (checkless payment,

clearing & settlement)
 TSA Process (Disbursement)

Supplier Spending Budget Office

Agency

Govt Servicing Bank

Supplier’s Bank

192
 Spending
Supplier Agency

Automatic issuance of Post in website

receipt of payment for - LDDAP-ADA numbers
disbursement through endorsed for payment
OR to the bank
- Electronic form - Agency’s established
- Provisional receipts procedures (i.e.
(subject to flowchart & timelines)
replacement)
193
 194

Important Features - ExMDPS

No more transfer of real cash to agencies accounts.
Lesser cash float
Agencies have specific accounts with bank branches
Participating banks limited to only two (2) government
servicing banks (LBP, DBP ) known as “ MDS GSBs”
NCA is based on cash program submitted by the agency
Adopts the common fund concept
 195

MDS General Policy Guidelines

• Agencies shall prepare monthly Bank

Reconciliation Statements using the
prescribed forms for those receiving NCA and
funding checks. See standard format.
• Prior years unpaid obligations shall only be
paid out of the NCA requested and released
for the purpose in the ensuing year.

195
 196

(Standard format)
DEPARTMENT OF EDUCATION
NATIONAL EDUCATION TESTING AND RESEARCH CENTER
Monthly Bank Reconciliation
As of January 31, 20__
LBP MDS Account No. - - - - - -

BOOK BALANCE XXX

ADD: RECONCILING ITEMS XX
Sub Total XXX
LESS: RECONCILING ITEMS XX
ADJUSTED BOOK BALANCE XXX

BANK BALANCE XXX

ADD: RECONCILING ITEMS XX
Sub Total XXX
LESS: RECONCILING ITEMS XX
ADJUSTED BANK BALANCE XXX
197
198
199
200
201
 202

MOOE spending is intuitive and

predictable but if it comes late,
there are grave consequences
 203

What happens if funds are late:

• Advanced payment (out of pocket, borrowed money or
other school funds)
• Issuance of promissory notes
• Reduced quantity and quality of materials / activity
• Improvise teaching aids and materials
• Revised, postponed or cancelled activity
• Disconnected utilities
• Request for donations from other stakeholders
• Follow up and wait
QUIZ TIME
• Questions will be flashed on the screen.
• Participants will answer individually
• Answers will be revealed at the end of the quiz
• Tally individual scores
• Tally group scores. RIGHT MINUS WRONG
 IDENTIFICATION & TRUE OR FALSE
1.What do you call all payments made to clients for
goods delivered, services rendered and
infrastructure projects completed? (2 points)
2. TRUE OR FALSE. The school head ensures funds are
budgeted, made available, and spent according to
fiscal policy and in alignment with account purpose.
(1 point)
3. The Net Income derived from the operation of
the canteen shall be utilized for, but not limited to
what particular expenses? (5 points)
 ASSET
MANAGEMENT

2
0
 208

Role in Fiscal Management: Property Management

PROPERTY CUSTODIANSHIP

Property custodianship refers to the guardianship of

government Property by the accountable person.

This includes the receipt, safekeeping, issuance, repair, and

maintenance of supplies, materials and equipment.

The designated property custodian/office is responsible,

accountable and liable for any loss, misuse, damage, or
deterioration of government property due to fault or
negligence in safekeeping which may be physical or
destructive.
 209
STORAGE AND WAREHOUSING
Storage – Warehousing refers to the scientific and
economical warehousing of materials for their best
safekeeping and availability.

Best safekeeping means protecting the materials against

theft, fire, and deterioration but easily accessible when
needed.

The method or systems include factors and procedures in

the manner of undertaking due care and maintenance of
good condition property.

REMINDER: Integrate the practice of 5Ss and make sure that

you have organized your place of work.
 210

CONSIDERATIONS IN STORAGE AND WAREHOUSING

1. Site Location and size of storage/stockroom to use

Generally, selection site location, type and size of storage or
stockroom to be used, play a major role for an effective
storage and warehousing management. It is important factor
for the following purposes:
• To be able to figure out the amount of materials that can
be stored
• For determination of access for efficient and proper
transport of supplies and materials
• For provision of large size of doorways and entrances
• For installation of proper lightings and ventilation
 211

2. Special layout planning for materials to be stored

For easy facilitation, space layout for materials to be stored
should be planned. Specifically the layout should contain
placement of supplies by category, type, similarity, popularity,
sizes, shapes, characteristics and to include perishability
It is important that materials be stored and placed in its proper
places to avoid accidents and wastage.

3. Types of stacking suitable for each type of property

a. Bulk storage
b. Medium Lot storage
c. Small Lot storage
 212

Storekeeper arranges the

Receipts of Materials and Storekeeper posts and
materials inside the
Equipment & other updates the information
warehouse/stockroom in
Property – Delivery Receipts (receipts, issuances, balance
accordance to a prepared
or Sales Invoice on hand) taken from IAR
storage plan

Supply officer takes over the Storekeeper reconciles entries

custodianship to the end-user of bin cards with stock
by issuing the items requested property cards and with
along with the responsibility physical count of stock at hand
and accountability for use and should be currently and
safekeeping. properly updated
 213
Role in Fiscal Management: Repairs &
Maintenance
REPAIR AND MAINTENANCE
The repair and maintenance program is necessary for the
purpose of attaining and/or extending the established
economical and useful life of an equipment/property and
serves as a sound basis for scheduling its replacement.
Repair is the process of restoring a property, equipment to its
original state or its working condition. Unserviceable
equipment may t once be restored to its normal state of
efficiency by making repairs.
a. Fair wear and tear is the condition of equipment worn out or otherwise
rendered unserviceable through use without apparent fault.
b. Major or extraordinary repair is the alteration, addition or installation,
general reconditioning – overhauling and the like which materially increase
the value or extend the useful life of the equipment or motor vehicles
 214

Before the equipment is subjected to repair, the following

procedures/actions should be taken.
1. Identification of equipment to be repaired. When the
repair is more than 30% percent of its fair market value,
the property is no longer economically repairable
2. Preparation of Request for Pre-repair inspection
a. Request for pre-repair inspection is used to request for repair indicating the
property to be repaired and the identified defects
b. The user/accountable officer signs in the requisitioner portion and submits
to the department/ unit head.
c. The approved request is forward to the Supply/Property Unit in three
copies
d. Indicate the property to be repaired and determine whether said property
is owned /maintained by the school by referring to its property inventory
 215

e. Provide the Complete description of the property to be repaired through

the Property History Card/ Equipment Leger Card. Vehicles
f. Identify any parts to be supplied/repaired
g. Sign on the “requested by” portion of the request
h. Forward to the Inspection Unit/Team of the agency concerned for the
required pre-repair inspection activity.

3. Conduct of Pre-Repair Inspection

a. Check the property card to ascertain government ownership of
property
b. Determine necessity of repair and extent of the damage to ascertain
whether cost of repair is economical or not
c. Determine reasons for breakdown as to fair wear and tear or
negligence
d. Verify correctness or conformity with the actual scope of work to be
done with that as determined by the school mechanics, engineers or
other personnel concerned.
 216

4. Preparation of Post-Repair Inspection Report

a. Use the pre-repair inspection report as guide in

conducting the post-repair inspection

b. Check the waste material report and verifies

whether the waste material presented were the
parts taken from the property

c. Conduct the necessary performance test to

determine whether the property is functioning
well or is already in good running condition
 217

Role in Fiscal Management: Property Disposal

LEGAL BASIS

Pursuant to Sec. 1 of EO No. 888 and COA

Circular No. 89-296, the full and sole
authority and responsibility for the disposal
of properties and assets owned by the
government shall be lodged in the heads of
office
 218
DETERMINATION OF DISPOSABLE PROPERTY
Any or all of the following conditions shall constitute disposal of
property:
1. Check the property card to ascertain government
ownership of property;
2. Property whose maintenance cost/cost of repairs more
than outweighs the benefits and services that will be
derived from its continued use;
3. Property that has become obsolete or outmoded because
of changes in technology;
4. Unused supplies, materials and spare parts that were
procured in excess of requirements; and
5. Unused supplies and materials that has become dangerous
to use because of long storage or use which is determined
to be hazardous.
 219
INSPECTION
Inspection is conducted to observe the physical condition of the
property to be disposed. An Ocular Inspection is usually done to
have a first hand observation of the conditions of the property, its
objective is to supplement theoretical computations of value with
first hand observations of the condition of the property.

In the conduct of inspection of property to be disposed, the

following shall be performed:

• Identify the property in accordance with its descriptions in the

inventory list or directive
• Check the condition of the property and determine whether
operational, under repair or irreparable
• Determine if the property is economically repairable and the
most probable cost of its repairs and current costs of spare
parts
 220

In the conduct of inspection of property to be disposed, the

following shall be performed:

• Determine the quality or degree of maintenance, repair, restoration,

or upgrading made. Check the logbook if available.
• Determine the extent of use, mileage, rate of depreciation, and any
excessing wear and tear.
• Determine whether property has still market demand, or the
existence of probable buyers in the locality.
• Inspect the location of the properties and the available facilities for
their transportation.
• Check the condition of the property and determine whether
operational, under repair or irreparable.
• Determine if the property is economically repairable and the most
probable cost of its repairs and current costs of spare parts
• See if the property is sheltered or exposed to elements and theft.
 221

In the conduct of inspection of property to be

disposed, the following shall be performed:
• Determine the parts which could be salvaged or
profitably used such as engine, dynamo, wheels, axles,
body/chassis, etc. of motor vehicles. These salvaged
parts could either be transferred to or used by other
equipment or shall be as spare or standby parts.
Basic Education Sector Transformation (BEST)

ACTIVITY:
ASSET BINGO

BEST is supported by the Australian Government

2
2
 223

Each group are given BINGO CARDS.

 224

Decide on which questions you will

answer based on the following pattern:

4
CORNERS
Decide on which questions you will
answer based on the following pattern:

INNER
BOXES
 226

Decide on which questions you will

answer based on the following pattern:

X
 227

Decide on which questions you will answer based on the following

pattern:

OUTER
BOXES
 228

Scores corresponding the pattern:

4 CORNERS – 4 QUESTIONS = 10,000 POINTS

INNER BOX – 8 QUESTIONS = 15,000 POINTS
X PATTERN – 8 QUESTIONS = 20,000 POINTS
OUTER BOX – 16 QUESTIONS = 50,000 POINTS
BLACKOUT – ALL QUESTIONS = 100,000 POINTS

10 minutes to answer
ALL OR NOTHING
REFLECTION

2
3
What is becoming clear to
me about what I need to do
as a fiscal manager?

232
End of Day 2

2
3
 FISCAL
MANAGEMENT
And THE ROLE OF THE SCHOOL HEAD AS
FISCAL MANAGER
DAY 3

2
3
ACTIVITY: BUDGET
GAME

2
3
ETHICS

2
3
 Session Objectives

• To apply ethical decision-making

principles on ethical dilemmas in fiscal
management dilemmas
 Write a Short Case

• Think of difficult choices or situations in fiscal

management that you have encountered or heard of as a
school head.
• The choice has to be between
– two goods or
– the lesser of two evils
• Write this situation on a metacard.
– End it with: What should the school head do and
why?
– No names
Why is the situation
difficult?
 What is Ethics?

1. a set of moral principles :  a theory or system of

moral values

2. the principles of conduct governing an individual

or a group

3. a guiding philosophy

4. a consciousness of moral importance

ethic>http://www.merriam-webster.com/dictionary/ethic
 Ethical Dilemma
Three conditions:
1.The person must decide on the
best course of action.
2.There must be different courses of
action to choose from.
3.No matter what course is taken, an
ethical principle is compromised.
Ethical Decision
Making
Ethical decision making
is based on logical and
rational criteria.
 Step 1: What are the facts?
• What do you know?
• Are your facts accurate?
• What do you need to verify?
Step 2: Who are the stakeholders in the case?

• Those who will be affected by the

consequences of any actions taken on the
dilemma.
• How would you define the problem if you
were on the other side of the fence?
• Do you tend to favor one group over
another?
 Step 3: Write down the choices that
need to be made.
• Should [person] do [Action A] or [Action
B] or [Action X]?
• What is your intention in making this
decision?
 Is it Legal?
• Philippine and International Law
• RA 6173: Code of Conduct and Ethical
Standards for Public Officials and
Employees
 RA 6713. Sec 4.Norms of conduct

(a)Commitment to public interest- resources and powers of their

respective offices must be employed and used efficiently,
effectively, honestly and economically, particularly to avoid
wastage in public funds and revenues.
(b) Professionalism. - Public officials and employees shall perform
and discharge their duties with the highest degree of excellence,
professionalism,intelligence and skill. They shall enter public
service with utmost devotion and dedication to duty. They shall
endeavor to discourage wrong perceptions of their roles as
dispensers or peddlers of undue patronage.
(c)Justness and sincerity. - Public officials and employees shall
remain true to the people at all times. They must act with
justness and sincerity and shall not discriminate against
anyone, especially the poor and the underprivileged. They shall
at all times respect the rights of others, and shall refrain from
doing acts contrary to law, good morals, good customs,
public policy, public order, public safety and public interest.
They shall not dispense or extend undue favors on account of
their office to their relatives whether by consanguinity or
affinity except with respect to appointments of such relatives
to positions considered strictly confidential or as members of
their personal staff whose terms are coterminous with theirs.
(d) Political neutrality. - Public officials and employees shall
provide service to everyone without unfair discrimination
and regardless of party affiliation or preference.

(e) Responsiveness to the public. - Public officials and

employees shall extend prompt, courteous, and adequate
service to the public. Unless otherwise provided by law or
when required by the public interest, public officials and
employees shall provide information of their policies and
procedures in clear and understandable language, ensure
openness of information, public consultations and hearings
whenever appropriate, encourage suggestions, simplify and
systematize policy, rules and procedures, avoid red tape and
develop an understanding and appreciation of the socio-
economic conditions prevailing in the country, especially in
the depressed rural and urban areas.
(f) Nationalism and patriotism. - Public officials and
employees shall at all times be loyal to the Republic and
to the Filipino people, promote the use of locally
produced goods, resources and technology and encourage
appreciation and pride of country and people. They shall
endeavor to maintain and defend Philippine sovereignty
against foreign intrusion.
(g) Commitment to democracy. - Public officials and employees shall
commit themselves to the democratic way of life and values,
maintain the principle of public accountability, and manifest by
deeds the supremacy of civilian authority over the military.
They shall at all times uphold the Constitution and put loyalty to
country above loyalty to persons or party.

(h)Simple living. - Public officials and employees and their families

shall lead modest lives appropriate to their positions and
income. They shall not indulge in extravagant or ostentatious
display of wealth in any form.
 RA 6713. Sec 7. Prohibited Acts.
(a) Financial and material interest. - Public officials and employees shall not, directly
or indirectly, have any financial or material interest in any transaction requiring the
approval of their office.

(b) Outside employment and other activities related thereto. - Public officials and
employees during their incumbency shall not:
(1) Own, control, manage or accept employment as officer, employee, consultant,
counsel, broker, agent, trustee or nominee in any private enterprise regulated,
supervised or licensed by their office unless expressly allowed by law;
(2) Engage in the private practice of their profession unless authorized by the
Constitution or law, provided, that such practice will not conflict or tend to conflict with
their official functions; or
(3) Recommend any person to any position in a private enterprise which has a regular or
pending official transaction with their office. These prohibitions shall continue to apply
for a period of one (1) year after resignation, retirement, or separation from public
office, except in the case of subparagraph (b) (2) above, but the professional concerned
cannot practice his profession in connection with any matter before the office he used to
be with, in which case the one-year prohibition shall likewise apply.
(c) Disclosure and/or misuse of confidential information. - Public officials and
employees shall not use or divulge, confidential or classified information
officially known to them by reason of their office and not made available to the
public, either:
(1) To further their private interests, or give undue advantage to anyone; or
(2) To prejudice the public interest.
(d) Solicitation or acceptance of gifts. - Public officials and employees shall not
solicit or accept, directly or indirectly, any gift, gratuity, favor, entertainment,
loan or anything of monetary value from any person in the course of their official
duties or in connection with any operation being regulated by, or any transaction
which may be affected by the functions of their office. As to gifts or grants from
foreign governments, the Congress consents to:
(i) The acceptance and retention by a public official or employee of a gift of
nominal value tendered and received as a souvenir or mark of courtesy;
(ii) The acceptance by a public official or employee of a gift in the nature of a
scholarship or fellowship grant or medical treatment; or
(iii) The acceptance by a public official or employee of travel grants or
expenses for travel taking place entirely outside the Philippine (such as
allowances, transportation, food, and lodging) of more than nominal value if such
acceptance is appropriate or consistent with the interests of the Philippines, and
permitted by the head of office, branch or agency to which he belongs.
 RA 6173
• Section 8. Statements and Disclosures
– SALN
– Identification of Spouses and Relatives
– Accessibility of Documents
• Section 9. Divestment
– Resign from positions in the private sector
where there is conflict of interest
Step 4: Decide if it is really an ethical dilemma.
1.Are there legal obligations in the case?
– If yes, follow the law. Not an ethical dilemma.
2.Are there clear standards in your professional Code of
Ethics that are relevant to the case?
– If yes, follow the Code of Ethics? Not an ethical dilemma.
3.Do personal values conflict with professional Code of
Conduct?
– If yes, manage your personal values: discern, consult.
Not an ethical dilemma.
4.Is the conflict between two ethical principles?
– If yes, it is an ethical dilemma.
 Ethical Principles
• Respect for Persons/Autonomy -
– Acknowledges the stakeholders’s right to make choices, hold views, and take
actions based on their personal values and beliefs
– Can you discuss your problem with the affected parties before taking action?
• Justice
– Treats others equitably
– Distributes benefits and burdens fairly
• Nonmaleficence (do no harm)
– Does not intentionally cause harm
– Whom could your decision injure or harm?
• Beneficence (do good)
– Provides benefits to persons
– Contributes to stakeholders’welfare
– Refers to action done for the benefit of others
 Step 5: Analyze the alternative actions, the
conflicting principles and their consequences
What is your intention in making this decision?

Dilemma Statement:

Alternative Principles Principles Consequences

Actions Upheld Sacrificed
How do the consequences line up with
what you intended in the first place?
Step 7: State your decision and test
• OF CONSISTENCY: Are you confident that your
position can be as valid over a long period of time
as it seems now?
• OF DISCLOSURE. Could you disclose without qualm
your decision with your boss, your RD, Agency
head, family, society as a whole?
• OF SYMBOLIC POTENTIAL. What is the symbolic
potential of your action if understood?
misunderstood?
• OF CLARITY OF EXCEPTIONS.Under what
conditions would you allow exceptions to stand?
 Step 8: State how you plan to carry
out your decision.
• Action plan with timeline
 ETHICS ROUNDS

• GROUPS OF THREE
• DISCUSS YOUR CASE IN YOUR GROUP
– WOULD YOU SAY THAT THE DILEMMA WAS
RESOLVED SATISFACTORILY?
– WHY?
 REFERENCES

• Nash (1981). Ethics without the Sermon. HBR.

• Banaji, et al (1983). How Unethical Are You? HBR
• RA 6713
Ethical Decision-
Making
STRENGTHENING
THE MORAL
MOORING

2
7
 272

Effective Operation
273
 274

NATIONAL GUIDELINES ON
INTERNAL CONTROL SYSTEM
1. Safeguard assets;
2. Check the accuracy and reliability of accounting
data;
3. Ensure efficient, effective, ethical and economical
operations;
4. Comply with laws and regulations; and
5. Adhere to managerial policies.
 275

AUDITING, Sec. 6 par. 1

• Auditing is an integral part of the
accountability process in government.

– Ensures sound and prudent financial management

by monitoring and evaluating the spending
activities of the government agencies to keep
them within the bounds of law and regulations,
and the standards of economy, efficiency and
effectiveness.
 276

ACCOUNTABILITY, Sec 6 par 2

• The concept of accountability is an

integral whole, and fiscal accountability
is part of, not apart from, the larger
accountability of government and
government officials to the people. All
public officers and employees are accountable
to the people for their overt acts, neglects or
omissions while in government service
 27
7

FISCAL RESPONSIBILITY, (Secs 2 & 4(4), PD 1445)

• The head of an agency and all those who
exercise authority over the financial affairs,
transactions, and operations of the agency,
shall take care of the management and
utilization of government resources in
accordance with law and regulations, and
safeguard against loss or wastage to ensure
efficient, economical and effective operations
of the government
 27
8
SAFEGUARDING ASSETS

• Cash
• Supplies inventories
• Physical assets
 279

What is stolen?
 280

Inventory

• Misuse of inventory
• Theft of inventory
• Purchasing and receiving falsification
• False shipments
• Concealing inventory shrinkage
• [Unclaimed lost and found]
 281

MANAGEMENT BY WALKING
• Periodic Checks
• Spot Checks
 282

How to detect fraud

Receipts
Issuance of temporary receipts
Non-numerical sequence of ORs issued
Absence of Cash Receipts
Journal (CRJ)
 283

How to detect fraud

Petty Cash

• Un-numbered voucher
• No Limits
• Questionable liquidation/receipts
• Late reports
 284

How to detect fraud

Vouchers
• Duplicate payments
• Errors/correction on voucher
• Common names or addresses of persons
• Questionable handwriting on documents
• Unusual pattern of vouchers/work orders
just below the allowed limits
• Invalid VAT
 285

How to detect fraud

Vouchers
• Overdue pay or excess advances
• Unexpected relationships between sub-
contractors (e.g. shared addresses, telephones
or fax numbers, bank accounts or directors)
• Excessive difference between budget and
actual
• Large payments to individuals (not
corporations)
 How to detect fraud

Supporting documents

• Missing documents
• Not original (photocopy)
• Tampered
• Questionable receipt
• Forged signature
• Ghost employees/suppliers
• Bogus addresses/use of PO boxes
 287

How to detect fraud

• Splitting up requirements to get under small

purchase requirements or to avoid prescribed levels
of review or approval
• Defining needs in ways that can be met only by
specific contractor
• When an employee is on leave, the work is left until
the employee returns.
• Lack of common sense controls such as changing
passwords frequently, or restricting access to
sensitive areas.
 288

How to detect fraud

Faulty journal entries

• Recording an expense to conceal fraud involves a fictitious

journal entry
• Unexplained adjustments to receivables, payables,
revenues or expenses
• Journal entries that do not balance
• Journal entries made by individuals who don’t normally
make such entries
• Journal entries made near the end of an accounting period
 289

Compliance

• Prevention against administrative and

criminal cases
 290

Malversation of Funds
Appropriating, Misappropriating, or permitting
other person to take public funds
Presumption from failure to have duly
forthcoming public funds upon demand
Demand only as a matter of procedure,
evidentiary BUT not necessary
Penalty - 2 years 4 months to Reclusion
Perpetua
Basic Education Sector Transformation (BEST)

ACTIVITY:
JUSTIFY ME

BEST is supported by the Australian Government

2
9
 293

Case 1
• FINDING
The collections of miscellaneous fee of Ten
The imposition
Pesos (P10.00) (Annex II) perofstudent
this upon
enrolment which was fee
miscellaneous not authorized
of Ten Pesos by
DECS.
•
(P10.00) is in violation of DECS
As explained by the principal in her letter
Order
dated JuneNo. 27 s.this
8, 1998, 1995 dated
practice hadMay
been
going on when she assumed
24, 1995 (Annex thereat
IV). and the
same has the implied permission of the PTA
(Annex III).
Is her action justified?
 294

Case 2

• XY sold, kept and disbursed the

income of the old newspaper
with no accounting by the COA
since 1994.
Is this action justified?
 295

Case 3
DECISION
• The principal, Miss B. bought the .38 Caliber
The firearms had been turned-over
Handgun and Shotgun which she registered
to theherSchool
under name. Supply Officer
Said firearm came(Annex
from the
student government fund.
V). Representations had been
• The firearms as alleged by the principal were
made for the transfer of the license
intended for the use of the security guard of
to the school, Ramon Torres
the school.
• National
The High
arm dealer hadSchool
secured(Annex VI-A).
the licenses of
the firearms in the name of the principal.
Is this action justified?
 296

Case 4

• The principal Ms. E. accepted cash

and in kind donations without being
properly channeled and accounted
first by the property custodian and
the cash without first [being]
deposited in the Trust Fund.

Is this action justified?

 297

Why is fraud committed?

Perceived Rationalization
Pressure

Perceived Opportunity
 298

Pressures
• Financial pressures (greed, loss, need)

• Vice

• Work-related pressures (get even)

• Other pressures (spouse)

 299

Opportunity
• Lack of circumvention of controls that
prevent and/or detect fraudulent
behavior
• Inability to judge quality of performance
• Failure to discipline fraud perpetrators
• Lack of access to information
• Ignorance, apathy and incapacity
• Lack of an audit trail
 300

Rationalization
• Most perpetrators are first-time offenders who would
not commit other crimes. Rationalizing helps them
hide from the dishonest of their acts

I am only borrowing
nobody will get
the money, I will pay it
hurt back

its for a good I deserve

purpose more
 301

Effects of Failure to prosecute

• Misplaced compassion
• Individual versus community
• Communicates wrong signal to the
community
• Funds could be used for legitimate
purposes
 302

Guarding against fraud

• Avoiding undue reliance on any one individual;

Rotate duties
• Separating duties to avoid conflicts
• Hiring honest people and training them in fraud
awareness
• Creating a positive work environment
• Disseminating a well-understood and respected
code of conducts or ethics
• Providing employee assistance programs
 303

Guarding against fraud

• Proper modeling and proper labeling

• Changing attitudes to fraud;
• Through the “fear factor” (i.e. the risk of being
caught or the severity of the consequences);
• Making it too much effort to commit fraud
• Increasing the severity of penalties
• Always taking appropriate action against known
perpetrators of fraud.
 304

Effective Operation
Basic Education Sector Transformation (BEST)

QUIZ TIME

BEST is supported by the Australian Government

• Questions will be flashed on the screen.
• Participants will answer individually
• Answers will be revealed at the end of the quiz
 ENUMERATION & TRUE OR FALSE
1. Enumerate the 3 things why FRAUD is committed. (3
points)
2. TRUE or FALSE. The NGICS provides for
guidelines on Fiscal Responsibility wherein, the head
of an agency and all those who exercise authority
over the financial affairs, transactions, and
operations of the agency, shall take care of the
management and utilization of government resources
in accordance with law and order, and safeguard
against loss or wastage to ensure efficient, and
effective operations of the government. (3 points)
 FILL IN THE BLANKS
3. What is the penalty for malversation of funds?
(2 points)
4. _________is an integral part of the accountability
process in government, which ensures sound and
prudent financial management by monitoring and
evaluating the spending activities of the government
agencies to keep them within the bounds of law and
regulations, and the standards of economy, efficiency
and effectiveness. (2 points)

5. Give the 4 effects of FAILURE to PROSECUTE

fraudulent acts. (5 points, all or nothing)
• Questions will be flashed on the screen.
• Participants will answer individually
• Answers will be revealed at the end of the quiz
• Tally individual scores
• Tally group scores. RIGHT MINUS WRONG
Basic Education Sector Transformation (BEST)

FISCAL
MANAGEMENT
ISSUES & HOW TO
ADDRESS THEM

BEST is supported by the Australian Government

3
1
Director Milagros T. Talinio
Internal Audit Service
 312

We will give you a set of observations that have been

compiled by the office of Director Talinio. The observations
have been grouped thematically.

Your analysis may include the following areas of observation: policies,

structure, system, training, personal values. You can also use the
questions posted in Slide No. 28.

A manila paper will be provided. Write on the left column the likely
reasons why the following incidents happened or are still happening.

On the right column, propose how these incidents can be avoided.

As soon as you are finished, post your manila paper in your designated
area. Be ready to present in the plenary your group’s report
313
314
315
316
317
318
319
320
321
322
323
324
 325
Exercise: Assess your Readiness
to be a Fiscal Manager
• As the person primarily responsible over the fiscal
management of the school, what activities do I perform
well?
- Planning (SIP)?
- Sourcing of funds and other resources?
- Allocation of funds?
- Actual use of funds in operations?

• What are the activities that can I still improve as far as

fiscal management is concerned?
• Planning (SIP), Sourcing, Allocation & Actual use of
funds (1 metacard, 1 idea)
 326
WAY FORWARD: DIAGNOSE SCHOOL OPERATIONS
FOCUSING ON FISCAL MANAGEMENT
What are we doing wrong?
What could be the reasons
why we are doing it wrongly?

Can we address the reason/s

on our own?

What can we change fast?

What can we do that need
longer time?

Are we part of the problem? What

can we change in ourselves?
Basic Education Sector Transformation (BEST)

REFLECTION

BEST is supported by the Australian Government

 Reflection
What is becoming clear to me about
what I need to do as a fiscal manager?
Basic Education Sector Transformation (BEST)

END OF DAY 3

BEST is supported by the Australian Government