Final Output

School Finance
Prepared by:

MIKAELA S. RAPANAN

Submitted to:

Dr. Ana Liza Salas

Adviser

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School Finance
1. What are the different sources of funds of the school?
Answer: Legal Basis for School Funding; “Republic Act No. 10533 (Enhanced Basic
Education Act of 2013)” An act enhancing the Basic Education System by strengthening its
curriculum and increasing the number of years for basic education, appropriating funds
therefor and for other purposes.
Sources for School Funding
1. National Government;
2. Local Government;
3. Parents and Students;
4. School Owners;
5. Business and Industry;
6. Loaning Institutions;
7. Philanthropist and Civic Cultural Organizations; and
8. Alumni Support

2. Identify and elaborate six (6) factors that should be considered in planning and
preparation of school budget.

Answer: The major plans involved in the preparation of the school budget as noted by
Ikedugwu (2007) are:
1. The education plan which defines the policies of the school, its program and activities
as well as other educational services to be carried out.
2. The expenditure plan which translates each educational program and services into
cost.
3. The financing plan which sets out the means of meeting the cost of the educational
program and services.
Moreover, Adesina and UNESCO in Akinsolu (2008) specified that in planning and
preparing school budget, the following should be considered; Personnel, Educationa
Plan/Programs of the school, the Expenditure Plan, the Financial Plan, the Draft Budget, and
the Final Budget.

A. Personnel
Personnel include all individuals who will have responsibilities in the budgeting
process and should possess remarkable qualities to be able to effectively prepare the
school budget. The educational manager and planner must follow simple rules,
standardize certain procedures, ensure personal flexibility and must tailor all his
approach in budgeting towards the school needs.

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 After identifying possible sources of funds, a school head as a financial planner, has
to draw up a plan for securing and expending the resources. For the plan to be
expressed as a school budget a head needs to have some knowledge and experience of
designing and managing a budget. He should recognize the fact that the process of
preparing a budget should be highly regimented and follow a set schedule so that the
completed budget is ready for use by the beginning of the fiscal year. School budget
preparation should not be an exclusive preserve of the manager/principal. Classroom
teachers, vice principals and unit heads among others should be given adequate
opportunity to share in developing the educational plan. This is important because it
is only through the process of participation in the planning by all the needed
personnel that there can be genuine understanding of the budget. This implies that the
school head should at the onset study critically the general needs of the school. He
should also request his staff to submit to him their needs with respect to their subject
areas and the areas related to the posts they are holding. He should however provide
to these personnel a yard stick for evaluating and articulating these needs.

B. Educational Plan/Programs of the School

Educational plan defines the policies of the school, its programs and activities
including other educational services to be carried out. Budget provides a vehicle for
transporting educational policies, goals and programs into financial resources plans.
This implies that developing an instructional plan to meet students’ performance
goals should be directly linked to determining budgeting allocations.

In the process of preparing the budget, the school as a matter of importance should
identify the main programs by making references to the educational policies, goals
and targets of the Federal, state and local government. The demand therefore is that
the managers of different education institutions, the finance officers, bursars, teaching
and non-teaching staff should avail themselves the opportunity of collecting vital data
that constitute the needed programs. With this, they should formulate targets geared
towards successful implementation of the plan programs of the institution within the
fiscal year.

Educational activities that are contained in the plan within the fiscal year ranges from
science programs, computer related programs, religious, arts and exhibitions,
language programs, fine arts and music, agricultural programs, medicine, pharmacy
and engineering programs as well as educational, environmental and health science
programs. Sports and games are not left out. The plan also depicts the organizational
set-up of the system, the number of the students in the school, teacher student ratio,
the number of personnel to be employed and their required qualifications, provisions
to be made for students transportation services, exceptional students and physically
impaired students, what health services should be provided by the school and a host

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 of other services that the institution should provide, and finance within the services
that the institution should provide, and finance within the planned year.

C. The Expenditure Plans

Clearly, every formal budget should specifically possess a statement of the
educational program in the form of programed budget and also show statement of
receipts and expenditure. The expenditure plan has as its function the responsibility of
translating the educational programs or service into cost. As soon as educational
program is accepted, estimates can be prepared showing the possible costs. It is
important that the budget reflects as accurately as possible the funding needed to
carry out the proposed expenditure. The school head should neither overestimate the
funds required nor under estimate the budgeting needs.

For proper accounting and easy management, the expenditure items are classified and
numbered. The state ministries of education usually outline the classification order
and it is important to stick to this standard so as to maintain uniformity and clarity.
Examples of simple expenditure classification for a secondary school include;
personal Emolument, Allowances, Ancillary charges, maintenance charges and
special expenditure equipment, purchase of library books, among others. It is
therefore incumbent on the school manager in his bead to translate plan into cost to
seek information from both current cost and information collected over a period of
time (Ikediugwu 2008). Excessive padding inherent in government budgeting should
not be allowed.

D. The Financial Plan

The end product of the overall budgeting process is the financial plans. This shows all
the sources of income of the school. Meanwhile, it is important that school managers
systematically state all the problems they encounter in raising funds for various
school programs and projects.

E. The Draft Budget

The draft budget is presented to a set of management teams or the budget committee
on education, the budget prepared will be reviewed in order to bring within the
probable financial ceiling.

F. The Final Budget

A fully prepared budget emerges with supporting documentation and indications of
output.
In addition to the already discussed six plans in the budget preparation is the
“Revenue Plan”. The revenue plan is the detailed estimates of the receipt which can
be used in the financing of the educational plan.

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3. Enumerate and discuss the procurement process and public bidding rules in the
school.

Answer: Procurement Process

A. Pre-Procurement Conference
The pre-procurement conference is the forum where all officials involved in the
procurement meet and discuss all aspects of a specific procurement activity, which
includes the technical specifications, the Approved Budget for the Contract (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.

The pre-procurement conference shall assess the readiness of the procurement in

terms of confirming the certification of availability of funds, as well as reviewing all
relevant documents in relation to their adherence to law. This shall be attended by the
BAC, the unit or officials who prepared the bidding documents and the draft
Invitation to Bid, as well as consultants hired by the agency concerned and the
representative of the end-user.

B. Advertising and Invitation to Bid

The purpose of an invitation to bid is to provide standardized information to all
bidders, fostering a truly competitive process. This is achieved through the use of
sealed bidding procedures. Contractors will submit their price in sealed envelopes
which are publicly opened to maintain transparency.

The Invitation to Bid shall contain, among others:

(a) A brief description of the subject matter of the Procurement;
(b) A general statement on the criteria to be used by the Procuring Entity for the
eligibility check, the short listing of prospective bidders, in the case of the
Procurement of Consulting Services, the examination and evaluation of Bids, and
post-qualification;
(c) The date, time and place of the deadline for the submission and receipt of the
eligibility requirements, the pre-bid conference if any, the submission and receipt of
bids, and the opening of bids;
(d) The Approved Budget for the Contract to be bid;
(e) The source of funds;
(f) The period of availability of the Bidding Documents, and the place where these
may be secured;
(g) The contract duration; and
(h) Such other necessary information deemed relevant by the Procuring Entity

C. Pre-Bid Conference
The Pre-Bid Conference's aim is to provide an overview of the project and the
contract package as well as to answer any queries and clarifications that prospective

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 bidders may have on the bidding documents. Three (3) representatives per
organization.
At least one pre-bid conference shall be conducted for each procurement, unless
otherwise provided in the IRR. Subject to the approval of the BAC, a pre-bid
conference may also be conducted upon the written request of any prospective bidder.
The pre-bid conference(s) shall be held within a reasonable period before the deadline
for receipt of bids to allow prospective bidders to adequately prepare their bids, which
shall be specified in the IRR.

D. Submission and Receipt of Bids

Bid Submission means the response to Tender document requirements as issued by
the Board, submitted by the Bidder, which must be received in its original form, with
original signatures, in the bidding system. Receipt of Bids is the formal action taken
by an owner in receiving sealed bids that have been invited or advertised in
accordance with the owner's intention to award a contract.
The deadline for the receipt of bids shall be fixed by the BAC, giving it sufficient
time to complete the bidding process and giving the prospective bidders sufficient
time to study and prepare their bids. The deadline shall also consider the urgency of
the procurement involved. Bids submitted after the deadline shall not be accepted.

E. Public Bid Opening

Bid Opening means the public opening of Bids, at which the names of the Bidders
responding to a Bid Solicitation and prices of the Bidders are publicly read and
recorded. The BAC shall publicly open all bids at the time, date, and place specified
in the bidding documents. The minutes of the bid opening shall be made available to
the public upon written request and payment of a specified fee.

F. Bid Evaluation and Rating

Bid evaluation is the process that takes place after the tender submission deadline. for
this type of contract may require different methods (e.g., using merit point
or scoring systems). Bid evaluation process has four (4) basic stages including
(1) preliminary examination for responsiveness to formal qualification requirements;
(2) evaluation for compliance with technical requirements; (3) price/financial
evaluation; and (4) post qualification/due diligence.

G. Post-qualification
It is the stage where the bidder with the Lowest Calculated. It is the process over
which is the last stage in the procurement process that the Procuring Entity can ensure
that the bidder which submitted the LCRB (Lowest Calculated Responsive Bid) is
worthy of contract award.

H. Award of Contract and Notice to Proceed

Contract awarding is the method used during a procurement in order to evaluate the
proposals taking part and award the relevant contract. Usually at this stage the
eligibility of the proposals that have been concluded. So, it remains to choose the

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 most preferable among the proposed. Hence, the issuance of the Notice to Proceed for
the contract to work.

Public Bidding Rules

 BIDDING RULES: The Bidding Rules refer to the information and terms
defined specifically for a particular auction. The Bidding Rules refer to the
information and terms defined specifically for a particular Reverse Auction.
 Principles
(a) Transparency in the procurement process and in the implementation of
procurement contracts.
(b) Competitiveness by extending equal opportunity to enable private contracting
parties who are eligible and qualified to participate in public bidding.