Professional Documents
Culture Documents
Fiscal Managemant - FULL DECK
Fiscal Managemant - FULL DECK
Fiscal Managemant - FULL DECK
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
5
WHO WANTS TO BE A MILLIONAIRE
Sa Letrang E
THE A TEAM
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
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
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
Unspent
budget
A Sample Framework of Knowledge 31
BASIC PRINCIPLES
35
ROLE OF THE PRINCIPAL AS
FISCAL MANAGER
BASIC PRINCIPLES
36
Safeguards assets;
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
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 Agency
13
Budget and Matrix (ABM)
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)
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)
• 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-IUs have been
fully downloaded to the respective heads of
the said non-IUs through C.A within 3
working days after receipt of Liquidation
Report.
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
USES of MOOE
9
7
MANAGEMENT OF
LEARNING
9
8
Basic Education Sector Transformation (BEST)
APPLICATION PART 2:
BUDGET
PRESENTATION
USES OF FUNDS
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)
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
114
Sources of Income
GAA
School
Income
Non-
GAA
115
PTA
Canteen
GAA School
Activities
116
Points to Note
117
118
Donations
119
Donations
• Authority
• Accounting
• Accountability
120
121
122
123
• Return to your SIP and budget allocation
129
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.
130
When 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.
131
MANAGEMENT OF
SCHOOL CANTEEN
IN SECONDARY SCHOOLS
132
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
REPORTORIAL
REQUIREMENTS
School Heads’ Development Program:
Advanced Course for SHS School Heads
To be prepared 1. Bank Reconciliation Monthly
and 2. Schedule of Cost of Sales
3. Schedule of Operating Expenses with
maintained at 4. Schedule of Utilization of School deadline
all times and Share Program Received from the
posted on the Cooperative
date of
School’s 5. Schedule of Utilization Of Gross every 10th
Income Generated from the of the
bulletin board
Canteen Lab.
and/or in any 6. Statement of Receipts and following
conspicuous Disbursements month
place within 7. Statement of Reports on
the school Cooperatives’ School Program
Support
premises 8. Schedule of Capitalization on the
School Heads’ Development Program: Operation of School Canteen
Advanced Course for SHS School Heads
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
CDA (For teacher Standards
cooperative 3. Annual Reports to CDA 60 days after the end
only), copy of the fiscal year
furnished the 4. List of Directors an Officers 30 days after the GA
school head/ meeting, & 15 days ff
principal assumption of office
5. Report on Crimes and
Losses To be submitted as
crime/ incident occurs
on the 5th business day
after knowledge of
crime or incident
Accounting of Funds
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 book 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
For purpose transparency and accountability, the
school head/principal shall organize a school level
auditing committee to be headed by a Mathematics
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.
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 board 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
149
The Net Income derived from the operation of the canteen shall
be utilized but not limited to:
150
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.
Teachers and canteen personnel shall be required
to secure clearance from money and property
accountabilities in the operation and
management of the School Canteen
Guidelines for Laboratory Canteens
(All Secondary Schools)
Where students shall be trained on food
planning, preparing, retail trade, selling and
safety as part of their H.E class.
H.E Canteen Teacher shall prepare the
schedule of the practicum students and shall
be posted on a bulletin board within the
school canteen premises.
Income derived from the laboratory canteen shall be utilized:
154
Grounds for termination of Operation of the
School Canteen
157
158
ACTIVITY: PROCUREMENT
FLOW
159
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?
3. Direct Contracting
4. Repeat Order
5. Shopping
6. Negotiated Procurement
Public Monitoring
Awareness & Vigilance
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
Petty Cash
• Purchase of non-regular
expenses that are of small
amounts
• No more than P15k
• P1k canvass
• Periodic cash
replenishment
172
173
Cash Advance
• Must be liquidated
immediately
174
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”
175
Check
• Pre-numbered voucher
• Counter-sign
• Bank reconciliation
(for IUs)
177
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
179
180
Supplier’s
Bank
181
Spending
Supplier Agency
182
183
184
185
(Standard format)
DEPARTMENT OF EDUCATION
NATIONAL EDUCATION TESTING AND RESEARCH CENTER
Monthly Bank Reconciliation
As of January 31, 20__
LBP MDS Account No. - - - - - -
1
9
197
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
he value or extend the useful life of the equipment or motor vehicles
205
LEGAL BASIS
ACTIVITY:
ASSET BINGO
4
CORNERS
Decide on which questions you will
answer based on the following pattern:
INNER
BOXES
216
Decide on which questions you will
answer based on the following pattern:
X
217
OUTER
BOXES
218
10 minutes to answer
ALL OR NOTHING
REFLECTION
2
2
What is becoming clear to
me about what I need to do
as a fiscal manager?
222
End of Day 2
2
2
FISCAL
MANAGEMENT
And THE ROLE OF THE SCHOOL HEAD AS
FISCAL MANAGER
DAY 3
2
2
ACTIVITY: BUDGET
GAME
2
2
ETHICS
2
2
Session Objectives
3. a guiding philosophy
(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
–Distrbutes 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:
• GROUPS OF THREE
• DISCUSS YOUR CASE IN YOUR GROUP
–WOULD YOU SAY THAT THE DILEMMA WAS
RESOLVED SATISFACTORILY?
–WHY?
REFERENCES
2
6
263
Effective Operation
264
265
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.
266
• Cash
• Supplies inventories
• Physical assets
270
What is stolen?
271
Inventory
• Misuse of inventory
• Theft of inventory
• Purchasing and receiving falsification
• False shipments
• Concealing inventory shrinkage
• [Unclaimed lost and found]
272
MANAGEMENT BY WALKING
• Periodic Checks
• Spot Checks
273
Petty Cash
• Un-numbered voucher
• No Limits
• Questionable liquidation/receipts
• Late reports
275
Vouchers
• Overdue pay or excess advances
• Invalid VAT
• 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
278
Compliance
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
Case 1
• FINDING
The collections of miscellaneous fee of Ten
The imposition
Pesos (P10.00) ofstudent
(Annex II) per this upon
enrolment which was not authorized by
miscellaneous
DECS.
fee of Ten Pesos
• As (P10.00) is in
explained by theviolation
principal inof DECS
her letter
dated June
Order 8, 1998,
No. 27 s. this
1995practice
datedhad been
May
going on when she assumed thereat and the
same has24,
the 1995
implied(Annex IV).of the PTA
permission
(Annex III).
Case 2
Case 3
DECISION
• The principal, Miss B. bought the .38
The firearms had been turned-over
Caliber Handgun and Shotgun which she
to theunder
registered Schoolher Supply Officer
name. Said firearm
came from the student government fund.
(Annex V). Representations had
• The firearms as alleged by the principal
beenintended
were made forforthe
theuse
transfer of the
of the security
guard of to
license thethe
school.
school, Ramon Torres
• The arm dealer had secured the licenses of
National High School (Annex VI-A).
the firearms in the name of the principal.
Case 4
Perceived Rationalization
Pressure
Perceived Opportunity
289
Pressures
• Financial pressures (greed, loss, need)
• Vice
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
291
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
• Misplaced compassion
• Individual versus community
• Communicates wrong signal to the
community
• Funds could be used for legitimate
purposes
293
Effective Operation
Basic Education Sector Transformation (BEST)
QUIZ TIME
FISCAL
MANAGEMENT
ISSUES & HOW TO
ADDRESS THEM
A manila paper will be provided. Write on the left column the likely
reasons why the following incidents happened or are still happening.
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
304
305
306
307
308
309
310
311
312
313
314
315
316
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)
317
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?
REFLECTION
END OF DAY 3