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Financial Management Operations Manual Fmom 1
Financial Management Operations Manual Fmom 1
MANUAL (FMOM)
DEPARTMENT OF EDUCATION 2
Development of the Financial Management Operations
Manual (FMOM) is a Department of Education project
with support from the World Bank (WB) that was
completed on 31 March 2016.
DEPARTMENT OF EDUCATION 3
Why is there a need for an FMOM in DepEd?
To have a guidebook for the uniform and standard
interpretation and implementation of financial
management practices in all spending units of DepEd
on the following:
DEPARTMENT OF EDUCATION 5
What are the unique features of the FMOM?
DEPARTMENT OF EDUCATION 6
What are the unique features of the FMOM?
DEPARTMENT OF EDUCATION 7
What are the major contents of the FMOM??
1. Budget (e.g.
2. Procurement (e.g.
Planning linkage,
Asset Management
Budget Cycle)
3. Accounting 4. School-Based
(e.g. Receipts and Deposits
Financial Manament
Disbursement and Financial
Reporting and Operation
6. Other Unique
5. Provident Fund
features of FMOM
NEXT
DEPARTMENT OF EDUCATION 8
Budget & Planning Linkage
BUDGET
Effective financial Through
Through the
the Development
Development Budget
Budget
management requires a Coordination
Coordination Committee
Committee (DBCC)
(DBCC) this
this
strongly linked planning, linkage
linkage is
is operationalized.
operationalized. The
The Committee
Committee
budgeting and procurement performs
performs the
the following
following ––
processes in an organization.
Understanding the basic
principles and standards, as •• Establishes
Establishes the the Budget
Budget level
level based
based on on
well as the policies and projected
projected revenues
revenues andand manageable
manageable
guidelines under each of the deficit
deficit level;
level;
systems, facilitates the •• Sets
Sets the
the sectoral
sectoral targets
targets and
and priorities;
priorities;
implementation of the
procedures to be •• Provides
Provides guidelines
guidelines on on thethe proper
proper
undertaken. allocation
allocation of of resources
resources in in various
various
expenditure
expenditure dimensions
dimensions toto achieve
achieve the the
national
national development
development goals
goals and
and
objectives.
objectives.
DEPARTMENT OF EDUCATION 9
Accountabili
BUDGET CYCLE Preparation Legislation Execution
ty
The
The four
four phases
phases ofof the
the
budget
budget cycle
cycle overlap
overlap inin
continuing
continuing cycles
cycles Budget Call
House Release Performanc
Deliberatio Guidelines & e Targets &
every
every year.
year. For
For Program
n Outcomes
instance,
instance, the
the Executive
Executive Stakeholder Budget
engagement Senate Execution Budget
implements
implements the
the Documents
Deliberatio Accountabil
budget
budget for
for the
the current
current Technical Budget
n ity Reports
Hearings Allotment &
year
year and
and prepares
prepares the
the Cash Release
Bicameral Programming Quarterly
budget
budget for for the
the next
next Executive
Deliberatio Performanc
Review
fiscal
fiscal year
year oror defends
defends n Allotment and
Cash
e R2eview
itit inin Congress.
Congress. Consolidation,
Consolidation,
Validation
Validation &
& Ratification
Releases
Year-end Budget
Confirmation
Execution
Execution and
and Confirmation
&
Incurring
Performance
Assessment
Assessment
Accountability
Accountability phases
phases Presentation
Presentation to
to Enrolment Review
Review
the
the President
President && Obligations
Cabinet
are
are simultaneously
simultaneously Cabinet
President’s
Disbursemen
implemented
implemented year-
year- President’s Enactment
ts/ Payments
Audit
Budget & Veto
round.
round.
DEPARTMENT OF EDUCATION 10
•• The
The FMOM
FMOM provides
provides an
an overview
overview of
of the
the
national
national procurement
procurement system
system as
as part
part of
of
an
an agency’s
agency’s planning
planning and
and budget
budget
PROCUREMENT
preparation.
preparation.
DepEd has developed the
Customized Agency
Procurement Manual (CAM) •• A
A separate
separate section
section onon the
the process
process of
of
which is a generic procurement
procurement at at the
the school
school level
level is
is
procurement manual to provided
provided as
as well
well as
as Asset
Asset Management,
Management,
systematize the which
which involves
involves ––
procurement process,
Custodianship
Custodianship
ensure transparency and
Inventory
Inventory Management
Management
avoid confusion. This was
Disposal
Disposal procedures
procedures
subsequently approved by
Government Procurement
•• Extracts
Extracts from
from the
the Property
Property and
and Supply
Supply
Policy Board (GPPB) on May
30, 2008 in compliance with Handbook
Handbook are are cited
cited specifically
specifically those
those
the provisions of Section 6 of relevant
relevant to
to the
the schools.
schools.
R.A. 9184 and its IRR.
DEPARTMENT OF EDUCATION 11
• Major accounting processes
Accounting and such as Receipts and Deposits,
Disbursement Disbursements and Financial
Government accounting Reporting are discussed aligned
encompasses the with the current GAM, PPSAS
processes of analyzing, and UACS.
recording, classifying,
summarizing and • Similarly, governing laws and
communicating all circulars are similarly hyperlinked
transactions involving the to the FMOM.
receipt and disposition of
• Illustrative examples and process
government funds and
property, and flows for each type of accounting
interpreting the results. transaction are provided in the
FMOM.
DEPARTMENT OF EDUCATION 12
School-Based Financial
SBFM activities include but are
Management (excerpts not limited to the following:
from the FMOM)
School-based Financial
• fiscal planning, budgeting
Management (SBFM) refer • cashiering and disbursement
to activities undertaken or
pursued by a school head • accounting and recording
and designated staff who
assist in the management of • procurement
financial and relevant non-
financial resources available • asset and liability
to the school. These are
aimed at maximizing the
management, and
benefits that may be derived • physical and financial
from the utilization of these
resources and minimizing reporting
the attendant negative costs
or effects of such activities.
DEPARTMENT OF EDUCATION 14
…excerpts from the FMOM
School-Based Documentary requirements for salaries, petty operating
Financial expenses, other personnel services, and maintenance and
other operating expenses depending on the nature of
Management expenses incurred :
The sources for the chapter
1. Cash Disbursements Register
on SBFM include the
2. Approved purchase request with certificate of Emergency
following documents: Purchase, if necessary
3. Bills, official receipts, sales invoices, Reimbursement
Handbook on School Expense Receipt (RER)
4. Approved trip ticket, for gasoline expenses
Based Management (SBM) 5. Toll Receipts
Simplified Accounting 6. Trip tickets
Procedures 7. Canvass from at least three suppliers for all purchases,
8. Summary/Abstract of Canvass
DepEd Order No., 44, s.
9. Certificate of inspection and acceptance
2015 – Enhanced process 10. Report of Waste Materials in case of replacement or
on SIP and SRC repair
Handbook on Property &
Supply Management
DEPARTMENT OF EDUCATION 15
Contents in the FMOM
Legal basis
PROVIDENT FUND
The Provident Fund of Beneficiaries
DepEd has been established
under Administrative Order Governance
No. 279, s. 1992. It started
operation in January 1995
Guidelines
through receipt of seed Compensation of Staff
money in the amount of
Seventy five million pesos (P Operating expenses
75 million) representing
Collection of Service fee Disbursement procedures
from GOCCs and PLIs
deposited to BTr.
and recording
Financial reports
Illustrative entries
DEPARTMENT OF EDUCATION 16
Other unique features of the FMOM
DEPARTMENT OF EDUCATION 17
Other unique features of the FMOM
DEPARTMENT OF EDUCATION 18
Who are the intended users of the FMOM?
– Finance Officers
– Accountants
– Other FM staff and personnel
– Heads of DepEd offices
– School heads
– Other interested parties
DEPARTMENT OF EDUCATION 19
What other use would the FMOM serve ?
DEPARTMENT OF EDUCATION 20
Pre-Roll-out Activities
DATE ACTIVITY
10-12 May 2017 Preparation of the Training Module
c/o FMOM TWG
06 June 2017 Completion of the Training Module
c/o FMOM TWG Accounting
DEPARTMENT OF EDUCATION 22
Thank You!
DEPARTMENT OF EDUCATION 23