Comprehensive Guide to DepEd Financial Management Operations Manual (FMOM)

This manual, developed by the Department of Education with support from the World Bank, serves as a vital resource outlining financial systems, procedures, and management practices to be followed by DepEd Implementing Units. It aligns with government standards and regulations, providing a uniform interpretation for financial management practices across all spending units of DepEd, customized to their unique needs.

• DepEd
• Financial Management
• Operations Manual
• Government Standards
• World Bank

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1. FINANCIAL MANAGEMENT OPERATIONS MANUAL (FMOM) A Guide for Officials and Staff Engaged in or Served by the DepEd Financial Management System

2. OVERVIEW OF THE FINANCIAL MANAGEMENT OPERATIONS MANUAL (FMOM) DEPARTMENT OF EDUCATION 2

3. 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. This manual outlines the systems and procedures of financial operations and other related management practices to be observed by DepEd Implementing Units (Central Office, Regional Offices, Division Offices and Schools). It conforms to existing government standards, rules and regulations as provided for by the Commission on Audit (COA), the Department Management (DBM), the Bureau of Treasury (BTr) and other government regulatory bodies. of Budget and DEPARTMENT OF EDUCATION 3

4. 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: latest issuances on prescribed rules, regulations of DBM, COA, DOF (BTr), etc., affecting FM practice; latest DepEd policies customizing and adapting national guidelines to unique characteristics and circumstances of DepEd concerning FM issues DEPARTMENT OF EDUCATION 4

5. Why is there a need for an FMOM in DepEd? financial transactions defining and describing procedures to be followed, forms to be used, signing authorities, recording and reporting and documentary requirements; DEPARTMENT OF EDUCATION 5

6. What are the unique features of the FMOM? 1. It is a living document subject to change as necessary: prescribed procedures, rules and regulations by government regulatory bodies DepEd policies affecting FM issues and concerns DEPARTMENT OF EDUCATION 6

7. What are the unique features of the FMOM? 2. It is customized and adapted to the unique needs of DepEd, and provides sections on the following: School-based Financial Management Provident Fund A Matrix of Processes summarizing all requirements per transaction that serves as a short-cut to the FMOM DEPARTMENT OF EDUCATION 7

8. What are the major contents of the FMOM?? 1. Budget (e.g. Planning linkage, Budget Cycle) 2. Procurement (e.g. Asset Management 3. Accounting (e.g. Receipts and Deposits Disbursement and Financial Reporting 4. School-Based Financial Manament and Operation 5. Provident Fund 6. Other Unique features of FMOM NEXT DEPARTMENT OF EDUCATION 8

9. Budget & Planning Linkage BUDGET Through Coordination linkage is operationalized. The Committee performs the following the Development Committee Budget Effective financial management requires a strongly linked planning, budgeting and procurement processes in an organization. Understanding the basic principles and standards, as well as the policies and guidelines under each of the systems, facilitates the implementation of the procedures to be undertaken. (DBCC) this Establishes the Budget level based on projected revenues deficit level; Sets the sectoral targets and priorities; Provides guidelines allocation of resources expenditure dimensions to achieve the national development objectives. and manageable on the in proper various goals and DEPARTMENT OF EDUCATION 9

10. Preparation Legislation Execution Accountability BUDGET CYCLE The four phases of the budget cycle overlap in continuing every year. instance, the Executive implements budget for the current year and prepares the budget for the next fiscal year or defends it in Execution Accountability phases are simultaneously implemented round. cycles For Release Guidelines & Program Performance Targets & Outcomes Budget Call House Deliberation Stakeholder engagement Budget Execution Documents the Budget Accountability Reports Senate Deliberation Technical Budget Hearings Allotment & Cash Release Programming Quarterly Performance R2eview Executive Review Bicameral Deliberation Allotment and Cash Releases Consolidation, Validation & Confirmation Congress. Year-end Budget Performance Assessment Review and Ratification & Enrolment Incurring Obligations Presentation to the President & Cabinet President s Enactment & Veto year- Disbursements/ Payments Audit President s Budget DEPARTMENT OF EDUCATION 10

11. The FMOM provides an overview of the national procurement system as part of an agency s planning preparation. and budget PROCUREMENT DepEd has developed the Customized Agency Procurement Manual (CAM) which is a generic procurement manual to systematize the procurement process, ensure transparency and avoid confusion. This was subsequently approved by Government Procurement Policy Board (GPPB) on May 30, 2008 in compliance with the provisions of Section 6 of R.A. 9184 and its IRR. A separate section procurement provided as well as Asset Management, which involves Custodianship Inventory Management Disposal procedures on the process of the school at level is Extracts from the Property and Supply Handbook are cited specifically those relevant to the schools. DEPARTMENT OF EDUCATION 11

12. Major such as Receipts and Deposits, Disbursements Reporting are discussed aligned with the current GAM, PPSAS and UACS. Similarly, governing circulars are similarly hyperlinked to the FMOM. Illustrative examples and process flows for each type of accounting transaction are provided in the FMOM. accounting processes Accounting and Disbursement and Financial Government accounting encompasses the processes of analyzing, recording, classifying, summarizing and communicating all transactions involving the receipt and disposition of government funds and property, and interpreting the results. laws and DEPARTMENT OF EDUCATION 12

13. SBFM activities include but are not limited to the following: fiscal planning, budgeting cashiering and disbursement accounting and recording procurement asset and liability management, and physical and financial reporting School-Based Financial Management (excerpts from the FMOM) School-based Management (SBFM) refer to activities undertaken or pursued by a school head and designated staff who assist in the management of financial and relevant non- financial resources available to the school. These are aimed at maximizing the benefits that may be derived from the utilization of these resources and minimizing the attendant negative costs or effects of such activities. Financial DEPARTMENT OF EDUCATION 14

14. excerpts from the FMOM Documentary expenses, other personnel services, and maintenance and other operating expenses depending on the nature of expenses incurred : School-Based Financial Management requirements for salaries, petty operating The sources for the chapter on SBFM following documents: Cash Disbursements Register Approved purchase request with certificate of Emergency Purchase, if necessary Bills, official receipts, sales invoices, Reimbursement Expense Receipt (RER) Approved trip ticket, for gasoline expenses Toll Receipts Trip tickets Canvass from at least three suppliers for all purchases, Summary/Abstract of Canvass Certificate of inspection and acceptance 10. Report of Waste Materials in case of replacement or repair 1. 2. include the 3. Handbook on School Based Management (SBM) Simplified Accounting Procedures DepEd Order No., 44, s. 2015 Enhanced process on SIP and SRC Handbook on Property & Supply Management 4. 5. 6. 7. 8. 9. DEPARTMENT OF EDUCATION 15

15. Contents in the FMOM Legal basis Beneficiaries Governance Guidelines Compensation of Staff Operating expenses Disbursement procedures and recording Financial reports Illustrative entries PROVIDENT FUND The DepEd has been established under Administrative Order No. 279, s. 1992. It started operation in January 1995 through receipt money in the amount of Seventy five million pesos (P 75 million) Collection of from GOCCs deposited to BTr. Provident Fund of of seed representing Service and fee PLIs DEPARTMENT OF EDUCATION 16

16. Other unique features of the FMOM It is complete and updated and includes in its attachments a compilation of the following latest documents as references: Government Accounting Manual, 3 volumes, 2015 version DepEd Procurement Manual and RA 9184 DepEd Asset Management Manual Latest COA, DBM, DOF (BTr) issuances Latest DepEd Orders affecting FM concerns DEPARTMENT OF EDUCATION 17

17. Other unique features of the FMOM Simplified Accounting and Reporting for Non-IUs Latest DepEd Reorganization Plan and RA 9155 Unified Accounting Code Structure (UACS) Philippine Public Sector Accounting Standards (PPSAS) Laws on Budget, Accounting and Audit affecting DepEd FM DEPARTMENT OF EDUCATION 18

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

19. What other use would the FMOM serve ? As basis for future automation of the FM processes in DepEd, i.e. the DepEd FMIS As basis to support the national GFMIS if and when this is pursued by government As a reference material for the orientation and/or training of new school heads and new officers and employees, particularly financial staff, of DepEd DEPARTMENT OF EDUCATION 20

20. Pre-Roll-out Activities DATE ACTIVITY 10-12 May 2017 Preparation of the Training Module c/o FMOM TWG Completion of the Training Module c/o FMOM TWG Accounting 06 June 2017 09 June 2017 - onwards 13-16 June 2017 Downloading of funds c/o Budget Division - CO Final review of the Training Module c/o FMOM TWG 19-20 June 2017 Finalization of the Training Module c/o FMOM TWG Accounting DEPARTMENT OF EDUCATION 21

21. Pre-Roll-out Activities DATE ACTIVITY 22 June 2017 Approval of Module by Usec Victoria M. Catibog Distribution of FMOM Module to Regions Roll-out of FMOM to Non-IUs 23 June 2017 July Sept 2017 DEPARTMENT OF EDUCATION 22

22. Thank You! DEPARTMENT OF EDUCATION 23