FINANCIAL-MANAGEMENT-OPERA

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

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

3. DEPARTMENT OF EDUCATION 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 of Budget and
Management (DBM), the Bureau of Treasury (BTr) and
other government regulatory bodies.

4. DEPARTMENT OF EDUCATION 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

5. DEPARTMENT OF EDUCATION 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;

6. DEPARTMENT OF EDUCATION 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

7. DEPARTMENT OF EDUCATION 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

8. DEPARTMENT OF EDUCATION 8
What are the major contents of the FMOM??

9. DEPARTMENT OF EDUCATION
BUDGET
Budget & Planning Linkage
Through the Development Budget
Coordination Committee (DBCC) this
linkage is operationalized. The Committee
performs the following –
• Establishes the Budget level based on
projected revenues and manageable
deficit level;
• Sets the sectoral targets and priorities;
• Provides guidelines on the proper
allocation of resources in various
expenditure dimensions to achieve the
national development goals and
objectives.
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.
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10. DEPARTMENT OF EDUCATION
BUDGET CYCLE Preparation
Budget Call
Stakeholder
engagement
Technical
Budget Hearings
Executive
Review
Consolidation,
Validation &
Confirmation
Presentation to
the President &
Cabinet
President’s
Budget
Legislation
House
Deliberation
Senate
Deliberation
Bicameral
Deliberation
Ratification &
Enrolment
President’s
Enactment &
Veto
Execution
Release
Guidelines &
Program
Budget
Execution
Documents
Allotment &
Cash Release
Programming
Allotment and
Cash Releases
Incurring
Obligations
Disbursements/
Payments
Accountability
Performance
Targets &
Outcomes
Budget
Accountability
Reports
Quarterly
Performance
R2eview
Year-end Budget
Performance
Assessment
Review
Audit
The four phases of the
budget cycle overlap in
continuing cycles
every year. For
instance, the Executive
implements the
budget for the current
year and prepares the
budget for the next
fiscal year or defends
it in Congress.
Execution and
Accountability phases
are simultaneously
implemented year-
round.
10

11. DEPARTMENT OF EDUCATION
PROCUREMENT
• The FMOM provides an overview of the
national procurement system as part of
an agency’s planning and budget
preparation.
• A separate section on the process of
procurement at the school level is
provided as well as Asset Management,
which involves –
 Custodianship
 Inventory Management
 Disposal procedures
• Extracts from the Property and Supply
Handbook are cited specifically those
relevant to the schools.
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.
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12. DEPARTMENT OF EDUCATION
Accounting and
Disbursement
• Major accounting processes
such as Receipts and Deposits,
Disbursements and Financial
Reporting are discussed aligned
with the current GAM, PPSAS
and UACS.
• Similarly, governing laws and
circulars are similarly hyperlinked
to the FMOM.
• Illustrative examples and process
flows for each type of accounting
transaction are provided in the
FMOM.
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.
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13. DEPARTMENT OF EDUCATION
School-Based Financial
Management (excerpts
from the FMOM)
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 (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.
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14. DEPARTMENT OF EDUCATION
School-Based
Financial
Management
…excerpts from the FMOM
Documentary requirements for salaries, petty operating
expenses, other personnel services, and maintenance and
other operating expenses depending on the nature of
expenses incurred :
1. Cash Disbursements Register
2. Approved purchase request with certificate of Emergency
Purchase, if necessary
3. Bills, official receipts, sales invoices, Reimbursement
Expense Receipt (RER)
4. Approved trip ticket, for gasoline expenses
5. Toll Receipts
6. Trip tickets
7. Canvass from at least three suppliers for all purchases,
8. Summary/Abstract of Canvass
9. Certificate of inspection and acceptance
10. Report of Waste Materials in case of replacement or
repair
The sources for the chapter
on SBFM include the
following documents:
 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
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15. DEPARTMENT OF EDUCATION
PROVIDENT FUND
Contents in the FMOM
 Legal basis
 Beneficiaries
 Governance
 Guidelines
 Compensation of Staff
 Operating expenses
 Disbursement procedures
and recording
 Financial reports
 Illustrative entries
The Provident Fund of
DepEd has been established
under Administrative Order
No. 279, s. 1992. It started
operation in January 1995
through receipt of seed
money in the amount of
Seventy five million pesos (P
75 million) representing
Collection of Service fee
from GOCCs and PLIs
deposited to BTr.
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16. DEPARTMENT OF EDUCATION 17
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

17. DEPARTMENT OF EDUCATION 18
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

18. DEPARTMENT OF EDUCATION 19
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

19. DEPARTMENT OF EDUCATION 20
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

20. DEPARTMENT OF EDUCATION 21
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
09 June 2017 -
onwards
Downloading of funds c/o Budget
Division - CO
13-16 June 2017 Final review of the Training Module
c/o FMOM TWG
19-20 June 2017 Finalization of the Training Module
c/o FMOM TWG Accounting

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

22. DEPARTMENT OF EDUCATION 23