FINANCIAL MANAGEMENT OPERATIONS

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

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.

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:

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

FMOM MAJOR CONTENTS

DEPARTMENT OF EDUCATION 9
 •Preparation
•Budget Call
•Stakeholder engagement
•Technical Budget Hearings
•Executive Review
BUDGET CYCLE •Consolidation, Validation & Confirmation
•Presentation to the President & Cabinet
The four phases of the •President’s Budget
budget cycle overlap in •Legislation
continuing cycles •House Deliberation
every year. For •Senate Deliberation
instance, the Executive •Bicameral Deliberation
•Ratification & Enrolment
implements the budget •President’s Enactment & Veto
for the current year •Execution
and prepares the •Release Guidelines & Program
budget for the next •Budget Execution Documents
fiscal year or defends it •Allotment & Cash Release Programming
•Allotment and Cash Releases
in Congress. Execution •Incurring Obligations
and Accountability •Disbursements/ Payments
phases are •Accountability
simultaneously •Performance Targets & Outcomes
implemented •Budget Accountability Reports
•Quarterly Performance R2eview
year-round. •Year-end Budget Performance Assessment
Review
•Audit FMOM MAJOR CONTENTS

DEPARTMENT OF EDUCATION 10
 • The FMOM provides an overview of the
national procurement system as part of
an agency’s planning and budget
PROCUREMENT
preparation.
DepEd has developed the
Customized Agency
Procurement Manual (CAM) • A separate section on the process of
which is a generic procurement at the school level is
procurement manual to provided as well as Asset Management,
systematize the which involves –
procurement process, ✔ Custodianship
ensure transparency and ✔ Inventory Management
avoid confusion. This was ✔ Disposal procedures
subsequently approved by
Government Procurement
Policy Board (GPPB) on May
• Extracts from the Property and Supply
30, 2008 in compliance with Handbook are cited specifically those
the provisions of Section 6 of relevant to the schools.
R.A. 9184 and its IRR.

FMOM MAJOR CONTENTS

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
government funds and
• Illustrative examples and process
property, and interpreting flows for each type of accounting
the results. transaction are provided in the
FMOM.

FMOM MAJOR CONTENTS

DEPARTMENT OF EDUCATION 12
 Accounting and Disbursement
2. Example of a Process Flow –

Advances to Disbursing Officers Flowchart

DO/SDO DO/SDO Encash check in GSB and keeps cash in a

1 2
Receives the safety vault.
approved
check and DV
from Cash Unit.
Records in the
SDO pays/ releases payment for authorized
CDRec. 3 expenses based on approved Cash Vouchers.

SDO Records payments made in

the “Disbursements” column of
the CDRec.

DEPARTMENT OF EDUCATION 13
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 • asset and liability
available to the school. management, and
These are aimed at
maximizing the benefits that • physical and financial
may be derived from the
utilization of these resources reporting
and minimizing 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

FMOM MAJOR CONTENTS

DEPARTMENT OF EDUCATION 15
 Contents in the FMOM
PROVIDENT FUND
❑ Legal basis
The Provident Fund of ❑ Beneficiaries

under Administrative Order ❑ Governance

DepEd has been established

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

FMOM MAJOR CONTENTS

DEPARTMENT OF EDUCATION 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
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
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 ?

• 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
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 - Downloading of funds c/o Budget

onwards 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
DEPARTMENT OF EDUCATION 21
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

DEPARTMENT OF EDUCATION 22
 Thank
You!

DEPARTMENT OF EDUCATION 23