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Fiscal Management Essentials Guide

Fiscal management refers to the process of planning, directing, and controlling the financial resources of an organization to keep it running within its budget. It involves procuring funds, allocating funds appropriately, monitoring their use, and producing financial reports. Good fiscal management is important as it helps with financial planning, decision making, and improving organizational value and profitability. It requires properly planning and approving budgets, implementing budgets, monitoring expenditures, and communicating with stakeholders. Poor fiscal management is characterized by a lack of record keeping and unnecessary spending.

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316 views3 pages

Fiscal Management Essentials Guide

Fiscal management refers to the process of planning, directing, and controlling the financial resources of an organization to keep it running within its budget. It involves procuring funds, allocating funds appropriately, monitoring their use, and producing financial reports. Good fiscal management is important as it helps with financial planning, decision making, and improving organizational value and profitability. It requires properly planning and approving budgets, implementing budgets, monitoring expenditures, and communicating with stakeholders. Poor fiscal management is characterized by a lack of record keeping and unnecessary spending.

Uploaded by

Nodelyn Reyes
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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FISCAL MANAGEMENT ; MEANING AND IMPORTANCE AND OTHER BASIC

CONCEPTS OF FISCAL MANAGEMENT

What is Fiscal Management?


 Is the process of keeping an organization running within its allotted budget.
 Is the process of planning, directing, and controlling financial resources of an
organization.
 Refers to a money within a government entity.
 Seeing to it that the school has funds it requires to meet its goals and that such funds are
used for the purposes for which they were meant.
Fiscal Management Goals:
 To improve the way the department operates by properly planning, recording and
performing procedures that relate to the budget.
 This involves variety of tools including budget spreadsheets, accounting, and guides
outlining procedures for department management.
Areas of Fiscal Management
 Procurement of funds
 Allocation of funds
 Monitoring their use in the interest of accountability
 Producing financial reports for the relevant stakeholders
Procurement of Funds- process of finding and acquiring goods, services or works from an
external source.
Allocation of Funds – process of fair distribution of funds assigned to a particular item.
Monitoring their use in the interest of accountability – to be responsible for their actions and
decisions, and having the obligation to report about it anytime.
Producing financial reports for the relevant stakeholders – refers to openness with regards to
finance matters.

GOVERNMENT PROCUREMENT REFORM ACT ( RA 9184)


Principles:
 Transparency
 Competitiveness
 Procurement process
 System of accountability
 Public monitoring
FISCAL MANAGEMENT PROCESS
 Planning the budget
 Formal review and approval of the budget
 Implementing the budget
 Monitoring and evaluating the expenditure of funds
 Communication with the public about how funds are utilized

IMPORTANCE OF FISCAL MANAGEMENT

 Helps organization in financial planning


 Assist organization in planning and helps organization in effective utilizing and
allocating the funds receives
 Assist organization in making critical financial decisions
 Helps in improving the profitability of the organization
 Increases the over all value of the organization

CHARACTERISTICS OF FISCAL MANAGEMENT


Poor Fiscal Management – indicated a lack of record – keeping and unnecessary or unplanned
expenditures that can cause a department to go over budget or fail to meet its objectives.

Good Fiscal Management – involves recording all fiscal transactions in checks - and -balances
systems that reduces mistakes or omission that might lead to surprise budget overages.

MOOE – MAINTENANCE AND OTHER OPERATING EXPENSES


Priority Expenditures:
 Basic utilities
 Office / school supplies
 Minor repairs
 Other supplies
 Salaries for janitorial and security services.
NOT ALLOWED EXPENDITURES:
 Procurement of textbooks
 Other instructional materials
 School furniture
 Equipment
WHO CAN DO THIS?
 A good finance team has to work to implement standardization to reduce cost and result
in profit maximization. So, taking care of these factors gives improved financial position
by ensuring futuristic planning and security through longer time frames.

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