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
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.

FMOM MAJOR CONTENTS

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.

FMOM MAJOR CONTENTS

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.

FMOM MAJOR CONTENTS

DEPARTMENT OF EDUCATION 11

Accounting and
Disbursement
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.
DEPARTMENT OF EDUCATION
• 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.
FMOM MAJOR CONTENTS
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

School-Based
Financial
Management
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
DEPARTMENT OF EDUCATION
…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
FMOM MAJOR CONTENTS
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

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 N

on-IUs
– Latest DepEd Reorganization Plan and
RA 9155
– Unified Accounting Code Structure (UACS)
– Philippine Public Sector Accounting Stand
ards (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