POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

College of Education- Graduate School Studies

STA.MESA, CITY OF MANILA

Guiding Principles of Sound

Management Fiscal Systems
MARK JAYSON Y. PINEDA, MAEd.
Presenter

Presented to:
Dr. NORMITA VILLA
Professor
5. Public Involvement

Parents and community members have a major stake in how

schools and districts use public resources to educate their children
and support their communities. Accordingly, fiscal management
systems must offer and encourage opportunities for significant and
broad public involvement in the process of creating, implementing,
and monitoring budgets.
 Parents, Teachers, Students, and
Community Members. Members.

Their involvement brings diverse and objective voices not

directly represented by school officials and governance bodies to
the decision-making process, and their positions as non-school
employees/non-elected officials provide a useful set of checks
and balances.
 6. Transparency
Transparency in this context refers to the need for
openness by school officials to share information about
school finance matters with everyone. Schools and districts
must develop and implement a fiscal management system
that provides parents and community members with clear
and easy-to-understand financial and accountability system
information.
 School Officials
They bring knowledge and skills in aligning both educational
needs with programs and practices and also those programs
and practices with available resources. They can translate the
needs, goals, and approaches derived from broad-based
decision-making into concrete educational and financial
terms.
 School Governing Bodies
• They play an important role by holding school officials accountable
for responding to the expressed needs of the community. Acting on
behalf of their constituents, they approve and monitor fiscal plans
and their implementation. They serve (and should represent) the
interests of not just their constituency, but the entire community, and
they can provide a useful and important communications channel
between the school and the community.
 CITIZENS PARTICIPATORY
AUDIT

to open the audit processes to citizens and CSOs; intended to

improve effectiveness and efficiency in the use of public
resources
• The Governance Commission for GOCCs (GCG) was
created in 2012 to fight corruption in government owned
and controlled corporations and improve the quality of
management.
7. Accountability
Fiscal management systems must guarantee that the
processes involved in the administration of public funds
are conducted openly, and that those involved are held
accountable to the highest standards of professional ethics
and competence.
External and unbiased professional audits should be an
integral part of any fiscal accountability system.
• Coverage of Report Card Survey, a critical
component of Anti-Red Tape Act of 2007, was
expanded from 50 frontline agencies in 2010 to 1,109
agencies in 2016.
• The Inter-Agency Anti-Corruption Coordinating Council
was established to institutionalize transparent,
accountable, and participatory governance.
 Planning the Budget
• The ultimate goal in planning the budget is to align
available funding and resources with the needs of
students and schools. Many school districts start the
process by estimating the funding they expect to
receive, then allocating those limited resources to meet
student needs. Ideally, however, the process should
actually work in reverse.
 Planning the Budget
• The budget planning process should begin by determining
student and school needs, and then exploring ideas, concepts, and
strategies to plan the most practical and most appropriate ways to
meet those needs. Only after these processes, then, should the
budgeting process turn to financial resources and attempt to
match funding and resources with identified programs, projects,
and services.
• In the Department of Education, the School Heads, District
Supervisors and the Administrative Officers make sure the
proper liquidation of the budget and MOOE for monthly
expenses and this was recorded and appear in the AIP and SIP
of the School to make sure the budget was accounted for and
taken record.
 8. Competence/Professionalism

• The individuals who are responsible for handling and spending public dollars
for education must demonstrate a professional level of competence in fiscal
management. Local and/or state organizations should require and provide
training that will enable individuals to reach a high professional level of
competence.
• School Officials (Superintendent, Principal, Finance Administrator, etc.):
• Develop and share with community members and the public a budget
planning process and timeline that allows for public sharing and input;
• Make certain that all communications regarding the budget are prepared in an
easy-to-understand format, using nontechnical language as much as possible;
• Ensure that members of governing bodies (school councils, school boards,
committees) have sufficient training to be able to understand the budget and
contribute to its development.
 Monitoring and Evaluating the
Expenditure of Funds

• Evaluating how funds are spent has both financial and educational implications.
Annual audits evaluate whether district funds have been handled competently
and ethically. Program evaluations help to determine the effectiveness of
specific programs, shedding light on returns—or lack thereof—from specific
investments in teaching and learning. Both forms of evaluation provide useful
information for planning the next year’s budget.
Governance strategies to improve fiscal
management
• Sustain existing participatory governance initiatives such as the Citizen
Participatory Audit.
• Enhance the income and asset declaration system of public officials by
improving the system of filing and analyzing Statements of Assets, Liabilities,
and Net Worth (SALN).
• Complete the Budget and Treasury Management System and the Single
Treasury Account.
Governance strategies to improve fiscal
management
• Intensify LGU fiscal monitoring and performance evaluation through
standardized reporting tools and metrics.
• Formulate and implement expenditure management reforms that will improve
government agency budget utilization and address underspending (i.e.
streamlining the release of funds, development of integrated and user-friendly
financial management systems)
 Budget Reform Act/ Bill

• The Budget Reform Act being tagged as one of the priority bills up for early
approval in the Senate, the national government is well-positioned to shift to
an annual cash-based budgeting system starting Fiscal Year (FY) 2019. The
said measure will mandate the more disciplined use of the National Budget
while also enhancing transparency and accountability in in the budget process.
 E Government Bill
• Under Republic Act (RA) 9206, General Appropriations Act (GAA) for FY 2003, the
EGF was created as an alternative funding source for mission-critical, high-impact,
and cross-agency ICT projects in the government
 E Government Bill

• What is the purpose of EGF?

• Institutionalization of a facility / mechanism that would provide full funding support
for mission-critical government ICT projects;
• Ensure successful completion of high-impact ICT projects that would jumpstart the
development and implementation of e-Government throughout the country; and
• Facilitation of professional evaluation, selection and monitoring practices for ICT
projects that would result in more effective and/or efficient cross-agency interfaces

•
 Comprehensive Tax Reform Program

The Comprehensive Tax Reform Program (CTRP) is needed to

accelerate poverty reduction and to sustainably address inequality, in
order to attain the President's promise of tunay na pagbabago. By making
the tax system simpler, fairer, and more efficient, additional - and a more
sustainable stream of - revenues will be generated to make meaningful
investments in our people and infrastructure, which will help achieve our
vision for the Philippines.
 Freedom of Information Bill

• Executive Order No. 2, s. 2016 Signed on July 23, 2016

• SECTION 2. Coverage. This order shall cover all government offices under the
Executive Branch, including but not limited to the national government and all its
offices, departments, bureaus, offices, and instrumentalities, including government-
owned or -controlled corporations, and state universities and colleges. Local
government units (LGUs) are encouraged to observe and be guided by this Order.
• SECTION 3. Access to information. Every Filipino shall have access to
information, official records, public records and to documents and papers
pertaining to official acts, transactions or decisions, as well as to government
research data used as basis for policy development.
 Education Matters

A high quality education is vitally important for productive citizenship, and it is a

guaranteed right for all children in most state constitutions.
 Money Matters

A high quality education requires an adequate level of resources—a

level not present in many places, and particularly not in low property wealth areas.
 Fiscal Management Matters.

Given limited levels of resources and the mission to provide all children with high
quality learning opportunities, making effective and efficient use of resources is
crucial to success.
 The Courts Matter/ Legislative Matters

• Courts are increasingly raising concerns about fiscal management practices in

cases that challenge the levels of funding provided to school districts.
 References

• https://www.unescap.org/sites/default/files/Working%20Lunch%20Presentation_0
2_UNESCAP%20Survey%202017%20Subregional%20Policy%20Dialogue_NE
DA.pdf
• https://www.bieresources.com/uploads/4/1/7/5/4175813/best_fiscal_manage.pdf?f
bclid=IwAR3fM1N-jvTYGbE7-RZf4_7xliJQ48Q-a3dpOda3lgP8EcCyregUnvuz
66Y
• https://www.dbm.gov.ph/index.php/secretary-s-corner/press-releases/list-of-press-
releases/945-budget-reform-act-to-modernize-public-budgeting-in-the-
philippines#:~:text=The%20landmark%20Budget%20Reform%20legislation,the
%20Build%20Build%20Build%20Program.
• https://www.officialgazette.gov.ph/foi/
•