BUDGETING

M A N A G I N G E D U C AT I O N A L R E S O U R C E S
 RESOURCE MANAGEMENT •

• A resource management is the efficient and effective

development of an organization's resources when they are
needed.
• • Such resources may include financial resources,
inventory, human skills, production resources, or IT.
• • Nowadays, there is lots of educational technology
resources emerging as we can't avoid technology as a part
of our everyday routines and because it's very useful.
 RESOURCE MANAGEMENT

• Educational resources are the resources which are

freely accessible, openly licensed text, media, books,
videos, games, news, and other digital assets which is
used for acquiring knowledge, teaching, sharing your
knowledge, learning as well as for research purposes
 CONCEPT & NATURE OF EDUCATION
RESOURCES
• • Education resources refer to all human, material, non-
material, audio-visual school environment and community
materials available in an academic environment to facilitate
school administration and simplify the teaching-learning
process.
 CONCEPT & NATURE OF EDUCATION
RESOURCES
• • Education resources include the teachers in the school,
human beings in the community, real objects, specimen or
models, chalk and display boards, school buildings and layout,
the community at large and other fundamental materials like
pencils, pens, exercise books etc which the learners are
expected to have at any point in time to facilitate learning
(NOUN, 2009).
• 
NEED FOR RESOURCE MANAGEMENT IN
EDUCATION:
• Resources may include financial resources, inventory, human
skills, production resources, or information technology (IT).
• • Resource management is a key element to activity resource
estimating and project human resource management.
• • Both are essential components of a comprehensive project
management plan to execute and monitor a project
successfully.
• Material/Physical Resources
• • Financial Resources
• • Time Resources
• • Human Resources
• • ICT Resources
• • Community Resources
• • Fundamental /Supporting Resources
 FINANCIAL RESOURCES

• • Financial resources are the funds required for the smooth

operations of a school.
• • In school administration, funds are necessary for the
procurement of facilities, equipment, electronics and
communication gadget needed for effective performance.
• • Apart from this, funds are needed to pay the salaries of
administrative, academic and non- academic staff.
• • Plan and policy implementation are responsive to funds
availability.
FINANCIAL MANAGEMENT IN SCHOOLS:

• • Financial management covers such areas as the procurement

of funds, their allocation, monitoring their use in the interest
of accountability and producing financial reports for the
relevant stakeholders.
• • Financial management is, therefore, an integral part of the
responsibility as an education manager because, without good
financial management practices, schools would find it difficult
to achieve their goals.
ROLE OF SCHOOL ADMINISTRATORS IN
FINANCIAL MANAGEMENT:

• • Allocate funds to various activities in accordance with

the budget.
• • Authorize the disbursement of school funds.
• • Administer school funds both lawfully and morally. •
Determine a school budget in consultation with other
stakeholders such as heads of department, senior teachers.
• • Ensure that the school has the funds it needs and that
those funds are used effectively and efficiently.
 PHILIPPINE SETTING

• In the Philippines, School principals like any leaders of any

organization have decisions to make when it comes to
utilization of the funds channeled to public schools (Atieno,
2012).
• These decisions according to Brigham and Houston (2012)
have financial implications on the financial management of
school principals who play the most crucial role in ensuring
schools' effectiveness and performance taking into account the
day to day operations of the school (Ballada and Ballada,
2012)
 PHILIPPINE SETTING

• Republic Act No. 9155, Chapter 1 Section No. 7, Letter E,

Paragraph 3 states that consistent with the national educational
policies, plans and standards, the school heads shall have the
Authority, Responsibility and Accountability (AuRA) in
managing all affairs of the school.
• Thus, the success and failure of the school depends of the kind
of school principal it has. And, no. 7   specifically stated about
Administering and managing all personnel, physical and fiscal
resources of the school.
FINANCIAL MANAGEMENT IN SCHOOLS

• The concept of Financial management in Schools describes the

process of ensuring that school leaders plan, organize, delegate
and control the funds of the school to achieve its goals.
Ajaegbo (2009) stressed out that financial management is a
key factor in knowing how the school is effectively managed
or if it is able to realize its objectives.
• The Department of Education sets forth the role of the
principal relevant to financial management in the school
context as the Philippine government provides for the
budgetary needs of the Philippine public schools (Zarate,
2009).  
FINANCIAL MANAGEMENT IN SCHOOLS

• Financial management in Schools often presents the broader

frame of management which is inclusive of all stakeholders as
required by the Department of Education.
• Within this frame, power at school level is not centralised
around one person, (the principal), but is shared as far as
possible, should be inclusive of all relevant stakeholders.
• This called for active participation of various stakeholders,
including teachers in school governance and decision making
processes such as finance related matters (Chaka 2008).
FINANCIAL MANAGEMENT IN SCHOOLS

•  School Principals In schools, the principals are part of the

school’s financial management ranging from resource
management to the accounting of financial utilization.
• Hence, the school shall plan the budgetary requisites which
shall cover budgeting, setting objectives, managing human
resources, time setting, purchasing of learning resources, and
the relevant costing.
FINANCIAL MANAGEMENT IN SCHOOLS

• All these are being overseen by financial management Hunjra,

2010). Furthermore, part of financial management is the
sourcing of alternative funds and ensuring that it helps in the
attainment of the goals of the organization.
• Bradley (2009) emphasized that effective and efficient
financial management is manifested in the proper
documentation of financial report.
• As budgeting is supported by the Philippine government,
principals must then be compelled to ably do financial
management to ensure education for all in the context of
financial resources (Orcullo,2008).
FINANCIAL MANAGEMENT IN SCHOOLS

• Financial Management Practices There has been a change of

roles of principals as the 21st century came in to introduce
educational reforms (UNICEF–UNESCO,2009).

• The principal is the chief accounting officer who plays the role
of a teacher and at the same time the bursar (Blanchard, Carlos
and Randolf,2011). 
FINANCIAL MANAGEMENT IN SCHOOLS

• If principals practice financial management there is

transparent and accountable implementation of programs to
achieve academic excellence (Thenga , 2012).

• Principals can plan, control and monitor the school finances

throughout financial management and in budgeting,
accounting and monitoring effective implementation of school
budget (Wheelen and Hunger, 2010).
•BUDGETING
 WHAT IS BUDGETING?

• Budgeting is the process of designing, implementing and

operating budgets. It is the managerial process of budget
planning and preparation, budgetary control and the related
procedures.
• Budgeting is the highest level of accounting in terms of future,
which indicates a definite course of action and not merely
reporting.
• Budgetary governance is the process of formulating the annual
budget, overseeing its implementation and ensuring its
alignment with public goals.
 THE TEN PRINCIPLES ARE OF
BUDGETARY GOVERNANCE
• Manage budgets within clear, credible and predictable limits for fiscal policy.

• Closely align budgets with the medium-term strategic priorities of government.

 

• Design the capital budgeting framework in order to meet national development

needs in a cost-effective and coherent manner.

• Ensure that budget documents and data are open, transparent and accessible.

• Provide for an inclusive, participative and realistic debate on budgetary

choices.    

• Present a comprehensive, accurate and reliable account of the public finances.

 THE TEN PRINCIPLES ARE OF
BUDGETARY GOVERNANCE
• Present a comprehensive, accurate and reliable account of the public
finances.

• Actively plan, manage and monitor budget execution.

• Ensure that performance, evaluation and value for money are integral to
the budget process.

• Identify, assess and manage prudently longer-term sustainability and

other fiscal risks.

• Promote the integrity and quality of budgetary forecasts, fiscal plans and
budgetary implementation through rigorous quality assurance including
independent audit.
 THEORIES IN BUDGETING

• Budget Theory
• This theory deals with the academic study of the political and
social motivations behind government and civil society
budgeting (Adams ,1985). This theory was discussed more
evenly during the Progressive Era and even in academic and
quasi-academic facilities.
• The theory focuses on participation in public sector activities.
This budget theory states that there should be wide
participation of the public in budgeting, and the budgets ought
to reflect the average person (Schick, 1973).
 THEORIES IN BUDGETING

• Budget Theory
• In the context of public secondary schools, the budgeting
process should involve all stakeholders particularly, parents,
government representatives, financiers, and the schools’
management. In other words, it should not be so ambitious that
some parents will find it hard to contribute towards catering
for the activities and expenses spelt out in the budget.
• 
 THEORIES IN BUDGETING

Theory of Financial Control

Ostman (2007)
The theory considers the personal functions of humans, both
present and future, as its fundamental reference point.
Theory of Financial Control highlights the significance of the
current as well as feasible functions of financial tools.
 THEORIES IN BUDGETING

Theory of Financial Control

It further points out that organization’s internal and external
financial factors including payments, financial instruments,
accounting, control models, economic calculations, and related
considerations need to be looked into at all phases and levels.

It was further observed that in the context of financial control, it

is necessary to understand how activities relate to financial
processes.
 THEORIES IN BUDGETING

• Agency Theory
• Agency theory was proposed by Jensen and Meckling (1976).
The theory states that an agency relation exists when a person
(the principal) hires another person (the agent) to perform
certain tasks or services on behalf of the principal.
 NATIONAL BUDGETING CYCLE

• Budgeting for the national government involves four (4)

distinct processes or phases :
• budget preparation,
• budget authorization,
• budget execution and accountability.
• President Rodrigo Roa Duterte signed into law the
PhP4.506 trillion Fiscal Year (FY) 2021 General
Appropriations Act (GAA)
• Consistent with the provisions of the Constitution, the
education sector shall continue to receive the largest
portion of the national budget to the tune of PhP751.7
billion, or 16.7 percent of the FY 2021 budget. 
 APPROACHES IN BUDGETING

• Line Item Budge

• Performance Budget
•  Zero-based budgeting
• Planning Programming Budgeting System
 APPROACHES IN BUDGETING

• Line Item Budget

• A line item budget is a form of budget presentation that
clusters proposed expenses by department or cost center.
• This method of aggregation more easily shows which
departments and cost centers are absorbing the bulk of
the entity's funds.
• The presentation typically shows the actual expenditure
or budget from the prior period for comparison purposes,
so that one can quickly see if there are significant
changes budgeted from the prior period.
 APPROACHES IN BUDGETING

• Line Item Budget

• This format represents an easy way to roll forward
the budget into a new period.
• However, the simplicity of the roll forward may
encourage users to not delve more deeply into the
numbers, so that existing budgets tend to be
perpetuated into the future.
 APPROACHES IN BUDGETING

• Performance Budget
• Also referred to as performance-based budgeting is a
practice of preparing the budget based on the
evaluation of the productivity of the different
operations in an organization.
• Operations which are contributing the most to the
profitability, the larger share of the budget is allocated
to that division.
• It leads to optimum utilization of resources such as
finance, skills of the staff, use of the productive time
etc.
 APPROACHES IN BUDGETING

•  Zero-based Budgeting
• Zero-based budgeting (ZBB) is an approach to making
a budget from scratch. The budget is not based on
previous budgets. Instead, the budget starts at zero.
• With zero-based budgeting, you need to justify every
expense before adding it to the official budget. The
goal of zero-based budgeting is to reduce spending by
looking at where costs can be cut.
•
 APPROACHES IN BUDGETING

• The abbreviation PPBS stands for the following three

phases of this procedure:
• a) Planning is what may be called strategy in the sense that
at this point the concern is to define, using prospective
studies, the set of long term objectives for which various
services will be responsible.
• b) Programming consists of defining the administrative
steps and for organizing the necessary logistics for
carrying out the set of actions in order to reach the selected
objectives. In this phase, the resources in terms of human
resources, capital (investment) and research are
determined for the duration period covered.
 APPROACHES IN BUDGETING

• The programmes are laid out through a work plan that is, however,
of only indicative value.
• c) Budgeting is the phase when the annual parts of the programme
are translated into annual budget, taking into account the financial
constraints. The idea is to adopt on a voluntary and progressive
basis, within the administration, a coherent way of preparing,
implementing, and controlling decisions made at each level of
responsibility.
• In brief, the PPBS method is to set certain major objectives, to
define programmes essential to these goals, to identify resources to
the specific types of objectives and to systematically analyse the
alternatives available
 APPROACHES IN BUDGETING

• In brief, the PPBS method is to set certain major

objectives, to define programmes essential to these
goals, to identify resources to the specific types of
objectives and to systematically analyse the
alternatives available
 ACTIVITY

• Share the budget system in your organization.

• Make a sample activity/plan with budgetary requirements.