THE ROLE OF THE

PRINCIPAL AS
FISCAL MANAGER

1 | School Heads’ Development Program: FOUNDATIONAL COURSE

 ROLE OF THE PRINCIPAL
AS FISCAL MANAGER

BASIC
PRINCIPLES
 ROLE OF THE PRINCIPAL
AS FISCAL MANAGER

BASIC
PRINCIPLES
 Principals as fiscal managers of
schools are responsible and
accountable for the school
resources that include funds,
facilities, equipment and other
assets of the school.

Make sure
As head of school, you are the
signatory of practically all you know
important documents. what you
are signing
 Responsibilities of School Principal
As Fiscal Manager
Leads in the crafting of the SIP/AIP that laid down a realistic
set of programs and activities based on an exhaustive study
of both the external and internal environments and which
identified the resource requirements;

Ensures funds are budgeted, made available, and spent

according to fiscal policy and in alignment with account
purpose;

Underscores to his/her team that the budget provides

orderly execution of the needs related to the account and
serves as one of the control mechanisms to compare
planned receipts and disbursements with the actual fiscal
activities and, therefore, must be complied with;
Responsible for under-standing and ensuring compliance
with the regulations, policies, and procedures.

Ensures that the procurement activities are properly and

adequately staffed and are functioning efficiently
following all the policies, procedures and are governed by
the highest ethical standards

Ensures that the school systems are covering property

management to include receiving, recording, releasing
immediately to the to school units the items asked for,
maintaining and repairing of items procured;

Makes certain that assets are well maintained and

repaired on a regular basis;
Makes sure that all donations, out of budget funds such
earnings from the canteen operations or income generations
from other school activities be recorded regularly

Provides daily oversight on how the funds are spent and

managed;
Takes care that processes and controls are in place;

Sees to the proper and accurate recording, analyzing and

reporting of transactions;

Checks the accuracy and reliability of accounting data;

Monitors reconciliation of accounts on a monthly, quarterly,
annual basis; making sure that the expenditures are in
conformity with the budget, or appropriate budget changes
have been made to reflect a change in the original budget.
Must be able to connect each unit with one another -
Instructional/Academic Offices, Property, Purchasing,
Human Resources, General Services, Facilities
Management, Risk Management, Administrative
Accounting, Accounts Receivables and Accounts
Payable;

Safeguards assets;

Signs on all financial transactions as the highest ranking

official in school;
Because of signature authority, the School Principals is
enjoined to understand the Government Budgeting
System and to acquire the skill to navigate in the most
updated National Accounting System adopted by
government.
 When approving documents, the School Principal is
responsible for verifying or having processes in place to
ensure the following:

1. Charges to the account correctly represent materials received or

services rendered;
2. Charges represent activities which are established, and should
comply with the fiscal plan that is established for the account;
3. Funds are available in the account to cover authorized charges
4. The transaction in the account complies with all relevant internal
or external regulations, policies and procedures.
5. The transaction is accurate, timely and completely recorded
6. The original copies of financial records are kept orderly and safely
retained in the Administrative Accounting Office to satisfy legal
and audit requirements. These include original documents such
as attendance records, payroll vouchers and other supporting
documentation.
 The School
Head ensures
efficient,
effective,
economical and
ethical
operations
 Financial System &
Processes
(PLANNING &
BUDGETING)

11 | School Heads’ Development Program: FOUNDATIONAL COURSE

The Financial System and Processes:
Government Budgeting
1. Determination of overall economic targets,
expenditure levels and budget framework by
the DBCC;

2. Issuance by the DBM of the Budget Call

which defines the budget framework; sets
economic and fiscal targets; prescribe the
priority thrusts and budget levels; and spells
out the guidelines and procedures, technical
instructions and the timetable for budget
preparation;
 The Financial System and Processes:
Government Budgeting
3. Preparation by various government
Principals agencies of their detailed budget
directly estimates ranking programs, projects and
participate at activities using the capital budgeting
this levels by
approach and submission of the same to
doing their
SIP/AIP DBM;

4. Conduct a budget hearings were agencies

are called to justify their proposed budgets
before DBM technical panels;

5. Submission of the proposed expenditure

program of department/ agencies/special
for confirmation by department/agency
heads.
The Financial System and Processes:
Government Budgeting

6. Presentation of the proposed budget levels of

department/ agencies/ special purpose funds to
the DBCC for approval.

7. Review and approval of the proposed budget

by the President and the Cabinet;

8. Submission by the President of proposed

budget to Congress.
The Financial System and Processes
School Level: Planning & Budgeting
The School Improvement Program (SIP)
is the repository of all the activities that
cover the ff:
Student Population Planning
•Population of school-age in the area
• Population of likely enrollees
•Population of cohorts moving to next grades
Human Resource Planning
•Number of teachers needed
•Number of non-teaching staff needed
•Number of technical/auxiliary staff needed
•Number of employees scheduled for promotion
 Capital Planning
• Required amount of space needed
• Physical condition and adequacy of facilities to meet
projected program needs
• Facilities management, institutional policies, and other
influencing factors

Financial Planning
• Assess possible financing alternatives and potential
funding sources
• Includes an overview of past funding practices and
prospects for feasible funding from various new sources
• Traditionally self-funded projects (auxiliary operations,
housing and dining facilities, athletic facilities)
PLANNING AND BUDGETING LINKAGES

Headed by the School Principal, the school

prepares their respective Work and Financial
Plan (WFP) for their different Programs,
Projects and Activities as annex to the Budget
call.

The Procurement Entity’s Budget proposal

embodies the school’s thrusts and resources
needed to produce the quality education to be
delivered to the public

REMINDER : Procurement planning should be

done within the budgetary context, reflecting the
school’s priorities and objectives for the budget
period 17
PLANNING AND BUDGETING LINKAGES

The Work and Financial Plan must be treated as a serious

endeavor and not just done for compliance purposes.

It must contain the initial list of projects/ requirements of the

school and the corresponding budgetary requirements. If done
well with proper laying down of priorities and timetables, this
serves as the proposed PPMP.

It helps if the school does several scenarios of the kind of

possible budget cuts it may have so that a program of seeking
partnerships may be laid down already.

REMINDER: Treat your planning seriously so that you have a

better control of your operations during the year.
18
PLANNING AND BUDGETING LINKAGES

When GAA becomes final, the school must refine the

proposed PPMP, adjusting the PPMP to reflect the
budgetary allocation for their respective PPA as
provided by the Agency Budget Matrix.

The final PPMP shall be submitted to the BAC

Secretary for the finalization of the proposed APP to be
submitted to the HOPE for confirmation or approval.

REMINDER: When you plan well, you do not have to

invent or arbitrarily decide what you need to procure for
the year. Everything you do becomes a purposive step
to attain the targets you have laid down for the year.
 Appropriations,
1 Allotment,
Preparation of estimates,
Budget forms Obligation and
and Instructions Disbursement
Process (National
2 Government
Preparation of Revenue Agencies)
And Expenditure
Estimates

3
Review and Consolidation
of Agency Request
by Department

4
Transmission of Department
Request to DBM
 5
Negotiation between
Department and
DBM Preparation
of Draft Budget

6
Cabinet review of Draft
Budget
President’s Approval

7
Final Budget submitted to
Congress for approval
(within 30 days)

8
Approval of the House of
Representatives/Senate
 9
Signing of the
General
Appropriations Act

10
Submission of Agency
13
Budget and Matrix (ABM)
Pay Obligations
by Agency to DBM
(Disbursements)

11
Issuance of Allotment
Release Order (ARO)
by DBM to Agencies
(with corresponding NCA)

12
Incur Obligations
(Expenditures)
Preparation of the Project Procurement
Management Plan (PPMP)

The Project Procurement Management Plan has PPMP

as one of its components. It deals primarily with
a. planning for procurement of project requirements
b. bidding or procurement strategy
c. source selection
d. delivery and payment schedules
e. contract administration
f. contract termination and
g. other major milestones, in an effort to obtain goods,
infrastructure, contractors and consultants

24
 Current Operating Expenditure 2018
Personnel MOOE Capital Total
Services Outlays
A. Office of the 353,205,626,000 76,857,396,000 122,459,667,000 552,522,689,000
Secretary
B. Nat’l. Book Dev’t. 18,975,000 25,060,000 656,000 44,691,000
Board
C. Nat’l. Council for 4,793,000 9,605,000 14,398,000
Children’s Television
D. National Museum 112,417,000 184,738,000 224,716,000 521,871,000

E. Phil. High School 24,932,000 65,008,000 45,727,000 135,667,000

for the Arts
F. Early Childhood 8,573,000 64,943,000 73,516,000
Care & Dev’t. Council
Total New 353,375,316,000 77,206,750,000 122,730,766,000 553,312,832,000
Appropriation DepEd