DepED CORE BUSINESS

OPERATIONS VIS-À-VIS
BUDGET AND FINANCIAL
MANAGEMENT
School Finance

– refers to the operational function

of ensuring that activities such as
identification of sources of funds, its
allocation, disbursements, recording
and reporting of financial transactions
are carried out to achieve the goals of
the organization, i.e, the school.
Fund
– the financial resources of an
organization/school. The basic
source of fund of a school
is its annual appropriations or
approved budget.
 SOURCES OF FUNDS
1. General Appropriations Act
– the approved National
Budget
2. Special Education Fund
– LGU school board fund
3. Foreign-assisted Projects
– e.g. SEDIP, TEEP
4. PTCA, Alumni, Business Associations,
other NGOs
5. Canteen
6. Registration Fees – from seminars,
conferences, meetings
 Generally, a fund is interchangeably
referred to as:

FUNDING
DOCUMENT
1.appropriation-an authorization
made by law or legislative
General enactment directing
Appropriations payment out of government
Act (GAA) funds under specified
conditions and for specific
purposes.
FUNDING
DOCUMENT

2. allotment - an authorization
Special issued by DBM to an
Allotment implementing agency to
Release incur obligations not
Order (SARO)/ exceeding a given amount
Agency during a specified period
Budget for the purpose indicated.
Matrix (ABM)
FUNDING
DOCUMENT

3. a. cash allocation – cash

Notice of available in the MDS
Cash account of the agency
Allocation at a government servicing
(NCA) bank
↓
CHECK
ISSUED b. cash advance

RULE : GAA ≥ [SARO + ABM] ≥ NCA

DISBURSEMENTS OR EXPENDITURES

1.Personal Services (PS)

– Salaries, wages,
other compensation (PERA, ADCOM,
RATA, Clothing Allowance, PIB,
Year-end Bonus and Cash Gift),

other benefits
(Retirement Gratuity, Terminal Leave
Benefits) and government shares
on GSIS Life and Retirement
Premiums, Pag-IBIG, Philhealth and
2. Maintenance and Other
Operating Expenses (MOOE)
– Traveling Expenses, Training
Expenses, Supplies and Materials,
Utility Expenses, Communication
Expenses, Rent, Transportation
Expenses, Printing and Binding,
Janitorial Services, Security
Services, Repairs and Maintenance,
etc.
3. Capital Outlay

– Land and Land Improvement,

Buildings and Structures, Office
Equipment, Furniture and Fixtures,
Machineries and Equipment,
Transportation Equipment, etc.
4. Financial Expenses

– include bank charges, interest

expense and other financial
charges.
SCHOOL-BASED FUND MANAGEMENT
SCHOOL

FISCAL
AUTONOMY

ACCOUNTABILITY PRINCIPAL AUTHORITY

Rendering reports Make decisions

on financial over financial
transactions RESPONSIBILITY resources

Legal and optimal use of funds

 SCHOOL-BASED MANAGEMENT
(FINANCE COMPONENT)
- Is the decentralization of decision –
making authority from a higher level
of school administration (i.e. region
or division) to decision makers at the
school level as a means for
stimulating school improvement
(Malen, Ogawa and Kranx, 1990 in
Wohlsletter, 1996)
- SBM prepares schools for the
eventual decentralization of fund
management to elementary and
secondary schools.
 OBJECTIVES OF SBM
1. To empower the principal/head
teacher of the school to
provide leadership

2. To mobilize the community to

invest time, money and labor
in making the school a better
place to learn, thus improving
student achievement.
 LEGAL MANDATE OF SBM
RA 9155 (Governance of Basic
Education Act of 2001)
DepED Order No.1, s. 2003
(IRR of RA9155)

Sec. 6.2 School Heads shall have

authority, accountability and
responsibility for the following:
1. Set mission, goals & targets of
the school
- develop School Improvement Plan
(SIP)
 2. Be accountable for higher
learning outcomes

- implement curriculum and

develop school educational
program

- create environment
conducive to higher learning

- introduces new and innovative

modes of instruction to
achieve higher learning outcomes
3. Administer and manage personnel,
physical and fiscal resource of
school
- recommend staff component
- encourage staff development
- accept donations, grants for
school improvement

4. Establish school – community

networks in support of school
targets
 RELEASE OF ALLOTMENT AND NOTICE OF CASH
ALLOCATION (NCA) AND PAYMENT OF OBLIGATIONS

GAA

OLD SYSTEM – Prior to August 1, 2004

ABM/
SARO MDS
D.O. OS Claimant
Check
Sub
DBM R.O. SARO
NCA/ MDS
School OS Claimant
ANCAI Check
 RELEASE OF ALLOTMENT AND NOTICE OF CASH
ALLOCATION (NCA) AND PAYMENT OF OBLIGATIONS

GAA
DIRECT FUND RELEASE SYSTEM
(DBM-Deped Joint Circular No.
2004-1, effective August 1, 2004)

ABM/ Implementing
Units:
SARO
1. R.O.
MDS
DBM OS Claimant
2. D.O. Check
3. SS
NCA/ with
ANCAI FS
 RELEASE OF CASH ALLOCATION FOR
ACCOUNTS PAYABLE (EXTERNAL)

DBM ADA/FOR CREDIT TO THE ACCOUNT OF Claimant

 COMPARATIVE BUDGET DATA
(P’000)
FY 2005-2004
2005 2004 INCREASE
% to % to %
Total Total Increase
Amount Amount Amount
Personal
Services 3,133,602 95 % 3,093,086 96% 40,516 1.3 %

MOOE 162,737 5% 113,366 4% 49,371 4.4%

Capital - - - - - -
Outlay

TOTAL 3,296,339 100% 3,206,452 100% 89,887 2.8%

ENROLMENT 602,743 602,743
Per pupil/student cost P5,469 P5,320
 DEPARTMENT OF EDUCATION
COMPARATIVE BUDGET DATA
(P’000)
FY 2006-2005
2006 2005 INCREASE
% to % to %
Amount Amount Amount Increase
Total Total
Personal
92,582,711 84.4 % 90,292,259 88% 2,290,452 2.5 %
Services
MOOE 13,254,325 12.1% 8,702,393 8.5% 4,551,932 52.3%
Capital 3,854,428
3.5% 3,589,326 3.5% 265,102 7.4%
Outlay
TOTAL
109,690,764 100% 102,583,978 100% 7,106,786 6.9%
DepED
TOTAL
3,435,344 3,296,339 139,005
IV - B
3.1%
% share of IV-B on DepED Budget 3.2%
ENROLMENT 631,239 602,743
Per pupil/student cost P5,442 P5,469
 DEPARTMENT OF EDUCATION REGION IV-B
COMPARATIVE BUDGET DATA
(P’000)
FY 2006-2005
2006 2005 INCREASE
% to % to %
Total Total Increas
Amount Amount Amount e
Personal
Services 3,256,194 95 % 3,133,602 95% 122,592 3.9 %

MOOE 178,728 5% 162,737 5% 15,991 9.8%

Capital - - - -
Outlay 422 422
TOTAL 3,435,344 100% 3,296,339 100% 139,005 4.2%
ENROLMENT 631,239 602,743
Per pupil/student cost P5,442 P5,469
 OTHER FINANCE MATTERS

1. Rationalization of MOOE

a. Elementary Schools 2007 2006

– per pupil P207 P100

b. Secondary Schools
– per student P509 P350
2. Salaries, other compensation
and benefits

a. Benefits that are chargeable

against agency/ school savings

a.1 step-increment
a.2 monetization of leave credits
a.3 loyalty cash award
a.4 maternity leave (incumbent
with pay)
a.5 overtime pay
b. Regular annual benefits

b.1 Productivity Incentive

Benefit (PIB)
b.2 Clothing Allowance
b.3 Cash Allowance
b.4 Mid-year and Year-end
Bonus and Cash Gift
 c. Non-regular benefits

c.1 Productivity Enhance Pay

c.2 Educational Assistance
c.3 Extra Bonus and Cash Gift
c.4 Performance Bonus

5. Provident Fund Loans

THANK YOU!!!