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
 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
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
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
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
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
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

BUDGET
Effective financial
management requires a
strongly linked planning,
budgeting and procurement
processes in an organization.
Understanding the basic
principles and standards, as
well as the policies and
guidelines under each of the
systems, facilitates the
implementation of the
procedures to be
undertaken.
DEPARTMENT OF EDUCATION
Budget & Planning Linkage
Through the Development Budget
Coordination Committee (DBCC) this
linkage is operationalized. The Committee
performs the following –
• Establishes the Budget level based on
projected revenues and manageable
deficit level;
• Sets the sectoral targets and priorities;
• Provides guidelines on the proper
allocation of resources in various
expenditure dimensions to achieve the
national development goals and
objectives.
FMOM MAJOR CONTENTS
 BUDGET CYCLE
The four phases of the
budget
Budget Call cycle overlap
House
in Release
Guidelines &
Performance
Targets &
continuing Deliberation cycles Program Outcomes

every
Stakeholder year. For
engagement Budget Execution
instance, the Executive
Senate Documents Budget
Accountability
Preparation Legislation Execution Accountability
implements
Technical Budget
Deliberation
the Reports
Hearings Allotment & Cash
budget for the current Release
Programming
year and prepares
Executive Review
Bicameral the
Quarterly
Performance
Deliberation
budget for the next Allotment and
R2eview

fiscal year or defends

Consolidation,
Validation &
Cash Releases
Year-end Budget
it in Congress.
Confirmation Ratification &
Enrolment
Performance
Assessment
Incurring
Execution
Presentation to the
President &
and Obligations Review

Accountability phases
Cabinet

are
President’s Budget
simultaneously
President’s
Enactment & Veto
Disbursements/
Payments
Audit

implemented year-
round.

FMOM MAJOR CONTENTS

DEPARTMENT OF EDUCATION

PROCUREMENT
DepEd has developed the
Customized Agency
Procurement Manual (CAM)
which is a generic
procurement manual to
systematize the
procurement process,
ensure transparency and
avoid confusion. This was
subsequently approved by
Government Procurement
Policy Board (GPPB) on May
30, 2008 in compliance with
the provisions of Section 6 of
R.A. 9184 and its IRR.
DEPARTMENT OF EDUCATION
• The FMOM provides an overview of the
national procurement system as part of
an agency’s planning and budget
preparation.
• A separate section on the process of
procurement at the school level is
provided as well as Asset Management,
which involves –
 Custodianship
 Inventory Management
 Disposal procedures
• Extracts from the Property and Supply
Handbook are cited specifically those
relevant to the schools.
FMOM MAJOR CONTENTS

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
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

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
 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
 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
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
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
 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
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
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
Thank You!

DEPARTMENT OF EDUCATION