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 2
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.
DEPARTMENT OF EDUCATION 3
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:
DEPARTMENT OF EDUCATION 4
Why is there a need for an FMOM in DepEd?
DEPARTMENT OF EDUCATION 5
What are the unique features of the FMOM?
DEPARTMENT OF EDUCATION 6
What are the unique features of the FMOM?
DEPARTMENT OF EDUCATION 7
What are the major contents of the FMOM??
DEPARTMENT OF EDUCATION 8
Budget & Planning Linkage
BUDGET
Effective financial Through the Development Budget
management requires a Coordination Committee (DBCC) this
strongly linked planning, linkage is operationalized. The Committee
budgeting and procurement performs the following –
processes in an organization.
Understanding the basic
principles and standards, as • Establishes the Budget level based on
well as the policies and projected revenues and manageable
guidelines under each of the deficit level;
systems, facilitates the
implementation of the
• Sets the sectoral targets and priorities;
procedures to be • Provides guidelines on the proper
undertaken. allocation of resources in various
expenditure dimensions to achieve the
national development goals and
objectives.
DEPARTMENT OF EDUCATION 9
Preparation Legislation Execution Accountability
BUDGET CYCLE
The four phases of the
budget cycle overlap in
continuing cycles Budget Call House
Release
Guidelines &
Performance
Targets &
every year. For Deliberation Program Outcomes
Cash Releases
it in Congress. Consolidation,
Validation & Year-end Budget
Execution and Confirmation Ratification &
Enrolment
Performance
Assessment
Incurring
Accountability phases Presentation to
the President &
Obligations Review
DEPARTMENT OF EDUCATION 10
• The FMOM provides an overview of the
national procurement system as part of
an agency’s planning and budget
PROCUREMENT
preparation.
DepEd has developed the
Customized Agency
Procurement Manual (CAM) • A separate section on the process of
which is a generic procurement at the school level is
procurement manual to provided as well as Asset Management,
systematize the which involves –
procurement process, Custodianship
ensure transparency and Inventory Management
avoid confusion. This was
Disposal procedures
subsequently approved by
Government Procurement
Policy Board (GPPB) on May • Extracts from the Property and Supply
30, 2008 in compliance with Handbook are cited specifically those
the provisions of Section 6 of relevant to the schools.
R.A. 9184 and its IRR.
DEPARTMENT OF EDUCATION 11
• Major accounting processes
Accounting and such as Receipts and Deposits,
Disbursement Disbursements and Financial
Government accounting Reporting are discussed aligned
encompasses the with the current GAM, PPSAS
processes of analyzing, and UACS.
recording, classifying,
summarizing and • Similarly, governing laws and
communicating all circulars are similarly hyperlinked
transactions involving the to the FMOM.
receipt and disposition of
government funds and • Illustrative examples and process
property, and interpreting flows for each type of accounting
the results. transaction are provided in the
FMOM.
DEPARTMENT OF EDUCATION 12
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
to activities undertaken or
• cashiering and disbursement
pursued by a school head
and designated staff who
• accounting and recording
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
from the utilization of these
• physical and financial
resources and minimizing reporting
the attendant negative costs
or effects of such activities.
DEPARTMENT OF EDUCATION 14
…excerpts from the FMOM
School-Based Documentary requirements for salaries, petty operating
Financial expenses, other personnel services, and maintenance and
other operating expenses depending on the nature of
Management expenses incurred :
The sources for the chapter
on SBFM include the 1. Cash Disbursements Register
2. Approved purchase request with certificate of Emergency
following documents:
Purchase, if necessary
3. Bills, official receipts, sales invoices, Reimbursement
Handbook on School Expense Receipt (RER)
4. Approved trip ticket, for gasoline expenses
Based Management (SBM) 5. Toll Receipts
Simplified Accounting 6. Trip tickets
Procedures 7. Canvass from at least three suppliers for all purchases,
8. Summary/Abstract of Canvass
DepEd Order No., 44, s.
9. Certificate of inspection and acceptance
2015 – Enhanced process 10. Report of Waste Materials in case of replacement or
on SIP and SRC repair
DEPARTMENT OF EDUCATION 15
Contents in the FMOM
PROVIDENT FUND Legal basis
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
money in the amount of
Compensation of Staff
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
DEPARTMENT OF EDUCATION 16
Other unique features of the FMOM
DEPARTMENT OF EDUCATION 17
Other unique features of the FMOM
DEPARTMENT OF EDUCATION 18
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 19
What other use would the FMOM serve ?
DEPARTMENT OF EDUCATION 20
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
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 22
DEPARTMENT OF EDUCATION 23