DepEd - FMOM PPT - Training Modules - 24 Aug2016

Session 1.
0
FMOM Training Module on
Budget Processes
DEPARTMENT OF EDUCATION 1
Session Overview
Overview of Government Budget Cycle, Processes & Functions
(1 hour/A. Ruiz)
1 - Processes (Preparation, Legislation, Execution, Accountability)
- Functions/ Roles of Budget Units and Budget Officer
Learning Guides and Tools

(1 hour/G. Morong)
2 - Tools (e-BMS, Spreadsheets)
- Guides
Simulation Exercise (Practice Sets)

(1 hour & 30 minutes/G. Morong & G. Guledew)
3 - Financial Analysis
- Report Generation using the e-BMS
Session Overview
Development of an FMOM Training Module for DO Budget

4 (1 hour/S. Briones)
- Presentation of Outputs (RO Budget Officers)
Development of Training/CB Plan for DO Budget Staff

5 (45 minutes/A. Ruiz)
- Presentation of Outputs (RO Budget Officers)
Learning Objective
1. To improve and establish a strong linkage

between the processes of planning,
budgeting and procurement.
2. Ensure that all levels of the organization

understands the basic principles, standards,
policies and guidelines in planning,
budgeting and procurement processes.
Learning Results
1. Understand the basic concepts and
fundamentals of financial management and
budget processes.
2. Understand the functions/roles of the Budget
Officers.
3. Strict compliance with current/existing policies
and guidelines on budget processes.
4. Familiarity on various Budgetary Forms as
prescribed in the Budget Call and the
Government Accounting Manual (GAM).
Learning Results
5. Develop an effective training module using the
FMOM responsive to the financial operations of
the DOs  schools
6. Develop a monitoring tool/ instrument on the

implementation or use of the FMOM
7. Identify technical assistance/support

requirement of DO Budget Units
8. Develop training/capacity-building plan for

Budget Officers
Learning Results
9. Develop a realistic work and financial plan at all
levels of the organization.
10.Improve timely submission of budget

accountability reports (BFARs and Monthly
reports) by maximizing the use of existing
tools, e.g. Budget Monitoring System (BMS).
11.Compliance to the application of UACS in all

financial transactions as prescribed in the GAM.
BUDGET
These four phases
CYCLE
of the budget cycle overlap in continuing
cycles every year. For instance, while the Executive implements
the budget for the current year, it also prepares the budget for
the next fiscal year or defends it before Congress. Meanwhile, the
execution and accountability phases are implemented
simultaneously year-round.
Preparation
Legislation
Execution
Accountability
DEPARTMENT OF EDUCATION
Preparation
Start
Budget
Stakeholder
Call Engagement
Technical Budget
Hearing
Executive Review
Presentation to the
President and Cabinet
Consolidation,
Validation &
Confirmation
President’s Budget
Legislation
House Senate
Deliberation Deliberation
Senate
Deliberation
President’s Enactment and Veto Reflection

and
Enrollment
Execution
Release Allotment
Budget
Guidelines Execution and Cash
And Program Documents Release Programming
Allotment
Allocation
Release
Disbursement Incurring
Accountability
Performance Budget Quarterly

Target Accountability Agency
and Outcomes Reports Performance Review
Year End
Budget
Performance Assessment
Review
Functions of the Budget Division/
Unit
Government’s Budget General Functions of the
Cycle Budget Division /Units
• Budget Preparation/ • Basic Coordination
Legislation • Policy Guidance
Authorization Phase • Supervision of Budget
• Budget Execution Implementation
• Budget
Accountability/
Reporting
Detailed Function of the Budget
Division/Unit
• Develop and improve budgetary methods, procedures
and justification;
• Assist in the preparation of budget documents and
ensure its submission to DBM in the ensuing year;
Budget • Review/ evaluate/ recommend budget proposals of
various DepEd units
Preparation • Fund allocation to DepEd units based on indicative
budget ceiling
and • Oversee the submission of data/ documents in support
of the budget proposal
Legislation/ • Prepare and submit to DBM the consolidated budget
proposal
Authorization • Provide technical support to management in the
presentation and defense on the agency’s budget
Phase proposal
Function of the Budget Division/Unit
• Prepare Monthly Disbursement Program (MDP)

based on GAARD
• Prepare special budgets on requests for fund
release to implementing units
Budget • Process obligation of allotments and issuance of
sub-AROs
Execution • Manage, record and control fund allocation and
utilization
Phase • Provide technical assistance in the application
and utilization of budgetary methods and
procedures
• Process related budget communications
Function of the Budget Division/Unit
• Oversee the submission and

consolidation of BEDs/ BARs and
related documents
Budget • Prepare RAODs (PS, MOOE, FE & CO)
Accountability/ • Prepare FARs
Reporting • Assist DepEd units in the agency
performance review
Phase • Provide Management with periodic
reports and technical advice on Budget
Functions of a Budget
Officer vis-à-vis
• Reviews, evaluates, and
Functions of the consolidates budget
Budget Division/ Unit
proposals of the different
operating units, and as
recommended by the
Budget Program Committee
(ProgCom).
Preparation,
• Attend budget hearings of
Legislation the agency and receiving
and officials
Authorization • Coordinates with oversight
agencies related to the
agency’s approval of its
budgetary request
Officer vis-à-vis • Coordinates the
Functions of the
prioritization and
allocation of funds/
resources based on
budget ceilings and
allocable amounts
Budget • Monitors actual
Execution expenditures vis-à-vis
budget releases
• Assists operating units in
their budget
implementation
Officer vis-à-vis
• Prepares/ submits timely
Functions of the financial accountability
reports to management and
oversight agencies
• Monitors actual expenditures
vis-à-vis budget releases
Budget • Communicate to the various
Accountability operating units status of their
budget allocations
/Reporting
• Reviews and analyze
budgetary request and
prepares corresponding
action
Applications of the BMS for the Practice
Sets
Learning Simulation
Process Exercise
Guides &
Documents
Tools (Outputs)
FMOM RAOD, PS, MOOE

GAARD & NEP
FE, CO
UACS
GAM ORS: Salary/PS MOOE (incl.
Training, Travelling,
Supplies/Materials and Cash FARS:
Advance), CO (ICT, Furniture
and Fixtures, Office 1, 1A, 1B
equipment)
e-BMS
DVs, RCI, Report Analysis:
ADA, TRA, JEV Utilization Rate
Application of the BMS Training Module
for DOs
BMS Overview
BMS Training Module
Simulation Exercise
Pre-requisites
• All pax should be familiar with the basic principles on
Budget, Accounting, Audit and Procurement processes
• Each pax/ RO should bring their own laptop installed
with MS Access
• Practice set/
• documents prepared by CO to RO  DO  Schools
Development of the FMOM Training
Module for DOs
Module Overview
Objectives
• Learning Objectives
• Learning Results
Activities/ Strategies / Methods
• Practice Sets
• Simulation Exercise
Training Module for DO  Schools
Development of a Training/CB Plan for
Professional Development of DOs
Purpose/ Rationale
Linkage with Office Function

Overview
(OPCRF)
Skills
requirement List of Trainings
Staff e.g. Financial e.g. Statistical e.g. Computer
Objectives Analysis Analysis Applications
Competency
Profile
THANK YOU
Session 2.0
ASSET MANAGEMENT
Are resources controlled by an entity as a result
of past events, and from which future economic
benefits or service potential are expected to flow
to the entity.
If an expenditure is instead consumed within the

current Period, it is classified as an expense.
Classification of Asset
- Cash
- Marketable Securities
- Accounts Receivables
- Prepaid Assets
- Land
- Buildings
- Office Equipment
- Furniture and Fixtures
- Softwares
Asset Management
Is a systematic process of deploying,

operating, maintaining, upgrading and
Disposing of assets cost effectively.
State Policy
“All resources of the government shall be

managed, expended or utilized in accordance
with law and regulation, and safeguarded
against loss or wastage through illegal
or improper disposition, with view to ensuring
economy, efficiency and effectiveness in the
operation of the government”
30
Acquisition
Procurement
Delivery
Inspection
Acceptance of Delivery
Utilization
a. Recording & maintaining
Inventory
SC & PC
Taking
b. Preparation of Issuance
Documents (RIS, PAR & ICS)
c. Preparation of Inventory
Report (Semi-Annual & Annual)
Disposition
Transfer of Property
Sale of Unserviceable
Modes of Acquiring Government Property
The following are the modes of acquiring property, whether supplies, materials,
equipment or land, in government:
1. Purchased
2. Constructed
3. Acquired (Transfer/Donation)
• Non-Exchange Transaction
 Donation without Condition
 Donation with Condition
 Grant
 Intra-Agency Transfer
 Inter-Agency Transfer
• Exchange Transaction
32
Role of Supply Officer / Property Custodian
1. Accepts delivery / transfer / donations

(duly signed PO / Contract / Deed of
Donation and MOA)
2. Signs Inspection and Acceptance Report
3. Records delivery / transfer / donations thru Property Card
and Stock Card (duly inspected from a perfected PO or
Contract, formal turn-over thru IRP or duly accepted or
signed Deed of Donation)
4. Prepares Issuance Documents Property

Acknowledgement Receipt (PAR) and Inventory
Custodian Slip (ICS)
5. Conducts Inventory Taking and Maintains PC & SC
6. Prepares Inventory Report including (monitoring the

actual location of asset, condition of asset and Person
Accountable) as required by COA
33
The delivery of supplies, materials and equipment must
be made by the supplier/Manufacturer/contractor :
In accordance with the

specifications, terms and
conditions provided in the
Contract/Purchase Order
Within the stipulated period

and at the place/s indicated
in the PO or contract
Failure to deliver within the
prescribed period, the
supplier / manufacturer /
contractor shall be liable for
penalty, usually in the form
of :
“LIQUIDATED DAMAGES”
Once the accumulative amount of

Liquidated damages reaches 10%
of the contract, the procuring entity
can rescind the contract
Extension of time to deliver may be
granted for the following reason:
1. Force Majeure
2. Fortuitous Event
3. Beyond the control of the contractor
4. Delay is attributable to the purchaser
or the like
The Supply Officer / Designated Property
Custodian shall receive all the deliveries and
signs the Delivery Receipt (DR) if the delivered
goods are in accordance with the contract or
Purchase Order (PO).
Supply Officer/Designated Property Custodian

signs “Received” portion of the original and copy 2 of
Delivery Receipt (DR)
If not, he/she may reject the deliveries

until the supplier complies with the end-
users specifications
All items to be inspected shall be accepted first
by the Property Officer/School Property
Custodian, as the case may be (Section 114,
COA Circular 92-386)
The above provision pertains only to the
receipting/signing on the delivery receipt (DR)
and temporary recording of the deliveries upon
arrival of goods or articles. The deliveries
are still subject to inspection for
conformity with specifications on the
order.
Supply Officer/Designated
Property Custodian
forwards Original DR &
Copy 2 of Approved PO to
Inspection Committee for
inspection of deliveries
The Head of Office or
school shall constitute an
Inspection Committee to
inspect and validate
deliveries
The School Inspection Committee
shall be composed of :
Regular Members:
a). Team Leader – at least 2nd ranking
permanent official of school
b). One (1) school personnel designated by

the principal who has knowledge/technical
expertise relevant to the goods delivered
Provisional Member:
a). One (1) representative from PTA or NGOs
The Division Office Inspection Committee
shall be composed of :
Regular Members:
a). Team Leader – at least 3rd ranking permanent
official of the procuring entity
b). One (1) representative from any of the regular

offices under the Office of the Schools Division
Superintendent (SDS) such as, but not limited to
the following
* Administrative Unit
* Budget Unit
* Legal Unit
* Physical Facilities Unit
Provisional Member:
a). Representative from the procuring entity who

has knowledge/technical expertise relevant to the
goods delivered
The Inspectorate Team and the Supply Officer /
Designated Property Custodian shall prepare the
Inspection and Acceptance Report (IAR)
Note: Distribution of IAR shall be as

follows
1. Original – Property and/or Supply

Division/Unit (to be attached
To DV, together with the
Original DR
2. Copy 2 – Property Inspector /

Inspection Team
3. Copy 3 - Accounting Division/Unit

(attached in setting up
payables)
4. Copy 4 - Property and/or Supply

Division/Unit File
The Office/School
inspection Committee
shall sign the
Inspection and
Acceptance Report
prior to acceptance by
the Supply
Officer/School
Property Custodian.
Procedures in the Requisition and Issue of Inventory Items and PPE
Requesting Office
Requesting Personnel Requesting Personnel

prepares RIS in 3 copies forwards the RIS to
and fills-up necessary authorized official for
information review
Property and/or Supply

Authorized Official signs
RIS after determining the Division/Unit
reasonableness of the
quantity and nature of Receives RIS from Requesting
item/s being requested Personnel. Reviews and
and ensures that the same verifies the completeness of
does not exceed the information. Indicates “P” in
planned usage for the the Stock Available? Yes Column
period if item being requisitioned is/are
available on stock, or “X” in the
stock available? No column if
not available
Requesting Personnel
forwards signed RIS to
Property/Supply
Unit/Division
is the act of transferring the
custodianship of property from
one person to another
POLICIES ON THE APPLICATION
OF THRESHOLD
Tangible Items below the capitalization threshold of P
15,000.00 shall be accounted as semi-expendable
property.
** Minimum cost of the individual asset
*** Individual item below the threshold but work together

as one network of asset, the amount exceeds the
threshold
**** the P15,000.00 shall not be applied to the aggregate

value of PPE acquired in bulk
“it shall be issued to end-user to establish
accountability over them. Accountability shall be
extinguished upon return of the item to the
Property and Supply Division/Unit or in case of
loss, upon approval of the relief from property
accountability”
Recording deliveries thru Stock and
Property Card
Expendable, Semi-
Stock Card
Expendable and equipment
< P 15,000.00
threshold
Inventory Custodian Slip (ICS)
Property Card Property, Plant and

Equipment > P 15,000.00
threshold
Property Acknowledgement Receipt (PAR)
Preparation of Issuance Documents
Requisition and Issue Slip
The RIS shall be distributed as follows:

1. Original - Accounting Division/Unit
2. Copy 2 - Requesting Office
3. Copy 3 - Property and/or Supply Division/Unit
Note: For use of Report of Supplies and Materials Issued (RSMI)
Activities in Property Utilization
Issuance and acknowledgement of items
Property
Acknowledgement Receipt Inventory Custodian Slip
Property, Plant & Equipment Non-Consumable Supplies

(including textbooks, school furniture)
(IT Equipment, Office Equipment, office (Office furniture & Office/ICT equipment less
furniture and Library Books more than than P 15,000.00)
P15,000.00) Note: 2016 GAM indicates Accountability
Over Semi-Expendable Property
DISPOSAL – is the end of the life cycle of
a government property
Disposal Objectives
• to avoid continuing carrying/inventory
costs
• to prevent further deterioration
thereby obtaining the fair return in
case of sale
• to relieve accountable officers of
unnecessary accountability
• to make available space for the
agency
Determination of Disposable Property
• Can no longer be repaired or reconditioned

• Maintenance/repair costs more than or
outweighs the benefits and services
• Has become obsolete or outmoded
• Has been rendered unnecessary due to
change in the Agency’s functions/mandate
• In excess of requirements
• Has become dangerous or hazardous to use
Modes of Disposal
Condemnation / Destruction
Transfer of Property
Donation of Property
Sale of Unserviceable Property
Inventory and Inspection Report of
Unserviceable Property (IIRUP)
• This form is used for :

– disposal of vehicles,
– office equipment,
– furniture, and
– other properties, plant and equipment
which can no longer be repaired or
reconditioned and whose maintenance
cost of repair more than outweighs the
benefits and services that will be
derived from its continued use.
Inventory and Inspection Report of
Unserviceable Property (IIRUP)
INVENTORY AND INSPECTION REPORT OF UNSERVICEABLE PROPERTY

As of
(Agency) ( Name of Accountable Officer ) ( Designation )
I N V E N T O R Y I N S P E C T I O N R E P O R T
DIS P OS ITION Appraisal Official
Articles Quantity Unit Cost Total Cost Property No. Date No. of years Accumulated Receipt Amount
Acquired in service Depreciation Number

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15) (16)
I HEREBY request inspection, and disposition I CERTIFY that I have inspected each and every
pursuant to Section 79 of PD 1445, of the Property article enumerated in this report and that the I CERTIFY that I have witnessed the diposition
enumerated above. disposition made thereof was, in my judgement, the of the article enumerated on this report this
best for the public interest. ______ day of ______________________.
Requested by : Request for Inspection Approved by :
( Signature of Accountable Officer ) ( Name and Signature )
( Name and Signature of Inspector ) ( Name and Signature of Witness )
( Designation of Accountable Officer ) ( Designation )
Waste Materials Report
• This form shall be used:
– to report all waste materials previously taken up

in the books as assets so that they may be
properly disposed of and dropped from the
accounts
– in the disposal of waste materials which result

from the consumption or utilization of
expandable materials, and covers damaged
equipment parts, empty containers, and
remnants salvaged from destroyed or
damaged property, plant and equipment.
WASTE MATERIALS REP ORT
Agency
Place of Storage Date
ITEMS FOR DISPOSAL

ITEM QTY. UNIT DESCRIPTION RECORD OF SALES
O.R. No. Amount
1
TOTAL
Certified Correct: Disposal Approved:
Property Officer
CERTIFICATE OF INSPECTION
I hereby certify that the property enumerated above was disposed of as follows:
Ite m ________ De stroye d

Ite m ________ Sold at private sale
Ite m ________ Sold at public auction
Ite m ________ Transfe rre d without cost to _______
Property Inspector: (Name & Signature) Witness to disposition:

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Session 1.

Learning Guides and Tools

Simulation Exercise (Practice Sets)

Development of an FMOM Training Module for DO Budget

Development of Training/CB Plan for DO Budget Staff

1. To improve and establish a strong linkage

2. Ensure that all levels of the organization

6. Develop a monitoring tool/ instrument on the

7. Identify technical assistance/support

8. Develop training/capacity-building plan for

10.Improve timely submission of budget

11.Compliance to the application of UACS in all

President’s Enactment and Veto Reflection

Performance Budget Quarterly

• Prepare Monthly Disbursement Program (MDP)

• Oversee the submission and

FMOM RAOD, PS, MOOE

• documents prepared by CO to RO  DO  Schools

Activities/ Strategies / Methods

Training Module for DO  Schools

Linkage with Office Function

If an expenditure is instead consumed within the

Is a systematic process of deploying,

“All resources of the government shall be

1. Accepts delivery / transfer / donations

4. Prepares Issuance Documents Property

5. Conducts Inventory Taking and Maintains PC & SC

6. Prepares Inventory Report including (monitoring the

In accordance with the

Within the stipulated period

Once the accumulative amount of

Supply Officer/Designated Property Custodian

If not, he/she may reject the deliveries

b). One (1) school personnel designated by

a). One (1) representative from PTA or NGOs

b). One (1) representative from any of the regular

a). Representative from the procuring entity who

Note: Distribution of IAR shall be as

1. Original – Property and/or Supply

2. Copy 2 – Property Inspector /

3. Copy 3 - Accounting Division/Unit

4. Copy 4 - Property and/or Supply

Requesting Personnel Requesting Personnel

Property and/or Supply

** Minimum cost of the individual asset

*** Individual item below the threshold but work together

**** the P15,000.00 shall not be applied to the aggregate

Property Card Property, Plant and

Requisition and Issue Slip

The RIS shall be distributed as follows:

Note: For use of Report of Supplies and Materials Issued (RSMI)

Property, Plant & Equipment Non-Consumable Supplies

• Can no longer be repaired or reconditioned

Sale of Unserviceable Property

• This form is used for :

INVENTORY AND INSPECTION REPORT OF UNSERVICEABLE PROPERTY

(Agency) ( Name of Accountable Officer ) ( Designation )

DIS P OS ITION Appraisal Official

best for the public interest. day of ________________.