Parameter D-FINANCIAL MANAGEMENT 1. SYSTEM-INPUTS AND PROCESSES
Institution’s GAA (Gen. Appropriations Act) Budget
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Institution’s Approved Financial Development Plan
The approved financial development plan of the university is embodied in the
budget proposal.
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Plantilla of Personnel/201 File of Other Personnel Assigned in the Financial
Services of the Institution
2. IMPLEMENTATION
Qualifications of the Institution’s Financial Management Staff
Position/Designation Name of Official Educational Qualification
Length of Service 1. Director for FMS Juliet C. Daniels,
CPA
Doctor of Philosophy in Management Master in Public Administration BS in Commerce
31
2. Chief Accountant Elyn A. Boligon, CPA
Master in Public Administration BS in Accountancy
14
3. Budget Officer- Head, Budget Section
Mary D. Lunag BS in Commerce 34
4. Head-Cash Section
Adoracion Damayon
BS in Commerce 28
5. Accountant II Nancy Ynette B.
Padduyao, CPA
BS Accountancy 3
6. Payroll Officer Godofredo B.
Sonico
BS in Commerce 30
7. Disbursing Officer
Ronald M. Co BS in Hotel &
Restaurant Mgmt
23 8. Bookkeeper Marites A.
Codamon
Master in Public Administration BS Accountancy
3
9. Admin Officer II Cyprene Chady L.
Dumawat
BS in Commerce 2
10. Admin.
Assistant II
Mark Joseph B.
Padio
BS in Management Accounting
7 11. Admin Aide VI Marietta E.
Bayyona
BS Accountancy 6
Duties and Responsibilities of the Financial Management Staff
Department of Finance ServicesThe responsibility of managing the financial resources (i.e. from budgeting to accounting and disbursement of cash) of the university is vested on the Department of Finance Services.
The department shall be headed by a Finance Management Officer (FMO) or Director for Finance (when by designation).
Budget Office/ Section
The Budget Office is headed by a Budget Officer III or Section Head (when by designation). It is concerned with the preparation and examination of budget requests and
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justifications, allocation of funds for the different programs, projects and activities of the University in coordination with the Office of Planning and Development. It also includes the preparation of budget summary which is the outcome of a budgeting process on two levels – one in the campus level and the second in the University level. Budgeting in the campus level reflects the program allocation and priorities set for the different programs and services by the Deans and Directors and other officials of equal rank in the campus. The budgeting process in the University level is undertaken in consultation with the Directors, Deans and Vice Presidents who present and defend their respective budgets. Specifically, the Budget Officer has the following functions:
a. Develops and improves budgetary methods, procedures and justifications;
b. Provides budget subject to budgetary ceiling fund estimate in support of the College operations, plans and programs;
c. Prepares annual physical and financial plans;
d. Allocates available funds to programs on the basis of approved guidelines and priorities;
e. Reviews performance report to determine conformity with set standards; and
f. Prepares financial report for management guidance as required by higher authorities.
Accounting Office/ Section
The Accounting Office/ Section is headed by an Accountant III or Section Chief (when by designation) with the following functions: 1) Bookkeeping, 2) Processing of Liquidation, 3) Payroll Preparation 4) Financial Reports and 5) Student Accounts.
Specifically, the Accountant has the following functions:
a. Gives advice on financial matters;
b. Prepares and submits financial reports to management and other government departments and agencies authorized to receive such reports;
c. Maintains basic and subsidiary accounting records and books of accounts to reflect accurate and current financial information required by existing auditing rules and regulations and by management;
d. Certifies to the availability of funds;
e. Prepares billings to debtors of the national government; and f. Assesses student fees upon enrolment.
Cash Office/Section
The Cash Office/Section is headed by a Cashier III or Section Chief (when by designation) who coordinates and supervises the cashiering activities of the University. This Office is concerned with the following activities/functions: 1) Checking accounts, 2) Collection and disbursement, and 3) Safekeeping of money and financial records. Specifically, the cashier has the following functions:
a. Takes charge of the collection and deposit of tuition fees and miscellaneous fee;
b. Deposits all collections and income to the authorized bank;
c. Prepares checks on approved payments and issues checks to claimants;
d. Prepares and submits collection and deposit and disbursement reports for management and other government agencies; and
e. Coordinates with the depository banks on the status of NCA.
Institution’s Financial Management
Preparation of Budget Proposals
a. The annual budget of the University shall be prepared in accordance with the budgetary policies of the government and the rules and regulations prescribed by the BOR;
b. Budget preparation shall start at the unit level of the different operating units and colleges of the University;
c. In budget preparation, focusing resources towards the agency’s major development goals must be considered in order to ensure growth and equitable development;
d. Baseline budgeting approach shall continue to be used. This refers to the minimum level of expenditures at which the University still continue to operate at the budget year’s level and be able to perform its basic mandate and functions; and
e. In the budgetary process, mandatory expenditures shall have precedence over other types of expenditures. The Deans and Directors shall prepare estimates or budgetary requirements for their respective programs/projects together with justification and submit to the budget office not later than every 20th of December.
For General Fund:
a. The Budget Office shall consolidate these estimates/budgetary requirements for approval by the BOT. These shall then be submitted to the DBM on the date as specified in the budget call with appropriate BOT resolution;
b. The DBM and CHED subsequently shall schedule a Technical Budget Hearing to take up the necessary corrections/improvements and recommendation in the Budget Proposals submitted;
c. Congress and Senate will issue additional requirements to support the year’s submitted budget proposal on the last week of July;
d. The University Officials must defend the budget proposal in Congress as per schedule set forth for the purpose; and
e. Pending the approval of the budget for the ensuing year, the University shall operate based on the previous year budget as per DBM instruction.
Special Trust Fund (STF)
a. The Accounting Office shall prepare the projected income for the whole year;
b. The Budget Office shall consolidate the fund required of each unit and prepare an annual comprehensive budget to be approved by the BOR;
c. Income from tuition fees and other necessary charges such as: matriculation fees, graduation fees, laboratory fees, medical fees, library fees, athletic fees and other similar fees, and the net income from auxiliary services shall be deposited in an authorized government depository bank as special trust fund. The said fund shall be used to augment the maintenance and other operating expenses and capital outlay fund of the University from the General Appropriation Act (GAA). These funds may also be used to pay authorized allowances and fringe benefits to teachers, employees, and students. The University Board of Regents (BOR) is authorized to disburse such income from tuition and other fees as well as those generated from the operation of auxiliary services and land grants, instruction, research, extension and other programs/projects of the University. Such disbursements require a special budget duly approved by the BOR;
d. Fiduciary funds shall be disbursed for the purpose it is collected after removing a reasonable administrative cost (not more than 12.5%) to shoulder the cost of collecting, managing and disbursing of said funds;
e. For implementation, monthly disbursements shall be based on the actual monthly collection of income.
Income/Collections from Tuition and Other Miscellaneous Fees and Net Income from IGP
a. All collections from Tuition and other fees shall be treated as Special Trust Funds and shall be deposited to a government depository bank under said fund;
b. The University is likewise authorized under Letter of Instruction Nos. 872 and 1026 to retain as Revolving Fund income from food production and income generating projects;
c. All collections from IGPs shall likewise be deposited to government depository banks under the revolving fund accounts;
d. The campuses are required to remit their collections from tuition and other fees to the Main Campus within 5 working days every after end of the month.
e. Net income realized from operations of Income Generating Projects shall likewise be deposited to the depository bank not later than the end of January of the ensuing year.
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f. As the need arises, IGP Board of Management (BOM) shall convene to prepare a special budget out of the income deposited from the different projects as certified by the Chief Accountant for recommendation to the BOR.
Fund Releases
To facilitate effective management in the transfer of allotments to the different campuses, the following policy guidelines shall apply:
a. The accounting and budget offices of the University shall inform the various campuses/ units of the University the allowable budget they are to operate in;
b. Each campus/ department/ university/ unit shall prepare their financial plan which shall be the basis for the monthly/quarterly release of their respective funds;
c. Monthly cash advances to the campuses shall continue to be released by the Main campus on the basis of their actual needs and subject to the available Notice of Cash Allocation issued by the Department of Budget and Management;
d. The policy on “No report, no release” shall be strictly adhered to in the release of cash Advances (except Lagawe Campus) to the different campuses which will serve as the basis for the succeeding monthly release;
e. No succeeding cash advance will be allowed without liquidation of previous cash advance. This is true to other University personnel who have acquired cash advances; and
f. The following guidelines shall be maintained in the issuance of allotments to the different Colleges/departments/campuses.
Program/Project Criteria
General Administration and Support Services
1. Number of personnel 2. Physical facilities both
buildings and equipment 3. Activities of the unit Higher Education 1. Enrollment
2. Number of programs offered
3. Programs scheduled for accreditation 4. Number of Scholars
5. Textbook requirements
6. Physical facilities & equipment Research & Development Services 1.
2.
Number of personnel
Number of papers presented and published 3. Number of technologies derived/patented 4. Number of research projects to be conducted Extension/Training 1. Number of personnel
2. Number of extension and training programs/projects conducted 3. Number of extension and training
programs/projects to be conducted 4. Number of clienteles served
Planning & Resource Generation = chargeable to IGP for admin Share
1. Number of personnel 2. Number of IGP projects
3. Number of linkages/collaborations forged
Internal Accounting Control for Disbursement
a. No money shall be paid out to any public treasury or depository except in pursuance of an appropriation, law or other specific statutory authority;
b. Government funds shall be spent or used solely for public purposes;
c. Trust funds shall be available and may be spent only for the specific purpose for which the trust was created upon receipt of the funds;
d. Fiscal responsibility shall, to the greatest extent, be shared by all those exercising authority over the financial affairs, transactions and operations of the University;
e. Disbursement or disposition of government funds or property shall invariably bear the approval of the proper officials;
f. Claims against government funds shall be supported with complete documents;
g. All laws and regulations applicable to financial transactions shall be faithfully adhered to;
h. Controlling accounts should be used as extensively as possible. Controlling accounts serve as a proof of accuracy between account balance;
i. All necessary sets of books should be maintained and reports should be regularly prepared and tied-up with the respective controlling accounts;
j. Accounting and disbursement functions should not be vested on one individual. An employee should not have control of the operations giving rise to entries in the records i.e., the general ledger bookkeeper should not have access to the cash or to the records of cash sales;
k. Payments should be properly approved and be made by check whenever necessary and issued to the name of the payee;
l. All collections should be properly receipted and deposited intact and promptly in accordance with pertinent regulations; and
m. All accountable officers should be properly bonded.
Accounting for Allotments and Obligations
a. The approved budget is not self-executory. It can be utilized only upon the release of allotments:
the General Allotment Release Order (GARO) and the Special Allotment Release Order (SARO).
These GAROs and SAROs serve as the authority to incur obligations. GAROs are released annually by allotment class and in accordance with the itemization in the budget. SAROs are released monthly or upon approval of the Department of Budget and Management of the request of the University for payment of accounts payable and retirement gratuity or terminal leave pay of retirees;
b. To prevent the incurrence of overdraft, funds are earmarked for each proposed expenditure;
c. For each obligation, an ALOBS is prepared to take up the incurrence of expenditures for any lawful act made by an accountable officer for and in behalf of the agency in the performance of its functions and goals;
d. Disbursements shall be covered by a disbursement voucher and obligations are paid either by check or in cash;
e. Payments by checks are those obligations which are due to creditors for payment of deliveries of supplies and services, advertisements, newspapers subscriptions, traveling expenses, seminar fees, regular expenses such as light and power, telephone bills and other obligations payable to other agencies;
f. Checks issued including those which are cancelled or voided are recorded chronologically in the report of checks issued and cancelled and these reports are prepared monthly and by funds;
g. Payments by way of the ATM are those obligations such as salaries and wages, commutable allowances and in some instances, payments of honoraria and other similar compensation benefits;
h. No payment of any nature shall be received by a collecting officer without immediately issuing an official receipt in acknowledgment thereof;
i. The cashier shall deposit all intact collections as well as collections turned over to him/her by designated collectors with the authorized depository bank daily or as the need so requires;
j. The cashier should prepare a report of collections and deposits and a copy of the report shall be submitted to the Accounting Office;
k. The cashier shall also record in the cash book all collections received. The cash in treasury account shall be debited with the collections received, and credited with the collections deposited with the authorized depository bank; and
l. The Cash Section shall submit the following to the Accounting Section:
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Reports of checks issued and cancelled – RCIC – All Funds – 101, 161, 164(3), Special Trust Fund, Income Generating Projects and Trust Funds, MDS (A/P) on or before every last working day of the month;
Reports of collection and deposit – RCD 101, 161, Special Trust Fund, Income Generating Projects and Trust Funds not later than the last working day of the month;
Completed accountable forms to be submitted to COA every month; and
RCIC, RDDO, RCD shall also be submitted to COA.
Reports
The University shall submit the required reports to the different government agencies in accordance with existing guidelines set forth, as follows:
Department of Budget and Management:
MONTHLY REPORTS– On or before the 10th day of the following month unless otherwise specified;
a. Pre-closing Trial Balance – Fund 101
b. Statement of Allotment Obligations and Balances– Fund 101 c. Charges to Accounts Payable (BAF 305) – Fund 101
d. Monthly report of disbursements.
QUARTERLY REPORTS– On or before the 10th day of the following month unless otherwise specified;
a. Statement of Allotment Obligations and Balances – By Project – Fund 101 b. Report of Actual Income – Fund 164
c. Quarterly financial report of operations d. Physical report of operations
ANNUAL REPORTS – On or before the 14th day of February of the following year unless otherwise specified;
a. Pre-closing Consolidated Trial Balance
b. Statement of Accounts Payable (BAF 04) Fund 101 c. Post-closing Consolidated Trial Balance
d. Statement of Operations e. Balance Sheet
Commission on Audit (COA):
QUARTERLY REPORTS – On or before April 30, July 30 & October 30 unless otherwise specified;
a. Consolidated Trial Balance – Fund 101
b. Statement of Allotment, Obligations and Balances – Fund 101 c. Detailed Statement of Cumulative Obligations Incurred, Obligations
Liquidated/Disbursement and Unliquidated Obligations – Fund 101 d. Report of the Result of Expended Appropriations – Fund 101 e. Statement of Accounts Payable - Fund 101
ANNUAL REPORTS
Preliminary Reports – On or before the 14th day of February unless otherwise specified.
Consolidated Preliminary Trial Balance – Fund 101
Statement of Allotment, Obligations and Balances – Fund 101
Detailed Statement of Cumulative Obligations Incurred, Obligations Liquidated/Disbursements and Unliquidated Obligations -Fund 101
Report of the Result of Expended Appropriations – Fund 101
Final Reports– On or before the 28th day of February unless otherwise specified.
Final Consolidated Trial Balance
Comparative Consolidated Balance Sheet
Comparative Statement of Operations
Analysis of Account 8-99-000 – Fund 101
Statement of Income
Closing Entries
Budgetary Allocation and Actual Expenditures for the Last 3-4 Years
Use of Fiduciary Funds for the Different Student/Activities in the Last 3-5 Years
Status of Budget Allocation in the Main Campus on Fiduciary Fees
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3. OUTCOMES
Finances are properly disbursed thus no money is returned to the national treasury at the end of every fiscal year. The finance management of the university is compliant to Performance-Based Bonus requirements.
4. BEST PRACTICES
1. Effective budget management where in funding and expenditures are in line with strategic priorities and based on clear understanding of performance expectations;
2. Effective expenditure authorizations and systematic recording and monitoring of expenditure commitments and actual payments;
3. All collections are legitimate, timely, officially documental and promptly banked;
4. Providing report and an analysis of the financial and budget position of the agency to all campuses and offices concern;
5. Mandatory compliance checks and reporting. The Accounting Head ensures that random internal checks are performed to ensure that all the required controls are carried out and remain effective
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