finance management and support center presented by: lydia p. fernandez assistant secretary

FINANCE MANAGEMENT AND FINANCE MANAGEMENT AND SUPPORT CENTERSUPPORT CENTER

Presented by:

Lydia P. FernandezAssistant Secretary

RATIONALERATIONALE

• Minimize fiduciary risk• Maximize use of scarce government

resources• Prevent improper use of scarce govt.

resources• Ensure transparency, accountability and

expenditure control• Strengthen internal controls• Provide EXECOM timely and accurate reports

as tools for decision making

REFORMS

COMPLETED REFORMSCOMPLETED REFORMS

1. Redefinition of FMSC functions1.1 Controllership

- Accounting

- Internal Control - Risk Management - Asset Management

- Budget Management - Financial Programming - Budget Control and Implementation

1.2 Treasury- Cash forecasting- Cash releasing- Payment prioritization- Bank reconciliation

1. Redefinition of FMSC functions1.3. Management Services

- Functional Supervision over FMS of CHDs and Hospitals - Inter and Intra Reporting

- Linkaging - Procurement and Materials Management - Asset Management - Liability Management

- Knowledge Management - Monitoring and Evaluation

- Accounting - Budget - Treasury - FAPs

- Advisory Services - Executive Briefs - Implementing Guidelines (COA/BIR/DBM) - Department Order re: FMS activities


2. Rationalization of Financial Management and Support Center (FMSC)

3. Improvement of Internal Control * Revision of Delegated Approving

Authorities * Streamlined operations on:

- Centralized Cash Advance - Guarantee Deposits for Fuel and Lubricants - Payroll Integration of regular employees - Check vs. direct credit to ATM of employees - Remittances (BIR,GSIS,Pag-ibig,PHIC) - Payment for Utilities (telephone, light & water) - Asset Management (in coordination with AS) - E-NGAS roll out/implementation to CHDs,

Retained Hospitals

4. Prepared Accounting System for Pinoy MD Program


o Accounting Full implementation of E-NGAs nationwide Centralized payment for all utilities like PLDT, water and power.

For PLDT, unpaid personal calls within 7 days upon receipt shall be automatically deducted from the employees account thru payroll.

Centralized DEPOT for all common office supplies, spare parts of motor vehicles, tires and batteries

Reconciliation of GSIS accounts Reconciliation of funds transferred to PS-DBM Reconciliation of unbooked medicines Reconciliation of donated assets Full implementation of E-NGAs nationwide FMS for FAPs

CONTINUING REFORMSCONTINUING REFORMS

o Budget Implementation of E-Budget

Prioritization on the use of resources before year end1. Personnel Benefits (regular payroll, magna carta

benefits, monetization, other bonuses and allowances)

2. Mandatory expenses (janitorial, security, power, water, PLDT,

rental expenses)

3. Internal Creditors (inc. TEVs, overtime pay, cellcards)

4. External Creditors

CAF issued for training/seminar/workshop/meetings if not obligated within 7 days upon completion of service contract shall be automatically returned to allotment


o Management Services Operationalization of the Rationalized Function of the

Financial Management and Support Center Updating the FMS Operations Manual of the DOH Establish for the whole DOH

- Budget Control System

- Asset Management System

- Liability Management System Issuance of FMS Guidelines to streamline operations Flash reporting to EXECOM Continuous Systems Review


o Management ServicesStrict compliance with Revised Delegation of

Approving Authority Issuance of Guidelines to implement:

- COA Circular- DBM Circular- BIR Circular

Prepare Accounting System for BNB Install computerized indexing of payments to

Officials, employees, creditors for adoption nationwide


o Human Resource Human Resource Management of Finance Management and

Support Center

* skills inventory

* capability building

* career pathing

* succession planning Establish for the FMSC:

* Performance Indicators

* Measurement Parameters

* Rating System for Staff Performance


FINANCE MANAGEMENT AND SUPPORT CENTER

OFFICE OF THE DIRECTOR

ACCOUNTING DIVISION

BUDGET DIVISION

MANAGEMENT SERVICESDIVISION

DISBURSEMENTSECTION

GL / SLSECTION

F A P sSECTION

BUDGETIMPLEMENTATION

SECTION

PLANNING & BUDGET

PREP. SECTION

BUDGETMONITORING &EVAL. SECTION

ACCOUNTINGMONITORING &EVAL. SECTION

CASHIERSECTION

MANAGEMENT SERVICES DIVISION

C H D sSPECIAL

HOSPITALSBUREAUS

RETAINEDHOSPITALS

FUNCTIONAL CHART OF ACCOUNTING DIVISION

CHIEF ACCOUNTANT

DISBURSEMENTSECTION

- Process all accounting transactions inaccordance with appropriate rules and

regulations,- Ensure propriety, legality andcompleteness of all claims/financial

transactions- Provide technical assistance to variousunits of the Department on accounting

matters

Receiving/Rele

asing(1)

GL//SLSECTION

- Maintain general and subsidiary accountingrecords and books of accounts to reflectaccurate and up to date financial information in

conformity with appropriate rules andregulations

- Prepare and submit financial reports tomanagement, oversight agencies, legislativeand other administrative bodies, and financial

institutions

FAPs DESK

- Budgeting, Accounting and financialreporting for all Foreign-Assisted

Projects,- Project Monitoring

Verification of

c/a(2)

Signatory(3)

Indexing(1)

NCAControl

(1)

Processing(4)

JEVEncoding

(4)

BIRReportorial

Requirement

FinancialReporting

(3)

Monitoring ofE-NGAS

(1)

Disbursement(3)

FinancialReporting

(2)

Control ofSOE/WA

(1)

Monitoring offund releases

(1)

FUNCTIONAL CHART OF ACCOUNTING DIVISION

FUNCTIONAL CHART OF BUDGET DIVISIONFUNCTIONAL CHART OF BUDGET DIVISION

BUDGET DIVISION

BUDGET IMPLEMENTATION SECTIONPLANNING AND BUDGET PREPARATION SECTION

BUDGET POLICIES AND SUPPORT1. Develop and improve budgetary methods,system and

procedures 2. Recommend policies and guidelines for budget preparation and

implementation3. Provide technical assistance to other units in application &

utilization of budgetary methods, system and procedures

BUDGET PREPARATION1. Formulate key performance indicators (KPI) in

coordination with other offices/services2. Initiate budget preparation in coordination with DBM

and various offices/services3. Review and consolidate budget proposals from various

offices and prepare annual MTEF estimates4. Assist management in the presentation of the

Department’s budget estimates before DBM legislative bodies and other oversight and administrative bodies.

CONTROL OF ALLOTMENT

1.Control of allotment through ABM/SARO to other offices/services

2. Prepare Accountability Reports in accordance with DBM/COA requirements

3. Prepare management reports

4. Processing of claims and other financial transactions

FUNCTIONAL CHART OF FUNCTIONAL CHART OF MANAGEMENT SERVICES DIVISIONMANAGEMENT SERVICES DIVISION

ACCOUNTING MONITORING AND CONTROL SECTION

1. Functional supervision over CHDs & Retained Hospitals (accounting operations)1.1 Monitor/Evaluate CHD’s and Retained Hospitals, Bureaus’ automated accounting processes1.2 Monitor/Evaluate flash reporting system of all CHD’s and Retained Hospitals, Bureaus

2. Assess all accounting units compliance with E-NGAS

3. Analyze FAP’s project fund disbursements in accordance with loan/grant agreement


BUDGET MONITORING AND CONTROL SECTION

1. Functional supervision over CHDs & Retained Hospitals (budget operations)1.1 Monitor/Evaluate CHD’s and Retained Hospitals, Bureaus’ automated budget processes1.2 Monitor/Evaluate flash reporting system of all CHD’s and Retained Hospitals, Bureaus

2. Assess all budget units compliance with E-Budget

3. Analyze FAP’s project fund obligations in accordance with loan/grant agreement


4. Financial Statement Analysis

(Flash Reports Analysis)

4.1. Cash Position Report and Forecasting Report

4.2. Due from Officers and Employees Variance Analysis

4.3. Accounts Receivable Variance Analysis

4.4 Schedule of Aging of A/R

4.5 Inventories Variance Analysis


4. Budget Analysis (Flash Reports Analysis)

4.1. Actual Performance against budget target4.2. Actual releases against obligations incurred, approved budget4.3. Compliance to austerity measures and cost reduction programs




4. Financial Statement Analysis

(Flash Reports Analysis)

4.6. Accounts Payable Variance Analysis

4.7 Schedule of Aging of A/P

5. Development & design of an accounting system and process improvement for the CO/CHDs/Hospitals/Bureaus


4. Budget Analysis (Flash Reports Analysis)

4.4. Variance analysis based on approved budget against actual obligations4.5. Actual budget releases vs. plans

5. Development & design of budget systems and process improvement for the CO/CHDs/Hospitals/Bureaus




6. Development and training of financial analysis capability for CO/CHDs/Hospitals and Bureaus

7. Continued training and skills upgrading of accounting staff as part of governance capability building


6. Define operational performance indicators to conform with financial targets

7. Development and training of financial analysis capability for CO/CHDs/Hospitals and Bureaus

8. Continued training and skills upgrading of accounting staff as part of governance capability building



FLOW OF DISBURSEMENT VOUCHERS & OTHER FINANCIAL TRANSACTIONS

Budget Division-checks completeness of supporting documents-Obligates transaction

-Approves Box B of ObR

Accounting Division-Processes vouchers/ payrolls-certifies Box A of DV

Cashier-Prepares check/ADA-Prepares LBP advice

*credit to ind. accounts * checks issued

Originating Offices -Prepare voucher/ObR -attach complete supporting documents-approve Box A of ObR-Approve Box B of DV (in most transactions)

FLOW OF TRANSACTIONS- BUDGET DIVISION

Receiving

FundingReleasing Signatory

Originating Office

Processing

Budget Division

Accounting Division

Receiving

Funding/NCAReleasing Signatory

Originating Office

Processing

Budget Division

Accounting Division

Indexing

Cashier

FLOW OF TRANSACTIONS- ACCOUNTING DIVISION

Receiving

Preparation of ACIC/ADA

Releasingof checks

Signing of checks/ACIC

/ADA

Originating Office

Check/ADAIssuance

Accounting Division

Typing of checks

Cashier

Delivery of Advice to LBP

FLOW OF TRANSACTIONS- CASHIER

E-NGASE-NGAS

E-NGAS IMPLEMENTATIONE-NGAS IMPLEMENTATION

UNIT FULL IMPLEMENTATION

PARTIAL IMPLEMENTATION **

TRAINING ONLY

Central Office, CHDs CAR and MIMAROPA

X

Baguio Gen, Region 1 Med. Ctr., Mariano Marcos Mem. Hosp., Ospital ng Palawan, CHDs 5, 10 and 11, National Quarantine

X

Rest of CHDs and Retained Hospitals and Metro Manila Special Hospitals

X

** Partial implementation – setting-up of beg. Balances and parallel run with manual operations

Advantages of E-NGASAdvantages of E-NGAS

• FMSC provides EXECOM accurate and timely Flash reports as tools for decision making

• Financial reports are automatically generated once transactions are encoded in the system

• Facility and ease in data verification• Maintenance of subsidiary ledgers i.e. receivables,

payables, inventories and equipment• Timely consolidation of data• Savings in man-hours• Improved quality of life of FMSC staff (go home

earlier)

Cost to Install E-NGASCost to Install E-NGAS• Hardware - P269,000 (PC server, PC workstation,

printer, cabling)

• Software - 335,500 (License for Operating system

Windows 2000 server, MS SQL server, MS Windows XP Prof., Microsoft Excel 2003) __________________

Total P604,500 =======================

** TA (if COA-assisted) P70,000/month

FLASH REPORTINGFLASH REPORTING

BUDGET REPORTS• Monthly Status Report on the Release and

Utilization of Funds

• Actual Expenditure vs. Budget Variance

• Actual Budget Releases vs. Plans

• Statement of Revenues

• Quarterly Statement of Income Collection and Utilization

• Report on Savings

FLASH REPORTINGFLASH REPORTING

ACCOUNTING REPORTS• Cash Position and Forecasting (CPF) Report

• Schedule of Accounts Receivables

• Accounts Receivable Analysis

• Inventories Analysis

• Schedule of Accounts Payable

• Accounts Payable Analysis

FAPsFAPs

• Finalization of Project Operations Manual• Preparation of Funds Flow for WB Managed

Fund and EC Grant fundsflows.doc

• Preparation of Financial Plan based on PIPH

World Bank Loan ProceedsWorld Bank Loan Proceedsand EC Grantand EC Grant

FAPsFAPs

•CHD Accountants to:

monitor of EC Grant implementation

Report to DOH-CO status of EC-Grant Implementation

Monitoring of EC – Grant Monitoring of EC – Grant and WB Managed Fundand WB Managed Fund

PROPERTY MANAGEMENT

PROPERTY PROPERTY MANAGEMENTMANAGEMENTRATIONALE

The DOH currently has no centralized system on identifying and recording its estates/assets, its location, when and how much of this assets were acquired, and have no information on who has it.

The DOH has insufficient data of its estates which include land and buildings and all legal estate titles is not at DOH possession.

OBJECTIVES

Identify assets Institutionalize systems &

procedures to safeguard DOH assets

Control use of assets Maximize investment cost of

assets Optimize property utilization Asset Risk Management Asset Disposal

PROPERTY PROPERTY MANAGEMENTMANAGEMENT

REFORMS

1. Property Acquisition Feasibility Study

(Geographic/Demographic, etc.

Project development Plan Budget Allocation

(Fund Servicing) Investment Analysis Profiling Fiscal Year Work & Financial Plan Property Procurement


REFORMS

2. Property Identification

- Annual Physical Inventory of all existing

properties Location When acquired Book value Mode of acquisition

(procured/donated) Responsibility center

(deployment)


REFORMS

3. Custodianship of Documents to

evidence ownership

4. Property Recording/Reporting- Establish book value

Original Depreciation Data Base maintenance by linkaging

with Finance Service on timely booking & accurate reporting

Property Appraisal Reporting system to track property

movement


REFORMS 5. Property Allocation &

Documentation Property tagging MR issuance Property entitlement Policy Guidelines on distribution of

donated properties

6. Property Maintenance Maintenance data Records Maintenance Budget for

replacement Maintenance budget allocation Vehicle Maintenance Management

*Car pooling *Department Order on use of DOH Facilities

*Centralized Guaranty Deposit for gasoline, oil & lubricants


REFORMSREFORMS

7. 7. Property Risk Property Risk ManagementManagement

Insurance Registration Taxes

8. 8. Property UtilizationProperty Utilization Energy conservation Waste Management Cost Reduction Program

9. 9. Property DisposalProperty Disposal Property Appraisal Guidelines for Property Disposal

PROPERTY MANAGEMENTPROPERTY MANAGEMENT

REFORMS

10. As Staff Capability Building & Productivity Enhancement

Provide Equipment /Tools Skills inventory Training Needs Assessment Succession Planning Career Pathing


REFORMS

11. In coordination with HHRDB, establish for the Administrative Service

Performance Indicators

Measurement Parameters

Rating system for the staff performance

12. In coordination w/ Internal Audit Service, establish for the AS

Audit rating system

PROPERTY MANAGEMENTPROPERTY MANAGEMENT

The Administrative The Administrative

Service Service Organogram Organogram

StructureStructureAdministrative

Service

PropertyManagement

Division

General Services Division

Material Management

Division

{PROPOSED NEW

DIVISION OFFICE}

{EXISTING DIVISION}

{EXISTING DIVISION, Transferre

d from PLS}

The Property The Property Management DivisionManagement Division

Chief Property Management

Division

Section Chief, Property

Management Section

Section Chief, Utility and

Payment Section

General Services General Services DivisionDivision

Chief, General

Services Division

Maintenance Section

Transport Management

Section

Janitorial Services

Security Services

Material Management Material Management DivisionDivision

Chief, Material Management

Division

POP II Warehouse

Section

Office Depot Supply Section

Quirino Warehouse

Section

RITM Cold Room Unit


• BASIC PURPOSE:– To have a centralized

management, recording, control, monitoring and uniform guidelines in constructing, purchasing, maintaining, and disposing government expendable and non-expendable asset, equipment, facilities and tools to put in place a good property management for the Department of Health in order to reduce the cost of ownership and maximize and optimize use of the property.

• BASIC FUNCTION:– Provide an operational and effective

inventory, recording, evaluation, efficient tracking and reporting system of fixed, expendable and non-expendable asset of the Department of Health to establish proper accountabilities, control and reconciliation with the records of the Finance Center’s book of accounts.

– To have a centralized recording and reporting of assets for the entire Department of Health that could be used as basis for procurement, disposal and or budget allocation for maintenance or upgrading of the facilities, tools or equipment.

• ORGANIZATIONAL COMPONENT:

– The Property Management Division is under the Organization of the Administrative Service composing of two component sections, the Property Management Section and Utility Payment Section.

• PROPERTY MANAGEMENT SECTION

– The Property Management Section’s basic function is to provide services that will cater to the implementation of a uniform guideline’s in managing, controlling, inventory, appraisal, and establishment of asset reporting system for the Department of Health. The function also includes disposal and reconciliation of records with the book of accounts handled by the DOH Finance Center. Coverage of the function is for the entire Center for Health Development asset located throughout the country that includes retained or re-nationalized hospitals.

• UTILITY PAYMENT SECTION

– The Utility Management Section handles the documentation, payment, insurance, registration, and titling of DOH real estate assets. Specific function for the central office includes the management, supervision and administration of the Convention Center, DOH Dormitory facility, Weight Lifting facility, DOH Gym, Directors Lounge, management of the parking system and provide support services on sports activities and other events handled by the office.

RATIONALIZATION PLAN

DefineFunction

OrganizationalStructure

MeasurementParameters

PerformanceIndicators

Rating System

* Key Results Area

Qualitative Quantitative

Risk ManagementProperty ManagementBudget System

* Internal Audit

* Individual

Personnel Policy

Promotion

Sanction

Merit Awards

Organizational Capacity

Skills Inventory

Training Needs

Succession Planning

Career Pathing

MARAMING SALAMAT PO

finance management and support center presented by: lydia p. fernandez assistant secretary

Documents

finance management

light water asset management

completed reforms

budget treasury

budget prioritization

expenditure control

use of resources

obudget implementation