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Laws Relating to: a. Finance Services b. Support Services

Reporter: Lucille Gacutan Aramburo

BP 232: Education Act of 1982 on School Finance: It is declared to be the policy of the State that the national government shall continue to the financial support of educational program pursuant to the goals of education as declared in the Constitution: the government shall:Broaden access to education through financial assistance and incentives to schools, teachers and students.Encourage private support to education through assistance measures.

Funding of Republic Schools thru: national fundsLGU on the basis of national fund participation and adequate revenue sourcesTuition and other School Fees Payment Grants, legacies, donations, giftsProduction and auxiliary enterprises

Uses of Education funds : Improves facilities Accommodates more studentsImprove instructional materials, laboratories, equipment, library books acquisitionExtension service to the community

Education funds : Support of faculty/ professional chairsNot inure to the benefit of owner/officer of the school

Funding of Private Schools thru: Capital investment/ equity contributionTuition fees, other school chargesGrants, loans, subsidies, passive investment income Other sourcesGovernment assistance in the form of grants, scholarships, loans from government financial institution.

Incentives to Education: Encourage participation of the Community in the development of education sector:On school property used actually, directly and exclusively for educational purposes taxed on 15% based on the FMV.On gifts, donations to schools, not subject to taxOn earnings from investment of scholarship funds, exempt from tax until fully liquidated.

Maintenance and Other Operating Expenses (MOOE)

Maintenance & Other Operating Expenses (MOOE): Includes:Traveling expenses; communication expenses; repair and maintenance; supplies and materials; water; illumination and power services; chalk allowance; auditing services; training seminar expense.Supplies not exceed P10,000 prescribed by COA

Capital OutlayCapital outlay General Appropriations Act, pertaining to the budget of: The acquisition and improvement of sites; the construction, replacement, rehabilitation and repair of buildings, classrooms,libraries, workshops, toilets and other structures; (iii) furniture, fixtures, and equipment such as, but not limited to, desks, chairs, laboratory and workshop implements, computers, books, and the other basic and essential tools for learning whose beneficial use shall exceed one (1) year;

The Budget Cycle

These four phases 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 depends it before Congress. Meanwhile, the execution and accountability phases are implemented simultaneously year-round.The Budget CycleSTART HEREBudget CallStakeholder EngagementTechnical Budget HearingsExecutive ReviewBudget Execution and DocumentsRatification and EnrolmentRelease Guidelines and ProgramsSenate DeliberationPresidents Enactment and VetoConsolidation, Validation and ConfirmationAllotment Release(ABM & SARO )Presidents BudgetPresentation to the President and CabinetAllotment and Cash Release ProgrammingHouse DeliberationBicameral DeliberationsIncurring ObligationsBudget Accountability ReportsAllocationDisbursementQuarterly Agency Performance ReviewPerformance Targets and OutcomesYear-End Budget Performance Assessment ReviewAuditingPreparationLegislationExecutionAccountabilityLEGEND:Budget CallStakeholder EngagementTechnical Budget HearingsPresentation to the President and CabinetPresidents BudgetBudget Preparation

This starts with the Budget Call and ends with the Presidents submission of the proposed budget to the Congress33House DeliberationRatification and EnrolmentSenate DeliberationPresidents Enactment and VetoBicameral DeliberationsBudget Legislation

Alternatively called budget authorization phase, this starts upon the House Speakers receipt of the Presidents Budget, and ends with the Presidents approval of the General Appropriations Act.Budget Execution and DocumentsRelease Guidelines and ProgramsAllotment Release(ABM & SARO )Allotment and Cash Release ProgrammingIncurring ObligationsAllocationDisbursementBudget Execution

This is where the peoples money is actually spent. As soon as the GAA is enacted, the government can implement its priority programs and projectsBudget Accountability ReportsQuarterly Agency Performance ReviewPerformance Targets and OutcomesYear-End Budget Performance Assessment ReviewAuditingBudget Accountability

This phase happens alongside the budget execution phase. Through budget accountability, the DBM monitors the efficiency of fund utilization, assesses agency performance and provides a vital basis for reforms and new policies

Department of EducationConsolidated Quarterly Report of IncomeFor the Quarter Ending 1st Quarter, FY 2013Sources of IncomeAmountAuthentication FeesP1,320.00Clearance/Certification20,220.00Diploma/Graduation Fees1,505.50Inspection Fees612,000.00Miscellaneous Income282,863.99Permit Fees1,483,110.00Rent Income4,420.00Service Income46,210.00Other Service Income428,356.25Other Permits & LicensesSeminar Fees663,890.00Transcript of Record3,695.00Proceeds from sale of Scrap Materials93,000.00Fines and Penalties11,842.46Documentary Stamp3,735.00TotalP3,656,168.20FINANCIAL HIGHLIGHTS: RA 10155 GAA of CY2012 FOR DEP-ED OPERATION: Total AppropriationP201,582,761,563.00Total Allotment261,672,088,760.43Special Purpose Fund240,238,027,031.52Unexpected Balance21,434,061,728.91PDAF 151,488,140.83Education Performance Incentive Partnership (EPIP)157,352,677.82Support Basic Education Reform 407,031,671.71School Building Program100,000,000.00Donation from Spain874,399,850.00 9,115,043.19Donation from SpainAuD20,000,000.00PAGCORP935,000,000.00DEPED financial position Particulars20122011AssetsP97,546,208,664.78 P88,756,595,461.57Liabilities16,365,134,578.6214,286,885,044.52Government Equity81,181,074,086.1674,469,710,417.05Particulars20122011Income232,061,269,828.88211,979,753,951.12Personal Services202,973,902,629.07186,054,328,766.11MOOE17,804,920,293.6315,209,955,134.70Financing Expenses2,436,107.351,162,963.06Total Expenses220,781,259.030.05201,265,446,863.87Excess of Income over Expenses11,280,010,798.8310,714,306,187.25Sources and Application of Funds

TESDAs financial condition,Comparative Financial Position Particulars20122011AssetsP3,803,651,586.42 P2,181,222,929.50 Liabilities1,484,141,550.12 190,765,893.59 Government Equity2,319,510,036.30 1,990,457,035.91 Subsidy Income from National GovernmentP555,454,144.76

P493,971,735.09 Other Income63,353,591.36 38,452,931.58 Gross IncomeP618,807,736.12P532,424,666.67 Expenses Personal Services191,180,912.98 166,930,703.28 MOOE380,248,226.66334,895,265.15 Financial Expenses134,405.61 2,757.70 Total Expenses571,563,545.25501,828,726.13 Excess of Income over ExpensesP47,244,190.87 P30,595,940.54 Sources and Application of Funds

FINANCIAL HIGHLIGHTS: RA 10155 GAA of CY2012 FOR CHED OPERATION: Total AppropriationP1,420,891,000MOOEP891,340,000Agriculture & Fisheries ModernizationP20,480,000SUC AllocationP250,000,000MOOE for HEDF P768,847,000Total AllotmentsP2,219,458,625.30Continuing AppropriationP304,618,981.80Special Purpose Fund (Scholarship/PDAP/DAFP934,045,470.00Miscellaneous Personnel Benefit FundP1,318,090,564.06Unobligated BalanceP901,368,061.24Financial ConditionParticulars20122011Increase(Decrease)AssetsP12,400,368,721.41P10,914,979,319.37P1,485,389,402.04Liabilities9,357,384,657.608,106,925,046.461,250,459,611.14Government Equity3,042,984,063.812,808,054,272.91234,929,790.90Sources and Application of FundsParticulars20122011Increase(Decrease)Subsidy Income from National Government1,996,220,119.301,695,074,467.39301,145,651.91Other Income6,645,091.677,280,631.49(635,539.82)Total Income2,002,865,210.971,702,355,098.88300,510,112.09Application of Funds:Personal Services267,865,532.80239,996,804.5227,868,728.28MOOE1,173,835,686.731,224,381,291.29(50,545,604.56)Financial ExpensesTotal Expenses1,441,701,219.531,464,378,196.81(22,676,976.28)Excess of Income over Expenses561,163,991.44237,976,903.07

323,187,088.37

References:

BP 232 Education Act of 1982DEP-EDTESDACHED