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FINANCE MANAGEMENT AND SUPPORT CENTER

FINANCE MANAGEMENT AND SUPPORT CENTER. Presented by: Lydia P. Fernandez Assistant Secretary. RATIONALE. Minimize fiduciary risk Maximize use of scarce government resources Prevent improper use of scarce govt. resources Ensure transparency, accountability and expenditure control

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FINANCE MANAGEMENT AND SUPPORT CENTER

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  1. FINANCE MANAGEMENT AND SUPPORT CENTER Presented by: Lydia P. Fernandez Assistant Secretary

  2. RATIONALE • 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

  3. REFORMS

  4. COMPLETED REFORMS • Redefinition of FMSC functions 1.1 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

  5. COMPLETED REFORMS • Redefinition of FMSC functions 1.3. 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

  6. COMPLETED REFORMS • Rationalization of Financial Management and Support Center (FMSC) • 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

  7. CONTINUING REFORMS • 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

  8. CONTINUING REFORMS • Budget • Implementation of E-Budget • Prioritization on the use of resources before year end 1. 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

  9. CONTINUING REFORMS • 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

  10. CONTINUING REFORMS • Management Services • Strict 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

  11. CONTINUING REFORMS • 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

  12. FINANCE MANAGEMENT AND SUPPORT CENTER OFFICE OF THE DIRECTOR ACCOUNTING DIVISION BUDGET DIVISION MANAGEMENT SERVICES DIVISION CASHIER SECTION DISBURSEMENT SECTION PLANNING & BUDGET PREP. SECTION ACCOUNTING MONITORING & EVAL. SECTION GL / SL SECTION BUDGET IMPLEMENTATION SECTION BUDGET MONITORING & EVAL. SECTION F A P s SECTION

  13. MANAGEMENT SERVICES DIVISION C H D s SPECIAL HOSPITALS BUREAUS RETAINED HOSPITALS

  14. FUNCTIONAL CHART OF ACCOUNTING DIVISION FUNCTIONAL CHART OF ACCOUNTING DIVISION CHIEF ACCOUNTANT DISBURSEMENT GL//SL FAPs DESK SECTION SECTION - Process all accounting transactions in - - Maintain general and subsidiary accounting Budgeting, Accounting and financial accordance with appropriate rules and records and books of accounts to reflect reporting for all Foreign-Assisted regulations, accurate and up to date financial information in Projects, - Ensure propriety, legality and conformity with appropriate rules and - Project Monitoring completeness of all claims/financial regulations transactions - Prepare and submit financial reports to - Provide technical assistance to various management, oversight agencies, legislative units of the Department on accounting and other administrative bodies, and financial matters institutions Disbursement Financial Control of Monitoring of Reporting SOE/WA fund releases (3) (2) (1) (1) Receivi Verifica Processing NCA Indexing Signatory Control (4) (1) (3) ng/Rele tion of (1) asing c/a (1) (2) JEV BIR Financial Monitoring of E-NGAS Encoding Reportorial Reporting (1) Requirement (4) (3)

  15. FUNCTIONAL CHART OF BUDGET DIVISION BUDGET DIVISION PLANNING AND BUDGET PREPARATION SECTION BUDGET IMPLEMENTATION SECTION • BUDGET POLICIES AND SUPPORT • Develop and improve budgetary methods,system and procedures • Recommend policies and guidelines for budget preparation and implementation • Provide technical assistance to other units in application & utilization of budgetary methods, system and procedures 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 • BUDGET PREPARATION • Formulate key performance indicators (KPI) in coordination with other offices/services • Initiate budget preparation in coordination with DBM and various offices/services • Review and consolidate budget proposals from various offices and prepare annual MTEF estimates • Assist management in the presentation of the Department’s budget estimates before DBM legislative bodies and other oversight and administrative bodies.

  16. 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 processes 1.2 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 FUNCTIONAL CHART OF MANAGEMENT SERVICES DIVISION MANAGEMENT SERVICES DIVISION 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 processes 1.2 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

  17. ACCOUNTING MONITORING AND CONTROL SECTION 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 FUNCTIONAL CHART OF MANAGEMENT SERVICES DIVISION MANAGEMENT SERVICES DIVISION BUDGET MONITORING AND CONTROL SECTION 4. Budget Analysis (Flash Reports Analysis) 4.1. Actual Performance against budget target 4.2. Actual releases against obligations incurred, approved budget 4.3. Compliance to austerity measures and cost reduction programs

  18. ACCOUNTING MONITORING AND CONTROL SECTION 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 FUNCTIONAL CHART OF MANAGEMENT SERVICES DIVISION MANAGEMENT SERVICES DIVISION BUDGET MONITORING AND CONTROL SECTION 4. Budget Analysis (Flash Reports Analysis) 4.4. Variance analysis based on approved budget against actual obligations 4.5. Actual budget releases vs. plans 5. Development & design of budget systems and process improvement for the CO/CHDs/Hospitals/Bureaus

  19. ACCOUNTING MONITORING AND CONTROL SECTION 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 FUNCTIONAL CHART OF MANAGEMENT SERVICES DIVISION MANAGEMENT SERVICES DIVISION BUDGET MONITORING AND CONTROL SECTION 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

  20. 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 • Originating Offices • Prepare voucher/ObR • attach complete supporting • documents • approve Box A of ObR • Approve Box B of DV • (in most transactions) • Cashier • Prepares check/ADA • Prepares LBP advice • *credit to ind. accounts • * checks issued

  21. FLOW OF TRANSACTIONS- BUDGET DIVISION Originating Office Receiving Budget Division • Accounting • Division Processing Releasing Signatory Funding

  22. FLOW OF TRANSACTIONS- ACCOUNTING DIVISION Originating Office Budget Division Receiving • Accounting • Division Cashier Processing Releasing Signatory Indexing Funding/NCA

  23. FLOW OF TRANSACTIONS- CASHIER • Accounting • Division Originating Office Receiving Check/ADA Issuance Cashier Releasing of checks Preparation of ACIC/ADA Delivery of Advice to LBP Signing of checks/ACIC /ADA Typing of checks

  24. E-NGAS

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

  26. Advantages 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)

  27. Cost 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

  28. FLASH 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

  29. FLASH 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

  30. FAPs

  31. FAPs • 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 Proceedsand EC Grant

  32. FAPs • CHD Accountants to: • monitor of EC Grant implementation • Report to DOH-CO status of EC-Grant Implementation Monitoring of EC – Grant and WB Managed Fund

  33. PROPERTY MANAGEMENT

  34. PROPERTY MANAGEMENT RATIONALE • 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.

  35. PROPERTY MANAGEMENT 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

  36. PROPERTY MANAGEMENT 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

  37. PROPERTY MANAGEMENT REFORMS • 2. Property Identification - Annual Physical Inventory of all existing properties • Location • When acquired • Book value • Mode of acquisition (procured/donated) • Responsibility center (deployment)

  38. PROPERTY MANAGEMENT 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

  39. PROPERTY MANAGEMENT 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

  40. PROPERTY MANAGEMENT REFORMS • 7. Property Risk Management • Insurance • Registration • Taxes • 8. Property Utilization • Energy conservation • Waste Management • Cost Reduction Program • 9. Property Disposal • Property Appraisal • Guidelines for Property • Disposal

  41. PROPERTY MANAGEMENT REFORMS • 10. As Staff Capability Building & Productivity Enhancement • Provide Equipment /Tools • Skills inventory • Training Needs Assessment • Succession Planning • Career Pathing

  42. PROPERTY MANAGEMENT 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

  43. The Administrative Service Organogram Structure {PROPOSED NEW DIVISION OFFICE} {EXISTING DIVISION} {EXISTING DIVISION, Transferred from PLS}

  44. The Property Management Division

  45. General Services Division

  46. Material Management Division

  47. PROPERTY MANAGEMENT • 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.

  48. 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.

  49. 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.

  50. 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.

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