FINANCIAL
MANAGEMENT
April 16, 2023
Prepared by:
YACASEL E. ALEJO
Topics:
1. Key Concepts of Financial Management
2. Financial/Fiscal management
3. Fiscal Management Cycle and
Processes
4. Government Procurement Reform
Act (RA 9184)
5. Role of school administrators as fiscal
managers
Key Concepts:
Financial - pertaining to monetary receipts and
expenditures; financial operations.
Management - is the administration of organizations,
whether they are a business, a nonprofit organization,
or a government body
FINANCIAL/
FISCAL
MANAGEMENT
What is Financial Management?
Financial Management means planning, organizing, directing and
controlling the financial activities such as procurement and
utilization of funds of the enterprise.
It means applying general management principles to financial
resources of the enterprise to achieve financial goals.
It also includes applying management principles to the financial
assets of an organization, while also playing an important part in
fiscal management.
What is Fiscal
Management?
Fiscal management is the process of keeping
an organization running efficiently within its
allotted budget. Though the word "fiscal" can
be used interchangeably with the word
financial, in most cases, fiscal management
refers to money management within a
government entity.
What is Fiscal
Management?
Is the process of planning, directing and
controlling financial resources of an
organization.
It is the process of keeping an
organization running efficiently within
its allotted budget.
Planning and
Budgeting
FINANCIAL
MANAGEMENT
CYCLE Evaluation and Resource
reporting allocation
Operating,
monitoring and
safeguarding
Planning
The financial manager projects how much money the
company/institution will need in order to maintain
positive cash flow, allocate funds to grow or add new
products or services and cope with unexpected events,
and shares that information with business colleagues.
Budgeting
is the process of allocating finite resources to the
prioritized needs of an organization. In most
cases, for a governmental entity, the budget
represents the legal authority to spend money.
Resource Allocation
is the assignment of available resources to
various uses.
is the scheduling of activities and the resources
required by those activities while taking into
consideration both the resource availability and
the project time
Operating, Monitoring and Safeguarding
This phase is critical to protect against fraudulent activity, errors,
compliance issues, or other variances in the allocation of funds, etc.
Financial management professionals should run regular financial
reviews of business operations and cash flow. These periodic
reviews can help mitigate fraud and identify other issues. It is a
preventative step that ensures the continuity of business operations
by securing the validity and accuracy of a company's financial
processes.
Evaluation and Reporting
Financial management professionals should evaluate a
company’s current financial management system and
propose changes when necessary. Financial reports and
financial data can be helpful when assessing the
efficiency and success of an existing system.
Effective financial management aligned
with an organization’s goals and
objectives can lead to greater efficiency
and stability. These parts of the financial
management cycle must work together
to be the most effective.
Procurement of Funds
AREAS OF Allocation of funds
FISCAL
MANAGEMENT Monitoring their use in the interest of
accountability
Producing financial reports for the relevant
stakeholders
WHAT IS THE IMPORTANCE OF FINANCIAL/FISCAL
MANAGEMENT?
• Helps organizations in financial planning
• Assist organizations in planning and helps in effectively utilizing
and allocating the funds received or acquired
• Assists organizations in making critical financial decisions
• Helps in improving the profitability or organizations
• Increases the overall value of the organization
• Provides economic stability
• Encourages employees to save money
CHARACTERISTICS OF FINANCIAL/FISCAL MANAGEMENT
POOR FISCAL MANAGEMENT GOOD FISCAL MANAGEMENT
– indicated by a lack of record keeping – involves recording all fiscal
and unnecessary or unplanned transactions in checks- and balances
expenditures that can cause a department system that reduces
to go over budget or fail to meet its mistakes or omissions that might lead to
objectives. surprise budget overages.
GOVERNMENT PROCUREMENT
REFORM ACT – RA 9184
SEC. 3. Governing Principles on Government
Procurement.
(R.A.) 9184, otherwise known as the – All procurement of the national government,
“Government Procurement Reform Act,” its departments, bureaus, offices and agencies,
for the purpose of prescribing the including state universities and colleges,
necessary rules and regulations for the government-owned and/
modernization, standardization, and or -controlled corporations,
regulation of the procurement activities government financial institutions and local
of the Government of the Philippines government units, shall, in all cases, be
(GoP). governed by these principles:
RA 9184 PRINCIPLES:
Transparency
Competitiveness
Procurement process
System of accountability
Public monitoring
Role of School Administrators as Fiscal
Managers
• Administer and manage all RA 9155 –
personnel, physical and Governance of the
fiscal resources of the school Basic Education Act
of 2001
Role of School Administrators as Fiscal
Managers
• Allocate funds in accordance with the budget as
reflected in the Annual Implementation Plan (AIP)
• Authorize the disbursement of school funds
• No government Procurement shall be undertaken unless it is in
accordance with the approved Annual Procurement Plan of the
Procuring Entity. The Annual Procurement Plan shall be
approved by the Head of the Procuring Entity and must be
consistent with its duly approved yearly budget. The Annual
Procurement Plan shall be formulated and revised only in
accordance with the guidelines set forth in the IRR. (RA 9184)
Role of School Administrators as Fiscal
Managers
• Ensure that the school has the funds it needs and
that those funds are used effectively and efficiently
• Ensures that all financial transactions are recorded
accurately
Fiscal managers should ensure that:
• All financial regulations and
procedures are complied with.
• All financial transactions are recorded
accurately.
• Adequate controls are in place to
ensure that expenditures do not
exceed income.
• Only authorized expenditures are
incurred
“Principals and school administrators
as financial managers of schools are
responsible for school finances.
Therefore, they should be well
acquainted with the basic principles
of education financing and
management.”
- UNESCO, 2015
References:
netsuite.com/portal/resource/articles/financial-management/financial-management.shtml
https://en.wikipedia.org/wiki/Resource_allocation
https://www.coursera.org/articles/finance-management
Thank
You
Thank
You
