Chapter 18
Financial Aspect of
z
Educational Planning
Anz education plan can be implemented
through policy initiatives and
development programs and projects .
To be able to carry these out, resources
in terms of financial, manpower,
physical and other resources need to be
allocated to them.
The most widely used instrument for
authorizing within specified time frame
in the budget.
Ramon C. Bacani
Assistant Secretary DECS and Financial Specialist
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Budgeting
Budgeting is used in organizations
for multiple purposes of which the
most superior ones are planning
(decision making) and control. For
planning purposes, budgets can
serve as a tool to forecast
profitability, allocate resources or
communicate specialized
knowledge about one part of an
organization to other parts.
Budgeting Process
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• Identification of programs, project and activities to be
implemented during budget period.
• Identification of resources - manpower, financial,
physical and other resources required to carry out
programs, project and activities and quantities of each
resource.
• Costing of resources which would translate the
resource requirements into their monetary values.
• Preparation of budget in accordance with the mandated
form and content spelled out in guidelines issued for
this purpose.
• Securing official authorization to allocate and use
resources.
Planning and Budgeting Linkage
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• Budgeting is the process of planning income
and expenditure for a specific time or project. It
is an essential component of the planning
process. Measurement of actual income and
expenditure against that projected in a budget
provides key indicators, as well as warnings,
for the achievement of objectives.
• Linking planning and budgeting functions in
both national and local governments is
important in producing development results
and providing a more effective and efficient
delivery of goods and services.
Types of Budgeting
z
• Line-Item Budgeting
• Traditional and conventional
• It is in column format
• Individual financial statement
• Monitor financial spending
• For accounting purposes
• Performance Budgeting
• Actual estimated results in terms of
benefits accruing to the public and
unit costs.
• Reflects both the input of resources
and output of services
National Budget Process
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• Budget Preparation
• Budget Authorization
• Budget execution
• Budget Accountability
National Budget Process
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• Budget Preparation
The preparation of the
annual budget involves a series of steps
that begins with the determination of the
overall economic targets, expenditure
levels, revenue projection and the
financing plan by the
Development Budget Coordinating
Committee (DBCC). A NEDA Board
Committee , Determines the budget level.
National Budget Process
z
• Budget Authorization
After the appropriation bill is signed by
the President. The following
paragraphs describe the making of a
budget authorization. Once the budget
is approved by the President and the
Cabinet, the President submits it to
Congress. This must be done no more
than thirty days after the opening of its
regular session, as required under the
Constitution.
National Budget Process
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• Budget execution
The budget execution phase begins when the
spending agency receives the guidelines on the
release and utilization of funds issued by the
Department of Budget and Management (DBM)
through an allotment release order and Notice of
Cash Allocation. DBM and the Bureau of the
Treasury (BTr), as spending agencies, incur
liabilities on behalf of the government while
implementing programs, activities, and projects.
Corresponding legal obligations will then be paid
for by the government thereby resulting to
disbursement, which is the final step of the phase,
where government money is spent.
National Budget Process
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• Budget Accountability
This is used to help ensure the budget
is prepared in the most responsible way.
Built safeguards to ensure the integrity of
the Budget and strengthen accountability
over the use of public funds. This is
evidence that government budget
accountability and participation leads to
more efficient, effective, equitable
budgets.
Budgeting for the Educational Sector
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• Peculiarities of the Educational
Budget
• General Principles and
Considerations in Preparing
the Education Budget
• Procedures and Steps in
Preparing the Education
Budget.
Maintenance the Other Operating
Expenses(MOOE)
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• Method of Educational Costing
• Pointers in Computing Education
Cost
• Personnel
• Equipment
• Maintenance and other operating
expenses
• Buildings
• Site
• Special Project
Getting the Education Cost of a
particular Course /or Program )
z
A. Secure data on-
• Administrative/Supervisory
• Facilitative
• Instructional
• Special Services
B. Cost of Equipment needed for course/
program
• Hand tools
• Machinery
• Furniture
• Books
• Others (Office and Miscellaneous)
Getting the Education Cost of a
particular Course /or Program )
z
C. Cost of maintenance and other operating
expenses for the course/program
• Travel
• Sundries
• Supplies and materials
• Instructional Aids
• Office Supplies
• Fixed Charges
D. Cost of site
E. Cost of Special Projects
Compute the per student cost of each of the above
items.
Capital Expenditures on Plant and Facilities
• New Construction
• Improvements
• Replacements
THE RDIP
z FORMULATION
PROCESS
A. Programs/ Project
Identification/
Selection
B. Five-Year
Investment Program
C. Approval of Five-
Year Investment
Program
Analysis of Teacher Requirement
(Secondary)
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per year and per school
Financial Consideration
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Cost Benefits Analysis
1. Benefits from Educational Process
2. Cost effectiveness and project structure
3. Unit Cost Comparison
4. Cost- Effectiveness and Unit Recurrent Costs
Costing of Educational Plan
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• Basic Concepts about Education Costs
• Uses of Costs
• Methods of Finding Educational
Costing
• Pointers in Computing Educational
Costs
• Components of Cost
• Cost Units of Accommodations
School Budget Calendar
SOCIAL AND PRIVATE COST OF EDUCATION
z
Social cost Private Cost
1.Teachers Salaries 1. Fees, minus
Other Current expenditure average value
and services scholarship
3. Expenditure on books etc. 2. Books etc.
4. Imputed Rent 3. Earning foregone
5. Indirect Earnings foregone
Increasing Income
z
1. Tuition and Student Fees
2. Investment, Plant and Facilities
3. Other Income-Producing Activities
4. Faculty and Personnel
5. General Administration
6. Maintenance and Security
7. Office Expenses
8. Purchasing Equipment and Leasing
9. Food Services
