Fi­nan­cial ef­fi­ciency among schools

Panay News - - BUSINESS -  By Rem­mafe B. Oquendo, Ad­min­is­tra­tive Of­fi­cer I Bue­nav­ista Na­tional High School

Fi­nan­cial ef­fi­ciency among schools is an in­di­ca­tion that schools are tack­ling the new­est chal­lenge of the au­ton­omy re­quired by t he De­part­ment of Ed­u­ca­tion. Schools are now manag­ing funds to carry out var­i­ous school func­tions. School fi­nan­cial man­age­ment com­prises the plan­ning and im­ple­men­ta­tion of a fi­nan­cial plan, ac­count­ing, re­port­ing and the pro­tec­tion of as­sets from loss, dam­age and fraud.

All items of fi­nan­cial man­age­ment are ex­posed to the risk of in­cor­rect, im­proper and in­ef­fec­tive school man­age­ment, which is par­tic­u­larly re­flected in the ac­count­ing, bud­get­ing and fund dis­burse­ment con­trol and on time fi­nan­cial re­port­ing of a school. If the school does not have the in­ter­nal rules in con­so­nance with re­quired req­ui­sites by gov­ern­ment laws and De­part­ment of Ed­u­ca­tion poli­cies, there is a risk that in­ter­nal con­trols are not set and may neg­a­tively af­fect school fund man­age­ment.

This means a great risk for in­cor­rect and in­ef­fec­tive fi­nan­cial man­age­ment that would be detri­men­tal for school’s to carry out the goals and ob­jec­tives set by the Philip­pine pub­lic ed­u­ca­tion sys­tem in general and to the schools’ clients in par­tic­u­lar.

Fi­nan­cial ef­fi­ciency is dic­tated by close ob­ser­vance and com­pli­ance to the Fi­nan­cial Man­age­ment Op­er­a­tions Man­ual of t he De­part­ment of Ed­u­ca­tion. Then con­tin­u­ing en­hance­ment of school per­son­nel and sup­port by the schools di­vi­sion and re­gional field of­fices.

Level of fi­nan­cial ef­fi­ciency is an in­di­ca­tion that schools are op­er­ated with the most pru­dent, ex­pe­di­ent and con­sci­en­tious man­age­ment prin­ci­ples and pro- ac­tive lead­er­ship un­der a demo­cratic con­cept. Fi­nan­cial ef­fi­ciency is best at­tained with stake­hold­ers both in­ter­nal and ex­ter­nal ob­serv­ing fair­ness, trans­parency and hon­esty at all times. The level of trust of the in­ter­nal and ex­ter­nal stake­hold­ers dic­tates the level of school’s ef­fec­tive­ness in all ar­eas of man­age­ment in­clud­ing fi­nan­cial ef­fi­ciency. ( Paid ar­ti­cle)

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