The thoroughfares in the Organization of NDBA:

In June 9, 2004, the Department of Education (DepEd) released DepEd Order No., 37, s. 2004 entitled, “Implementation of the Direct Release of Funds to DepEd – Regional Offices and Implementing Units” in reference to the Department of Budget and Management (DBM) and DepEd Joint Circular No. 2004-1 dated January 1, 2004, entitled, “Guidelines on the Direct Release of Funds to DepEd Regional Offices and Implementing Units”, and the Section 10 of the Republic Act No. 9155 (Governance of Basic Education Act of 2001), which provides that the appropriations intended for the regional and field offices ( Elementary / Secondary Schools and Schools Division Offices)  are to be allocated directly and release immediately by DBM to the said offices, and Section 11 of the Republic Act No. 10533 (Enhanced Basic Education Act of 2013), which provides that appropriations for the operationalization of the enhanced basic education be included in the Department’s budget.

To support its implementation, on March 6, 2016, DepEd Order No. 12, s. 2014, entitled “Implementing Guidelines on the Direct Release of Maintenance and Other Operating Expenses (MOOE) Allocations of Schools to the Respective Implementing Units”, was then signed and issued by then DepEd Secretary, Br. Armin A. Luistro FSC to further strengthen the previous DepEd guidelines. The implementation requirements that was stated in this issuances is that the Implementing Units (IUs) are capable of administering their own funds since they have position items assigned to handle cashiering and bookkeeping functions, whether on a permanent or temporary basis. The IUs should open a Modified Disbursement Scheme (MDS) Sub-Accounts in government deposit banks and the cash allocations intended for the aforementioned IUs are directly issued by the DBM to their respective MDS Sub-Accounts. Additionally, sets of book of accounts should be maintained in the Implementing Units.

For the information of the reader, the DepEd has two (2) classifications of schools as to fiscal management. These are the so called Implementing Units and Non-Implementing Units. The Implementing Units refers to public secondary schools which maintain separate books of accounts wherein they have a separate Modified Disbursement Scheme (MDS) Sub-Accounts in a government depository bank like Landbank of the Philippines, and is receiving direct downloading of funds from the Department of Budget and Management since they have a separate funding as shown in the General Appropriations Act. Non-Implementing units receives their fund from the Division Office through a monthly cash advance scheme and the fund will be replenished upon liquidation of the previously released cash advance. In general, in the Department of Education, the Central Office, the Regional Offices and the Schools Division Offices are also categories as Operating Units (OU) or Implementing Units (IU).

The Secondary Schools are eligible to become an Implementing Units when it has financial staffs that are composed of a Senior Bookkeeper and a Disbursing Officer II.  The Senior Bookkeeper acts and functions as the school accountant and at the same time the budget officer while the Disbursing Officer II acts as a cashier and collecting officer. Those personnel are tasks to entirely manage the fiscal responsibility and accountability of the school despite its level 1 qualification for the functions that supposed to be assigned to level 2 positions. This does not consider the amounts that are allocated to the particular Implementing Unit and since it is composed of the regular and special purpose fund allocation for Maintenance and Other Operating Expenses (MOOE) and Personnel Services (PS), the amount herein is at a minimum of Ten (10) million.

Due to the fact that the school fiscal responsibility is being managed by merely a Senior Bookkeeper who is functioning as the accountant and budget officer at the same time, with a low salary grade equivalent to non-managerial and non-supervisory positions under the Civil Service Law of which the functions requires a managerial and supervisory accountability and responsibility.

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