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A Research Paper: Public Fiscal Administration

This document discusses the implementation of school-based payroll preparation in secondary schools. It identifies problems that schools encountered during the initial rollout, such as difficulties with the payroll database and late printing of payrolls. It also notes issues with loan billings not being updated correctly and remittances not always being made on time. The document recommends that DepEd conduct periodic reviews and training to ensure compliance with payroll guidelines and address any irregularities promptly to avoid sanctions. Transparency, integrity and accountability are emphasized as important goals for schools to achieve.

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Emerin B. Astillero
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84 views

A Research Paper: Public Fiscal Administration

This document discusses the implementation of school-based payroll preparation in secondary schools. It identifies problems that schools encountered during the initial rollout, such as difficulties with the payroll database and late printing of payrolls. It also notes issues with loan billings not being updated correctly and remittances not always being made on time. The document recommends that DepEd conduct periodic reviews and training to ensure compliance with payroll guidelines and address any irregularities promptly to avoid sanctions. Transparency, integrity and accountability are emphasized as important goals for schools to achieve.

Uploaded by

Emerin B. Astillero
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Notre Dame of Marbel University

JMJ Marist Brothers


Graduate School
MASTER IN PUBLIC ADMINISTRATION
City of Koronadal

Public Fiscal Administration


PA 255 (SATURDAY)

A RESEARCH PAPER

By

EMERIN B. ASTILLERO
MPA - 2

LEONARD V. FLORES
Learning Facilitator
Notre Dame of Marbel University
JMJ Marist Brothers
Graduate School
MASTER IN PUBLIC ADMINISTRATION
City of Koronadal

I. STATEMENT OF THE PROBLEM:

PROBLEMS ENCOUNTERED IN THE IMPLEMENTATION OF


SCHOOL-BASED PAYROLL PREPARATION
The Direct Fund Release System (DFRS) is in adherence to Section 10,
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 school’s division offices) are to be allocated
directly and released immediately by the Department of Budget and Management to
the said office/units. Accordingly, the DBM and DepEd has released guidelines on the
direct release of funds to DepEd–Regional Offices and Implementing Units for these
purpose. Considering the tight fiscal position of the government, there is no assurance
that every secondary school will be given items to handle bookkeeping and cashiering
functions. Therefore, the designation to handle cashiering and bookkeeping functions
shall not be limited to non-teaching personnel only. Teachers who are presently
designated as such are allowed to continue doing the said administrative functions
provided that their teaching loads shall not be compromised.

In line with this order, the payroll, remittances and pay slips under the Schools
Division Offices (including those in the secondary schools without financial staff) shall
be prepared by the Regional Payroll Services Unit except for those personnel in
secondary schools with financial staff that are currently preparing their own. With
reference to DepEd Order No. 47, s. 2009 dated May 13, 2009 the Regional Office
shall transfer the payroll preparation and processing from the Regional Payroll
Servicing Unit to concerned Automated Teller Machine–ready secondary school which
has the capacity to prepare a school-based payroll as determined by the Chief of the
Budget and Finance Division and approved by the Regional Director.

To implement this order, the RPSU conducts a one-day orientation for the
Automatic Payroll Deduction System guidelines, transfer database needed by the
schools, including the pending requests for salary deductions and billing submitted by
the accredited Government Financial Institutions/Private Lending Institutions
(GFIs/PLIs), inform the GFIs/PLIs on the effective date of payroll transfer and conduct
parallel run with the secondary schools to ensure the accuracy of the initial payroll
preparation. On the other hand, the Secondary School Principals shall submit their
requests to their respective Regional Directors for a school-based payroll system
together with a notification from their servicing banks that their programs for ATM
Notre Dame of Marbel University
JMJ Marist Brothers
Graduate School
MASTER IN PUBLIC ADMINISTRATION
City of Koronadal

crediting has been installed in their schools for evaluation and test-run, strictly observe
the minimum net pay requirement as provided by the annual GAA, comply with the
APDS guidelines on the withholding tax and prompt remittance of salary deductions
and government shares to GFIs and PLIs and ensure that service fees deducted from
remittances are properly accounted and deposited with the Bureau of Treasury.

II. Facts:

With regards to the implementation, during their first month of school-based


payroll preparation the Implementing Units (IUs) experienced difficulties in terms of
the database programs used in payroll preparations because of the fact that they are
not yet fully equipped with it and they don’t have the exact machine/printer used for
payroll printing, so there was late printing of payrolls for the next two months. Billings
were not updated by the respected GFIs/PLIs due to lack of proper communication as
to where to submit/address the documents and follow up the remittances of the said
lending institutions to avoid its penalty/surcharges especially the mandatory
deductions. Remittances should be on monthly basis with due dates to follow by every
Implementing Units. All Billings received by the IUs should reflect in the payroll for
proper and exact monthly amortization of every teaching and non-teaching personnel.
Ensure that all service fees deducted from remittances are properly accounted and
deposited with the Bureau of Treasury.

The problem arises when some schools who have attended the said
orientation/seminar about payroll preparation and were given the guidelines to follow,
still they hesitate to abide with the said rules, instead they feel that they own the school
now, most likely they do not follow what was instructed to them. They take control of
the billings given to them that it’s easy for them not to reflect the loans of some selected
personnel who ask for help with the payroll in-charge because they wanted to shift
their loans with other lending institutions without paying the previous one and were
successfully approved. This is also the reason why some of the PLIs do not engaged
business with Implementing Units because there is no assurance when it comes to
remittances. In terms on mandatory deductions they are prompt in paying the
remittance but most of the PLIs they do not exert effort in communicating with them
instead they are used of waiting as to when they will be contacted so interest accrued
for those who have existing loans with them. But the most controversial issue
connected with them is some of the Implementing Units do not remit the service fees
deducted from the remittances to the Bureau of Treasury instead they used it to other
school projects which should not be. They were thinking that they could divert the
Notre Dame of Marbel University
JMJ Marist Brothers
Graduate School
MASTER IN PUBLIC ADMINISTRATION
City of Koronadal

funds because they are given the chance to decide on their own even if they know if
the central office would discover this they could be sanctioned.

III. Recommendations:

The success of the Implementation of School-Based Payroll Preparation relies


on the effectiveness and efficiency of every Implementing Units, the people behind
this which are composed of Secondary Schools Principals, Disbursing Officers and
Bookkeepers because they are the ones directly involved or tasked by the government
particularly the DepEd Central Office to take care of the payroll preparation and
processing activities. They are also the contact point with regards of its funds
distribution. The DepEd Central Office through the Regional Office shall conduct and
monitor periodic review on the implementation of this Order and recommend
necessary actions as the case may be. The Regional Office shall also engage them
to several seminars or trainings regarding payroll preparation and it process to
continue their learnings on the proper way of handling the said implementation,
informed them with the different penalties given for strict compliance with this Order.
As early as possible if there are irregularities seen during the monitor and evaluation
the committee responsible with this should provide data in order for the said negative
feedback be corrected as soon as possible to avoid punishments. Transparency,
Integrity and Accountability should always be on top of their goals to achieve a
progressive school.

In my own point view this could be a good Thesis Paper, for us in the DepEd
family to research and discover solutions that would help in eliminating fraud in this
institution. Given the chance we have to examine more on the different programs
implemented to give much more emphasis on its objectives in order to meet the goals
that would end us into a more productive and progressive country.
Notre Dame of Marbel University
JMJ Marist Brothers
Graduate School
MASTER IN PUBLIC ADMINISTRATION
City of Koronadal

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