2. O and M
• Operation is defined as making use of the
completed infrastructure so that it becomes
an economically and socially productive
community facility.
• Maintenance is purposely to keep the
infrastructure in its original form as far as
possible to maintain its serviceability.
3. O and M
• All completed sub-projects shall be turned
over by the KALAHI-CIDSS Barangay
Management Committee (BSPMC) to user
groups within the community who will take
over the actual operation and maintenance
of the sub-project.
• The community shall implement the O&M
plan agreed upon during the proposal
preparation stage.
5. KC Manual of Operations
• SPs that are income-generating (IGPs) shall
have a separate financial management
systems to ensure project sustainability.
• The Community shall organize and form an
association for the primary purpose of
generating funds to carry on the various
operational and maintenance activity of
the IGPs.
7. KC Manual of Operations
• The Association shall open a bank account
separate from the community bank
account for the SP implementation which
shall have at least two co-signatories for
control purposes.
• The Collector/Cashier shall issue a pre-
number OR or AR or equivalent receipt in
two copies for all cash collections.
8. O&M FINANCIAL MANAGEMENT SYSTEM
• Organizational Structure and FM Roles of
Officers
• Cash Receipts/Collections
• Cash Disbursements/Payments
• Recording and Filing
• Determining Non-cash Transactions
• Preparation of Financial Reports
10. FM ROLES OF OFFICERS
Operation • In-charge of the day operation of the facility
In-charge • Shall see to it that all revenues generated from the facility/SP are
properly and accurately accounted for
• The association shall assign replacement in OIC’s absence in order
not to hamper the operations
Treasurer • Takes custody of the funds coming from day to day collections
• The association shall assign replacement in Treasurer’s absence in
order not to delay collection of revenues
Cashier • In-charge of collecting fees from beneficiaries/customers
• Shall remit to the Treasurer the total amount collected at the end
of the day
• The association shall assign replacement in Cashier’s absence in
order not to delay collection of revenues
Bookkeeper • Records the financial transactions of the Association (collections
and disbursements) and prepares Financial Report or Income
Statement when required
11. CASH RECEIPTS/COLLECTIONS
• Cashier shall issue a pre-numbered OR or AR or equivalent receipt in
2 copies for all cash collections
– Original copy to customer
– Duplicate copy to file
• Cashier shall accomplish List of Collection in 3 copies every day
– Original copy to Treasurer
– Duplicate copy to Bookkeeper
– Triplicate copy to file
• Treasurer shall verify cash remittances with List of Collection; record
in the Treasurer’s Journal and keep cash in the Cash box for deposit
the next banking day
• Bookkeeper records transaction in the Cashbook
12. OR / AR
• Color-coded: white for original copy and
other color for duplicate copy
• Use carbon paper to produce duplicate
copy
• In no case shall both copies be prepared
separately
Date Particular Amount OR/AR No.
13. LIST OF COLLECTION
List of Collection
Date ________________
No: ________________
No. Particular Amount OR/AR
1
2
3
4
5
Prepared by: Verified by: Recorded by:
Cashier Bookkeeper Treasurer
16. RECORDING AND FILING
• Daily recording is greatly recommended
• Safekeeping the books of accounts, records,
accounting forms and reports are major
responsibilities of the Bookkeeper
• All records and documents should be locked and
subjected to limited access
• Association Officers should agree on report to
be prepared, who received the report and how
frequent is the submission
20. POST-AUDIT FINDINGS
• Non-compliance by concerned LGUs on the
allocation of funds for the operations and
maintenance of SPs, affected the
functionality and utilization of SPs. (Mutual
Partnership Agreement)
• Sustainability of some IGPs are uncertain
due to failure of the Barangay Committee
to comply with the requirements pertaining
to the completed SPs. (KC Manual of
Operations)
