Reorganization of the Office of Financial Management Services (OFMS)

December 8, 2017

DFA DEPARTMENT ORDER NO. 13-17

REORGANIZATION OF THE OFFICE OF FINANCIAL MANAGEMENT SERVICES (OFMS)

SECTION 1. Legal Basis. —

The periodic review and alignment of principal offices in the Department of Foreign Affairs (DFA) is bestowed upon the Secretary of Foreign Affairs, as provided under Sections 9 and 11 of Republic Act No. 7157 or the Philippine Foreign Service Act of 1991.

Likewise, the General Appropriations Act provides for a program on Institutional Strengthening and Productivity Improvement for the reorganization of National Government agencies' organization and operations. IAETDc

SECTION 2. Mandate. —

The OFMS is responsible for budgetary, financial, and accounting services in the Department and the Foreign Service.

SECTION 3. Organizational Structure. —

The OFMS shall be headed by an Assistant Secretary who is a career Foreign Service Officer with at least the rank of a Chief of Mission, Class II. The Assistant Secretary shall be assisted by an Executive Director, two Principal Assistants, and an Administrative Unit headed by an Administrative Officer.

The Executive Director shall be a career Foreign Service Officer with at least the rank of a Career Minister. The Principal Assistants shall be a career Foreign Service Officer below the rank of Chief of Mission. The Administrative Officer shall have the rank of at least Foreign Service Staff Officer.

The OFMS shall consist of four (4) Divisions, namely: (i) Financial Planning Division, (ii) Budget Division, (iii) Accounting Division, and (iv) Financial Resource Management Division. The Heads of these Divisions shall be Foreign Service Officers or Foreign Service Staff Officers. In addition, the Chief Accountant of the Department shall be designated as the Head of Accounting Division.

The OFMS Organizational Chart is presented in Annex A of this Department Order.

SECTION 4. Statement of Functions of Divisions under OFMS. —

I. Financial Planning Division (FPD)

The Financial Policy Development Division is the focal office that handles the formulation, evaluation, interpretation, and implementation of fiscal policies and regulations. It coordinates with other OFMS Divisions in the formulation of OFMS position on cross-cutting issues in the Home Office, Regional Consular Offices, and Foreign Service Posts. It provides technical support including research and preparation/collection of data relevant to pertinent issues and concerns.

Specifically, the FPD is tasked to:

a. Conduct fiscal policy research;

b. Evaluate, formulate and draft issuances on new financial policies and guidelines of the Department and the Foreign Service;

c. Conduct a periodic review of allowances of foreign service personnel, as prescribed under relevant laws, rules, and regulations;

d. Coordinate with oversight agencies on matters relating the review of foreign service allowances and the performance-based incentive system;

e. Develop projections and prepare reports on relevant financial data;

f. Develop, design, and implement methods and procedures to increase efficiency of financial operations of the Department;

g. Act on financial-related requests of Offices in the Home Office and Foreign Service Posts;

h. Conduct special projects, as may be assigned; and

i. Act as custodian of the Departments finance-related issuances.

II. Budget Division

The Budget Division is mandated to prepare the budget and ensure its availability for the Department's operational requirements. Its primary function is defined by the four (4) phases of the budget cycle: (i) budget preparation, (ii) budget execution, (iii) budget legislation, and (iv) budget accountability.

Specifically, the Budget Division is tasked to:

a. Lead in the preparation and execution of the DFA budget;

b. Assist in the presentation of budgetary estimates before administrative and legislative bodies;

c. Evaluate the funding aspect of the Project Procurement Management Plans (PPMPs) submitted by various offices;

d. Coordinate with the Office of Assets Management and Support Services (OAMSS) on the financial requirements of the Department's Building Fund;

e. Represent the Department in routine budget meetings with oversight agencies;

f. Monitor the utilization of the Department's financial resources;

g. Recommend measures for the efficient and effective utilization of financial resources and for improving the Department's budgetary process;

h. Participate in the International Commitments Fund (ICF) Review Panel and monitor the utilization of the ICF budget being overseen by the DFA;

i. Prepare requests for supplemental and special budgets, whenever necessary and as applicable; and

j. Act as custodian of all budget documents and records. DcHSEa

III. Accounting Division

The Accounting Division is responsible for ensuring that the Department's and the Foreign Service's financial transactions are in accordance with Government accounting and auditing rules and regulations. The Division handles different aspects of the financial operations in the Department, and provides comments on draft finance-related issuances. It also drafts issuances on accounting and auditing guidelines, as needed.

Specifically, the Accounting Division is tasked to:

a. Prepare the Department's Financial Reports;

b. Certify the availability of funds in accordance with auditing rules and regulations;

c. Draft reply/comment on Commission on Audit's Audit Observation Memoranda;

d. Inform offices and personnel concerned of their accountabilities (supplies accountabilities, cash accountabilities, COA disallowances) for the settlements of their accounts;

e. Act on request(s) for verification of information on accounting data;

f. Examine and monitor the Department's financial transactions;

g. Book the Department's financial transactions in the electronic NGAS;

h. Prepare Journal Entry Vouchers for collections, deposits, and disbursements in the Home Office, Regional Consular Offices, Satellite Offices, and Foreign Service Posts;

i. Review prior years' transactions and reconcile abnormal balances, when necessary;

j. Prepare, in coordination with FRMD, the reports required by and submitted to oversight agencies;

k. Process applications for clearance by Department personnel; and

l. Act as custodian of all accounting documents and records.

IV. Financial Resource Management Division (FRMD)

The Financial Resource Management Division is responsible for ensuring that all financial transactions entered into by the Department are in strict compliance with the laws and are fully supported by required documentary evidence to assure the correctness and legality of the said transactions.

Specifically, the FRMD is tasked to:

a. Perform internal audit functions for the fiscal management units of the Department by reviewing transactions for compliance with accounting and auditing requirements;

b. Implement control measures for the Department's financial transactions;

c. Liaise with the Commission on Audit;

d. Process applications for bonding of accountable officers;

e. Supervise the Department's cash management functions;

f. Supervise the collections, deposits, and disbursements in the Home Office;

g. Arrange and coordinate remittances of funds to Regional Consular Offices and the Foreign Service Posts, in close coordination with the Budget Division;

h. Process, manage and monitor the disbursements charged to the Passport Revolving Fund (PRF) and ensure that these expenditures are consistent with existing laws, rules, and regulations; and

i. Monitor the Department's cash position.

SECTION 5. Repealing Clause. —

This Department Order supersedes Department Order No. 15-2014 and amends parts of Department Order 19A-1995 that are inconsistent with the provisions of this Order.

Pasay City, December 8, 2017.

By the authority of the Secretary of Foreign Affairs:

(SGD.) JOSE LUIS G. MONTALESUndersecretary