SESSION GUIDE: FISCAL MANAGEMENT IN EDUCATION

MARIA AIMEE V. MANCENIDO- Master of Arts in Education, Major in Educational Management

DR. WALTER F. GALAROSA- Professor
Session Title SCHOOL ACCOUNTING ANG AUDITING
Duration of the Session 1 hour
Target Participants Master of Art in Education Students Major in Educational Management
Link of this session to the This session will analyse and understand the importance of accounting and
previous session auditing in managing school finances,

Link of this session to the next
session
Learning Objectives
No previous session will be linked in this session.
At the end of the session, the participants will:
1. Discuss the difference between accounting and auditing.
2. Analyse the basic principles of accounting and auditing.
3. Explain the importance of accounting and auditing in managing school
finances.

Key Understanding/s
The three major financial functions in education–budgeting, accounting, and
auditing–are separate, discrete operations, but they are nonetheless closely
interrelated. They are required activities in providing reliable fiscal
information, guidance, and accountability. Money is organized and spent
according to an accounting system, using a general ledger that standardizes
each spending category and accounts for its use. 

References  https://education.stateuniversity.com/pages/2342/Public-School-Budgeting-
Accounting-Auditing.html
 https://smallbusiness.chron.com/auditing-accounting-11772.html
 https://www.journalofaccountancy.com/newsletters/extra-credit/fun-
 activities-accounting-classroom.html
 https://www.google.com/search
 Accounting Made Easy by Win Lu Ballada
STAGE/METHODOLOGY KEY POINTS Training Slide Time
Aids/Tools Number Allotment

Introduction:

Opening Statement School accounting and auditing

eases the burden of managing school Powerpoint 3-4 10
finances. Presentation Minutes
Related to budgeting is the
accounting system. If a school district's
budget is a financial reflection of its
educational mission, goals, and
philosophies, then the accounting
system becomes the method by which a
district can assess the overall
effectiveness of the financial plan. In
fact, the accounting structure (line
items, spending categories, costing and
spending procedures) is reflected in the
budget, and will later be used in
auditing the system for legal,
appropriate, and responsible spending.

Show the Objectives and the
Coverage of the presentation
Activity
Analysis
What are the objectives of the topic?
At the end of the session, the
participants will:
1. Discuss the difference between
accounting and auditing.
2. Analyse the basic principle of
accounting and auditing.
3. Explain the importance of
accounting and auditing in
managing school finances.
Activity 1:
(Having the participant manage a PowerPoint 20
school finances by making a school Presentation 5 minutes
budget considering the income and
expenses of school that may take
effect)
Given a quarterly budget on your
school, as future administrator how will
you manage your school finances?
The following questions are expected to
be discussed by the presenter to the PowerPoint 15
participants: Presentation minutes
 What is accounting and auditing?
How they differ from each other?
 What are basic principle of
accounting and auditing?
 Explain the principle in
accounting and auditing.
 Why is accounting and auditing
important in managing school
finances?
Abstraction Understanding the key concept in
accounting and auditing:

Accounting is a systematic
process of identifying, recording,
measuring, classifying, verifying,
summarizing, interpreting and
communicating financial
information. It reveals profit or
loss for a given period, and the
value and nature of a firm's Projector 20
assets, liabilities and owners' PowerPoint 6-14 minutes
equity. Presentation
Auditing is the examination of an
entity's accounting records, as
well as the physical inspection of
its assets.
School Accounting and
Auditing are both key parts of
the schools financial record-
keeping process,

Principles of Accounting
GAAP – Generally Accepted
Accounting Principle

1. Objectivity Principle –
Accounting records and
statement are based on the most
reliable data available so that
they will be as accurate and as
useful as possible.
2. Historical Cost – This
principle states that acquired
asset should be recorded at their
actual date.
3. Revenue Recognition
Principle – Revenue is to be
recognized in the accounting
process when goods are delivered
and services are rendered or
performed.
4. Expense Recognition
Principle- Expense should be
recognized in the accounting
period in which goods and
services are used produce
revenue.
5. Adequate Disclosure –
Requires all relevant information
that would affect the users
understanding and assessment of
the accounting entity be
disclosed in the financial
statements.
6. Consistency Principle – The
firms should use the same
accounting method from period
to period to achieve probability
within a single enterprise.

Principles of Auditing
1. Accountability - Auditors act
in the interests of primary
stakeholders, whilst having
regard to the wider public
interest.
2. Integrity - Integrity helps to
insulate auditors from matters of
conflict of interests and elevate
their objectivity.
3. Objectivity and
Independence - Auditors should
be seen to be objective in all their
dealings with their clients. They
express opinions independent of
the entity and its directors.
4. Competence - This is the
ability to carry out professional
duty with great knowledge and
skills.
5. Rigour - Auditors approach
their work with thoroughness
and attitude of professional
scepticism.
6. Judgement - Auditors apply
professional judgement, taking
account of materiality in the
context of the matters on which
they are reporting.
7. Clear Communication -
Auditors’ reports contain clear
expressions of opinion which are
set out in writing for proper
understanding.
8. Association - Auditors allow
their reports to be included in
documents containing other
information only if they consider
that the additional information is
not in conflict with the matters
covered by their reports and that
they have no cause to believe it to
be misleading.
9. Providing Value - Auditors
provide to management
constructive observations arising
from the audit process, thereby
contributing to the effective
operation of the business entity.

The Role of Accounting and

Auditing in an Institution and
It’s Importance:
Accounting and
auditing helps the institution to
be able to ascertain the financial
position of the institution. With
all the accounting activities, the
final report provided helps
institution to know its financial
position so they can be able to
know which direction they are
ending.
Accounting also helps
in decision making, planning and
controlling processes. It’s with
the help of accounting there will
 be documents which will be
factored in carrying out these
processes.

Application  The discussant will ask the 20

participants to answer the PowerPoint 15 minutes
following questions: Presentation

1. Why is accounting and auditing

important in managing school
finances?
2. As future administrator, how will you
manage your school finances?

Auditing and accounting are both

CLOSURE key parts of the schools financial
record-keeping process, but they're PowerPoint 16 5 minutes
somewhat different in focus. Presentation
Accounting is the much broader field,
and it includes everything to do with
organizing and managing the money
that flows through your institution.
Auditing is a specialized field within the
larger world of accounting.