Operation and maintenance (o&m)
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This document outlines procedures for operating and maintaining public infrastructure and income-generating subprojects completed under the Kalahi-CIDSS program. It discusses how completed subprojects will be turned over to community user groups for operation and maintenance. It also describes how income-generating subprojects should have separate financial management systems to fund ongoing O&M activities through an association collecting fees. The document provides details on the financial roles and processes involved in collecting, recording, and reporting on funds to ensure the long-term sustainability of the subprojects.
Operation and maintenance (o&m)
- 1. OPERATION AND MAINTENANCE (O&M) PUBLIC INFRASTRUCTURES AND INCOME-GENERATING SUBPROJECTS
- 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 OICs 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 Treasurers 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 Cashiers 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 Treasurers 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
- 14. TREASURERS JOURNAL Date Ref Particular Receipt Disbursement Cumulative Balance
- 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
- 19. FINANCIAL REPORT PREPARATION Procedures to prepare Income Statement:
- 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)