.
Observation for financial reports
Reference
No school accounts for canteen earnings and
cash received
DepEd Order No. 8 s. 2007
6.6. Earnings and cash received from canteen
operations shall be deposited daily in the
nearest government depository bank. In the
absence of such government depository
bank, deposits shall be made at any nearest
reputable commercial bank. In no case shall
the deposits be made in the personal
account of any school official. A schoolmanaged canteen shall have a bank account
“in trust for” the name of the school, whereby
the school head/principal and the Canteen
Teacher shall be the joint signatories.
Unposted school canteen statement of
operation on transparency board
DepEd Order No. 8 s. 2007
5.4.3. Audited financial statements shall be
posted on bulletin boards for the information
of everybody.
DepEd Order No. 17 s. 2005
6.1 All entities operating and managing a
school canteen shall prepare a monthly
statement of operations which shall be posted
on the school’s bulletin board and/or in any
conspicuous place within the school canteen
premises for purposes of public view and
access as well as to ensure transparency.
Utilization of net income
 Erroneous posting of financial
expenses
(expenses for feeding, clinic, school
dev. Etc. was deducted already in
gross profit instead from net income)
 Canteen SBFP must be implemented
and observed.
DepEd Order No. 8 s. 2007
6.5 The net income derived from the operation
of the canteen shall be utilized for, but not
limited to the following:
SBFP -35%
School Clinic Fund- 5%
Faculty and student dev. Fund -15%
H.E Instructional Fund -10%
School Operation -25%
Revolving -10%
No proper reporting of liquidation of
expenses from net income (lack of
receipt /proof of payment)
6.8 Disbursement of canteen funds shall be in
accordance with the approved budget and
existing accounting and auditing rules and
regulations.
DepEd Order No. 17 s. 2005
8.1.3 The disbursement chargeable against
the net income derived from the operation
shall be in accordance with the budget
approved for the year, for the purpose related
to the school operations and activities, – and
the same shall be properly recorded,
accounted for and supported by receipts
and proofs of disbursement in accordance
with the accounting rules and regulations.
Improper expenditure of revolving fund
DepEd Order No. 8 s. 2007
Amount set aside to cover disbursement for
recurring
transactions.
Transactions

covered by this fund is subject to immediate
liquidation…
No proper turnover of accountability from
previous canteen manager
*new canteen managers are not well
informed about how to create accurate
reports due to lack of proper handover of
information and responsibilities
Other matters of improper expenditure
reporting:
 Gift, token, pauwi, pakain for SDS,
PSDS, Mayor, visitors, etc. was as is
reported on expenses as per attached
reports of expenses on school
financial reports.
 no breakdown of school sharing in
expenses
DepEd Order No. 8 s. 2007
6.9 Teachers and canteen personnel shall be
required to secure clearance from money and
property accountabilities in relation to their
involvement
in
the
operation
and
management of the school canteen before
they are allowed to retire and/or resign from
government service, or transfer to other posts
for purposes of re-assignment or promotion to
a higher position.
DepEd Order No. 17 s. 2005
8.1.3 no portion of the net income derived from
the operation shall be set aside and in any
manner in favor of regional/division /district office.