“Defects” is one of the eight most damaging risks according to Lean Six Sigma’s 8 Wastes or Process Risks. It is when anything or something does not match specifications or has something to be done over or fixed. 

Over the years, the Finance Management Division observed 1) Rampant return of claims to end-users due to incorrect and/or incomplete attachments, 2) Low liquidation rate of fund transfers to LGUs as well as by Special Disbursing Officers, 3) Disallowances due to defective attachments.

The Regional Financial Guidelines is a brainchild of the FMD Chief and FMD Section Heads. They used a systems approach to deal with current issues negatively affecting the department. These guidelines were made sure to adhere to the public financial management standards and protocols, and to the general accounting principles and practices.

This innovation resulted in its first milestone during the 2nd semester of 2018, recording a 94% liquidation rate of the previous year and 83.94% liquidation rate of cash advances versus the target 40% and 80% respectively. 

For this, the Regional Financial Guidelines was recognized as the 2nd Best Knowledge Management Initiative during the PRAISE 2019.

Knowledge Management starts from internalizing salience of operational gaps and needs and committing to solving them through a knowledge-based approach. Arriving at the right solution would require first the identification of correct problems. 

Story by Elijah D. Sablaya

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