Accounting Knowledge and Skills of Selected

Barangay Treasurers in a Second Class Municipality

1

Saint Mary’s University

CHAPTER 1

THE PROBLEM AND ITS BACKGROUND

Rationale

The Philippines established the Republic Act No. 7160 known as the

“Local Government Code of 1991”, which is an act that must be comprehended

and understood by every Filipino. The Local Government Code (LGC) was

established to divide the Philippines into political sections, which are to be called

“Local Government Units" (LGUs) in governing the country. The system is a

decentralization process – the governing power shall proceed from the State to the

LGUs. LGUs are given by the State the powers, authorities, responsibilities and

resources to rule over a certain territory.

Local Government Units are divided to supervise the responsibilities and

functions of the administration. The LGUs help the national government through

tax collection, law enforcement, and other governmental duties and

responsibilities. These units work autonomously. These include the provinces,

cities, municipalities and barangays as political sections. The State is divided into

several provinces. Provinces are divided into cities and municipalities while the

municipalities are divided into barangays.

Barangay is a village or district which is the smallest or basic government

unit of the Philippines. A barangay should be governed by: one (1) Punong

Barangay, seven (7) Sangguniang Barangay also known as Barangay

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Council/Kagawad, one (1) Sangguniang Kabataan Chairman, one (1) Barangay

Treasurer also known as Ingat-Yaman, one (1) Barangay Secretary and one (1)

Lupong Tagapamayapa. (Section 387 of the LGC)

Under Section 384 of the LGC, barangays serve as the primary planning

and implementing unit of the government policies, plans, programs, projects, and

activities in the community, and as a forum wherein the collective views of the

people may be expressed, crystallized and considered, and where disputes may

harmoniously settled.

To support and fund barangay projects and activities, every barangay will

be given an Internal Revenue Allotment (IRA) as a stake in the national revenue

taxes funds as a fulfillment of its functions. Also, barangay generated from their

own source revenues (OSR) including operating and miscellaneous income,

grants, extraordinary receipts capital revenues and from borrowings. (Layug, A.,

et al, n.d) Moreover, it is mandatory for provincial, city or municipal government

to provide barangays located within its vicinity a financial aid of not less than one

thousand pesos (₱1000). Furthermore, a barangay is also allowed to receive

donations, grants or aids voluntarily given by any public or private entity.

In order to appropriately and correctly handle the barangay’s share in

national fund, under Section 395 of the LGC, a barangay treasurer is selected by

the Punong Barangay and agreed by majority of the Sangguniang Barangay

members but must be of legal age, a qualified voter, and actual resident and must

not be a Sangguniang Barangay member, a government employee, or a relative of

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Saint Mary’s University

the Punong Barangay within the fourth civil degree of consanguinity or affinity.

Also under this section, a barangay treasurer is not subject to attestation of the

Civil Service Commission or any qualifying knowledge requirement related to

their job.

A barangay treasurer’s main responsibilities are collection and

disbursement of cash; in this case a barangay treasurer should be equipped with

enough knowledge and skills to properly execute duties and responsibilities.

Accounting knowledge is teachable – one may acquire knowledge through

readings and learning in a classroom setting. The Manual on Financial

Management prescribed by the Commission on Audit stated the general policies

which shall be observed in the accounting for barangay funds and property;

policies in receipts and disbursements.

In addition, accounting skill includes a wide range of abilities. It requires

numeracy, organizations, computer, and communication skills. Submission of

monthly reports such as Summary of Collections and Deposits, Cash on Hand and

in Bank Register, Summary of Checks Issued and Summary of Cash Payments is

among the primary duties and responsibilities of a barangay treasurer. (Bueno, D.

et al, n.d)

Some barangay treasurers do not have enough knowledge and skills

related to their functions and duties. As quoted by Laranang, et. al (2015) in a

statement made by Jaime Naranjo, 2007 GACPA president, barangay treasurers

from far-flung barangays have limited skills and knowledge in performing their
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Saint Mary’s University

duties. As a consequence, some barangays whose treasurers do not have

accounting backgrounds were obligated to hire the services of other persons who

could help them prepare the necessary documents and follow-up the transactions

at the City Hall. (Borromeo, R.U., 2011)

The qualifications in order to be a barangay treasurer as stated in the LGC

does not require any qualifying knowledge related to their duties and

responsibilities. Meanwhile, the duties and responsibilities of a barangay treasurer

demand enough accounting knowledge and skills to perform their functions well.

Therefore, this research seeks to study the accounting knowledge and

skills of the selected barangay treasurers in Diffun, Quirino.

Statement of the Problem

This study aimed to determine the accounting knowledge and accounting

skills of selected barangay treasurers in a second class municipality. Specifically,

this study aimed to answer the following:

1. What is the profile of the respondents in terms of:

1.1 Sex

1.2 Age

1.3 Highest educational attainment

1.4 Certification/Eligibility

1.5 Trainings and seminars attended for barangay treasurers

1.6 Number of years in service

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2. What is the extent of accounting knowledge of the respondents in a second

class municipality when it comes to:

2.1 Collection of funds

2.2 Disbursement of funds

2.3 Preparation of source documents, report and forms

3. What is the extent of accounting skills of the respondents in a second class

municipality when it comes to:

3.1 Collection of funds

3.2 Disbursement of funds

3.3 Preparation of source documents, report and forms

4. Is there a significant difference in accounting knowledge of the

respondents in a second class municipality when grouped according to

their profile variables?

5. Is there a significant difference in accounting skills of the respondents in a

second class municipality when grouped according to their profile

variables?

6. Is there a significant relationship between accounting knowledge and

accounting skills of the respondents when grouped according to their

profile variables?
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Statement of the Null Hypotheses

1. There is no significant difference in accounting knowledge of the

respondents in a second class municipality when grouped according to

their profile variables.

2. There is no significant difference in accounting skills of the respondents in

a second class municipality when grouped according to their profile

variables.

3. There is no significant relationship between the accounting knowledge

and accounting skills of the respondents in a second class municipality

when grouped according to their profile variables.

Conceptual Framework

Figure 1. Paradigm of the Study

 Sex
 Age
 Highest educational attainment
 Certification/Eligibility
 Trainings and seminars attended
for barangay treasurers
 Number of years in service

Accounting Knowledge Accounting Skills of

of Selected Barangay Selected Barangay
Treasurers in a Second Treasurers in a Second
Class Municipality Class Municipality

Recommendation
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Saint Mary’s University

The figure above shows the research paradigm which explains the flow of

the study. The conceptual framework used the input, process and output structure.

The input variable is the profile variables of selected barangay treasurers in a

second class municipality. In process stage, there were two steps involved. The

first step determined the extent of accounting knowledge and skills of selected

barangay treasurers in a second class municipality, while the final step determined

the relationship of accounting knowledge and skills of selected barangay

treasurers when grouped according to their profile variables.

The determined relationship of their profiles and their accounting

knowledge and skills derived the possible recommendations for further

improvement of the proper handling of the barangay funds, especially in the

collections and disbursements of funds, and preparation of source documents,

report and forms. The outcome of the study will be helpful in the enhancement of

accounting knowledge and skills of the barangay treasurers in Diffun, Quirino.

Also, the result of the study will serve as a source of information for future

researchers and students.

Significance of the Study

This study was conducted to determine the accounting knowledge and

skills of the selected barangay treasurers in the Municipality of Diffun, Quirino

that is significant in the accounting of the collection and disbursement of funds,

and preparation of source documents, report and forms. Furthermore, this study is
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Saint Mary’s University

also significant because it conformed to the research agenda of Saint Mary’s

University particular to the School of Accountancy and Business.

This study will be beneficial to the following:

Barangay Treasurers

The study may assist the barangay treasurers to determine the accounting

knowledge and skills needed in performing their duties and responsibilities as

treasurers especially in the collection and disbursement of fund, and also in the

preparation of source documents, report and forms. It will also help them

distinguish areas that they need to improve, and also to add credibility to the

reports and statements they will prepare.

Punong Barangay

This study may give insights to the Punong Barangay to appoint barangay

treasurer on the basis of the qualifications specified in the Local Government

Code and on the basis of their knowledge and skills in accounting which are

related to their work.

Barangay Officials

This study will serve as a basis for the barangay officials to mandate the

barangay treasurer to be appointed by the Punong Barangay to undergo seminars

and trainings to make sure they have the necessary accounting knowledge and

skills in performing treasury operations.

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Barangay

The study will help the barangay to improve management of their funds,

so that it will ultimately accrue to the benefits of the residents living therein.

Lawmaking Body (Local Government Code)

The study may encourage the lawmakers to set additional qualifications of

barangay treasurer in the Local Government Code.

Professors and Students of Accountancy

The insights that will be gained by the professors, future students and

organizations under the School of Accountancy from the study, will be used in

their classroom interactions or discussions especially in Government Accounting

subject.

Future Researchers

This study will help the future researchers who will come up with the

same idea which is in some way related to this study. It may also encourage future

researchers to further the study which will improve the management of barangay

funds.

Scope and Delimitation

The main thrust of this study was the determination of accounting

knowledge and accounting skills of selected barangay treasurers in a second class

municipality that are needed for the proper handling of the barangay funds, and in

the preparation of source documents, report and forms.

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Saint Mary’s University

This study was conducted in a second class municipality specifically in

the Municipality of Diffun, Quirino. The researchers conducted the study on the

selected barangays of Diffun, Quirino having an IRA ranging from P2,000,000

and above because these barangays had higher fund to enhance their operational

efficiencies that were great help in the determination of accounting skills and

knowledge of barangay treasurers. Whereas, barangays having an IRA below

P2,000,000 had only have limited funds that was also limit the treasury operations

of the barangay treasurers. As stated by Florencio B. Abad according to GMA

news, local government units will have more space to improve their operational

efficiencies and enhance the delivery of basic goods and services to the

community with larger IRA shares. Hence, barangays with IRA of 2,000,000 and

below are excluded in the study. The study was only applicable in the area of

Diffun, Quirino because the data that are used to come up with the results came

from the selected barangay treasurers in selected barangays of Diffun, Quirino.

However, the results of this study may be adapted by barangay treasurers in other

areas for the betterment of their treasury and accounting operations.

To obtain information and response in this study, the researchers partially

adapted the examination tool of the recent study entitled, “The Level of

Knowledge on Treasury Operations of Barangay Treasurers in Bayombong,

Nueva Vizcaya” (Laranang, J.R.D et. al. 2015) and supplied additional tests that

are needed.
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Definition of Terms

For clearer and better understanding of this study, the following terms

used are operationally defined:

Accounting Knowledge. These are the necessary knowledge of the

barangay treasurers with regards to the collection and disbursement of funds, and

in the preparation of source documents, report and forms.

Accounting Skills. These are the application of the accounting knowledge

by the barangay treasurers with regards to the collection and disbursement of

funds, and in the preparation of source documents, report and forms. These are

the necessary expertise or abilities of the barangay treasurers in the preparation of

cashbook, purchase request and purchase order, disbursement voucher, and

liquidation report.

Barangay. This refers to the smallest government unit in the Philippines.

Barangay Treasurers. These are the persons appointed by the Punong

Barangay to manage the funds and properties of the barangay.

Second Class Municipality. This refers to the Municipality of Diffun,

Quirino.

Eligibility/Certification. This refers to professional credential of an

individual.
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CHAPTER 2

REVIEW OF RELATED LITERATURE AND STUDIES

Barangay

The President of the Philippines is the head of the estate and the

government. His supervision is all over the state. In order to supervise the

responsibilities of the administration, the country is divided according to political

units which include the provinces, cities, municipalities and barangays. The

Philippine Constitution acknowledges the local government's significance. As

supported by Executive Order No. 777 (Section 1), "The State shall guarantee and

promote the autonomy of the local government units -- especially the barangays --

to ensure their fullest development as self-reliant communities”. As stated in the

Local Government Code of the Philippines (Book III) Section 384, the barangay

is the basic political unit which serves as the primary planning and implementing

unit of government policies, plans, programs, projects, and activities in the

community, and as a forum wherein the collective views of the people may be

expressed, crystallized and considered, and where disputes may be amicably

settled.

Under the Local Government Code of the Philippines (Book III) Section

387, each barangay is composed of Punong Barangay with seven Sangguniang

Barangay members, the Sangguniang Kabataan chairman, a Barangay Secretary,

and a Barangay Treasurer. In every barangay, there shall be also a Lupong

Tagapamayapa. The Punong Barangay is the executive, the Sangguniang

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Barangay as the legislative body and judicial headed by the Lupong

Tagapamayapa. All these three enact ordinances and laws to promote the general

welfare of the inhabitants as stated in the same book, Section 391.

A barangay may be created, divided, merged, abolished, or its boundary

substantially altered, by law or by an ordinance of the Sangguniang Panlalawigan

or Sangguniang Panlungsod, subject to approval by a majority of the votes cast in

a plebiscite to be conducted by the COMELEC in the local government unit or

units directly affected within such period of time as may be determined by the law

or ordinance creating said barangay. In the case of the creation of barangays by

the Sangguniang Panlalawigan, the recommendation of the Sangguniang Bayan

concerned shall be necessary as it was acknowledge under the Local Government

Code of the Philippines (Book III) Section 385. In addition from the Statement of

the Code, in order for a barangay to be created it must have a neighboring

territory which is inhibited by at least two thousand (2,000) occupants accredited

by the National Statistics Office. Nevertheless, cities and municipalities within

Metro Manila and other metropolitan political subdivisions or in highly urbanized

cities where such territory have a certified population of at least 5,000 occupants

are exempted in the first statement provided that the creation will not decrease the

population of the barangay or barangays to less than the minimum requirement

set.
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Funding

According to the Local Government Code of 1991, the LGUs shall have a

share on the national internal revenue taxes based on the allotment provided in

LGC wherein the Provinces and Cities shall have a share of twenty-three percent

(23%) on the proceeds of national taxes, and the municipalities will have a share

of thirty-four percent (34%) and lastly, the barangays will have a share of twenty

percent (20%). However it must be provided that the share of each barangay with

a population of more than one hundred (100) inhabitants shall not be less than

Eighty thousand pesos (P=80,000.00) annually to be charged against the twenty

percent (20%) share of the barangay from the internal revenue allotment, and the

balance to be allocated based on the population amounting to forty percent (40%)

and equal sharing of sixty percent (60%) during the first year of the effectivity of

LGC. On the second year, it will be shared fifty percent (50%) based on

population and fifty percent (50%) of the balance will be equally shared, while on

the third year and thereafter it will be shared sixty percent (60%) based on

population and the remaining forty percent (40%) will be shared equally by all the

barangays. Furthermore, it must be provided that the financial requirements of

barangays created by local government units after the effectivity of this Code

shall be the responsibility of the local government unit concerned.

In order for barangays to serve its people, it needs funds to operate for

“No government can exist without funds”. The said fund may come from external

and internal sources of barangays. The share in IRA of LGUs according to the
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Bureau of Local Government during the 3rd quarter of 2016 was the largest source

of income of LGUs amounting to sixty-three percent of its total revenues. Thus, it

follows that most of the income of barangays comprises of their shares from IRA.

The share in IRA is the annual share of local governments coming from the

national internal revenue taxes which must be used in the fulfillment of barangay

functions. These government revenues include income tax, estate tax and donor’s

tax, value-added tax, other percentage taxes, and taxes imposed by special laws

such as travel tax. Aside from IRA, the income of barangay is also generated from

their own source revenues (OSR) including operating and miscellaneous income,

grants, and extraordinary receipts, capital revenues and from borrowings.

Furthermore, the provincial and city/municipal government is mandated to

provide the barangays in its locality a financial aid of not less than 1000 pesos,

and the barangay is also allowed to receive donations, grants or aids voluntarily

given by any public or private entity provided that it is not included in their

budget and it shall be used for the purposes they are intended.

Barangays are entitled to collect taxes on stores or retailers with real

properties located within its locality and gross sales or receipts from previous year

of P50, 000 or less in cities and P30, 000 or less in municipalities with a rate of

one percent (1%) or less. Other income of barangay may also come from

national/provincial/city or municipal revenues like twenty-five (25%) of the real

property tax (RPT) collections of the province and city, and thirty-five percent

(35%) of the forty percent (40%) share in the proceeds from the development and
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utilization of national wealth of the province or highly urbanized or independent

component city where it is located. In case the natural resources are located in

two (2) or more barangays, the bases of their shares are population with a weight

of seventy percent (70%) and land area with a thirty percent (30%) weight.

Other sources of income of barangays are tax on sand and gravel,

community tax collections of barangay, and other quarry sources; and, tobacco

excise tax pursuant to RA No. 7171, and many others.

Barangay Treasurers

Section 395 of the Local Government Code of the Philippines (Book III)

states the barangay treasurers’ appointment, qualifications, powers and duties to

be appointed as such. The Punong Barangay selects the barangay treasurers with

the agreement of the majority of all the Sangguniang Barangay members. The

Civil Service Commission do not need to attest to the selection of the barangay

treasurers, as evidenced in the study entitled, “The Level of Knowledge on

Treasury Operations of Barangay Treasurers in Bayombong, Nueva Vizcaya”

(Laranang, J.R.D et. al. 2015) that most of the respondents of the said study do

not have the civil service qualification standard. The main qualifications of

barangay treasurers include that of legal age; must be a qualified voter and a

resident of the Barangay. The study on “The Level of Awareness and

Performance of Urban Barangay Treasurers of Santiago City on their Mandated

Function” conducted by Buan, S.M. et. al (2015), majority of the eleven (11)
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urban barangay treasurers of the said study aged 25-34, thus, falling in the middle

age bracket. On the other hand, the disqualifications include when the aspiring

barangay treasurers is a present Sangguniang Barangay member, a relative of the

Punong Barangay within the fourth civil degree of consanguinity or affinity, or

even when a government employee. The barangay treasurers shall have a

continuous number of years of satisfactory service which corresponds to the

number of years covering the term of the appointing Punong Barangay including

the services rendered from previous appointment. (CSC.gov.com)

The powers and duties of the barangay treasurers are also stated in Section

395 of the same Code. The barangay treasurers shall be responsible of

safekeeping barangay funds; collect and issue official receipts for contributions,

taxes, monies, fees, materials, and all other funds accruing to the barangay

treasury and deposit these in the account of the barangay; pay out funds in

accordance with the financial procedures provided in the same Code. The

barangay treasurers shall also present to the Punong Barangay a statement of the

actual and estimates of income and expenses from previous and following

calendar years, respectively; make a written accounting report of all barangay

funds at the end of each calendar year; guarantee that such report shall be made

available to government agencies concerned and mostly to the members of the

barangay assembly. The barangay treasurers shall also confirm as to the

availability of funds whenever necessary and exercise other powers and perform

other duties and functions as may be prescribed by ordinance or law.

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Barangay treasurers from far-flung barangays have limited skills and

knowledge to do their duties and with this constraint, government accountants

faced problems as to how barangays spend their funds. The Government

Association of Certified Public Accountants or GACPA admitted that they are

facing problems in handling how barangays used and spend their funds, as Jaime

Naranjo, the president of GACPA last 2007, quoted,

“We still have a lot of problems at the barangay level especially in remote areas
where many of the barangay treasurers and auditors are not even high school
graduates” (Philippine Star, 2007).

Naranjo also added that most barangay treasurers do not hold a degree

related from their job. In the study of Laranang, J.R.D et. al. (2015), it contradicts

the claim of Naranjo as most of the barangay treasurers in Bayombong, Nueva

Vizcaya, according to the results of the said study, most of the respondents are

college graduates, and have worked 1 year and above but not exceeding 5 years.

Though there are different studies that say most of the barangay treasurers are

college graduates and not even a high school graduate, it is still necessary that the

barangay treasurers must have the knowledge and skills in managing the funds of

the barangay as it is critical to make sure it complies with the government

accounting rules. Annual financial reports are submitted late due to the lack of

training of barangay treasurers. (Palangchao, H., n.d.)

From the study of Silva, J.C (2016), it says that male professionals

conquer the professions of accounting. In the study made by Touron and

Hertzog, it was stated that differences of age in the rate of skills acquisition have
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been attributed to associative learning deficits. It was also added by Hertzog,

Cooper and Fisk that late adults are required with more learning trials in forming

new associations since memory retrieval of older adults is slow in skill acquisition

tasks. This indicates that as people age, they become slower in obtaining skills. A

study from Massing, N. and Schneider, S. (2016), stated that more opportunities

for knowledge acquisition leads to a higher level of formal education and basic

competencies achieved. It points out that, educational attainment and basic skills

or competencies are closely related. It was also supported by International Adult

Literacy Study (IALS), the Adult Literacy and Life Skills Survey (ALL),

Statistics Canada (2005), OECD (2013), among others, that education has the

strongest relationship with competencies of all background variables examined.

The Barangay Official Eligibility (BOE) is granted to Barangay Officials

including the Barangay Treasurer based strictly on the completion of terms in

pursuant to Republic Act (R.A) No. 7160 or otherwise called the Local

Government Code of 1991. The Barangay Official Eligibility (BOE) is an

appropriate consideration for appointment to first level positions in the career

service. Though trainings and seminars are conducted for barangay treasurers, it

remained apparent that some still have trouble in the performance of their

responsibilities. This is evidenced by delayed submission of reports, inaccurate or

improperly accomplished needed documents and sometimes non-preparation of

the required reports. Gareth Davage states that, a well-rounded skill is vital in
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today’s competitive job markets. Davage added gaining work experience is

essential because it will significantly develop one’s skills.

In the study of Bueno entitled, Barangay Treasurers’ Competencies, Cash

Control, Supply and Property Management Practices at the Local Government of

Olongapo City, with the inclusion of all (17) barangay treasurers, it was found

that there is a moderate correlation between knowledge competency of barangay

treasurers and skills in terms of collection and disbursement as Pearson

correlation is concerned, it also indicated that the result of the significant

asymptote showed that there is significant relationship between knowledge and

skills as to collection and disbursement. In preparation of source documents,

report and forms, it was assessed that barangay treasurers have very high

competence in handling figures, managing of cash and have skill to prepare

summary of reports on collections, deposits and checks issued. From the

assessment made from the study of Bueno, barangay treasurers are highly

competent about knowledge on systems and manual procedures in managing of

barangay funds and property. The respondents were also competent in the

familiarization of laws and regulation concerning the work of a collecting or

disbursing officer. Moreover, knowledge is vital as every barangay transactions

need to comply with laws, rules and regulations mostly for document

requirements. In general, barangay treasurers were assessed to have high

competencies in terms of knowledge and skills.

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General Accounting Instructions: Fundamental Principles

To observe the revision of the manual prescribed by the Commission on

Audit (COA), the fundamental principles below shall govern the financial

transactions and operations of each Barangays to maintain and keep the records in

pursuant to the rules and regulations required by the law.

No money from the local treasury shall be used as a payment except in

pursuance of an appropriations ordinance or law. Local government funds and

monies shall be spent exclusively for public purposes. Appropriation of public

money for religious and private purposes are not allowed. Approval of the proper

officials is essential for the disbursements or disposition of government funds. A

complete documentation is needed to support all claims against government

funds. Collections shall be acknowledged properly as local revenues or income is

authorized by ordinance or law. Unless otherwise provided by law, all authorized

monies received by a local government officer in any capacity or on any occasion

shall be accounted for as local funds. Collections shall be remitted to the City or

Municipal Treasurers except those collections that shall be deposited intact with

government depository bank for the account of the Barangay. Trust funds in the

local treasury shall be used only for the purpose for which the trust was created or

the funds received. Fiscal responsibility shall be shared by all those exercising

authority over the operations, transactions and financial affairs of the Barangays.

Local Treasurers and other accountable officers are neither authorized to make

profit out of the public money nor use of such fund for purposes not authorized by
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law or ordinance and shall keep personal monies separate and distinct from local

funds in their custody. (Manual on Financial Management of Barangays)

General Accounting Instructions: Fundamental Policies

The Manual on Financial Management of Barangays which was issued by

the Commission on Audit (COA), presents the general accounting instructions to

be observe by the Barangay Treasurers in the accounting for Barangay funds.

For accounting purposes, the fiscal year for the Barangay shall start on the

first day of January and end on the last day of December each year. A record of

approved appropriations and obligations shall be maintained for monitoring and

control purposes. A double-entry bookkeeping system shall be used to keep

Barangay accounts and as prescribed by the Commission on Audit, the Chart of

Accounts shall be used to record the Barangay financial transactions. Under the

direct supervision of the C/M Accountant, the Barangay bookkeeper shall be

maintaining the Barangay books of accounts which consist of a Journal of

Barangay Transactions (JBT), General Journal (GJ), General Ledger (GL) , and

Subsidiary Ledgers (SL). The JBT shall be used to record cash transactions and

through the Journal Entry Voucher (JEV), the non-cash transactions shall be

recorded in the GJ. To report on the total appropriations and obligations, a

Statement of Appropriations and Obligations (SAOB) shall be prepared at certain

period. An updated cashbook shall be maintained daily. A modified accrual basis

of accounting shall be adopted where the income is recorded when received and
 Accounting Knowledge and Skills of Selected
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Saint Mary’s University

expenses recognized when incurred. Unless otherwise provided by law, the

Barangay shall accrue all collections to the General Fund. All legal obligations

and expenditures shall be taken into account during that year if incurred during a

fiscal year. Obligations shall be documented at the time supplier/creditor bills are

received and goods and services are accepted or rendered. An appropriate liability

accounts shall be used to record all borrowings and secured loans. The

Sangguniang Barangay (SB) will determine a maximum amount of the cash

accountability under the bond not exceeding ten thousand pesos (P10, 000.00) or

may authorize a petty cash not exceeding twenty percent of the funds available,

whichever is lower.

Specific Policies and Procedures: Collection and Deposits/Remittances

The Manual on Financial Management of Barangays prescribed by the

Commission on Audit (COA) presents the following specific policies and

procedures that need to be observed by the Barangay Treasurers for the proper

handling of the Barangay funds.

1. All collections, either in cash or in checks, shall be acknowledged

through the issuance of an Official Receipt (OR). At no instance shall

a temporary or provisional receipt be used to acknowledge collection.

Officially numbered receipts shall be issued in strict numerical

sequence. Strictly no erasures and alterations are allowed in preparing

the OR.
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Saint Mary’s University

2. Only checks in the name of the Barangay shall be accepted as payment

of obligation to the Barangay and issued the corresponding OR. The

OR number and date of issue including the payor’s control details

shall be indicated at the back of the check for reference purposes.

3. The OR shall be subject to proper custody, accountability and audit.

4. Collections shall not be used to encash checks or pay Barangay

obligations/liabilities.

5. Collections accruing to the Barangay shall be deposited intact daily.

Where travel time to the depository bank is more than one day, deposit

shall be made at least once a week or as soon as the collections reach

P5, 000.00.

6. Collections received by the BT as deputized collector of the

city/municipality shall be remitted intact to the Treasurers of the

city/municipality concerned at least once a week or as practicable

especially during heavy collections.

7. The Barangay shall maintain only one depository account with

Authorized Government Depository Bank (AGDB) in the name of the

Barangay. In case there are idle funds, the Barangay may maintain a

time deposit account with prior authority of the SB and approval of the

PB.
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Saint Mary’s University

8. Collections and deposits shall be recorded in the Cashbook (Annex 8)

maintained by the BT based on the Report of Collections and Deposits

(RCD) as shown as Annex 9.

9. The BT shall submit the RCD with the duplicate copies of the OR and

validated deposit slip to the C/M Accountant within five days after the

end of the month.

10. The C/M Accountant shall summarize all Credit Memos (CMs)

including Debit Memos (DMs) received from the Bank with the Bank

Statement of the Barangay in the Report of Bank Debit and Credit

Memos (RBDCM) – Annex 10 and furnish the BT copy of the

RBDCM as basis in posting of collections through the bank and

checking whether all collections are recorded in his cashbook. The

RBDCM shall likewise be the basis of recording the transactions in the

JBT.

11. Collections received through the bank and which do not require the

issuance of OR such as Internal Revenue Allotment (IRA), Share in

Real Property Tax (RPT), Share from National Wealth, Share from

Community Tax collected, Share on Taxes imposed on sand, gravel

and other quarry products shall be recorded in the Cashbook on the

basis of the CMs.

12. Upon receipt of the Bank Statement, the C/M Accountant shall prepare

a monthly Bank Reconciliation Statement (Annex 11).

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Saint Mary’s University

13. For collections directly made by the Barangay, the BT shall:

2. Upon receipt of cash/check payment, issue an OR to

acknowledge the amount received. The OR shall be issued

strictly in numerical sequence and it shall be prepared in three

copies to be distributed – Original to Payee, Duplicate copy to be

attached to the RCD for submission to the C/M Accountant, and

Triplicate copy BT file.

3. At the end of the day, prepare three copies of deposit slips for

bank’s validation – Original to Bank.

4. Duplicate copy – to be attached to the RCD for submission

to the C/M with the supporting ORs and validated DS not later

than the 5th day of the following month.

14. For collections received through the bank, the BT shall:

o Upon receipt of the bank Credit Memo (CM) from the C/M

Accountant, record in the cashbook the amount of

collection/deposit appearing in the CM.

15. For collections received by the BT as deputized collector, the BT

shall:

1.Upon receipt of cash/check, issue OR to acknowledge the amount

received. The BT shall use the ORs issued to him by the C/M

Treasurers.

2.Prepare three copies of RCD based on the duplicate ORs.

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Saint Mary’s University

It should be emphasized that a separate RCD shall be prepared

apart from the RCD for regular collections of the BT for the

Barangay.

3.Remit daily the collections or once the collection reach P5, 000.00

to the C/M Treasurers, together with two copies of RCD, and the

duplicate ORs.

4.Upon receipt of the collections, the C/M Treasurers shall fill out

and sign the acknowledgement portion of the RCD to signify

receipt thereof from the BT.

16. Requisitions for new accountable forms shall be made from the C/M

Treasurers and the used booklet shall be surrendered before issuance

of new booklet of OR.

17. Requisitions and issuances of accountable forms shall be reported in

the monthly Report of Accountability for Accountable Forms (RAAF).

Local Government Code of the Philippines also provides specific policies

and procedures to guide Barangay Treasurers to account collections and receipts

for the concerned Barangay. Some of these include the following:

1. A complete record of the receipts, issuances and transfers of

accountable forms are necessary to be maintained (LGC, Book II,

Section 59).

2. Duplicate and triplicate copies of the Official Receipt shall be the

exact carbon copy of the original (LGC, Book II, Section 59-F).
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Saint Mary’s University

3. The Local Treasurers shall be the custodian of all the accountable

forms (LGC, Book II, Section 59, K).

4. The Barangay Treasurers shall be responsible in handling collections

of income and other receipts of the Barangay and the deposit of the

same with Authorized Government Depository Bank (AGDB) (LGC,

Book II, Section 65, no.1-A).

5. Endorsed checks shall not be accepted as payment of obligations to the

Barangay (LGC, Book II, Section 65, no.6-A).

6. For checks received, the Official Receipt number and date of issue

shall be indicated at the back of the check for reference purposes

(LGC, Book II, Section 65, no.7-A).

7. All particulars in the Official Receipt shall be filled out (E.g. Date,

Name of Payor, etc.) (LGC, Book II, Section 65, no.8-A).

8. Overages discovered during the cash count/cash examination shall be

receipted and added to the accountability of Barangay Treasures

(LGC, Book II, Section 65, no.9-A).

9. Cash shortages, including the loss of cash through force majeure, theft,

robbery, fire, etc. shall be deducted from the total cash account (LGC,

Book II, Section 65, no.10-A).

10. All collections by the Barangay Treasurers for the Barangay shall be

reported in the Summary of Collections and Deposits (SCD) (LGC,

Book II, Section 65, no.11-A).

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Saint Mary’s University

11. All Official Receipts must be reported in the Summary of Collections

and Deposits including the cancelled ones (LGC, Book II, Section 67,

no.1-b).

12. The 3rd copy of the Official Receipt shall be given to the Barangay

Record Keeper (LGC, Book VI, Annexes and Forms).

Specific Policies and Procedures: Disbursements

o Disbursements shall generally be made by checks drawn against the

depository accounts of the Barangay.

o Disbursements shall be made only on duly certified and approved

Disbursement Voucher (DV) – Annex 12 and Petty Cash Voucher

(PCV) – Annex 13 and Payroll – Annex 14.

o The CCA of the SB shall certify as to the existence of appropriation

including those disbursements of the Sangguniang Kabataan (SK).

o The BT shall certify the DV as to the availability of funds for the

purpose and as to the completeness and propriety of the supporting

documents.

o The PB shall certify as to the validity, propriety, and legality of the

transaction and shall approve for payment the DV or payroll.

o In case of disbursements chargeable against the special trust fund,

certification as to the validity, propriety, and legality of the

transaction is not necessary.

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Saint Mary’s University

o Disbursements in cash shall be made only from the cash advances

granted for the purpose (e.g. to pay salaries and wages, honorarium,

etc.) and petty cash.

Cash advance for payroll

o The cash advance for payroll shall be equal to the net amount of the

payroll for a pay period.

o The cash advance shall be used solely for the specific purpose it was

drawn and shall not be used for encashment of checks or for

liquidation of previous cash advances or other purposes.

o The cash advance for payroll shall be liquidated within 5 days after

the end of the pay period. Any unexpended cash and unreleased

salaries/allowances shall be submitted together with appropriate

supporting documents shall be returned to the BT and an OR shall

be issued. Petty Cash

o The BT/Petty Cash Custodian (PCC) may be authorized by the SB to

hold a petty cash in the maximum amount of P10, 000.00 which

shall be maintained under the imprest system where a sum kept on

hand is used for small expenditures and periodically replenished and

shall be replenished when the total expenses amounts to at least

seventy five per cent or as needed. It shall be fully liquidated at

yearend and renewed in the ensuing year using the current year’s

appropriation.
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Saint Mary’s University

o The BT/PCC may be authorized to make direct purchases amounting

to not more than one thousand pesos (P 1,000.00) at any time for the

ordinary and essential needs of the Barangay.

o The petty cash shall be kept separately from the regular collections

and advances granted for a particular purpose.

Modes of Disbursements

o Payment by Check

o Within ten days after the end of the month, the BT shall prepare a

Transmittal Letter - Annex 17 and submit to the C/M Accountant the

duly acknowledged original of the DVs together with the supporting

documents. Payment through Cash Advance for Payroll

o Payment by Cash – Petty Cash

In addition, the policies and procedures established by the Local

Government Code of the Philippines for the disbursement of Barangay funds are

also being observed.

1. The certification and Approval of Payment, the Box B of the

Disbursement Voucher/Payroll shall be signed by the Local

Accountant (LGC, Book III, Section 82, no.5).

2. Succeeding cash advance for payroll shall be granted only after the
full liquidation of the previous cash advance (LGC, Book III,
Section 82, no.8).

3. Disbursement Vouchers and/or Payrolls are usually paid either by

check or in cash (LGC, Book III, Section 83).

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Saint Mary’s University

4. Cash payment shall be made only on duly approved

Payrolls/Disbursement Vouchers/Liquidation Vouchers (LGC,

Book III, Section 83, b-II).

5. Travel Order and Itinerary of Travel must be prepared first before

the grant of cash advance for travel (LGC, Book III, Section 83, IV-

4).

6. The check shall be signed by the Barangay Treasurers and

countersigned by the Punong Barangay (LGC, Book III, Section 87,

A-8).

7. All disbursements by the check shall be reported in the Summary of

Checks Issued (LGC, Book III, Section 87, A-9).

8. Stale check shall be replaced only when the original is submitted to

the Barangay Treasurers for replacement (LGC, Book III, Section

87, A-11).

9. The cash advance for payroll shall be used solely for payment of

salaries, honoraria, and other allowances due to the Barangay

officials and employees (LGC, Book III, Section 89, A-2).

10. All paid disbursement Vouchers/Payrolls shall be recorded in the

Summary of Cash Payments (LGC, Book III, Section 89, A-6).

11. In case the cash advance for payroll is more than the disbursement,

the excess need to be refunded (LGC, Book III, Section 90).

 Accounting Knowledge and Skills of Selected
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Saint Mary’s University

12. The Petty Cash Fund shall be maintained using the Imprest System

(LGC, Book III, Section 92, A-1).

13. The balance of the Petty Cash Fund shall not be closed at the end of

the year (LGC, Book III, Section 92, A-1).

14. The Liquidation Report shall be prepared in three (3) copies (LGC,

Book VI, Annexes and Forms).

The Barangay Treasurers, according to the study “The Level of

Awareness and Performance of Urban Barangay Treasurers of Santiago City on

their Mandated Functions” of Balut, B. et. al. (2015), are knowledgeable to high

extent in terms of collections/receipts and disbursements of funds. According to

Granof (1998), quoted by Buan, et al (2017), while the accounting and auditing

function is generally performed in private sector, the government officials who

are engaged in public expenditure management, budget allocation, taxation, and

capital market regulations have to advance also their knowledge and skills in

accounting and auditing. Additionally, in the study of Bueno, et al (2015) entitled,

Barangay Treasurers’ Competencies, Cash Control, Supply and Property

Management Practices at the Local Government of Olongapo City, with the

inclusion of all (17) barangay treasurers, it was found that there is a moderate

correlation between knowledge competency of barangay treasurers and skills in

terms of collection and disbursement of funds. Also from the same study, it was

stated that barangay treasurers are highly competent about knowledge on systems

and manual procedures in managing of barangay funds and property.

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Saint Mary’s University

According to the findings of Okafor and Egbon (2011), wherein it focuses

its study on developing nations, the performance of their male and female

respondents in all basic financial accounting has no significant difference despite

the fact that the mean performance of male is greater than females. In the study of

Dima et al (2013), wherein the respondents are the students of the 4-year

Bachelor of Accountancy at the University of Botswana for the last three years, it

reveals that their female respondents achieve more in academics because they are

working their best to break the dominance of male in accounting profession

through the years. According to Barnett and Rivers (2016), older workers are

productive in a more consistent manner compared to younger ones. Based on the

results of the tests conducted which will measure the cognitive abilities,

perceptual speed, episodic memory and working memory of the respondents, it

reveals that the performance of the 65-to-80-year-old workers are less variable

from day to day when compared to the performance of the younger ones. It also

revealed that the cognitive performance of the older workers are more stable over

time, based from the article entitled ‘We often don’t see the possibilities because

we aren’t looking for them – especially in the high-tech world, which worships at

the altar of youth’ by Barnett and Rivers (2016), “…because the older workers’

wealth of experience enabled them to design strategies to solve problems. In

addition, their motivation was higher than the younger workers’.”

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Saint Mary’s University

Preparation of Source Documents, Report and Forms

Barangay Treasurers use source documents, accounting forms and reports

as a basis for recording transactions and preparing reports (Manual on Financial

Management of Barangays, Chap. 6, 6.1). Chapter IV of the manual involves

specific policies and procedures regarding disbursements which includes, the

liquidation of the cash advance for payroll which shall be taken within 5 days

after the end of the pay period (Chap. 4, 4.1.10); liquidation shall be done within

a period of 30/60 days for local/foreign travel, upon return to the personnel’s

workstation (Chap. 4, 4.1.12); an Official Receipt shall be issued by the Barangay

Treasurers when there is an excess cash advance for special purpose/time-bound

undertaking which shall be refunded (Chap. 4, 4.1.21); and others.

Proper disbursement of the Barangay funds is also crucial in the daily

function of a Barangay Treasurers, these includes the disbursement of the cash

advance for payroll which shall be used exclusively for payment of salaries,

honoraria, and other allowances payable to the Barangay officials and employees

(Local Government Code of the Philippines, Book III, Section 83). A liquidation

report is prepared to report all expenses paid through cash advances. (Manual on

Financial Management of Barangays, Appendix C). Moreover, all legal expenses

and obligations incurred during a fiscal year shall be taken up in the accounts of

that year (Manual on Financial Management of Barangays, Chap. 6, 6.1).

 Accounting Knowledge and Skills of Selected
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Saint Mary’s University

Accounting Skills

Skills refer to the ability to use one’s knowledge effectively in the

execution of a certain physical or mental task with pre-determined results often

within a given amount of time, energy, or both. It can be considered as soft or

hard. Soft skill are interpersonal or ability to work with others. Hard skills are

quantifiable and teachable. Examples are computer programming, mathematics,

data analysis and accounting. Accounting skills includes a wide range of abilities.

Numeracy skills are basic skills required for accounting. These skills are basic

mathematical skills that include a range of abilities to understand and analyze

numerical information and to make the right conclusions and decisions. Many

accountant duties and responsibilities include operations with numbers and

accounts. Computer Skills include good knowledge and ability to work with

different types of accounting software such as SAP or ERP systems, Excel, Word,

and other. (Doyle, A. 2017)

Some of the major duties of an accountant or treasurers are preparation of

financial statements and reports, preparation of bank reconciliations, provides

financial information that helps in the decision making of the management,

issuance of checks and cash payments, etc. The most significant duties and

responsibilities of Barangay Treasurers are the submission of monthly reports

such as Summary of Collections and Deposits, Cash on Hand and in Bank

Register, Summary of Checks Issued and Summary of Cash Payments (Bueno, D.

et al, nd)
 Accounting Knowledge and Skills of Selected
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Saint Mary’s University

The necessary accounting-related tasks the Barangay Treasurers must

learn and understand are the preparation of official receipts and deposit slips,

Report of Collections/Disbursements, Report of Bank Debit and Credit Memos,

Summary of Petty Cash Disbursements, and Report of Collections daily. (COA

Accounting C2006-002) In contrary, the study of Balut, B. et. al. (2015) shows

that the Barangay Treasurers of Aritao, Nueva Vizcaya are not familiar with

reporting in the Summary of Collections and Deposit (SCD) in terms of

collection/receipts of funds, and in the certification and approval of payment in

signing the disbursement voucher/payroll in terms of disbursements. Some

barangays who have treasurers with no accounting backgrounds were obliged to

hire services of other persons who could help them in their duties especially in the

preparation of necessary documents.(Borromeo, R.U., 2011)

Hence, it is essential that the appointive Barangay Treasurers has the

ability to accurately prepare the significant information that is essential in the

preparation of Financial Statements by the City/Municipal Accountant.

Additionally, it should be better and easier to accomplish the reporting function if

Barangay Treasurers are literate enough in computer technology such as the use

of MS Word and MS Excel.

Synthesis

The related literatures play a vital role in the embodiment of the research

study. The study is somewhat related to the study entitled, “The Level of
 Accounting Knowledge and Skills of Selected
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Saint Mary’s University

Knowledge on Treasury Operations of Barangay Treasurers in Bayombong,

Nueva Vizcaya” (Laranang, J.R.D et. al. 2015). In the said study, its variables do

not include sex and age, wherein it is included in determining the profile variables

of respondents in this study. The respondents of the aforementioned study

includes the barangay treasurers of all the Barangays in the Municipality of

Bayombong, Nueva Vizcaya, while in this study its respondents will compose of

the selected barangay treasurers of Diffun, Quirino with an IRA amounting to

P2,000,000 and above. This study determines the accounting knowledge and

skills of the barangay treasurers. The study of Laranang, et. al. (2015) includes in

its profile variables numbers of years in service, seminars and trainings attended,

educational attainment will be used also in this study. The variable Civil Service

Qualification Standards will not be used in this study, but instead license/s

acquired by the respondents if there is any will be used to determine whether it

affects the knowledge and skills of barangay treasurers.

This study is somehow related to other studies previously conducted but it

will focus on the accounting knowledge and skills of selected barangay treasurers

residing within the Barangays of Diffun, Quirino.

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Saint Mary’s University

CHAPTER 3

RESEARCH METHODOLOGY

Research Design

This study used the descriptive-quantitative-comparative-correlational

type of research. Descriptive was used to determine the accounting knowledge

and skills of the respondents in a second class municipality and it was also used to

describe the respondents’ profile. It was a Quantitative type of research because

the data gathered through an examination and aptitude test was subjected to a

statistical treatment using Statistical Packages for Social Sciences (SPSS). The

Descriptive-Comparative type was also used to determine the significant

differences in the knowledge and skills on accounting when the respondents were

grouped according to their profile variables. It was a Descriptive-Comparative-

Correlational type because after the significant differences of the accounting

knowledge and skills of the respondents was determined when grouped according

to their profile variables, the results of such is used to determine whether there is

an existing relationship between accounting knowledge and accounting skills of

the respondents.

Research Environment

The locale of this study included the 10 Barangays of Diffun, Quirino

selected by the researchers in which these barangays have an IRA ranging from
 Accounting Knowledge and Skills of Selected
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Saint Mary’s University

2,000,000 and above based on the recorded 2018 Internal Revenue Allotment of

Barangays namely: Andres Bonifacio (₱3,268,621); Rizal (₱3,229,182); Aurora

West (₱2,618,474); Liwayway (₱2,552,742); Cajel (₱2,282,047); Luttuad

(₱2,222,290); San Isidro (₱2,193,010); Isidro Paredes (₱2,109,351); Gulac

(₱2,091,424); Aurora East (₱2,024,497). (Document Scanning)

Figure 2. Map of Diffun, Quirino

www.wikipedia.com

Research Respondents

The subjects of this study were the Barangay treasurers of the selected 10

Barangays in Diffun, Quirino having an IRA ranging from 2,000,000 and above

based on the recorded 2018 Internal Revenue Allotment of Barangays. The

researchers used the purposive sampling in selecting the respondents of this study.
 Accounting Knowledge and Skills of Selected
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Saint Mary’s University

Research Instruments

The researchers used an examination and an aptitude test as the primary

research instruments. The examination conducted through a questionnaire was

employed to determine the accounting knowledge of the barangay treasurers on

the collection/receipt and disbursement of barangay funds, and in the preparation

of source documents, report and forms which helped the researchers draw out

necessary information. It was a partially adapted-based examination from the

study, “The Level of Knowledge on Treasury Operations of Barangay Treasurers

in Bayombong, Nueva Vizcaya” (Laranang et al, 2015). It was also based on the

Manual of Financial Management of Barangays issued by the Commission on

Audit (COA), Local Government Code of the Philippines in 1991 (Book II and

Book III) and some items from the Barangay Systems and Procedures Manual.

The first part were questions pertaining to the respondents' profile which includes

sex, age, highest educational attainment, certification/eligibility, trainings and

seminars attended for barangay treasurers and the number of years in service. The

second part composed of a true or false type of examination to determine the

accounting knowledge of the Barangay treasurers.

Lastly, the third part was an Aptitude Test that aided the researchers to

have an in depth understanding about the accounting skills of Barangay treasurers

in a second class municipality, Diffun, Quirino as the locale of the study. The

Aptitude Test conducted aimed to determine whether the accounting knowledge

 Accounting Knowledge and Skills of Selected
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Saint Mary’s University

of the respondents were actually put into practice, where the formulated problems

were related in Bookkeeping and Government Accounting.

Data-gathering Procedures

In the process where data was gathered, the researchers first informed the

respondents about the research that was conducted. A letter was prepared stating

and explaining the purpose and benefits of the study. Then, the examination and

aptitude test was formulated and adapted. After that, the researchers have it

validated to Mrs. Elnora V. Adalem, CPA before it was distributed to the

respondents. The researchers guided the respondents in answering the questions

and problems provided. The questionnaire was retrieved on the same day it was

given to the respondents. While the respondents was given one (1) week in

completing the aptitude test provided before the said research instrument was

retrieved by the researchers. After the data was collected, the researchers checked

the examination and aptitude test. The results were tabulated thereafter and it was

submitted to the university statistician for further analysis and interpretation of

data collected.
 Accounting Knowledge and Skills of Selected
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Saint Mary’s University

For simpler presentation, Figure 3 shows how the data gathering

procedures was applied in this study.

Letter of Notification was sent to the Punong Barangay of the Selected 10

Barangays having an IRA ranging from 2,000,000 and above

Formulation/ Adaption of Questionnaire and Aptitude Test

Validation and Approval of Questionnaire and Aptitude Test

Distribution of Questionnaire and Aptitude Test to the respondents

Retrieval of questionnaire and completion of the aptitude test conducted

Analysis and Interpretation of data

Statistical Treatment of Data

The following statistical tools was used in the previous study entitled,

“The Level of Knowledge on Treasury Operations of Barangay Treasurers in

Bayombong, Nueva Vizcaya” (Laranang, J.R.D et. al. 2015) which was also used

in this study in treating and analyzing the data gathered from the true or false type

examination:

1. Frequency counts and percentage distribution

This was used to determine the number of respondents per category in sex,

age, highest educational attainment, certification/eligibility, number of years in

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Saint Mary’s University

service, and seminars and trainings attended for Barangay Treasurers. It was also

used in determining the number of respondents with correct answers per item in

the true or false type of examination given. The frequency counts and percentage

distribution was also used to determine the number of respondents per qualitative

descriptions of their accounting skills in terms of Collection/Receipt of Funds,

Disbursement of Funds and Preparation of Source Documents, Report and Forms

in which the qualitative description was based from the following range of scores

as shown in Table 1.

Table 1. Qualitative Descriptions of Accounting Skills of Barangay Treasurers

Range of Scores
Preparation of Source Qualitative
Collection or Disbursement of
Documents, Report Description
Receipt of Funds Funds
and Forms
0-6 0-3 0-9 Very Low
7-13 4-7 10-19 Low
14-20 8-11 20-29 High
21-28 12-15 30-40 Very High
28 15 40 Total
2. Computations of means, and medians, standard deviation

These descriptive statistics was used to show the overall extent of the

respondents’ assessments on their accounting knowledge in terms of

Collection/Receipt of Funds, Disbursement of Funds and Preparation of Source

Documents, Report and Forms.

3. Mann-Whitney Test

This test was used to find the relationship through differences in Barangay

treasurers’ accounting knowledge and skills on receipt/collection and

 Accounting Knowledge and Skills of Selected
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Saint Mary’s University

disbursement of funds, and on the preparation of source documents, report and

forms when compared among the categories of sex, age, highest educational

attainment, certification/eligibility and number of years in service.

4. The Kruskal-Wallis Test

This test was also used to find relationship through differences in Barangay

treasurers’ accounting knowledge and skills on receipt/collection and

disbursement of funds, and on the preparation of source documents, report and

forms with the category of seminars and trainings for barangay treasurers.

For the purpose of determining the extent of the accounting knowledge of the

respondents on receipt/collection and disbursement of funds, and on the

preparation of source documents, report and forms, the scores of the respondents

from the examination conducted were categorized and coded as follows:

Table 2. Qualitative Descriptions of Accounting Knowledge of Barangay

Treasurers

Range of Scores
Preparation of Source Qualitative
Collection or Disbursement of
Documents, Report Description
Receipt of Funds Funds
and Forms
0-4 0-4 0-4 Very Low
5-9 5-9 5-9 Low
10-14 10-14 10-14 High
15-19 15-19 15-20 Very High
19 19 20 Total
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Saint Mary’s University

CHAPTER 4

ANALYSIS, PRESENTATION AND INTERPRETATION OF DATA

This chapter presents the data in the study, their analyses and

interpretation in accordance with the sequence of the specific questions raised in

chapter 1.

Section 1. Profile of Respondents

Table 1.1, 1.2, 1.3, 1.4, 1.5 and 1.6 discuss the respondents’ demographic

profiles which are essential in the conduct of the study.

a) Sex

Table 3. Frequency and Percentage Distribution of the Respondents according to

Sex
Sex Frequency Percent
Female 8 80%
Male 2 20%
Total 10 100%

Table 3 presents the frequency and percentage distribution of the

respondents according to sex. Based on the table above, among the 10

respondents, 8 (80%) are female and 2 (20%) are male. It means that majority of

the respondents are females, and the rest are males.

b) Age

Table 4. Frequency and Percentage Distribution of the Respondents according to

Age
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Saint Mary’s University

Age Frequency Percent
28-40 5 50%
41-84 5 50%
Total 10 100%

Table 4 presents the frequency and percentage distribution of the

respondents as to their age. Among the 10 respondents, 5 (50%) ages 28 to 40 and

the other 5 (50%) ages 41 to 84 years old. This means that half of the respondents

are still young and the other half are old. The results of this study as shown in the

table above contradicts the results of the study of Buan S.M.B. et al (2015)

because in the said study the urban barangay treasurers are not too young and too

old wherein in this study the barangay treasurers in a second class municipality

are young and old.

c) Highest Educational Attainment

Table 5. Frequency and Percentage Distribution of the Respondents in terms of

their Highest Educational Attainment
Highest Educational Attainment Frequency Percent
Elementary & High School Graduate 2 20%
College Graduate 8 80%
Total 10 100%

Table 5 presents the frequency and percentage distribution of the

respondents’ highest educational attainment. 2 respondents are elementary and

high school graduate having a percentage distribution of 20% and the remaining 8

respondents are college graduate with a percentage distribution of 80%.

Therefore, majority of the respondents are college graduates and the remaining

are elementary and high school graduates.

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Saint Mary’s University

Since there were two barangay treasurers who are not a college graduate,

it can therefore be inferred that some barangays of Diffun, Quirino, a second class

municipality, is not strict when it comes to the appointment of their barangay

treasurers because majority of the respondents are not a college graduate. This

was supported by Jaime Naranjo’s statement as he quoted, “We still have a lot of

problem at the barangay level especially in remote areas where many of the

barangay treasurers and auditors are not even high school graduates”.

(Philstar.com)

d) Certification/Eligibility

Table 6. Frequency and Percentage Distribution of the Respondents in terms of

their Certification/Eligibility
Certification/Eligibility Frequency Percent
With 2 20%
Without 8 80%
Total 10 100%

Table 6 presents the frequency and percentage distribution of the

respondents as to their certification/eligibility. 2 (20%) of the respondents have

the eligibility to work and 8 (80%) do not have one. Hence, most of the

respondents were appointed without eligibility to work as a barangay treasurer.

From the table above, it can be inferred that out of the 10 respondents, 8

of them were appointed by their Punong Barangay without considering the

barangay treasurers’ eligilibility to work, therefore creating the possibility of

mismanagement of Barangay’s fund. RA 7160 or known as The Local

Government Code stated that The Barangay Official Eligibility will be granted to
 Accounting Knowledge and Skills of Selected
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Saint Mary’s University

the Barangay Officials including the barangay treasurer after they have earned or

completed an aggregate five year of service in the barangay.

e) Number of Years in Service

Table 7. Frequency and Percentage Distribution of the Respondents in terms of

their Number of Years in Service
No. of Years in Service Frequency Percent
0-10 5 50%
11 and above 5 50%
Total 10 100%

Table 7 presents the frequency and percentage distribution of the

respondents as to their number of years in service. 5 (50%) respondents have been

in the service for 0-10 years and the other 5 (50%) were in the service for 11

years and above. The table above shows that half of the respondents had been

appointed as a barangay treasurer for a long and short period of time.

f) Trainings and Seminars Attended for Barangay Treasurer

Table 8. Frequency and percentage distribution of the Respondents in terms of

their Trainings and Seminars Attended for Barangay Treasurer

Trainings and Seminars Frequency Percent

Did not Indicated 3 30%
Regional/National 3 30%
Municipal/Provincial 4 40%
Total 10 100%

Table 8 presents the frequency and percentage distribution of the

respondents as to the trainings and seminars they attended for barangay treasurer.

Among the 10 respondents, 3 (30%) did not indicated the trainings and seminars

they attended, 4 (40%) had municipal/provincial trainings and seminars and 3

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Saint Mary’s University

(30%) had attended regional/national trainings and seminars. Based from the table

above, majority of the respondents attended the municipal/provincial trainings

and seminars.

The table showed that out of the 10 respondents, 3 did not indicated the

trainings and seminars they attended which is for barangay treasurers because

they have forgotten it due to the passage of time. It is necessary that the barangay

treasurers have an adequate trainings and seminars as Palangchao, H. states that

the lack of training of barangay treasurers causes the late submission of annual

financial reports.

Section 2. Accounting Knowledge of Barangay Treasurers in a Second Class

Municipality specifically on:

(a) Receipts or Collection of funds

Table 9. Number of Correct Answers in Every Question regarding Receipts or

Collection of Funds
Correct
QUESTIONS
Count Percentage
1 All collections by the Barangay Treasurer for the
Barangay shall be reported in the Summary of 9 90%
Collections and Deposits (SCD).
2 The Barangay Treasurer shall be responsible in
handling collections of income and other receipts
of the Barangay and the deposit of the same with 10 100%
Authorized Government Depository Bank
(AGDB).
3 Cash shortages, including the loss of cash
through force majeure, theft, robbery, fire, etc. 2 20%
shall be added to the total cash account.
4 Official Receipt shall be prepared in three (3)
9 90%
copies.
5 Collections can be used to encash checks or pay 8 80%
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Barangay obligations/liabilities.
6 The 3rd copy of the Official Receipt shall be
4 40%
given to the Barangay Record Keeper.
7 After the Official Receipt has been prepared and
properly filled-out, the Barangay secretary will
5 50%
issue and forward the Official Receipt to the
payor to acknowledge the collection.
8 All collections, either in cash or in check, shall
be acknowledged by the issuance of a pre- 10 100%
numbered Official Receipt.
9 Temporary or provisional receipts shall not be
7 70%
issued to acknowledge collections.
10 All revenues that were collected must be
1 10%
supported by an Official Receipt.
11 The Barangay secretary shall be the custodian of
9 90%
all the accountable forms.
12 Endorsed checks shall not be accepted as
8 80%
payment of obligations to the Barangay.
13 All Official Receipts must be recorded in the
Summary of Collections and Deposits excluding 6 60%
the cancelled ones.
14 For checks received, the Official Receipt number
and date of issue shall be indicated at the back of 4 40%
the check for reference purposes.
15 A complete record of the receipts, issuances and
transfers of accountable forms are not necessary 7 70%
to be maintained.
16 The 2nd copy of the Official Receipt shall be
7 70%
given to the Barangay Record Keeper.
17 Duplicate and triplicate copies of the Official
Receipt shall be the exact carbon copy of the 10 100%
original.
18 Only cash collections shall be acknowledged by
5 50%
the issuance of an Official Receipt.
19 Overages discovered during the cash count/cash
examination shall not be receipted and added to 4 40%
the accountability of Barangay Treasurer.
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Saint Mary’s University

Table 9 presents the number of respondents with correct answers in every

item and the corresponding percentage. Based from the table above, it can be

observed that most of the respondents answered correctly the questions with

regards to the collection or receipts of funds. Even so, 5 out of the 19 questions

were lower than 50%. Among the 10 respondents, only 2 got the correct answer

for question no. 3 that talks about cash shortages. It shows that only twenty-

percent (20%) of the respondents know that during cash shortages, including the

loss of cash through force majeure, theft, robbery, fire, etc. shall be added to the

total cash account. While in question no. 6 which deals with the copy of the

Official (OR) Receipt, only 4 out of 10 or forty-percent (40%) respondents

answered the question correctly. Majority of the respondents are not aware that

the 3rd copy of the OR shall be given to the Barangay Record Keeper. On the

other hand, only ten-percent (10%) or 1 out of the 10 respondent got the correct

answer on item no. 10 and the remaining ninety-percent (90%) were uncertain

whether the revenues collected must be supported by OR or not. In questions no.

14 and 19 only 4 out of 10 or forty-percent (40%) of the respondents were correct.

Therefore, majority of the respondents do not know that the Official Receipt

number and date of issue shall be indicated at the back of the check for reference

purposes, and that the overages discovered during the cash count/cash

examination shall not be receipted and added to the accountability of the

Barangay Treasurer.
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Saint Mary’s University

It can be inferred based from the table above that the respondents were

knowledgeable to a high extent with regards to the custody of accountable forms,

payment of obligation through an endorsed checks, preparation of OR copies, and

the collection of funds. It is therefore, concluded, that the barangay treasurers are

knowledgeable to a high extent on these items because as stated in the Local

Government Code, Section 395, the barangay treasurers shall be responsible in

keeping the custody of barangay funds and properties.

With regards to the technicalities such as filling out of official receipts,

issuance of temporary and provisional receipts, exclusion of cancelled OR in

SCD, maintenance of recorded receipts, issuance of accountable forms, and lastly,

the distribution of OR copies which is item no. 16, the barangay treasurers are

knowledgeable to average extent. Although the barangay treasurers are

knowledgeable to high extent on items regarding the collection of funds, there are

specific items like the issuance of OR for cash collections in which the barangay

treasurers are knowledgeable to an average extent. When it comes to items

dealing with cash shortages and overages, the distribution of OR copies as

indicated in item no. 6, indication of OR number and date of issue at the back of

OR for reference purposes and the proper treatment of revenues collected are

items on which the barangay treasurer are knowledgeable to a low extent. It may

be inferred, specifically on items no. 6 and 16 that deals with the distribution of

OR, that the barangay treasurers were not sure whether the 2nd or 3rd copy will be

given to the Barangay Record Keeper. Although these are the primary duties and
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Saint Mary’s University

responsibilities of barangay treasurer, the reason why the barangay treasurer are

not knowledgeable on these items is because it is not part of their day-to-day

transaction. According to Granof (1998), quoted by Buan, et al (2017), while the

accounting and auditing function is generally performed in private sector, the

government officials who are engaged in public expenditure management, budget

allocation, taxation, and capital market regulations have to advance also their

knowledge and skills in accounting and auditing. Since the duties and

responsibilities of barangay treasurer is related to budget allocation and public

expenditure management, it is therefore concluded that the barangay treasurers

need to continually upgrade their accounting knowledge and skills.

Table 10. Overall, Extent of Accounting Knowledge of Barangay Treasurers on

Receipts or Collections of Funds

QD Count Column N % Mean Median SD QD

Low 2 20%
High 5 50%
Very High 3 30% High
Total 10 100% 36.30 5.889 Extent

Table 10 presents the results of the overall extent of accounting

knowledge of barangay treasurers on collection/receipts of funds.

As shown in the table above, 2 (20%) out of the 10 respondents have low

extent of accounting knowledge in terms of collection/receipts of funds, 5 (50%)

have high extent and 3 (30%) have a very high extent. It can be concluded that

majority of the respondents have high extent of accounting knowledge in terms of

collection/receipts of funds.
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Saint Mary’s University

According to Section 395 of LGC, the barangay treasurers shall be

responsible in safekeeping of barangay funds; collecting and issuing of official

receipts for contributions, taxes, monies, fees, materials, and all other funds

accruing to the barangay treasury and depositing these in the account of the

barangay. Based from the results of the examination survey conducted, all the

respondents are knowledgeable in terms of handling collections of income and

other receipts of the Barangay and the deposit of the same with Authorized

Government Depositary Bank (AGDB), the acknowledgements of collections of

either cash or check through the issuance of a pre-numbered Official Receipt, and

the duplication and triplication of Official Receipt copies as an exact carbon copy

of the original as they correctly answers the above problems. The study “The

Level of Awareness and Performance of Urban Barangay Treasurers of Santiago

City on their Mandated Functions” of Balut, B. et. al. (2015) supports the result of

this study in which the barangay treasurers of the second class municipality and

the urban barangay treasuers are also knowledgeable to high extent in terms of

collections/receipts of funds.

(b) Disbursement of funds

Table 11. Number of Correct Answers in Every Question regarding Disbursement

of Funds
Questions Correct
Count Percentage
1. All paid and unpaid disbursement
Vouchers/Payrolls shall be recorded in the 4 40%
Summary of Cash Payments.
2. Excess cash advance for special purpose/time-
9 90%
bound undertaking shall be refunded and an
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Saint Mary’s University

Official Receipt shall be issued by the Barangay
Treasurer.
3. For local/foreign travel, liquidation shall be
done within a period of 90/120 days upon return 4 40%
to the personnel’s workstation.
4. Cash payment shall be made only on duly
approved Payrolls/Disbursement 9 90%
Vouchers/Liquidation Vouchers.
5. The petty cash shall be kept separately from the
regular collections and advances granted for a 0 0%
particular purpose.
6. The liquidation report will be based on the
certificate of travel completed/Revised itinerary
10 100%
of Travel, Official receipts, Invoices, tickets, etc.
and summary of expenses paid.
7. The Barangay treasurer is the one who will
prepare the Disbursement Voucher for the 9 90%
replenishment of the Petty cash fund.
8. The certification and Approval of Payment, the
Box B of the Disbursement Voucher/Payroll 4 40%
shall be signed by the Punong Barangay.
9. The Liquidation Report shall be prepared in
9 90%
three (3) copies.
10. The balance of the Petty Cash Fund shall be
2 20%
closed at the end of the year.
11. The checks shall be signed by the Barangay
10 100%
Treasurer only.
12. Travel Order and Itinerary of Travel must be
prepared first before the grant of cash advance 10 100%
for travel.
13. Appropriation of public money or property for
8 80%
religious and private purposes are allowed.
14. All disbursements by the check shall be reported
10 100%
in the Summary of Checks Issued.
15. Stale check shall be replaced only when the
original is submitted to the Barangay Treasurer 8 80%
for replacement.
16. Succeeding cash advance for payroll shall be 1 10%
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granted even before the full liquidation of the
previous cash advance.
17. The Petty Cash Fund shall not be maintained
6 60%
using the Imprest System.
18. Disbursement Vouchers and/or Payrolls are
8 80%
usually paid either by check or in cash.
19. In case the cash advance for payroll is more than
the disbursement, the excess need not be 9 90%
refunded anymore.

Table 11 presents the number of respondents with correct answers in

every item and the corresponding percentage. Based from the table above it can

be observed that 6 out of the 19 questions were lower than 50% and none of the

respondents got the correct answer in question no. 5. This means that the

barangay treasurers are knowledgeable regarding the disbursement of funds to

either high or average extent as 13 out of the 19 question are higher than 50%.

Based from the table above, it may be inferred that the barangay treasurers are

knowledgeable to high extent on items dealing with cash advances, requirements

and restrictions before the payment of cash or checks, preparation of liquidation

report, replacement of stale check, reporting of all disbursement made in check

and the authorization of issuing checks. On the other hand, item no. 17 which

deals with the maintenance of Petty Cash Fund through Imprest System is the

only item on which the barangay treasurers are knowledgeable to average extent.

Based from the results above, none of the respondents are knowledgeable

with regards to the separation of petty cash fund with the regular collections and

advances granted for particular purpose. This is because they do not maintain
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Saint Mary’s University

petty cash fund as stated by one of the respondents, Ms. Ailda Manuel, “we don’t

maintain petty cash fund”. In addition to this, recording of paid and unpaid

disbursement vouchers/payrolls, preparation period of liquidation report for

local/foreign travel, certification and approval of payment, closing of petty cash

fund balance at the end of the year, and granting of succeeding cash advance

payroll before the full liquidation of the previous cash advance, were the items on

which the barangay treasurers are knowledgeable to low extent.

Table 12. Overall, Extent of Accounting Knowledge of Barangay Treasurers on

Disbursement of Funds
Count Column N % Mean Median SD QD
QD
High 8 80%
Very High 2 20% High
Total 10 100% 13.00 2.055 Extent

Table 12 shows the overall extent of accounting knowledge of barangay

treasurers in terms of disbursement of funds.

As can be seen from the table above, the overall extent of accounting

knowledge of barangay treasurers in terms of disbursement of funds were

qualitatively described into high and very high, wherein 8 (80%) have high extent

of accounting knowledge in the disbursement of funds and 2 (20%) get a very

high extent.

According to Section 395 of the Local Government Code, the barangay

treasurers shall be responsible in paying out funds in accordance with the

financial procedures provided in the same Code. From the same Code the

barangay treasurers shall also confirm the availability of funds whenever

 Accounting Knowledge and Skills of Selected
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Saint Mary’s University

necessary and exercise other powers and perform other duties and functions as

may be prescribed by ordinance or law. Based from the results of the examination

survey conducted, the respondents were knowledgeable in the preparation of

liquidation report and summary of expenses paid, signing of checks by the

Barangay treasurer and the Punong Barangay, the necessity of preparing Travel

Order and Itinerary of Travel first before granting cash advance for travel, and

making a summary of checks issued for all the disbursement made by the

Barangay treasurer through checks. On the contrary, out of the 10 respondents

none of them are knowledgeable on the liquidation of cash advance for payroll

within 5 days after the end of the pay period. The study of Balut, B. et al. (2015)

supports the result of this study because both the urban barangay treasurers and

barangay treasurers of the second class municipality are knowledgeable to high

extent in terms of disbursement of funds.

(c) Preparation of Source Documents, Report and Forms

Table 13. Number of Correct Answers in Every Question regarding Preparation

of Source Documents, Report and Forms
Correct
QUESTIONS
Count Percentage
1 The cash advance for payroll shall be used solely
for payment of salaries, honoraria, and other
7 70%
allowances due to the Barangay officials and
employees.
2 The source documents, accounting forms and
reports shall be the basis for recording the
0 0%
transactions in preparing reports by the C/M
Accountant.
3 Cash advance for payroll shall be liquidated
1 10%
within 10 days after the end of the pay period.
4 The Annual Financial Report and Statement shall
7 70%
be prepared by the C/M Accountant in four (4)
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copies.
5 The Quadruplicate Copy is to be distributed to
1 10%
the Barangay Treasurer.
6 Local government budgets shall primarily consist
of estimates of income and total appropriations
9 90%
covering the current operating expenditures and
capital outlays.
7 Barangay Treasurers prepare and maintain their
1 10%
book of accounts.
8 The summary of Financial Statements should
contain the actual income and expenditures of the
first two quarters and the estimates of income 8 80%
and expenditures for the last two quarters of the
current fiscal year.
9 For accounting purposes, the fiscal year for the
barangay shall start on January 1st and end on 10 100%
December 31st of each year.
10 The estimated/budgeted income and expenditures
during the immediately preceding year shall be 1 10%
included in the summary of Financial Statements.
11 The barangay financial transactions shall be
recorded using the Chart of Accounts prescribed 10 100%
by the Commission on Audit.
12 All lawful expenditures and obligations incurred
during a fiscal year shall be taken up in the 5 50%
accounts of the following year.
13 The estimated expenditures must be necessary in
carrying out the functions, projects, and activities
7 70%
of the local government unit for the ensuing
fiscal year.
14 The financial records of the Barangay treasurer
shall be kept in the office of the Punong
4 40%
Barangay as prescribed by the Commission on
Audit (COA).
15 The estimates of income shall be submitted for
the ensuing fiscal year from ordinances and laws
existing at the time the proposed budget is 10 100%
transmitted, together with other revenue-raising
proposals.
16 The Detailed Statements of Income and
Expenditures for the Barangay Budgets shall be
6 60%
submitted on or before the 15th day of
September of each year.
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17 Upon receipt of the statement of income and
expenditures from the Barangay treasurer, the
4 40%
city or municipal treasurer shall prepare the
Barangay budget for the ensuing fiscal year.
18 The Barangay treasurer shall submit to the
Punong Barangay a statement covering the
estimates of income and expenditures for the
ensuing fiscal year, based on a certified 6 60%
statement issued by the city or municipal
treasurer covering the estimates of income from
local sources for the Barangay concerned.
19 Barangay Treasurers prepare consolidated trial
9 90%
balances and financial statements.
20 A monthly Bank Reconciliation Statement shall
be prepared by the barangay treasurer upon 2 20%
receipt of the Bank Statement.

Table 13 presents the number of respondents with correct answers in

every question regarding the preparation of source documents, report and forms

and the corresponding percentage. Out of the 20 questions, 8 of these were lower

than 50%. Based from the table above, 3 out of the 20 questions are answered by

all or one-hundred percent (100%) of the respondents correctly. These items deal

with the fiscal year of the barangay for accounting purposes, recording of

financial transaction of barangay using the Chart of Accounts prescribed by the

Commission on Audit, and the submission of estimates of income for the ensuing

fiscal year. But none of the respondents were knowledgeable that the source

documents, accounting forms and reports shall be the basis for recording the

transactions in preparing reports by the Barangay Treasurer. It is therefore be

concluded that the credibility of barangay treasurers in recording transactions is at

stake based from the results above,

 Accounting Knowledge and Skills of Selected
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Table 14. Overall, Extent of Accounting Knowledge regarding Preparation of
Source Documents, Report and Forms
Count Column N % Mean Median SD QD
QD
High 6 60%
Very High 4 40% High
Total 10 100% 10.80 2.044 Extent

Table 14 summarizes the results of the overall extent of accounting

knowledge in terms of preparation of documents and reports.

As shown in the table above, 6 (60%) out of the 10 respondents have high

extent of accounting knowledge in terms of preparation of documents, reports and

forms while the remaining 4 (40%) have a very high extent.

The LGC states that the barangay treasurers shall also present to the

Punong Barangay a statement of the actual and estimates of income and expenses

from previous and following calendar years, respectively; make a written

accounting report of all barangay funds at the end of each calendar year;

guarantee that such report shall be made available to government agencies

concerned and mostly to the members of the barangay assembly. The accounting

knowledge of barangay treasurers in terms of preparation of documents, reports

and forms is what makes this study different from other related studies. It can be

concluded that barangay treasurers are knowledgeable to high extent in terms of

preparation of documents, reports and forms.

Section 3. Accounting Skills of Barangay Treasurers in a Second Class

Municipality specifically on:

(a) Collection or Receipt of Funds

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Saint Mary’s University

Table 15. Overall, Extent of Accounting Skills in Terms of Collection or Receipt
of Funds
Qualitative Description Frequency Percent
Very Low 1 10%
Low 5 50%
High 1 10%
Very High 3 30%
Total 10 100%

Table 15 shows the frequency and percentage of the extent of accounting

skills in terms of collection and its corresponding qualitative description. As

shown in the table above, 10% (1) of the respondents got a very low and high

extent of accounting skills in terms of collection and 50% (5) got a low extent of

accounting skills in terms of collection and 30%(3) got a very high extent of

accounting skills in terms of collection. It can be inferred that majority of the

respondents got a low extent of accounting skills in terms of collection.

One responsibility of barangay treasurer is to collect and issue official

receipts for taxes, contributions, monies, materials and all other resources

accruing to the barangay treasury and deposit the same in the account of the

barangay. (Local Government Code of 1991) It is also reiterated in the Manual on

the Financial Management of Barangays Chapter III that the collections and

deposits shall be recorded in the Cashbook by the barangay treasurer based on the

Report of Collections and Deposits (RCD).

The respondents got a low extent of accounting skills in terms of

collection because majority of the respondents did not record the deposit of the

collections. Another reason is that some of the respondents are newly appointed
 Accounting Knowledge and Skills of Selected
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Saint Mary’s University

barangay treasurers and still are not skilled in preparing the cashbook. This is

supported by Borromeo, R.U. that some barangay treasurers who do not possess

accounting backgrounds were obliged to hire services of other persons who could

help them in their duties especially in the preparation of necessary documents.

(b) Disbursement of Funds

Table 16. Overall, Extent of Accounting Skills in Terms of Disbursement of Funds

Qualitative Description Percent Percent
Very Low 2 20%
Low 6 60%
High 1 10%
Very High 1 10%
Total 10 100.0

Table 16 shows the frequency and percentage of the extent of accounting

skills in terms of disbursement and its corresponding qualitative description.

Based on the table above, 20% (2) of the respondents get a very low extent of

accounting skills in terms of disbursement and 60% (6) get a low extent of

accounting skills in terms of disbursement and 10%(1) get a high and very high

extent of accounting skills in terms of disbursement. It can be inferred that

majority of the respondents got a low extent of accounting skills in terms of

disbursement.

A treasurer is to disburse funds in accordance with the financial

procedures provide in the Local Government Code. Proper disbursement of the

Barangay funds is also crucial in the daily function of a Barangay Treasurers,

these includes the disbursement of the cash advance for payroll which shall be
 Accounting Knowledge and Skills of Selected
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Saint Mary’s University

used exclusively for payment of salaries, honoraria, and other allowances payable

to the Barangay officials and employees (Local Government Code of the

Philippines, Book III, Section 83).

Based on the answers of the respondents, majority of them are not skilled

in recording the liquidation of the cash advances for training in the cashbook.

During the data gathering it was revealed that two of the respondents are newly

appointed barangay treasurers who do not have trainings and seminars attended.

As stated by Palangchao, H., the lack of training of barangay treasurers causes the

late submission of annual financial reports.

(c) Preparation of Source Documents, Report and Forms

Table 17. Overall, Extent of Accounting Skills in Terms of Preparation of

source documents, report and forms

Qualitative Description Percent Percent

Very Low 2 20%
Low 1 10%
High 6 60%
Very High 1 10%
Total 10 100.0

Table 17 presents the frequency and percentage of the extent of

accounting skills in terms of preparing source documents, report and forms and its

corresponding qualitative description Based on the table above, 20% (2) of the

respondents get a very low extent of accounting skills in terms of preparation of

reports and source documents and 10%(1) get a low and very high extent of

accounting skills in terms of preparation of reports and source documents and

 Accounting Knowledge and Skills of Selected
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Saint Mary’s University

60%(1) get a high extent of accounting skills in terms of preparation of reports

and source documents.

One responsibility of barangay treasurer is to collect and issue official

receipts for taxes, contributions, monies, materials and all other resources

accruing to the barangay treasury and deposit the same in the account of the

barangay. Barangay Treasurers used source documents, accounting forms and

reports as a basis for recording transactions and preparing reports (Manual on

Financial Management of Barangays, Chap. 6, 6.1)

It can be gleaned from the table that majority of the respondents got a high

extent of accounting skills in terms of source documents, report and forms.

Preparing the source documents is a routine work whereas most of the

respondents didn’t fill up the liquidation report because it is not their routine

function. Meanwhile, majority of the errors of the respondents are only

technicalities in which the totals were written in numbers instead of figures. Also,

some respondents didn’t fill up the purchase order because they considered that

the purchase request is the same as purchase order.

Section 4. Comparison in the Accounting Knowledge of Barangay

Treasurers when grouped according to profile variables

(a) Sex

Table 18. Comparison in the Accounting Knowledge of the Respondents when

grouped according to Sex
Descriptive Mann-Whitney Test
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Saint Mary’s University

Mean Asymp. Exact

Sex N
Rank Sig. Sig.
Accounting Female 8 5.44
Knowledge Male 2 5.75
(Collection of Funds) Total 10 .894 .889b
Accounting Female 8 5.44
Knowledge Male 2 5.75
(Disbursement of
Funds) Total 10 .893 .889b
Accounting
Knowledge Female 8 5.75
(Preparation of Male 2 4.50
Source Documents,
Report and Forms) Total 10 .598 .711b
Female 8 5.56
Accounting
Male 2 5.25
Knowledge (Overall)
Total 10 .896 .889b

Table 18 summarizes the results of the Mann-Whitney Test that was used

to determine if there is a significant difference in the accounting knowledge of the

respondents when grouped according to their sex.

The table shows that male has the higher mean rank (5.75) of accounting

knowledge in terms of collection and disbursement of funds than female (5.44). In

terms of preparation of reports, female has the higher mean rank (5.75) than male

(4.50).

According to Okafor and Egbon (2011), wherein it focuses its study on

developing nations, the performance of their male and female respondents in all

basic financial accounting has no significant difference despite the fact that the

mean performance of male is greater than females. This is in contrary with the

results of this study where the overall mean rank of accounting knowledge of
 Accounting Knowledge and Skills of Selected
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Saint Mary’s University

females (Mn. rank =5.56) were higher than the overall mean rank of accounting

knowledge of males (Mn. rank =5.25). In the study of Dima, et al (2013), wherein

the respondents are the students of the 4-year Bachelor of Accountancy at the

University of Botswana for the last three years, it reveals that their female

respondents achieve more in academics because they want to break the

dominance of male in accounting profession through the years.

On the other hand, the table also shows that the overall accounting

knowledge on the collection, disbursement and preparation of reports of the

barangay treasurers has no significant difference when they were grouped

according to their sex (p ≥ .05) using the Mann-Whitney test. Therefore, it can be

assumed that the respondents’ knowledge in terms of collection, disbursements

and preparation of reports were the same regardless of their sex.

(b) Sex

Table 19. Comparison in the Accounting Knowledge of the Respondents when

grouped according to Age
Descriptive Mann-Whitney Test
Mean Asymp. Exact
Age N
Rank Sig. Sig.
28-40 5 5.20
Accounting Knowledge
(Collection) 41-84 5 5.80

Total 10 .750 .841b

28-40 5 5.90
Accounting Knowledge
(Disbursement) 41-84 5 5.10
Total 10 .665 .690b
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Saint Mary’s University

Accounting Knowledge 28-40 5 5.50

(Preparation of Source
Documents, Report and 41-84 5 5.50
Forms) Total 10 1.000 1.000b
28-40 5 5.50
Accounting Knowledge
(Overall) 41-84 5 5.50
Total 10 1.000 1.000b

Table 19 summarizes the results of the Mann-Whitney Test that was used

to determine if there is a significant difference in the accounting knowledge of the

respondents when grouped according to their age.

The table shows that the accounting knowledge in terms of collection,

respondents aging from 41-84 has a higher mean rank (5.80) than those aging

from 28-40 (5.20). In terms of disbursement, respondents aging from 28-40 has a

higher mean rank (5.90) than those aging from 41-84 (5.10). In terms of

preparation of reports, both have the same mean rank (5.50). Hence, the overall

mean rank of accounting knowledge of the respondents aging from 28-40 years

old (Mn. rank =5.50) has no difference to the overall mean rank of accounting

knowledge of the respondents aging from 41-80 years old (Mn. rank =5.50).

According to Barnett and Rivers (2016), older workers are productive in a

more consistent manner when compared to the younger ones. Based on the results

of the tests they conducted, it reveals that the performance of the 65-to-80-year-

old workers’ cognitive abilities, perceptual speed, episodic memory and working

memory are less variable from day to day when compared to the performance of

the younger ones. Based from the article entitled We often don’t see the
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Saint Mary’s University

possibilities because we aren’t looking for them – especially in the high-tech

world, which worships at the altar of youth by Barnett and Rivers (2016), it also

revealed that the cognitive performance of the older workers are more stable over

time it is because “…older workers’ wealth of experience enabled them to design

strategies to solve problems. In addition, their motivation was higher than the

younger workers’.”

Moreover, the table also shows that there was no significant difference in

the overall accounting knowledge on the collection, disbursement and preparation

of reports of the barangay treasurers when they are grouped according to their age

(p ≥ .05) using the Mann-Whitney Test. This designates that the respondents’

accounting knowledge in terms of collection, disbursement and preparation of

reports were the same regardless of their age.

(c) Highest Educational Attainment

Table 20. Comparison in the Accounting Knowledge of the Respondents when

grouped according to Highest Educational Attainment
Descriptive Mann-Whitney Test
Highest
Mean Asymp. Exact
Educational N
Rank Sig Sig.
Attainment
Elem/High School
Accounting 2 4.50
Graduate
Knowledge
College Graduate 8 5.75
(Collection)
Total 10 .595 .711b
Elem/High School
Accounting 2 3.00
Graduate
Knowledge
College Graduate 8 6.13
(Disbursement)
Total 10 .177 .267b
Accounting Elem/High School 2 2.75 .147 .178b
 Accounting Knowledge and Skills of Selected
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Saint Mary’s University

Knowledge Graduate
(Preparation of College Graduate 8 6.19
Source Documents,
Report and Forms) Total 10
Elem/High School
Accounting 2 3.25
Graduate
Knowledge
(Overall) College Graduate 8 6.06
Total 10 .239 .267b

The Mann-Whitney U test was used to determine if there is a significant

difference in the accounting knowledge of the respondents when grouped

according to highest educational attainment.

As presented in Table 20, the table revealed that in terms of collection of

funds, the mean rank of Elementary and High School graduates (4.50) were lower

than the mean rank of College graduates (5.75). While in the disbursement of

funds, the mean rank of Elementary and High School graduates were lower (3.00)

than the mean rank of College graduates (6.13). In terms of preparation of reports,

the mean rank of Elementary and High School graduates (2.75) were lower than

College graduates (6.19). Therefore, the overall mean rank of accounting

knowledge of the respondents who were elementary and high school graduates

(Mn. rank =3.25) were evidently lower than the overall mean rank of accounting

knowledge of the respondents who were college graduates (Mn. rank =6.06). It

also shows that the accounting knowledge in terms of collection, disbursement

and preparation of reports were the same regardless of their highest educational

attainment. Since the accounting knowledge of Elementary and High School

graduates were lower than College graduates then it suggest that the higher
 Accounting Knowledge and Skills of Selected
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Saint Mary’s University

educational attainment the barangay treasurers have, the higher the accounting

knowledge.

However, there was no significant difference in the overall accounting

knowledge on the collection, disbursement and preparation of reports of the

respondents when they are grouped according to their highest educational

attainment (p ≥ .05).

This was supported by the study of Laranang, et al (2015), wherein it

revealed that the respondents’ knowledge is not affected by their highest

educational attainment.

(d) Certification/Eligibility

Table 21. Comparison in the Accounting Knowledge of the Respondents when

grouped according to Certification/Eligibility
Descriptive Mann-Whitney Test
Mean Asymp. Exact
Eligibility N
Rank Sig. Sig.
With 2 7.25
Accounting Knowledge
Without 8 5.06
(Collection)
Total 10 .352 .400b
With 2 7.25
Accounting Knowledge
Without 8 5.06
(Disbursement)
Total 10 .344 .400b
Accounting Knowledge With 2 5.25
(Preparation of Source
Documents, Report and Without 8 5.56
Forms) Total 10 .895 .889b
With 2 6.50
Accounting Knowledge
Without 8 5.25
(Overall)
Total 10 .600 .711b
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Saint Mary’s University

Table 21 summarizes the results of the Mann-Whitney Test that was used

to determine if there is a significant difference in the accounting knowledge of the

respondents when grouped according to their certification/eligibility.

The table shows the accounting knowledge of the respondents in terms of

their certification/eligibility. The mean rank of the accounting knowledge in terms

of collections and disbursements of the respondents with eligibility were higher

(7.25) than those without eligibility (5.06). In terms of preparation of reports, the

mean rank of those without eligibility was higher (5.56) than those with eligibility

(5.25). Hence, the overall mean rank of accounting knowledge of the respondents

with eligibility (Mn. rank =6.50) were higher than the overall mean rank of

accounting knowledge of the respondents without eligibility (Mn. rank =5.25).

Moreover, there was no significant difference in the overall accounting

knowledge on the collection, disbursement and preparation of reports of the

barangay treasurers when they were grouped according to their eligibility (p ≥

.05). Therefore, this designates that the respondents’ accounting skills in terms of

collection, disbursement and preparation of reports were the same regardless of

certification/eligibility.

However, according to Silvis (2011):

“A professional credential is a credible way to demonstrate

proficiency in a field. A credential identifies an individual who is

committed to his/her profession and provides a tangible

recognition of his/her knowledge and/or experience.”

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(e) Trainings and Seminars for Barangay Treasurers

Table 22. Comparison in the Accounting Knowledge of the Respondents when

grouped according to the Trainings and Seminars they attended

Descriptive Kruskal Wallis Test

Mean Chi- Asymp.

Training and Seminars N df
Rank Square Sig.
None 3
Accounting
Regional/National 3 3.67
Knowledge
Municipal/Provincial 4 4.25
(Collection)
Total 10 .135 1 .714
None 3
Accounting
Regional/National 3 3.67
Knowledge
Municipal/Provincial 4 4.25
(Disbursement)
Total 10 .135 1 .714
Accounting None 3
Knowledge Regional/National 3 3.67
(Preparation Municipal/Provincial 4 4.25
of Reports) Total 10 .125 1 .724
None 3 6.17
Accounting
Regional/National 3 6.17
Knowledge
(Overall) Municipal/Provincial 4 4.50
Total 10 1.500 2 .472

Kruskal Wallis Test was used to find the significant differences of the

respondents’ accounting knowledge when compared to the trainings and seminars

they attended.

The results of the table 22 shows that the overall mean rank of accounting

knowledge of the respondents with no trainings and seminars indicated and those

who have regional and national trainings and seminars (Mn. rank =6.17) were

higher than the overall mean rank of accounting knowledge of the respondents

who have municipal and provincial trainings and seminars (Mn. rank =4.50).
 Accounting Knowledge and Skills of Selected
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Saint Mary’s University

It can be inferred that the overall accounting knowledge on the collection,

disbursement and preparation of reports of the barangay treasurers has no

significant difference when they were grouped according to their training and

seminars (p ≥ .05). This implies that the accounting knowledge in terms of

collection, disbursement, and preparation of reports were the same regardless of

the trainings and seminars attended.

The study of Laranang, et al (2015) revealed that the knowledge of

barangay treasurers on disbursement of funds has no significant difference in

terms with trainings and seminars they attended.

(f) Number of Years in Service

Table 23. Comparison in the Accounting Knowledge of the Respondents when

grouped according to the Number of Years in Service
Descriptive Mann-Whitney Test
Number of Years Mean Asymp. Exact
N
in Service Rank Sig. Sig.
Accounting 10 years and below 5 6.00
Knowledge 11 years and above 5 5.00
(Collection) Total 10 .595 .690b
Accounting 10 years and below 5 6.60
Knowledge 11 years and above 5 4.40
(Disbursement) Total 10 .234 .310b
Accounting
10 years and below 5 6.40
Knowledge
(Preparation of 11 years and above 5 4.60
Source Documents,
Report and Forms) Total 10 .343 .421b
Accounting 10 years and below 5 6.30
Knowledge 11 years and above 5 4.70
(Overall) Total 10 .402 .421b
 Accounting Knowledge and Skills of Selected
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Saint Mary’s University

Mann-Whitney U test was used to determine the significant differences of

the respondents’ accounting knowledge when compared to the number of years

they are in service.

As presented in Table 23, the mean rank of accounting knowledge in

terms of collections of those working 10 years and below were higher (6.00) than

those working 11 years and above (5.00). In terms of disbursement of funds, the

mean rank of those working 10 years and below was higher (6.60) than those

working 11 years and above (4.40). And in terms of preparation of source

documents, report and forms, the mean rank of those working 10 years and below

was higher (6.40) than those working 11 years above (4.60). Hence, the overall

mean rank of the respondents’ accounting knowledge working 10 years and

below (Mn. rank =6.30) were higher than the overall mean rank of accounting

knowledge of the respondents who is in the service for 11 years and above (Mn.

rank =4.70).

On the other hand, there was no significant difference in the overall

accounting knowledge on the collection, disbursement and preparation of reports

of the barangay treasurers when they were grouped according to the number of

years in service (p ≥ .05). This designates that the respondents’ accounting

knowledge in terms of collection, disbursement and preparation of reports were

identical regardless of the number of years in service.

 Accounting Knowledge and Skills of Selected
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Saint Mary’s University

This is the same with the study of Laranang, et al (2015) wherein the

number of years in service of barangay treasurers has no significant difference in

terms of the respondents’ knowledge in receipt and disbursement of funds.

Section 5. Comparison in the Accounting Knowledge of Barangay

Treasurers when grouped according to profile variables

(a) Sex

Table 24. Comparison in the Accounting Skills of the Respondents when grouped
according to Sex
Descriptive Mann-Whitney Test
Mean Asymp. Exact
Sex N
Rank Sig. Sig.
Female 8 5.38
Accounting Skills
Male 2 6.00
(Collection)
Total 10 .793 .889b
Female 8 4.94
Accounting Skills
Male 2 7.75
(Disbursement)
Total 10 .237 .267b
Accounting Skills Female 8 4.75
(Preparation of Source
Documents, Report and Male 2 8.50
Forms) Total 10 .112 .178b
Female 8 5.00
Accounting Skills
(Overall) Male 2 7.50
Total 10 .296 .400b

Table 24 summarizes the results of the Mann-Whitney Test that was used

to determine if there is a significant difference in the accounting skills of the

respondents when grouped according to their sex.

 Accounting Knowledge and Skills of Selected
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Saint Mary’s University

The table shows that the accounting skills in terms of collection, male

respondents have higher mean rank (6.00) than female (5.38). In terms of

disbursement of funds, male has a higher mean rank (7.75) than female (4.94). In

terms of preparation of reports, the mean rank of male (8.50) was higher than

female (4.75). Hence, the overall mean rank of accounting skills of females (Mn.

rank =5.00) were lower than the overall mean rank of accounting skills of males

(Mn. rank =7.50).

The table also shows the overall accounting skills on the collection,

disbursement and preparation of reports of the barangay treasurers has no

significant difference when they were grouped according to their sex (p ≥ .05).

Therefore, the respondents’ accounting skills in terms of collection, disbursement

and preparation of reports were the same regardless of their sex.

The result of this study contradicts the study of Silva, J.C (2016)

indicating that male professionals conquer the professions of accounting.

(b) Age

Table 25. Comparison in the Accounting Skills of the Respondents when grouped
according to Age
Descriptive Mann-Whitney Test
Mean Asymp. Exact
Age N
Rank Sig. Sig.
28-40 5 6.70
Accounting Knowledge
41-84 5 4.30
(Collection)
Total 10 .209 .222b
28-40 5 6.80
Accounting Knowledge
41-84 5 4.20
(Disbursement)
Total 10 .172 .222b
 Accounting Knowledge and Skills of Selected
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Saint Mary’s University

Accounting Knowledge 28-40 5 6.50

(Preparation of Source
Documents, Report and 41-84 5 4.50
Forms) Total 10 .289 .310b
28-40 5 6.80
Accounting Knowledge
41-84 5 4.20
(Overall)
Total 10 .175 .222b

Mann-Whitney Test was used to determine if there is a significant

difference in the accounting skills of the respondents when grouped according to

age.

As presented in Table 25, it shows that the mean rank of the accounting

skills of the respondents aging from 28-40 years old (6.70) were higher than those

aging from 41-84 years old (4.30) in terms of collection of funds. The accounting

skills in terms of disbursement of funds of those aging from 28-40 years old

(6.80) were higher than those aging from 41-84 years old (4.20). In terms of

preparation of source documents, report and forms, those aging from 28-41 years

old (6.50) were higher than those aging from 41-84 years old (4.50). Hence, the

overall mean rank of accounting skills of the respondents aging from 28-40 years

old (Mn. rank =6.80) were higher than the overall mean rank of accounting skills

of the respondents aging from 41-80 years old (Mn. rank =4.20).

However, even if the accounting skills of those aging from 28-40 years

old were higher than those aging from 41-84 years old, there was no significant

difference in the overall accounting skills on the collection, disbursement and

preparation of reports of the barangay treasurers when they were grouped

according to their age (p ≥ .05). Therefore, it can be assumed that the

 Accounting Knowledge and Skills of Selected
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Saint Mary’s University

respondents’ accounting skills in terms of collection, disbursement and

preparation of source documents, report and forms were the same regardless of

their sex.

In the study made by Touron and Hertzog, it was stated that differences of

age in the rate of skills acquisition have been attributed to associative learning

deficits. It was also added by Hertzog, Cooper and Fisk that late adults are

required with more learning trials in forming new associations since memory

retrieval of older adults is slow in skill acquisition tasks.

(c) Highest Educational Attainment

Table 26. Comparison in the Accounting Skills of the Respondents when grouped
according to Highest Educational Attainment
Descriptive Mann-Whitney Test
Highest
Mean Asymp. Exact
Educational N
Rank Sig. Sig.
Attainment
Elem/High School 2 4.50
Accounting Skills Graduate
(Collection) College Graduate 8 5.75
Total 10 .600 .711b
Elem/High School 2 6.50
Accounting Skills Graduate
(Disbursement) College Graduate 8 5.25
Total 10 .599 .711b
Accounting Skills Elem/High School 2 5.75
(Preparation of Graduate
Source Documents, College Graduate 8 5.44
Report and Forms) Total 10 .895 .889b
Elem/High School 2 6.00
Accounting Skills Graduate
(Overall) College Graduate 8 5.38
Total 10 .794 .889b
 Accounting Knowledge and Skills of Selected
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Saint Mary’s University

Mann-Whitney Test was used to find the significant differences of the

respondents in the accounting skills as compared to their highest educational

attainment.

Table 26 illustrates the accounting skills of the respondents in terms of

their highest educational attainment. The table shows that the mean rank of the

accounting skills of the respondents who were elementary and high school

graduates (4.50) were lower than the mean rank of the accounting skills of the

respondents who were college graduates (5.75) in terms of collection of funds. In

terms of disbursement of funds, the mean rank of the respondents who were

elementary and high school graduates (6.50) were higher than those who were

college graduates (5.25). In terms of preparation of source documents, report and

forms, the mean rank of the respondents who were elementary and high school

graduates (6.00) were higher than those who were college graduates (5.38).

Hence, the overall mean rank of accounting skills of the respondents who were

elementary and high school graduates (Mn. rank =6.00) were higher than the

overall mean rank of accounting skills of the respondents who were college

graduates (Mn. rank =5.38).

On the other hand, the table shows that the overall accounting skills on the

collection, disbursement and preparation of source documents, report and forms

of the barangay treasurers has no significant difference when they were grouped

according to their highest educational attainment (p ≥ .05). This designates that

 Accounting Knowledge and Skills of Selected
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Saint Mary’s University

the respondents’ accounting skills in terms of collection, disbursement and

preparation of reports were the same regardless of highest educational attainment.

A study from Massing, N. and Schneider, S. (2016) stated that more

opportunities for knowledge acquisition leads to a higher level of formal

education and basic competencies achieved. It also points out that, educational

attainment and basic skills or competencies are closely related. It was also

supported by International Adult Literacy Study (IALS), the Adult Literacy and

Life Skills Survey (ALL), Statistics Canada (2005), OECD (2013), among others,

that education has the strongest relationship with competencies of all background

variables examined.

(d) Certification/Eligibility

Table 27. Comparison in the Accounting Skills of the Respondents when grouped
according to Certification/Eligibility

Descriptive Mann-Whitney Test

Certificate/ Mean Asymp. Exact
N
Eligibility Rank Sig. Sig.
With 2 9.50
Accounting Skills
Without 8 4.50
(Collection)
Total 10 .036* .044b
With 2 9.50
Accounting Skills
Without 8 4.50
(Disbursement)
Total 10 .036* .044b
Accounting Skills With 2 8.50
(Preparation of
Source Documents, Without 8 4.75
Report and Forms) Total 10 .112 .178b
 Accounting Knowledge and Skills of Selected
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Saint Mary’s University

With 2 9.50
Accounting Skills
(Overall) Without 8 4.50
Total 10 .037* .044b
*with significant difference

Table 27 summarizes the results of the Mann-Whitney Test that was used

to determine the significant differences in the accounting skills of the respondents

when compared to the category of certification/eligibility.

The table shows that the respondents’ accounting skills in terms of

collection and disbursement of funds, those with eligibility (9.50) has a higher

mean rank than those without eligibility (4.50). Moreover, there was a significant

difference in the mean rank of the accounting skills in terms of collection and

disbursements when grouped according to their eligibility. In terms of preparation

of source documents, report and forms, the mean rank of those with eligibility

(8.50) has a higher mean rank than those without eligibility (4.75). Hence, the

overall mean rank of accounting skills of the respondents with eligibility (Mn.

rank =9.50) were higher than the overall mean rank of accounting skills of the

respondents without eligibility (Mn. rank =4.50).

On the other hand, there was a significant difference in the overall

accounting skills on the collection, disbursement and preparation of reports of the

barangay treasurers when they were grouped according to their eligibility (p

≤.05).

The Barangay Official Eligibility (BOE) is granted to Barangay Officials

including the Barangay Treasurer based strictly on the completion of terms in

 Accounting Knowledge and Skills of Selected
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Saint Mary’s University

pursuant to Republic Act (R.A) No. 7160 or otherwise called the Local

Government Code of 1991. The Barangay Official Eligibility (BOE) is an

appropriate consideration for appointment to first level positions in the career

service

(e) Trainings and Seminars for Barangay Treasurers

Table 28. Comparison in the Accounting Skills of the Respondents when grouped
according to the Trainings and Seminars they attended
Descriptive Kruskal Wallis Test
Mean Chi- Asymp.
Training and Seminars N df
Rank Square Sig.
None 3
Accounting
Regional/National 3 3.83
Skills
(Collection) Municipal/Provincial 4 4.13
Total 10 .032 1 .858
None 3
Accounting Regional/National 3 5.00
Skills
(Disbursement) Municipal/Provincial 4 3.25
Total 10 1.145 1 .285
Accounting
Skills None 3
(Preparation
Regional/National 3 4.33
of Source
Documents, Municipal/Provincial 4 3.75
Report and
Forms) Total 10 .137 1 .711
None 3 6.50
Accounting
Regional/National 3 5.67
Skills
(Overall) Municipal/Provincial 4 4.63
Total 10 .738 2 .692

Table 28 summarizes the results of the Kruskal Wallis Test that was used

to determine if there is a significant difference in the accounting skills of the

respondents when grouped according to the training and seminars they attended.
 Accounting Knowledge and Skills of Selected
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Saint Mary’s University

The table shows that the overall mean rank of accounting skills of the

respondents with no trainings and seminars indicated is the highest among them

(Mn. rank =6.50), followed by the overall mean rank of the respondents with

regional and national trainings and seminars (Mn. rank =5.67) and lastly, the

overall mean rank of accounting skills of the respondents who have municipal and

provincial trainings and seminars (Mn. rank =4.63). It can be inferred that the

overall accounting skills on the collection, disbursement and preparation of

source documents, report and forms of the barangay treasurers has no significant

difference when they were grouped according to the training and seminars they

attended (p ≥ .05). This designates that the respondents’ accounting skills in terms

of collection, disbursement and preparation of records were the same regardless

of trainings and seminars they attended.

Though trainings and seminars are conducted for barangay treasurers, it

remained apparent that some still have trouble in the performance of their

responsibilities. This is evidenced by delayed submission of reports, inaccurate or

improperly accomplished needed documents and sometimes non-preparation of

the required reports. (Bueno, et al)

(f) Number of Years in Service

Table 29. Comparison in the Accounting Skills of the Respondents when grouped
according to the Number of Years in Service
Descriptive Mann-Whitney Test
Number of Years Mean Asymp. Exact
N
in Service Rank Sig. Sig.
 Accounting Knowledge and Skills of Selected
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Saint Mary’s University

Accounting 10 years and below 5 6.00

Skills 11 and above 5 5.00
(Collection) Total 10 .600 .690b
Accounting 10 years and below 5 5.20
Skills 11 and above 5 5.80
(Disbursement) Total 10 .753 .841b
Accounting
10 years and below 5 6.50
Skills
(Preparation of 11 and above 5 4.50
Source Documents,
Report and Forms) Total 10 .289 .310b
10 years and below 5 5.80
Accounting
11 and above 5 5.20
Skills (Overall)
Total 10 .754 .841b

Mann-Whitney Test was used to determine the significant differences in

the accounting skills of the respondents when compared to the category of

number of years in service.

As presented in Table 29, the table shows that the accounting skills in

terms of collection of funds, the respondents with 10 years and below in service

(6.00) have a higher mean rank than those with 11 years and above in service

(5.00). In terms of disbursement of funds, the mean rank of those with 10 years

and below in service (5.20) were lower than those with 11 years and above in

service (5.80). In terms of preparation of source documents, report and forms, the

mean rank of those with 10 years and below in service (6.50) were higher than

those with 11 years and above in service (4.50). Hence, the overall mean rank of

accounting skills of the respondents with 10 years and below in service (Mn. rank
 Accounting Knowledge and Skills of Selected
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87

Saint Mary’s University

=5.80) were higher than the overall mean rank of accounting skills of the

respondents with 11years and above in service (Mn. rank =5.20).

On the other hand, there was no significant difference in the overall

accounting skills on the collection, disbursement and preparation of reports of the

barangay treasurers when grouped according to the number of years in service (p

≥ .05). Therefore, it can be assumed that the respondents’ accounting skills in

terms of collection, disbursement and preparation of reports were the same

regardless of the respondents’ years in service.

Gareth Davage states that a well-rounded skills is vital in today’s

competitive job markets. Davage added, gaining work experience is essential

because it will significantly develop one’s skills.

Section 6. Relationship of the Accounting Knowledge and Accounting Skills

of Barangay Treasurers in terms of:

(a) Collection or Receipt of Funds

Table 30. Relationship between the Accounting Knowledge and Skills in terms of
Collection or Receipt of Funds

Accounting Skills
(Collection)

Accounting
Pearson Correlation .308
Knowledge Sig. (2-tailed) .386
(Collection) N 10

Table 30 presents the Pearson Correlation and significant asymptote of the

accounting knowledge and skills on collection having r = .308 and p = .386. R-

 Accounting Knowledge and Skills of Selected
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Saint Mary’s University

values are significant at or less than 0.01 and at or less than 0.05 level of

confidence. Since the computed sig (2-tailed) values for the correlation of the

accounting knowledge and skill as to collection are greater than 0.01 and 0.05, the

researchers concluded that there is no significant correlation between the two

variables. That means, there is no significant relationship between the accounting

knowledge and skills in terms of collection or receipt of funds that can be

attributed to profile variables, thus, accepting the null hypothesis at 0.01 and 0.05

level of confidence.

However, in the study of Bueno, D. et al (n.d.) entitled, “Barangay

Treasurers’ Competencies, Cash Control, Supply and Property Management

Practices at the Local Government of Olongapo City”, with the inclusion of all

(17) barangay treasurers, it was found that there is a moderate correlation between

knowledge competency of barangay treasurers and skills in terms of collection

with r-value of 0.470 on knowledge and 0.510 on skills. It is also indicated in the

same study that there is a significant relationship between the knowledge and

skills as to collection with p-values of 0.000 and 0.000, respectively.

(b) Disbursement of Funds

Table 31. Relationship between the Accounting Knowledge and Skills in terms of
Disbursement of Funds

Accounting Skills
(Disbursement)

Accounting
Pearson Correlation .497
Knowledge Sig. (2-tailed) .144
(Disbursement) N 10
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Table 31 presents the Pearson Correlation and significant asymptote of the

accounting knowledge and skills concerning disbursement having r = .497 and p

= .144. The table shows that profile variables have no significant relationship

with accounting knowledge and skills as to disbursements.

On the other hand, the study of Bueno, D. et al (n.d.) showed that there is

a moderate correlation between knowledge competency of barangay treasurers

and skills in terms of disbursement of funds with r-value of 0.454 on knowledge

and 0.528 on skills. The results of the study also indicated that there is a

significant relationship between knowledge and skills as to disbursement with p-

values of 0.001 and 0.000, respectively.

(c) Preparation of Source Documents, Report and Forms

Table 32. Relationship between Accounting Knowledge and Skills in terms of

Preparation of Source Documents, Report and Forms

Accounting Skills
(Preparation of Source
Documents, Report
and Forms)

Accounting Pearson Correlation -.255

Knowledge Sig. (2-tailed) .477
(Preparation of N 10
Source Documents,
Sig. (2-tailed)
Reports and Forms)
N 10

Table 32 presents the Pearson Correlation and significant asymptote of the

accounting knowledge and skills on the preparation of source documents and

reports having r = -.255 and p = .477. The table shows that there is no significant
 Accounting Knowledge and Skills of Selected
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relationship between accounting knowledge and skills as to preparation of source

documents, report and forms when grouped according to profile variables.

It was assessed that barangay treasurers have a very high competence in

handling figures, managing of cash and have skill to prepare summary of reports

on collections, deposits and checks issued. From the assessment made from the

study of Bueno, D. et al (n.d.), barangay treasurers are highly competent about

knowledge on systems and manual procedures in managing of barangay funds

and property. The respondents were also competent in the familiarization of laws

and regulation concerning the work of a collecting or disbursing officer.

Moreover, knowledge is vital as every barangay transactions need to comply with

laws, rules and regulations mostly for document requirements.

Table 33. Relationship between the Overall Accounting Knowledge and Overall
Accounting Skills

Accounting Skills

Accounting
Pearson Correlation .239
Knowledge Sig. (2-tailed) .507
N 10

Table 33 presents the Pearson Correlation and significant asymptote of the

accounting knowledge and accounting skills having r = .239 and p = .507. The

table shows that there is no significant relationship between the overall

accounting knowledge and overall accounting skills.

 Accounting Knowledge and Skills of Selected
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In contrary, the study of Bueno, D. et al (n.d.) presented that barangay

treasurers were assessed to have high competencies in terms of knowledge and

skills. Since among the duties of the barangay treasurers as discussed under Sec.

395 of the LGC of 1991 is to collect and issue official receipts, deposit all

collections in the account of the barangay, disburse funds in accordance with the

financial procedures provided in the Code and prepare reports for submission of

detailed statements of income and expenditures for the barangay budgets.

Therefore, it is important that they were assessed to have an adequate knowledge

about collection, deposit, disbursement functions and preparation of source

documents, report and forms.

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CHAPTER 5

SUMMARY, CONCLUSIONS, AND RECOMMENDATIONS

Summary

This research study sought to determine the extent of accounting

knowledge and skills of selected barangay treasurers in Diffun, Quirino

specifically the accounting knowledge and skills in collection and disbursement

of funds and the preparation of source documents, report and forms.

This study was conducted in the municipality of Diffun, Quirino. The

research respondents are ten (10) selected barangays with an IRA ranging from

the amount of P2, 000, 000 and above based on the recorded 2018 barangay IRAs

in the municipality of Diffun, Quirino. This study used descriptive-quantitative-

comparative-correlational type of research. To gather the data, an examination

survey and aptitude tests composing of practical problems was used. The

examination survey focused on determining the accounting knowledge in terms of

collections/receipts and disbursements of barangay funds and in the preparation of

source documents report, and forms. Meanwhile, the aptitude tests aimed to

determine the accounting skills in terms of collections/receipts and disbursements

of barangay funds and in the preparation of source documents reports, and forms.

It partially adapted and based the examination survey from the study, “The Level

of Knowledge on Treasury Operations of Barangay Treasurers in Bayombong,

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Saint Mary’s University

Nueva Vizcaya” (Laranang et al, 2015). It was based on the Manual of Financial

Management of Barangays issued by the Commission on Audit (COA), Local

Government Code of the Philippines in 1991 (Book II and Book III) and some

items from the Barangay Systems and Procedures Manual.

SUMMARY OF FINDINGS

1. What is the profile of the respondents in terms of

1.1 Sex

Majority of the respondents are female with a number of eight (8)

out of ten (10) respondents.

1.2 Age

Equally, the respondents fall in the middle aged bracket of 28-40

and late adulthood aged bracket of 41-84.

1.3 Highest Educational Attainment

Most of the respondents are college graduates totaling eight (8) out

of ten (10).

1.4 Certification/Eligibility

Only two (2) of the respondents listed some of their

certification/eligibility and eight (8) leave it unanswered.

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1.5 Trainings and Seminars Attended for barangay treasurers

Majority of the respondents attended the municipal/provincial

level of trainings and seminars with four (4) indicating therein,

three (3) attended regional/national and three (3) leave it

unanswered.

1. 6 Number of years in service

The respondents have equal range in terms of frequency and

percentage distribution. 5 (50%) respondents have been in the

service ranging from 0-10 years and the other 5 (50%) with years

in service of 11 and above.

2. What is the extent of accounting knowledge of the respondents in a second

class municipality when it comes to:

2.1 collection of funds

Based on the result of the study, majority of the respondents get a high

extent of accounting knowledge in terms of collection of funds.

Most of the respondents did answer the items correctly regarding cash

shortages, official receipt and overages discovered during the cash

count/cash examination. However, they are knowledgeable to a high

extent with regards to the custody of accountable forms, payment of

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obligation through an endorsed checks, preparation of OR copies, and the

collection of funds.

2.2 disbursement of funds

It can be inferred that majority of the respondents get a high extent of

Accounting Knowledge of Barangay treasurers in terms of disbursement

of funds.

It may be inferred that the barangay treasurers are knowledgeable to a

high extent on items dealing with cash advances, requirements and

restrictions before the payment of cash or checks, preparation of

liquidation report, replacement of stale check, reporting of all

disbursement made in check and the authorization of issuing checks. In

contrast, the barangay treasurers are knowledgeable to average extent to

items that deals with the usage of Imprest System in maintaining the Petty

Cash Fund. Also, none of the respondents are knowledgeable with regards

to the separation of petty cash fund with the regular collections and

advances granted for particular purpose. In addition to this, recording of

paid and unpaid disbursement vouchers/payrolls, days to prepare

liquidation report for local/foreign travel, certification and approval of

payment, closing of petty cash fund balance at the end of the year, and

granting of succeeding cash advance payroll before the full liquidation of

the previous cash advance are the items on which the barangay treasurers

are knowledgeable to low extent.

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2.3 preparation of source documents, report and forms

Majority of the respondents got a high extent of accounting knowledge

in terms of preparation of source documents, report and forms.

The respondents are knowledgeable to low extent with regards to

items that deals with the fiscal year of the barangay for accounting

purposes, recording of financial transaction of barangay using the Chart of

Accounts prescribed by the Commission on Audit, and the submission of

estimates of income for the ensuing fiscal year. But none of the

respondents are knowledgeable that the source documents, accounting

forms and reports shall be the basis for recording the transactions in

preparing reports by the Barangay Treasurer.

3. The extent of accounting skills of barangay treasurers in a second class

municipality when it comes to:

3.1 recording of collection of funds

The data shows that majority of the respondents got a low extent of

accounting skills in terms of recording of collection of funds with

percentage of 50%.

3.2 recording of disbursement of funds

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Based on the results, mostly of the barangay treasurers got a low

extent of accounting skills in terms of recording of disbursement of funds

with percentage of 60%.

3.3 preparation of source documents, report and forms

The data reveals that majority of the barangay treasurers got a high

extent of accounting skills in terms of preparation of source documents,

report and forms having a percentage of 60%.

4. Significant difference in accounting knowledge of the respondents in a

second class municipality when grouped according to profile variables

Overall accounting knowledge on collection, disbursement and

preparation of source documents, report and forms of the barangay

treasurers has no significant difference in terms of sex, age, highest

educational attainment, eligibility/certification, trainings and seminars

attended and number of years in service.

5. Significant difference in accounting skills of the respondents in a

second class municipality when grouped according to profile variables

` Overall accounting skills on collection, disbursement and

preparation of source documents and reports of the barangay treasurers

has no significant difference in terms of sex, age, highest educational

attainment, trainings and seminars attended and number of years in

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service. Meanwhile, overall accounting skill on collection, disbursement

and preparation of source documents and reports of the barangay

treasurers has significant difference in terms of eligibility/certification.

6. Significant relationship of the respondents’ accounting knowledge and

skills when grouped according to profile variables

Based on the result of the study, there is no significant relationship

between accounting knowledge and skills when grouped according to

respondents’ profile.

Conclusions

The study conducted has yielded some conclusions based on the findings.

These conclusions are the following:

1. Majority of the barangay treasurers are female. Equally, the respondents

are middle adults and late adults and most of them are college graduates.

Only few of the respondents indicated their certification/eligibility. Also,

the respondents have the same frequency in their number of years in

service ranging from zero to ten years and ten years and above and lastly,

majority of the respondents attended related municipal/provincial level

trainings and seminars.

2. Majority of the barangay treasurers got a high extent of accounting

knowledge in terms of collection and disbursement of funds and the

preparation of source documents, report and forms.

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3. Generally, the barangay treasurers had a low extent of accounting skills in

terms of the recording of collection and disbursement of funds.

Meanwhile, mostly of the respondents had a high extent of accounting

skills in terms of preparation of source documents, report and forms.

4. There are no significant differences of accounting knowledge on

collection, disbursement and preparation of source documents and reports

of barangay treasurers when grouped according to profile variables.

5. This study concluded that eligibility/certification has the only positive and

significant difference in terms of accounting skills on collection,

disbursement and preparation of source documents and reports of

barangay treasurers.

6. The results showed that there are no significant relationships between

accounting knowledge and skills in terms of collection, disbursement and

preparation of source documents and reports that can be attributed to

profile variables.

Recommendations

Future Researchers

1.They must conduct an aptitude test that will cover the whole accounting

operation.

2. They should also broaden the number of respondents to achieve more

accurate results.
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Lawmaking Body

3. The researchers suggest that the following qualifications must be included

in the local government code for the appointment of Barangay treasurers:

a. Must be a graduate of accounting-related course

b. Must have at least 6 months training and apprenticeship

Punong Barangay

4. They must appoint Barangay treasurers based on the existing and the

suggested qualifications above.

Barangay Treasurers

5. They should equip themselves with continuous trainings related to their

work including basic skills in using Microsoft Applications esp. MS Word

and Excel.

6. The outgoing Barangay treasurers must train the incoming Barangay

treasurers.
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