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University of Luzon

College of Accountancy
S.Y. 2013 - 2014


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ABSTRACT
I. Title: BARANGAY FISCAL MANAGEMENT IN
POBLACION,MALASIQUI, PANGASINAN
II. Researchers:
SARAH GUARIN
JOHN REY DL. CABARDO
MELANIE J. NIPAL
GENE G. CASTROVERDE
JEROME P. GONZALES
JEROME A. QUILATES
ZEEJIE R. TORRES
CLIFF ERVIN V. DAVID
III. Type of Document: ACCOUNTANCY THESIS
IV. Type of Publication: UNPUBLISHED
V. Number of Pages:
VI. Advisor: CARMELO JOHN E. VIDAL, MPA, DA
VII. Rationale
The barangay, while considered the smallest political unit in the
country, is similarly bestowed by the Local Government Code of 1991 as
the other levels of local governments with the power to impose, aside
from taxes, fees and charges. Given such powers to generate their own

University of Luzon
College of Accountancy
S.Y. 2013 - 2014


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resources, and amid complaints received by the Department on the
alleged excessive fees and charges, burdensome or extraneous
documentary requirements imposed by some barangays especially on the
issuance of barangay clearance, all City/Municipal Mayors, Sangguniang
Bayan/Panlungsod are enjoined to initiate the conduct of thorough
review of all existing barangay ordinances on regulatory service fees and
charges imposed by the barangay government to ensure that the fees and
charges imposed by the barangays in their respective jurisdictions are
not unjust, excessive, oppressive, confiscatory or contrary to declared
national policy, and that the same have undergone public hearing prior
to its enactment. (Section 186 LGC of 1991)
With the funds barangay grasp, it is important that they must be
properly used for the public purposes only. But doing so is a challenge in
every local government. The management of such fund is very critical
because of its complexity. The very starting point of government projects
ignite in the every small corner of the barangay vicinity. Appropriation of
the funds regarding its generation and at the time of its disbursement
must be managed effectively and efficiently. The role of the Barangay
does not only entail as the basic unit of the government but it has a
greater impact of the national growth. Barangays’ Fiscal Administration

University of Luzon
College of Accountancy
S.Y. 2013 - 2014


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is the core concerned in attaining nation-building. It must be on track at
the very root of governance.
Having acknowledge the degree of complexity of the fiscal
management of a barangay, the researcherswill seek to assess the status
of fiscal management undertaken by Barangay Poblacion, Malasiqui,
Pangasinan specifically those concerning the revenue generation and
disbursement of funds/ actual expenditures. This assessment will
provide the barangay with possible policies and good governance
practicesthat may lead Barangay Poblacion to a higher degree of
credibility.
VIII. Statement of the Problem
This study sought to answer some problems implicated in our
community, particularly in Barangay Poblacion, Malasiqui, involving
fiscal management on the basis of their 2013 fiscal year operations to
provide a basis for imparting recommendations.
Specifically, the investigation aimed to answer the following:
1. What is the status of the fiscal management in Barangay Poblacion,
Malasiqui in terms of :
a. Revenue Generation; and

University of Luzon
College of Accountancy
S.Y. 2013 - 2014


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b. Disbursement of Funds?
2. What problems are encountered in revenue generation and
disbursement of funds in Barangay Poblacion, Malasiqui?
3. What measures can be proposed to improve the fiscal management in
Barangay Poblacion, Malasiqui?
IX. Research Method
The descriptive research design was utilized in this study. The
study employed an interview as a technique in gathering data for it is an
easy way of obtaining information and the researchers had also been
authorized to investigate the government documents of the barangay for
analysis of data collected that are necessaryneeded by the group.
X. Summary Research Findings
I. Status of fiscal management in Barangay Poblacion during the 2013
fiscal year operations
A. Revenue Generation as a Component in Fiscal Management
1. The sources of revenue actually generated in Barangay
Poblacion, Malasiqui on the basis of their 2013 fiscal operations
were: (1)Internal Revenue Allotment Share; (2)Share from Real
Property Tax; (3)Taxes on stores and retailers; (4)Provincial Aid
and Municipal Aid.

University of Luzon
College of Accountancy
S.Y. 2013 - 2014


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The total revenues generated by Barangay Poblacion amounted
to P3,687,479.00. Of this total, the share from the IRA ranked
first with P3,348,479.00 or 94.41%. The income from Real
Property Taxes ranked second with P150,000.00 or 4.07%, the
share from taxes on stores and retailers, third with P50,000.00
or 1.36% and other Aids had the lowest percentages.
2. A greater share of the revenues of the barangay comes from
external sources. External sources contributed P3,487,479.00
or 94.58% to the total revenue while only 5.42% or P200,000.00
accounted for locally sourced revenue.
3. The barangay exercised little effort to maximize their taxing and
other revenue-raising powers as evidenced by the low turn-over
of locally sourced revenue.
B. Disbursement of Funds as a Component of Fiscal Management
1. The available revenue was expended to various expense
categories like Personal Services, Maintenance and Other
Operating Expenses and Capital Outlay.
Total expenditures reached P3,687,479.00. Of this total
expenditures, 55.53% was spent on Personal Services while
25.29 was spent on MOOE and 9.18% for Capital Outlay as to

University of Luzon
College of Accountancy
S.Y. 2013 - 2014


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total expenditure as this was indicated in the Barangay Budget
beforehand.
2. A relatively large percentage of the total revenues were utilized
for Personal Services in the amount of P2,047,668.00 or
55.53%.
II. Problems Encountered in Barangay Fiscal Management
Problems were determined which adversely affect the efficiency of
revenue generation and disbursement of funds, to wit:
1. Revenue Generation
a. Lack of initiative to spur revenue collection
b. Limited revenue and tax bases
2. Disbursement of Funds
a. Lack of technical know-how of the concerned officials
development planning
b. Lack of participation of the residents in barangay development
planning
XI. Conclusions
The conclusions drawn from the findings of the study are:
1. With respect to revenue generation, Barangay Poblacion, Malasiqui
had been highly dependent on external resources of revenue primarily

University of Luzon
College of Accountancy
S.Y. 2013 - 2014


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their share in the IRA, in spite of the enhanced revenue-raising and
taxing powers granted to the barangay governments.
2. With respect to disbursement of funds, the barangay funds are
practically devoted to the payment of Personal Services with little
money left for socio-economic development services.
3. Various problems had come upon the barangay in the course of their
fiscal management. Their adverse effects require that they be
addressed to ensure the smooth flow of fiscal operations in the
barangay.
XII. Recommendations
Based from the findings and conclusions the following
recommendations are offered:
(1) A try-out of the proposed measure presented in Chapter IV must
be considered as a way to improve the fiscal management in the
barangay.
(2) Further evaluation must be done to improve the fiscal
management in the Barangay Poblacion, Malasiqui.



University of Luzon
College of Accountancy
S.Y. 2013 - 2014


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Acknowledgement
The researchers would like to extend their deepest gratitude and
sincere appreciation to those who contributed much for the success of
this study.
First of all, to the Almighty God for his undying love and
overflowing blessings that He has given us to overcome all the obstacles
while making this study.
To our loving parents, we thank you for constant encouragement,
understanding and love.
Dr. Carmelo John Vidal, our professor, for sharing his knowledge
and expertise, and for the time and patience he gave us for our concerns
regarding the study.
To the librarians of the University of Luzon who granted the
researchers their generous services in making their library resources
available during the research conduct.
The authors of the related research studies that served as our
sources of information that contributed a lot to the study, to them we
also express our deepest appreciation.

University of Luzon
College of Accountancy
S.Y. 2013 - 2014


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To the barangay officials of Poblacion, Malasiqui, Pangasinan who
gave their indisputable cooperation during data gathering. We offer you
thanks for the precious trust.
To the panelists who gave their insights and useful suggestions
and advices for the completion of this research study.
To our friends, classmates, and colleagues, who in one way or
another helped us in making this study a success.
The researcher’s thoughtful thanks and apologies are due to those
whose names were overlooked but rendered valuable assistance and
support to the completion of this paper.

The Researchers






University of Luzon
College of Accountancy
S.Y. 2013 - 2014


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Dedication
This research work which was the fruit of labor is earnestly dedicated to
our Almighty Father, for giving us the guidance, knowledge and strength
to surpass the challenge, to our beloved families for all the support and
for being always there, to our instructors and to our friends.
Without their constant inspiration and prayers, this study would not be
successful.

Seyrah
Jnry
Mel
Jin
Erik
Yam
ZJ
Cliff


October 2014
University of Luzon

University of Luzon
College of Accountancy
S.Y. 2013 - 2014


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TABLE OF CONTENTS
Title Page
Abstract i
Acknowledgement viii
Dedication x

CHAPTER
I THE PROBLEM AND ITS BACKGROUND 1
Rationale 1
Conceptual Framework 6
Statement of the Problem 10
Scope and Delimitations 10
Significance of the Study 12
Definition of Terms 13
II REVIEW OF RELATED LITERATURE AND STUDIES 15
Conceptual Literature 15

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College of Accountancy
S.Y. 2013 - 2014


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Research Literature 31
III RESEARCH DESIGN 39
Research Method 39
Locale of the Study 40
Subject of the Study 42
Data Gathering Instrument 42
Data Gathering Procedure 44
Treatment of Data 45
IV DATA PRESENTATION, ANALYSIS
AND INTERPRETATION 46
V SUMMARY of SIGNIFICANT FINDINGS,
CONCLUSION AND RECOMMENDATIONS 58
Summary of Significant Findings 58
Conclusions 61
Reccomendations 62
BIBLIOGRAPHY 63

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College of Accountancy
S.Y. 2013 - 2014


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Books 63
Unpublished Materials 64
Websites 65
APPENDICES 66
CURRICULUM VITAE 73