11

CHAPTER I

INTRODUCTION

Background of the Study

The term local government generally refers to the lower

level of the political structure. It was a political

subdivision constituted by law to oversee the conduct of

local affairs. (Panganiban, Ocampo and De Guzman,1990). The

barangay, which was the focus of this study, was the basic

political unit which serves as the primary planning and

implementing unit of government policies.

The Municipality of Gainza was a fifth class

municipality in the province of Camarines Sur. According to

the 2010 census, the population of Gainza, Camarines Sur is

10,345 making it the least populous municipality in the

province. Gainza was politically subdivided into eight

barangays.

This study aimed to evaluate the extent of compliance

of the eight (8) barangays of Municipality of Gainza to the

New Government Accounting System (NGAs). This would verify

their level of compliance to the given accounting policies,

procedures and standards. It would also determine the

possible reasons of non-compliance such as lack of awareness

 2

about the New Government Accounting System, difficulty in

understanding the policies due to ambiguous statements or

other possible reason that may result to non-compliance to

the specific policies, procedures and standards which the

law provides.

Statement of the Problem

This research intends to assert the Level of Compliance

of eight (8) barangays in Gainza, Camarines Sur in

accordance to New Government Accounting System (NGAs). It

aims to establish the answers to the following:

1 What is the profile of eight (8) barangays in Gainza,

Camarines Sur?

2 What are the policies and procedures stated in New

Government Accounting System (NGAs)?

3 What is the level of compliance to the New Government

Accounting System (NGAs) on payroll process of the eight (8)

barangays in Gainza, Camarines Sur?

Significance of the Study

Commission on Audit. This study will aid the Commission

on Audit in evaluating the present payroll practices of

eight (8) barangays in Gainza, Camarines Sur. This will

assist in determining whether the revised standards and

 3

guidelines in New Government Accounting System are being

applied. And it will also direct them to the articulation of

appropriate action.

Municipality of Gainza. The outcome of this study will

help the municipality of Gainza to determine the extent of

implementation in its eight (8) barangays. They will realize

the need to continuously evaluate the actual problems and

difficulties of its barangays on the enforcement of the

specific policies and procedures stated in New Government

Accounting System (NGAs).

Barangay. This study will help the eight (8) barangays

to evaluate their payroll processing for a more effective

implementation of policies and procedures stated in the New

Government Accounting System (NGAs).

Students. This study will help the students especially

business and accounting majors, to gain awareness about the

importance of the New Government Accounting System Payroll

Process.

Researchers. This study will help the future

researchers to have a significant related study about

Payroll process. It may also serve as a great endeavor for

the future researcher to conduct this kind of research.

 4

Scope and Delimitation of the Study

The study focused on determining the level of

compliance of the eight (8) barangays in Gainza, Camarines

Sur in terms of their payroll processing. The data which

were utilized in this study were gathered from the barangay

treasurer, punong barangay or other authorized person who

had deep knowledge in preparing the payroll of their

barangay through a modified questionnaire which was based on

the specific policies and procedures set by the New

Government Accounting System (NGAs) for barangay level

during the 2nd semester of school year 2015 – 2016.

The study would not cover the calculation and

assessment of salary deductions such as SSS contribution,

Phil Health contribution, PAGIBIG contribution and

withholding tax, due to the fact that we were focused on the

compliance of their payroll process on the guidelines set by

the New Government Accounting System (NGAs).

Definition of Terms

To have a better understanding of what this research

work was all about, some of the following terminologies were

defined:
 5

Appointed Officials. Any person, who comes to the aid of

persons in authority, deemed as an agent of a person in

authority.

Appropriations. Legal authorization directing payment of

government funds for a special purpose. This serves as a

check and balance measure so government funds are only used

for intended projects.

Barangay Officials. They are deemed persons in authority in

their respective jurisdictions. They are mandated to

maintain public order and ensure the protection of life,

liberty and property.

Barangay Sessions. It is the meeting of the group devoted to

a particular activity headed by the Punong Barangay with

his/her barangay council.

Cash Advances. A disbursement (transfer) of funds that are

advanced on the condition that the recipient will spend the

funds for approved purposes only, account to the Government

for spent funds, and return to the Government on specified

date any portion of the funds that has not been spent or

accounted for.

Commission on Audit. It is an independent constitutional

commission established by the Constitution of the

 6

Philippines. It has the primary function to examine, audit

and settle all accounts and expenditures of the funds and

properties of the Philippine government.

Disbursement. Payments of local government expenses used for

day to day operations.

New Government Accounting System. It presents the basic

policies and procedures; the new coding system and chart of

accounts; the accounting books, reports/forms and financial

statements, and illustrative accounting entries to be

adopted by all local government units.

Payroll. This refers to a sum of all financial records of

salaries for an employee, wages, bonuses, and deductions. In

accounting, it refers to the amount paid to employees for

services they provided for during a certain period of time.

CHAPTER II
 7

REVIEW OF RELATED LITERATURE AND STUDIES

This chapter presented the related literature and

studies that gave the researchers an insight to attain a

clearer view on vague points of the study.

Related Literature

The New Government Accounting System (NGAS) was

implemented in the local government units (LGUs) on January

2, 2002. It covered all provinces, cities and

municipalities. The Commission on Audit developed the system

and procedures manual for barangay.

The first manual, on the one hand, is intended for

barangay level. It consists of the complete and simple

operating, recording and reporting procedures. It is a guide

in funds and property management of the barangay. The second

manual on the other hand, is intended for the usage of city

and municipal accountant. It consists of accounting policies

and procedures in accounting for barangay’s property and

funds. It also contains guidelines in preparation of

financial statements and reports.

According to the Commission on Audit, relative to the

implementation of New Government Accounting System (NGAs) in

the barangays, the circular was issued to prescribe the use

 8

of the system and procedures manual on the management of

barangay funds, properties and accounting system manuals.

The article IX-D section (2) of the 1987 Philippine

constitution vested to the Commission on Audit the exclusive

authority to promulgate accounting and auditing rules and

regulations. The manual’s contents includes the policies and

guidelines on the major financial transaction of the

barangay receipts, deposits, appropriation and commitments,

disbursements, inventories, properties, plants and

equipment, public infrastructures and reforestation project

for disbursement.

According to the Commission on Audit, the revocation of

COA Circular No 2009-008 dated November 9, 2009, and

prescribing the use of Punong Barangay’s Certification (PBC)

and COA Auditor’s Advice (CAA). It is the declared policy of

the state that all resources of the government shall be

managed, spent or utilized in accordance with laws and

regulations, and safeguarded against loss or wastage through

i11egal or improper disposition, with a view to ensuring

efficiency, economy and effectiveness in the operations of

the government. The responsibility to take care that such

policy is faithfully adhered to rests directly and primarily

with the chief or head of the government agency concerned

 9

(Section 2, Presidential Decree (P.O.) No. 1445). It is

also a fundamental principle that fiscal responsibility

shall be to the greatest extent, be shared by all those

exercising authority over the financial affairs,

transactions, and operations of the government agency

(Section 4.4,P.O. No. 1445). This Commission is granted the

statutory authority to promulgate accounting and auditing

rules and regulations in order to prevent irregular,

unnecessary, excessive, or extravagant expenditures or uses

of government funds or property (Section 33, P.D. No. 1445).

In pursuance thereof, the Commission promulgated the New

Government Accounting System (NGAS) for barangays

prescribing the processing of all the barangay financial

transactions at their level. As a control measure, COA

Circular No. 2009-008 dated November 9, 2009 was issued by

this Commission for government (barangay) depository banks

to honor/encash checks issued by the barangays only if the

corresponding City/Municipal Accountant's Advice (AA) is

issued, to assure that all barangay disbursements are

covered by proper and duly executed disbursement voucher

certified by the barangay treasurer, approved by the punong

barangay, and completely supported by the required

documents. The foregoing control mechanism has been found,

however, to cause delay in the implementation of barangay

 10

programs and projects, especially those of urgent nature

remain to be known. In light thereof, this Commission

revokes COA Circular No. 2009-008 dated November 9, 2009 and

new guidelines is hereby prescribed in consonance with the

rule making function of this Commission and as provided for

in Section 334 of the Local Government Code of 1991.

Related Studies

Modino 1997, the study entitled “Disbursement Policies

and Barangay Development” determined the level of

implementation of disbursement policies in expenditure of

barangay funds as to; checks and balances, procurement,

timeliness and reporting. It found out that it manifested a

high degree of implementation of disbursement policies. It

regularly complied with Commission on Audit and Department

of Budget and Management fiscal rules and regulation where

policies on check and balances and procurement were highly

implemented because of the stiff sanction. However, it was

found out that a moderate implementation of disbursement

policies along timeless and reporting because of these were

laxities on the enforcement due to human factors. Also, to

determine the factors affect the extent of implementations

of these policies. It was found out among the factors that

affect the implementation of disbursement policies. These

 11

were educational attainment and job competence which equally

obtained the highest scores because of low degree of

implementation of disbursement policies was due to the

limited educational background of the barangay captain and

barangay treasurer. The second highest score was training

and seminars because at the same time this adversely

affected their job competence and working knowledge.

Deuda 1996 in her study “Barangay Fiscal

Administration” stated that barangay officials, particularly

the barangay captains, should have the technical know-how on

proper barangay administration and accountability. There

must also be proper coordination of barangay officials in

the allocation and appropriation of the necessary barangay

programs and projects that are needed by the constituents

for economic development.

Ongog (2009) determined the level of compliance of

selected business establishment to the Philippine Accounting

Standards. It focused on examining the scope and purpose,

components, structure and content and overall considerations

of the financial statement of the business entities.

Moreover, the compliance of the business entities was

interpreted as whether their financial statement have full,

moderate, poor or no compliance to the new Philippine

 12

Accounting Standards. The study also provided information

about the profile of the business entities in Magarao,

Camarines Sur: level of compliance to the selected

accounting standards in Philippines Accounting Standards No.

1: and compared the significant differences between

manufacturing, wholesale trading, wholesale-retail trading

and service business in related to the compliance to the new

Philippine Accounting Standards. The level of compliance of

the business entities in Magarao, Camarines Sur to the

Philippine Accounting Standards No. 1 is moderate. The

wholesale trading have the highest level of compliance to

the Philippine Accounting Standards compared to

manufacturing, wholesale-retail trading and service

business. Micro business enterprises engaged in service have

the lowest compliance. It can also be attributed mainly to

the inability of the owners of the non-compliance business

entities to hire an accountant who will prepare, present and

interpret the financial statement.

Synthesis of the State-of-the-Art

The related studies gave valuable insights as to the

perspective of the present work. Thus, the similarities and

differences of the previous studies with this study were

noted.
 13

The study conducted by Deuda in relation to the present

study emphasized that the barangay officers, especially the

barangay treasurer and the barangay record keeper who were

responsible on payroll processing in their respective

barangays should have technical know-how on the effective

implementation of policies and procedures that are stated in

the New Government Accounting System and should be

performed.

The study conducted by Modino was similar to the

present study in a way that both studies focused on the

disbursement but differ in a way that the former deals with

the level of implementation of disbursement policies while

the latter focuses on level of compliance of payroll

disbursement.

While the study conducted by Ongog was similar to the

present study in a way that both studies focused on level of

compliance. The only difference is the present study focused

in the eight (8) barangays in Gainza, Camarines Sur while

the other study focused on selected business establishments

in Magarao, Camarines Sur.

Gap Bridged by the Study. Despite the number of literature

and studies on level of compliance, payroll procedures, new

government accounting system and other related issues, none

 14

of them have tried to see the level of compliance to the New

Government Accounting System (NGAs) of payroll procedures of

barangays in Gainza, Camarines Sur. This is the uniqueness

and the gap bridged by this study.

Theoretical Framework

The theoretical framework employed in the study was the

Input- Process- Output Model. In the IPO model, a process

was viewed as a series of boxes (processing elements)

connected by inputs and outputs. Information or material

objects flow through a series of task or activities based on

a set of rules or description points. Flow charts and

process diagrams were often used to represent the process.

What goes in is the input; what causes the change is the

process; what comes out is the output. Figure 1 illustrates

the basic IPO model:

Input Process Output

Figure 1. Input-Process-Output Model

The components of the IPO model are defined as:

 15

 Input – The information, ideas, and resources used

 Process – Actions taken upon/using input or stored

material

 Output – Results of the processing that then exit the

system

Conceptual Framework

The conceptual framework is a set of coherent ideas or

concepts organized in a manner that makes it easy for them

to communicate with each other. It uses an IPO model that

shows how the data is bringing together in order to be

processed and provide a certain output. The IPO includes

requirements that are needed for the study.

Figure 2 shown for the input, the researchers sought for the

profiles of eight (8) barangays of Gainza, Camarines Sur:

Generally includes general appropriation ordinance,

designation of officers and basic supporting documents. It

also includes the specific policies and procedures set by

the New Government Accounting System (NGAs). The process

included the collection of data through used of survey

questionnaires, analysis and interpreting data. The output

of the study is to assess the level of compliance pursuant

to existing laws, rules and regulations of the New

 16

Government Accounting System (NGAs) on payroll process of

eight (8) barangays in Gainza, Camarines Sur.

Barangay
profile
INPUT PROCESS
INPUT OUTPUT
General
appropriation
ordinance Collection of Assessment
Designation data through of the Level
of officers survey of
Basic questionnair Compliance
supporting e in the New
documents Analysis of Government
NGAs data Accounting
Operating Interpretatio System
procedures n of data (NGAs)
Recording
procedures
Reporting
procedures
Recommenda
tions
 17

Figure 2. Conceptual Paradigm

Notes

Modino, (1997), “Disbursement Policies and Barangay

Development”, Unpublished Master Thesis, University of Nueva

Caceres, Naga City

Dueda, (1996), “Barangay Fiscal Administration”,

Unpublished Master Thesis, University of Nueva Caceres, Naga

City
 18

Ongog, (2009), “The Level of Complaince to the

Philippine Accounting Standards by selected Business

Establishments in Magarao, Camarines Sur.

Website

http://www.coa.gov.ph/phocadownloadpap/userupload/Issuances/

Circulars/Circ2012/COA_C2012-005.pdf

CHAPTER III

RESEARCH METHODOLOGY

This chapter presents research methods and procedures

that are employed in the study. These include the research

design, description of respondents, research instrument,

data gathering procedure and statistical treatment of data.

 19

Research Design

This study determines the level of compliance of the

eight (8) barangays in Gainza, Camarines Sur. And the

descriptive method is used in this study.

The descriptive method is used to describe the present

condition. The very purpose of this is to find new truth,

which may come in different forms such as increased quantity

of knowledge, a new generalization, or increased insights

into factors, which are operating, the discovery of a new

causal relationship, more accurate formulation of the

problem to be solved and many others.

Since this study measures data that already exists and

the number of respondents is not large, the descriptive

method of study is best suited. It was used to describe the

specific policies and procedures regarding payroll process

set by the New Government Accounting System (NGAs). It

determines the level of compliance of the eight (8)

barangays in Gainza, Camarines Sur in terms of their payroll

processing.

Research Instrument

The instrument used was a researcher-made questionnaire

checklist to gather the needed data for the barangay’s

 20

profile. The questionnaire was drawn out based on the

researcher’s readings, previous studies, professional

literature, published and unpublished thesis relevant to the

study.

In the preparation of the instrument, the requirements

in designing of good data collection instrument were

considered. For instance, the statement describing the

situation or issues pertaining were toned down to

accommodate the knowledge preparedness of the respondents.

The questionnaire developed consisted of two parts: a.)

the profile of the respondents and the specific policies

and, b.) procedures set by the New Government Accounting

System.

Part I is the profile of the respondents in terms of

their general appropriation ordinance, designation of

officers and basic supporting documents for disbursements.

Part II consisted of operating, recording and reporting

procedures set by the New Government Accounting System

(NGAs) that would help the determination of the respondent’s

compliance with the provisions of New Government Accounting

System (NGAs) in connection with the payroll process and

 21

procedures of the eight (8) barangays in Gainza, Camarines

Sur.

The test questionnaire would have 50 questions that

were based on the specific policies and procedures set by

the New Government Accounting System (NGAs). The respondent

would choose from always, often, sometimes, and never and

put a check on the corresponding box which would be based on

the level of compliance of their existing payroll policies

and procedures. Appendix B shows the questionnaire of this

study.

The researchers obtained the respondent’s level of

compliance through self-rating. Level of compliance was

measured with the following rating scale with definitions:

3 – Always

The respondent had outstanding level of compliance on

the specific policies and procedures set by the New

Government Accounting System (NGAs).

 22

2 – Often

The respondent had average level of compliance on the

specific policies and procedures set by the New Government

Accounting System (NGAs).

1 – Sometimes

The respondent had fair level of compliance on the

specific policies and procedures set by the New Government

Accounting System (NGAs).

0 – Never

The respondent had poor level of compliance on the

specific policies and procedures set by the New Government

Accounting System (NGAs).

Respondents of the Study

The respondents in this study were the barangay

treasurers of the eight (8) barangays in Gainza, Camarines

Sur. The number of respondents taken from each barangay was

reflected in Table 1.
 23

TABLE 1

RESPONDENTS BARANGAY

Barangay Number
Barangay DahiligGainza, Cam Sur 1
Barangay NamuatGainza, Cam Sur 1
Barangay CagbungaGainza, Cam Sur 1
Barangay SampalocGainza, Cam Sur 1
Barangay LoobGainza, Cam Sur 1
Barangay MalbongGainza, Cam Sur 1
Barangay 1st District Gainza, Cam Sur 1
Barangay 2nd District Gainza, Cam Sur 1
TOTAL 8

Data Gathering Procedure

Interview. Structured or unstructured interview were

used in order to determine the different practices of the

respondents, the questions and answers given by the

participants served a great help in the construction of the

study, although the question made was not typically used in

the questionnaires.

Questionnaire. The questionnaire was the main tool used

by this study in data gathering. A questionnaire was a

research instrument consisting of series of items and other

prompts for the purpose of gathering information from the

respondents.

Validation of the Questionnaire. The questionnaire used

by the researchers was developed by the group. It was

 24

initially drafted as a result of several readings and

consultations. The draft was presented to the researchers’

research adviser for comments. Group sat together to improve

and revise the questionnaire and incorporated all

suggestions that came out after the validation.

Administration of the Questionnaire. The researcher

would seek permission from the Dean of the College of

Business and Accountancy. Upon approval, the researchers

would administer the questionnaires to the target

respondents. The researcher personally administered the test

questionnaires to the respondents and provided them with

clear instructions on how to answer. The respondents

answered the test questionnaires at their convenient time

and place within the premises of the barangay.

The questionnaires were retrieved in the same day of

the administration. Data that was extracted from the

questionnaires would be classified, organized and tabulated

accordingly.

The researcher tabulated the data gathered from the

answered questionnaires. Analysis and interpretation of data

helped to formulate findings, conclusions and

recommendations.
 25

Scoring. The scoring and verbal interpretations of the

responses were arranged using the Likert-four point scale

given below:

Verbal Rating Scale Interpretation

Value Scale Mean Range Interpretation

3 3 High Compliance

2 1.51-2.99 Moderate Compliance

1 0.01-1.50 Poor Compliance

0 0 No Compliance

Statistical Treatment of Data

After collecting the data needed, the researchers

tabulated and analyzed the gathered data with the help of

statistical tools. The following were the statistical tools

used in this study together with their corresponding

formulas.

The profile of the respondents and the specific

policies and procedures set by the New Government Accounting

System was determined by using a percentage ranking and

weighted mean respectively.

Percentage
 26

Formula

P = F/N x 100

Where:

F = frequency

N = total number of the respondents

P = percentage

Weighted Mean

It is the mean of each weighted value when it is

multiplied by some weight.

Formula

Where:

X = weighted mean

∑ = summation

xi = items given

fi = frequencies

CHAPTER IV

PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA

The findings were presented according to the order of

presentation of the specific questions of the present study.

The results of the data analysis were discussed under the

 27

headings: Barangay profile, general policies and procedures,

operating procedures, recording procedures, reporting

procedures and the level of compliance in the New Government

Accounting System. This chapter provided answers to the

following questions:

1 What is the profile of eight (8) barangays in Gainza,

Camarines Sur?

2 What are the policies and procedures stated in New

Government Accounting System (NGAs)?

3 What is the level of compliance to the New Government

Accounting System (NGAs) on payroll process of the eight

(8) barangays in Gainza, Camarines Sur?

BARANGAY PROFILE

The profile of the barangays in Gainza, Camarines Sur

was taken limitedly to the general appropriation ordinance,

designation of officers, and basic supporting documents for

disbursement. Information regarding the barangay profile for

these needs was obtained from the respondents with the

analyzed data presented in Table 2, 3, and 4.

General Appropriation Ordinance. This attribute was

taken because it provided information as to the legal

authorization directing payment of government funds. This

general appropriation ordinance served as a check and

 28

balance. It measured the utilization of the funds that were

only used for intended purposes. The determination whether

the eight (8) barangays of Gainza, Camarines Sur secured a

general appropriation ordinance before directing any payment

of barangay funds was shown in Table 2.

TABLE 2

General Appropriation Ordinance

Number of
Statement Respondent Percentage
Approved General Appropriation Ordinance 8 100%
for the year 2015

It could be seen from Table 2 that all eight (8)

barangays (100%) were able to provide General Appropriation

Ordinance in compliance with the provision of the Philippine

Constitution regarding the use of government funds. “Art.

VI, Sec. 29. No money shall be paid by the Treasury except

in pursuance of an appropriation made by law.”

Designation of Officers. In accounting profession

designating officers means establishing processes and

procedures that involve more than one person to complete a

full cycle of one transaction type. It was important to

designate position involving two or more people to prevent

one person from gaining complete control over a single

 29

process thereby reducing the opportunities for such acts of

fraud and potential errors to occur. The designations of

officers of the respondents were shown in Table 3.

TABLE 3

Designation of Officers

Number of
Statement Respondent Percentage
Barangay Record Keeper 0 0%
Chairman, Commission on Appropriations 8 100%

The above table showed that the eight (8) barangays of

Gainza, Camarines Sur did not designate a barangay record

keeper but all of the barangays had their own chairman,

commission on appropriations.

Basic Supporting Documents for Disbursement. Properly

accounting for each and every individual transaction in the

barangay was extremely important. It was the summation of

every individual transaction that culminated in a set of

financial statements. Proper maintenance of source

documentation was a key and often overlooked factor to

ensure proper and accurate transactions were posted to the

accounting system. Source documents were the foundation and

primary evidence to support an individual financial

transaction that had been occurred in barangay. The basic

 30

supporting documents for disbursement that the respondents

considered for payment of salaries/honoraria and other

personal services, for cash advance for payroll and

liquidation of cash advanced were shown in Table 4.

TABLE 4

Basic Supporting Documents for Disbursement

Statements Frequency Percentage

For payment of salaries/honoraria and
other personal services.
a Approved payroll supported by Daily 8 100%
Time Record (DTR).
b Minutes of meeting of the SB duly 8 100%
signed by the members of the SB and
Barangay Secretary.
c Approved application for leave (for 0 0%
leave with pay).
d Approved appointment, Oath office, 7 87.5%
Certificate of Assumption of Office
and Statement of Assets and
Liabilities for newly hired
employees (for first claim)
 31

For cash advance for payroll 6 100%

Liquidation of cash advanced 6 100%

Providing source documentation was a key and often

overlooked factor to ensure proper and accurate transactions

were posted to the accounting system of the barangay. Table

4 clearly showed that all eight (8) barangays (100%) were

able to provide approved payroll supported by log book

instead of a daily time record (DTR) and minutes of meeting

of the SB duly signed by the members of the SB and barangay

secretary as one of the basic supporting documents for

payment of salaries/honoraria and other personal services.

There were seven (7) respondents or 87.5% that secure an

approved appointment, Oath office, certificate of assumption

of Office and statement of assets and liabilities for newly

hired employees (for first claim). While none of the

respondents were able to provide an approved application for

leave (for leave with pay) because the respondents explained

that the transaction related to this document were not

practiced in their barangay. It could also be observed from

table 4 that six (6) respondents were able to provide a net

amount of approved payroll for the period as a supporting

document for cash advances and paid disbursement

 32

voucher/payroll as a supporting document to liquidate cash

advances.

GENERAL POLICIES AND PROCEDURES

General policies and procedures provide the framework

within which barangay operates. They define what the

barangay does and how they do it. Clear policies and

procedures support effective decision making and delegation

because they provide guidelines on what people can and

cannot do and what decisions they can make and what

activities are appropriate.

Operating Procedures. Existing rules and regulations require

that all disbursements of public funds be supported by

documents necessary to prove their validity, propriety and

legality. The basic policies on disbursement are shown in

Table 5.

Disbursement by Check. Table 5 indicates the specific

policies and procedures regarding disbursement through

payroll. This specific policies and procedure includes that

the disbursement of fund is made only on duly certified and

approved payroll. The payrolls are prepared by the barangay

record keeper. The barangay treasurer is responsible for

paying claims against the barangay. All claims are approved

 33

by the punong barangay and certified as to the validity,

propriety and legality of the claim. Payments are drawn

against the depository account maintained with depository

bank by the barangay. The check is issued in the name of the

payee as indicated in the payroll. The check is signed by

the barangay treasurer and countersigned by the punong

barangay. All disbursement by checks is reported in the

summary of checks issued, in case checks are waylaid, lost

through theft or force majeure, etc., the barangay treasurer

is immediately notify and issue a stoppage of payment notice

to the bank and stale check is reported only when the

original is submitted to the barangay treasurer for

replacement.

TABLE 5

Disbursement by Check

Statements AWM RANK

1. The disbursement of fund is made only on 2.88 3
duly certified and approved payroll.
2. The payrolls are prepared by the barangay 3 1
record keeper.
3. The barangay treasurer is responsible for 2.75 6
paying claims against the barangay.
4. All claims are approved by the punong 3 1
barangay and certified as to the validity,
propriety and legality of the claim.
5. Payments are drawn against the depository 2.5 8
account maintained with depository bank by
 34

the barangay
6. The check is issued in the name of the 2.88 3
payee as indicated in the Payroll.
7. The check is signed by the barangay 2.88 3
treasurer and countersigned by the punong
barangay.
8. All disbursement by checks is reported in 2.63 7
the summary of checks issued.
9. In case checks are waylaid, lost through 0 9
theft or force majeure, etc., the barangay
treasurer is immediately notify and issue a
stoppage of payment notice to the bank.
10. Stale check is reported only when the 0 9
original is submitted to the barangay
treasurer for replacement.
AVERAGE WEIGHTED MEAN 2.81

Legend:
Mean Range Interpretation
3 High Compliance
1.51-2.99 Moderate Compliance
0.01-1.50 Poor Compliance
0 No Compliance

Among the specific policies and procedures on

disbursement by check, the second and fourth statement

ranked 1. It clearly shows that all of the respondents were

able to comply with these specific policies and procedures

set by new government accounting system as indicated by

their weighted mean of 3.0. This means that the payroll are

properly prepared by the responsible person and all claims

directing payment of government funds are approved and

certified as to its validity and legality by the punong

barangay.
 35

The first, sixth and seventh statement of the table

which obtained a weighted mean of 2.875 respectively and

verbally interpreted as moderate compliance ranked 4. The

third statement which obtained a weighted mean of 2.75 was

verbally interpreted as moderate compliance ranked 6.

Ranked 7 was the eighth statement. It had a weighted

mean of 2.63 interpreted as moderate compliance. The fifth

statement had a weighted mean of 2.5 and verbally

interpreted as moderate compliance.

The ninth and tenth statements were interpreted as no

compliance. Because this particular situation were not yet

been encountered by any of the eight (8) barangays of

Gainza, Camarines Sur.

Disbursement out of Cash Advance for Payroll. Table 6

indicates the specific policies and procedures regarding

disbursement out of cash advance for payroll. This specific

policies and procedure includes that cash payments are made

out of the cash advance given to the barangay treasurer. The

cash advance is used solely for payment of salaries,

honoraria and other allowances due the barangay officials

and employees. The cash advance is not used for the

encashment of checks or for liquidation of previous cash

advances. The cash advance is equal to the net amount of the

 36

payroll corresponding to the pay period. The cash advance is

liquidated within five (5) days after the end of the pay

period. Any unclaimed honoraria/salaries/allowances are

refunded to close the account. All paid payrolls are

recorded in the summary of cash payments. The summary of

cash payments supported by paid payroll is accomplished to

support the liquidation of the cash advance for payroll. In

case the cash advance is more than the disbursement, the

excess is returned to the barangay treasurer and an official

receipt is issued and succeeding cash advance is granted

only after full liquidation of the previous cash advance.

TABLE 6

Disbursement out of Cash Advance for Payroll

Statements AWM RANK

1. Cash payments are made out of the cash 2.50 3
advance given to the Barangay Treasurer.
2. The cash advance is used solely for 2.33 6
payment of salaries, honoraria and other
allowances due the barangay officials
and employees.
3. The cash advance is not used for the 3 1
encashment of checks or for liquidation
of previous cash advances.
4. The cash advance is equal to the net 2.17 7
amount of the payroll corresponding to
the pay period.
5. The cash advance is liquidated within 1.17 10
five (5) days after the end of the pay
period.
 37

6. Any unclaimed 1.83 8

honoraria/salaries/allowances are
refunded to close the account.
7. All paid payrolls are recorded in the 2.50 3
Summary of Cash Payments.
8. The Summary of Cash Payments supported 2.50 3
by paid Payroll is accomplished to
support the liquidation of the cash
advance for payroll.
9. In case the cash advance is more than 2.67 2
the disbursement, the excess is returned
to the Barangay Treasurer and an
Official Receipt is issued.
10. Succeeding cash advance is granted 1.67 9
only after full liquidation of the
previous cash advance.
OVERALL WEIGHTED MEAN 1.93

Legend:
Mean Range Interpretation
3 High Compliance
1.51-2.99 Moderate Compliance
0.01-1.50 Poor Compliance
0 No Compliance
Among the specific policies and procedures on

disbursement out of cash advance for payroll, the third

statement ranked 1. It clearly showed that most of the

respondents were able to comply with this specific policy

and procedure as indicated by its weighted mean of 3.0.

Ranked 2 was the ninth statement. It had a weighted

mean of 2.67 interpreted as moderate compliance. This means

that if the cash advance was more than the disbursement, the

excess were returned to the barangay treasurer in order to

close the account and issue an official receipt to serve as

evidence that the excess from the cash advance was returned.
 38

The first, seventh and eighth statement of the table

which obtained a weighted mean of 2.5 respectively and

verbally interpreted as moderate compliance ranked 3. The

second statement which obtained a weighted mean of 2.33 was

verbally interpreted as moderate compliance ranked 6.

Ranked 7 was the fourth statement. It had a weighted

mean of 2.17 interpreted as moderate compliance. The sixth

statement had a weighted mean of 1.83 and verbally

interpreted as moderate compliance. While the tenth

statement which obtained a weighted mean of 1.67 was

interpreted as moderate compliance ranked 9.

The fifth statement was interpreted as poor compliance.

Because the respondents are not oftenly liquidate the cash

advance within five days after the end of pay period.

Recording Procedures. To adequately monitor the

accountability of the barangay treasurer over the

disbursements of barangay funds, appropriate documents have

to be submitted to the barangay record keeper to serve as a

basis in recording disbursements in the registers and in the

preparation of the necessary reports. The basic policies and

procedures in recording disbursements are shown in Table 7.

Disbursement by Check. Table 7 show the level of

compliance in new government accounting system of payroll

 39

procedures regarding to disbursement of check. Payroll

procedures compliance in this aspect was appraised along

five statements including that all checks issued including

cancelled ones are recorded by barangay treasurer in correct

numerical sequence in the summary of checks issued.

Recordings are based on the original paid payroll supported

with carbon copy of the checks issued and other supporting

documents. All the checks issued are recorded daily by the

barangay treasurer in the summary of checks issued. The

summary of checks issued is sub totaled and recorded in the

cash on hand and in bank register daily. And the summary of

checks issued is submitted to the barangay record keeper for

recording in the check disbursement register weekly.

TABLE 7

Disbursement by Check

Statements AWM RANK

1 All checks issued including cancelled ones are 2.63 1
recorded by Barangay Treasurer in correct
numerical sequence in the Summary of Checks
issued.
2 Recordings are based on the original paid Payroll 2.38 2
supported with carbon copy of the checks issued
and other supporting documents.
3 All the checks issued are recorded daily by the 1.88 3
Barangay Treasurer in the Summary of Checks
Issued.
4 The Summary of Checks Issued is sub totaled and 1 4
recorded in the Cash on Hand and in Bank Register
daily.
5 The Summary of Checks Issued is submitted to the 0.38 5
Barangay Record Keeper for recording in the Check
Disbursement Register weekly.
 40

OVERALL WEIGHTED MEAN 1.65

Legend:
Mean Range Interpretation
3 High Compliance
1.51-2.99 Moderate Compliance
0.01-1.50 Poor Compliance
0 No Compliance

Data above reveals an overall moderate compliance (AWM

– 1.65) of the respondents to the recording procedures in

disbursement by check.

Among the specific recording policies and procedures on

disbursement by check, the first statement ranked 1. It

clearly showed that most of the respondents were able to

comply with this specific recording policy and procedure set

by the New Government Accounting System as indicated by its

weighted mean of 2.63.

The second statement of the table which obtained a

weighted mean of 2.38 was verbally interpreted as moderate

compliance ranked 2. The third statement which obtained a

weighted mean of 1.88 was interpreted as moderate compliance

ranked 3. This result implied that the respondents were

often conformed to the recording policies and procedures of

disbursement by checks that the law provided.

The fourth and fifth statements were interpreted as

poor compliance. Because the timing of recording and

 41

submission of summary of checks issued to the barangay

record keeper were not being properly observed as prescribed

by the provision of the new government accounting system.

Disbursement out of Cash Advance for Payroll. The

result of the survey on the level of compliance in NGAS of

payroll procedures along with the disbursement out of cash

advance for payroll in table 8 showed the level of

compliance of the payroll procedures that were measured

through five statements, namely: Cash advance for payroll

was recorded by the barangay record keeper in the cash

disbursement register based on summary of checks issued

submitted by the barangay treasurer. All payment out of cash

advances for payroll is recorded by the barangay treasurer

in the summary of cash payments based on the paid

disbursement vouchers/payrolls. Submission of the summary of

cash payments to the barangay record keeper is supported

with original paid disbursement vouchers/payrolls.

Liquidation of cash advances are supported by summary of

cash payments and paid disbursement vouchers/payrolls. And

the barangay record keeper is responsible in recording

transactions in the cash disbursement register.

 42

TABLE 8

Disbursement out of Cash Advance for Payroll

Statements AWM RANK

1 Cash advance for payroll is recorded by the 2.67 1
Barangay Record Keeper in the Cash
Disbursement Register based on Summary of
Checks Issued submitted by the Barangay
Treasurer.
2 All payment out of cash advances for 2.5 3
payroll is recorded by the Barangay
Treasurer in the Summary of Cash Payments
based on the paid Disbursement
Vouchers/Payrolls.
3 Submission of the Summary of Cash Payments 2.5 3
to the Barangay Record Keeper is supported
with original paid Disbursement
Vouchers/Payrolls.
4 Liquidation of cash advances are supported 2.5 3
by Summary of Cash Payments and paid
Disbursement Vouchers/Payrolls.
5 The Barangay Record Keeper is responsible 2.17 5
in recording transactions in the Cash
Disbursement Register.
OVERALL WEIGHTED MEAN 2.47

Legend:
Mean Range Interpretation
3 High Compliance
1.51-2.99 Moderate Compliance
0.01-1.50 Poor Compliance
0 No Compliance
 43

Data revealed that, of the five statements, the overall

AWM of disbursement out of cash advance for payroll was 2.47

and equivalent to moderate compliance.

The first statement of the table which obtained a

weighted mean of 2.67 was verbally interpreted as moderate

compliance ranked 1. The second, third and fourth statement

which obtained a weighted mean of 2.50 respectively were

interpreted as moderate compliance ranked 3.

The fifth statement had a weighted mean of 2.17 and was

interpreted as moderate compliance ranked 5. The weighted

mean of the fifth statement of this table shows that the

barangay record keeper was not totally responsible in

recording transactions in the cash disbursement register.

Based on the findings, the responsibility of the

barangay record keeper was assumed by the barangay

treasurer. Because the eight (8) barangays of Gainza,

Camarines Sur did not designate a barangay record keeper.

And failed to appropriate separate funds to account the

honorarium for this particular officer because of

unsustainable resources of the eight (8) barangays.

Reporting Procedure. All disbursements shall be reported to

the City/Municipal Accountant for recording in the barangay

 44

books. The basic policies and procedures in reporting

disbursements are shown in Table 9.

Disbursement by Check. Table 9 shows the basic policies

and procedures in reporting disbursements by checks. The

compliance with this reporting policies and procedures will

be determined through the assessment of the following

statements. The barangay record keeper record check

disbursement based on the certified summary of check issued

in the check disbursement register weekly. At the end of the

month, the check disbursement register is totaled, balanced,

ruled, recapitulated and certified. The barangay record

keeper submits the check disbursement register together with

the summary of checks issued to the city/municipal

accountant for recording of the checks issued in the books

on or before the 5th day of the following month.

TABLE 9

Disbursement by Check

Statements AWM RANK

1. The Barangay Record Keeper record check 1.5 2
disbursement based on the certified Summary of
Check Issued in the Check Disbursement Register
weekly.
2. At the end of the month, the Check Disbursement 2.25 1
Register is totaled, balanced, ruled,
recapitulated and certified.
3. The Barangay Record Keeper submits the Check 1.13 3
Disbursement Register together with the Summary
of Checks Issued to the City/Municipal
Accountant for recording of the checks issued
in the books on or before the 5th day of the
 45

following month.
OVERALL WEIGHTED MEAN 1.63
Legend:
Mean Range Interpretation
3 High Compliance
1.51-2.99 Moderate Compliance
0.01-1.50 Poor Compliance
0 No Compliance
To understand and evaluate the compliance of the

respondents to the reporting policies and procedures

regarding disbursement by checks the following statements

are to be considered.

The second statement ranked 1. It clearly shows that at

the end of the month most of the respondents were able to

total, balanced, ruled, recapitulated and certified the

check disbursement register.

The first and third statement of the table which

obtained a weighted average of 1.50 and 1.13 respectively

were interpreted as poor compliance.

The result of the survey on table 9 showed that most of

the eight (8) respondents were not able to comply with these

specific reporting policies and procedures set by the New

Government Accounting System. Because the timing of

reporting of summary of checks issued and the submission of

the check disbursement register together with the summary of

checks issued to the city/municipal accountant for recording

of the checks issued in the books were not being properly

 46

observed as prescribed by the provision of the new

government accounting system.

The overall weighted mean totaled to 1.63 and was

interpreted as moderate compliance to the specific reporting

policies and procedures concerning disbursement by check.

Disbursement by Cash. Table 10 showed the basic

policies and procedures in reporting disbursements by cash.

The compliance with this reporting policies and procedures

will be determined through the assessment of the following

statements. The Barangay Record Keeper records the cash

disbursement on the certified Summary of Cash payments in

the Cash Disbursement Register. At the end of the month, the

Check Disbursement Register was totaled, balanced, ruled,

recapitulated and certified. The Barangay Record Keeper

submits the certified Cash Disbursement Register to the

City/Municipal Accountant for recording of the payments made

in the books and posting of the transactions to the

subsidiary ledger maintained for the Barangay Treasurer on

or before the 5th day of the following month.

 47

TABLE 10

Disbursement by Cash

Statements AWM RANK

1 The Barangay Record Keeper records the cash 2.5 1
disbursement on the certified Summary of Cash
payments in the Cash Disbursement Register.

2 At the end of the month, the Check 2.5 1

Disbursement Registers totaled, balanced,
ruled, recapitulated and certified.
3 The Barangay Record Keeper submits the 0.75 3
certified Cash Disbursement Register to the
City/Municipal Accountant for recording of
the payments made in the books and posting of
the transactions to the subsidiary ledger
maintained for the Barangay Treasurer on or
before the 5th day of the following month.

OVERALL WEIGHTED MEAN 1.92

Legend:
 48

Mean Range Interpretation

3 High Compliance
1.51-2.99 Moderate Compliance
0.01-1.50 Poor Compliance
0 No Compliance

To understand and evaluate the compliance of the

respondents to the reporting policies and procedures

regarding disbursement by cash the following statements were

to be considered.

The first and second statement ranked 1. It clearly

showed that most of the respondents were able to record the

cash disbursement on the certified summary of cash payments

in the cash disbursement register. At the end of the month

the check disbursement register was totaled, balanced,

ruled, recapitulated and certified.

The third statement of the table which obtained a

weighted average of 0.75 was interpreted as poor compliance.

The result of the survey on table 10 revealed that this

specific reporting policy and procedure was not being

properly observed by the eight (8) barangays as to the

timing of reporting and submission of certified cash

disbursement register to the city/municipal accountant on or

before the 5th day of the following month as prescribed by

the provision of the new government accounting system.

 49

The table also showed the overall weighted mean of 1.92

and was interpreted as moderate compliance to the specific

reporting policies and procedures concerning disbursement by

cash.

TABLE 11

Level of Compliance in the New Government Accounting System

of Payroll Procedures

AWM RANK
Operating Procedure 2.47 1
Recording Procedure 2.09 2
Reporting Procedure 1.44 3
OVERALL WEIGHTED MEAN 2.00

Legend:
Mean Range Interpretation
3 High Compliance
1.51-2.99 Moderate Compliance
0.01-1.50 Poor Compliance
0 No Compliance
 50

Table 11 clearly showed that the eight (8) respondents

were able to complied with these specific policies and

procedures as indicated by their overall average weighted

mean of 2.00 interpreted as moderate compliance, this means

that the payroll policies and procedures were moderately

observed in accordance to the provision on the operating,

recording and reporting policies and procedures set by the

New Government Accounting System (NGAs).

The operating procedures ranked first. As indicated by

its weighted mean of 2.47. It stated that the eight (8)

barangays in Gainza, Camarines Sur had moderate compliance

to the specific operating policies and procedures.

Recording procedure which obtained a weighted mean of

2.09 was interpreted as moderate compliance ranked 2. Ranked

3 were reporting procedures. It had a weighted mean of 1.44

and was interpreted as poor compliance.

It stated that the eight (8) barangays of Gainza,

Camarines Sur did not comply well with these specific

reporting policies and procedures. One reason for this poor

compliance was the timing of reporting and submission of

documents and summaries on the date express by law.

 51

CHAPTER V

SUMMARY, CONCLUSION AND RECOMMENDATIONS

This chapter presents the summary, findings,

conclusions and recommendations based from the analysis and

inferences made out of the data gathered.

Summary

This study looked into the level of compliance in the

New Government Accounting System of payroll procedures of

eight (8) barangays in Gainza, Camarines Sur.

 52

There were eight (8) respondents in the barangays of

Gainza, Camarines Sur.

Data were gathered after the permission was given by

the eight (8) barangay treasurer of Gainza, Camarines Sur.

After the permission was given, questionnaire were

distributed, and retrieved. Other data were gathered through

unstructured interview after they were tabulated and treated

statistically through the weighted mean and percentage

technique.

This study aimed to evaluate the extent of compliance

of the eight (8) barangays of Municipality of Gainza to the

New Government Accounting System (NGAs). This would verify

their level of compliance to the given accounting policies,

procedures and standards. It would also determine the

possible reasons of non-compliance such as lack of awareness

about the New Government Accounting System, difficulty in

understanding the policies due to ambiguous statements or

other possible reason that may result to non-compliance to

the specific policies, procedures and standards which the

law provides.
 53

PROBLEM 1. What is the profile of eight (8) barangays in

Gainza, Camarines Sur?

Findings. The findings show that:

The profiles of the eight (8) barangays in Gainza,

Camarines Sur were taken limitedly to appropriation

ordinance, designation of officers and basic supporting

documents for disbursement.

1 All of the barangays (100%) in Gainza, Camarines Sur

were able to provide general appropriation ordinance in

compliance with the provision of the Philippine

Constitution regarding the use of government funds.

2 The eight (8) barangays of Gainza, Camarines Sur did

not (0%) designate a barangay record keeper. In

relation to this the treasurer assumed the

responsibilities and duties of a barangay record

keeper. All treasurers were consulted and admitted that

they did not designate a barangay record keeper due to

lack of fund to account the honorarium for this

particular officer. However all of the barangays (100%)

had their own Chairman, Commission on Appropriations

who were responsible in monitoring the approved

appropriations and the charges against the barangay

funds.
 54

3 All eight (8) barangays (100%) were able to provide an

approved payroll supported by log book instead of a

daily time record (DTR) and minutes of meeting of the

SB duly signed by the members of the SB and barangay

secretary as one of the basic supporting documents for

payment of salaries/honoraria and other personal

services. Whereas, there were seven (7) respondents or

87.5% that secure an approved appointment, oath of

office, certificate of assumption of office and

statement of assets and liabilities for newly hired

employees (for first claim). While none of the

respondents were able to provide an approved

application for leave (for leave with pay) because the

respondents explained that the transaction related to

this document were not practiced in their barangay. In

terms of cash advances for payroll and its liquidation

it revealed that six (6) respondents were able to

provide a net amount of approved payroll for the period

as a supporting document for cash advances for payroll

and the paid disbursement voucher/payroll as a

supporting document to liquidate cash advances.

Conclusions:
 55

1 The existence of appropriation ordinance among the

eight (8) barangays of Gainza, Camarines Sur provides

the legal authority under which the barangay allocates

money to specific spending activities. In addition, the

study inferred that the appropriation ordinance was one

of the most important ordinances adopted each year.

2 It was concluded from the foregoing findings that the

eight (8) barangays of Gainza, Camarines Sur did not

appoint barangay record keeper despite that each

barangay was mandated to designate a barangay record

keeper. In short, the treasurer was the one who assumed

the responsibilities and duties of a barangay record

keeper. In the absence of a proper segregation of

duties there would be a delayed recording in the

registers and summaries. It also caused delayed

submission of necessary financial reports, registers

and summaries to the local government of Gainza,

Camarines Sur.
3 It was deduced from the foregoing findings that all

claims against barangay funds were supported with

proper documentation necessary to prove their validity,

propriety and legality.

Recommendations:

Barangay
 56

In order to materialize the fundamental principles

of financial transactions and operations of the

barangays, the Chairman, Commission on Appropriations

should have a strict monitoring of General

Appropriation Ordinance with focus on subsequent SB

Resolution approving the appropriation and charges

against the barangay funds.

The eight (8) barangays of Gainza, Camarines Sur

should also designate their own barangay record keeper.

And appropriate separate funds to account the BRK’s

salary. As mandated by law that each barangay should

designate a barangay record keeper.

The barangay treasurer should strictly not process

transactions that are not properly documented with the

required supporting documents. Specifically to give

more emphasis on monitoring the appropriate documents

to support cash advances and its liquidation. Punong

barangays are also advised not to approve and disburse

the funds of the barangay without first satisfying the

requirement set by the law.

PROBLEM 2. What are the policies and procedures stated in

New Government Accounting System (NGAs)?

Findings:
 57

The New Government Accounting System (NGAs) was a

simplified set of accounting concepts, guidelines and

procedures designed to ensure correctness, completeness and

timeliness in the recording of government financial

transactions and production of financial reports.

OPERATING PROCEDURES
Disbursement by Check
Statements
1 The disbursement of fund is made only on duly certified
and approved payroll.
2 The Payrolls are prepared by the Barangay Record Keeper.
3 The Barangay Treasurer is responsible for paying claims
against the barangay.
4 All claims are approved by the Punong Barangay and
certified as to the validity, propriety and legality of
the claim.
5 Payments are drawn against the depository account
maintained with depository bank by the barangay
6 The check is issued in the name of the payee as
indicated in the Payroll.
7 The check is signed by the Barangay Treasurer and
countersigned by the Punong Barangay.
8 All disbursement by checks is reported in the Summary of
Checks Issued.
9 In case checks are waylaid, lost through theft or force
majeure, etc., the Barangay Treasurer is immediately
notify and issue a Stoppage of Payment notice to the
bank.
10 Stale check is reported only when the original is
submitted to the Barangay Treasurer for replacement.

Disbursement out of Cash Advance for Payroll

Statements

1 Cash payments are made out of the cash advance given to

the Barangay Treasurer.
2 The cash advance is used solely for payment of salaries,
honoraria and other allowances due the barangay
officials and employees.
 58

3 The cash advance is not used for the encashment of

checks or for liquidation of previous cash advances.
4 The cash advance is equal to the net amount of the
payroll corresponding to the pay period.
5 The cash advance is liquidated within five (5) days
after the end of the pay period.
6 Any unclaimed honoraria/salaries/allowances are refunded
to close the account.
7 All paid payrolls are recorded in the Summary of Cash
Payments.
8 The Summary of Cash Payments supported by paid Payroll
is accomplished to support the liquidation of the cash
advance for payroll.
9 In case the cash advance is more than the disbursement,
the excess is returned to the Barangay Treasurer and an
Official Receipt is issued.
10 Succeeding cash advance is granted only after full
liquidation of the previous cash advance.

RECORDING PROCEDURES
Disbursement by Check
Statements

1 All checks issued including cancelled ones are recorded

by Barangay Treasurer in correct numerical sequence in
the Summary of Checks issued.
2 Recordings are based on the original paid Payroll
supported with carbon copy of the checks issued and
other supporting documents.
3 All the checks issued are recorded daily by the Barangay
Treasurer in the Summary of Checks Issued.
4 The Summary of Checks Issued is sub totaled and recorded
in the Cash on Hand and in Bank Register daily.
5 The Summary of Checks Issued is submitted to the
Barangay Record Keeper for recording in the Check
Disbursement Register weekly.

Disbursement of Cash Advance for Payroll

 59

Statements

1 Cash advance for payroll is recorded by the Barangay

Record Keeper in the Cash Disbursement Register based
on Summary of Checks Issued submitted by the Barangay
Treasurer.
2 All payment out of cash advances for payroll is
recorded by the Barangay Treasurer in the Summary of
Cash Payments based on the paid Disbursement
Vouchers/Payrolls.
3 Submission of the Summary of Cash Payments to the
Barangay Record Keeper is supported with original paid
Disbursement Vouchers/Payrolls.
4 Liquidation of cash advances are supported by Summary
of Cash Payments and paid Disbursement
Vouchers/Payrolls.
5 The Barangay Record Keeper is responsible in recording
transactions in the Cash Disbursement Register.

REPORTING PROCEDURES
Disbursement by checks
Statements

1 The Barangay Record Keeper record check disbursement

based on the certified Summary of Check Issued in the
Check Disbursement Register weekly.
2 At the end of the month, the Check Disbursement
Register is totaled, balanced, ruled, recapitulated
and certified.
3 The Barangay Record Keeper submits the Check
Disbursement Register together with the Summary of
Checks Issued to the City/Municipal Accountant for
recording of the checks issued in the books on or
before the 5th day of the following month.

Disbursement by Cash
Statements

1 The Barangay Record Keeper records the cash

disbursement on the certified Summary of Cash
 60

payments in the Cash Disbursement Register.

2 At the end of the month, the Check Disbursement
Register is totaled, balanced, ruled, recapitulated
and certified.
3 The Barangay Record Keeper submits the certified
Cash Disbursement Register to the City/Municipal
Accountant for recording of the payments made in
the books and posting of the transactions to the
subsidiary ledger maintained for the Barangay
Treasurer on or before the 5th day of the following
month.

Conclusions:

1 The New Government Accounting System was designed to

ensure correctness, completeness and timeliness in the

recording of government financial transactions and

production of financial reports. It was found out that

there were possible reasons why the barangays did not

follow some of the payroll procedures stated in NGAs.

The possible reasons were the unawareness of the

policies and procedures set by the New Government

Accounting System and the difficulty on understanding

this due to ambiguous statements.

Recommendations:

Commission on Audit

There must be an intensive orientation and

consultation about the policies, procedures and standards

set by the New Government Accounting System so that the

barangay treasurers and other concerned officials will be

 61

able to clearly understand and properly implement the

policies and procedures stated in NGAs.

PROBLEM 3. What is the level of compliance to the New

Government Accounting System (NGAs) on payroll process of

the Barangays in Gainza, Camarines Sur?

Findings:

1 In terms of the level of compliance in the New

Government Accounting System of Payroll procedures, the

Operating procedures had moderate level of compliance

as indicated by its weighted mean of 2.47

2 As to recording procedures it could be seen that it

obtained a weighted mean of 2.09 and was interpreted

that the barangays of Gainza, Camarines Sur had

moderate level of compliance.

3 As to reporting procedures, which obtained a weighted

mean of 1.44 could mean that the Barangays in Gainza

Camarines Sur had poor level of compliance to the

reporting policies and procedures of NGAs.

Conclusions:

1 It was concluded from the foregoing findings that the

specific operating policies and procedures of the

barangay funds pursuant to existing laws, rules and

regulations have moderately complied by the eight (8)

 62

barangays of Gainza, Camarines Sur. This result was

greatly influenced by the failure of the eight (8)

barangays to designate a barangay record keeper and the

inadequate monitoring of the appropriate documents to

support cash advances and its delayed liquidation

contrary to the prescribed period set by the New

Government Accounting System (NGAs).

1. The eight (8) barangays of Gainza, Camarines Sur had

been found out to be moderately complied with NGAs

fiscal rules and regulation where policies on recording

disbursements by check and disbursement of cash advance

for payroll were moderately implemented. This result

was greatly influenced by the failure of the eight (8)

barangays to designate a barangay record keeper. Since

the barangay record keeper was the one responsible in

recording disbursements in the registers and in the

preparation of the necessary financial reports. It was

significant that the eight (8) barangays should appoint

a barangay record keeper for an effective management

and disbursement of barangay funds.

2. It was deduced from the foregoing findings that the

reasons for poor compliance of eight (8) barangays were

the timing of reporting and submission of documents and

summaries within the prescribed period of law.

 63

Recommendations:

Barangay

The management of the eight (8) barangays should

consistently monitor the specific operating policies

and procedures to ensure the strict adherence to the

rules and regulation provided in the provisions of New

Government Accounting System. Specifically to give more

emphasis on monitoring of the appropriate documents to

support cash advances and to strictly enforce that the

cash advances is liquidated within five (5) days after

the end of the pay period.

For an effective management and disbursement of

barangay funds the researchers recommend that there

should a proper segregation of duties and a need to

designate a barangay record keeper so that there would

be no delayed recording of disbursements in the

registers and preparation of the necessary financial

reports. Furthermore, the management of the eight (8)

barangays should also strictly enforce the periodic

submission of reports within the prescribed period in

order to avoid delayed submission of the necessary

financial reports, registers and summaries to the

Municipality of Gainza, Camarines Sur.

 64

Municipality of Gainza, Camarines Sur

The local government of Gainza should look into

the root cause of the delayed preparation and

submission of the reports in the eight (8) barangays of

Gainza, Camarines Sur and immediately take the

necessary action to solve these problems.

 65

BIBLIOGRAPHY

Modino, (1997), “Disbursement Policies and Barangay

Development”, Unpublished Master Thesis, University of Nueva

Caceres, Naga City

Dueda, (1996), “Barangay Fiscal Administration”,

Unpublished Master Thesis, University of Nueva Caceres, Naga

City

Ongog, (2009), “The Level of Compliance to the

Philippine Accounting Standards by selected Business

Establishments in Magarao, Camarines Sur.

Website

http://www.coa.gov.ph/phocadownloadpap/userupload/Issuances/
Circulars/Circ2012/COA_C2012-005.pdf

http://www.philippine-islands.ph/en/gainza-
camarines_sur-philippines-barangays.html
 66

http://www.dbm.gov.ph/wpcontent/uploads/2012/03/BB-
5.pdf
 67

Appendix A
68
69
 70

Appendix B

SURVEY QUESTIONNAIRE

SURVEY QUESTIONNAIRE ON PAYROLL PROCEDURES WITH REFERENCE TO THE

NEW GOVERNMENT ACCOUNTING SYSTEM (NGAs)

Dear Respondent:

The undersigned will conduct a thesis entitled, “The Level of Compliance to the
New Government Accounting System (NGAs) of Payroll Procedures of Barangays in
Gainza, Camarines Sur.”
This study will attempt to evaluate the extent of compliance with the New
Government Accounting System (NGAs) among barangays in the Municipality of Gainza,
Camarines Sur. It will also attempt to determine the possible reasons of non-compliance
to the specific policies, procedures and standards the NGAs provides.
There is no right or wrong answers as long as you did it honestly. Rest assured
that your answers to this survey-questionnaire will be treated with utmost
confidentiality. The survey result will be analyzed for academic purposes.
Thank you for your kind cooperation in the conduct of this study. Your responses
will contribute to this academic research.

Rico C. Balanay Jr.

Kaycee Augie A. Barela

Regine M. Medallon

Cyrene I. Norte

Part I. Barangay Profile

Directions: Please provide the following information either by filling in the data or by
putting a check that corresponds to your response.

Name of Barangay: ______________________________________________________

Punong Barangay (optional): ______________________________________________
Barangay Treasurer (optional): _____________________________________________

General Appropriation Ordinance

Yes No
Does your barangay have an approved General Appropriation
Ordinance for the year 2015 that certifies the availability of
appropriation to cover such obligation?
 71

Designation of Officers
Do you designate the following Officer?
Yes No
Barangay Record Keeper
Chairman, Commission in Appropriations

Basic Supporting Documents for Disbursements

Which of the following basic supporting documents do you consider:
Yes No
1. For payment of salaries/honoraria and other personal services
a. Approved payroll supported by Daily Time Record (DTR)
b. Minutes of meeting of the SB duly signed by the members of
the SB and Barangay Secretary
c. Approved application for leave (for leave with pay)
d. Approved appointment, Oath of office, Certificate of
Assumption of Office and Statement of Assets and Liabilities
for newly hired employees (for first claim)
e. Others (please specify) ____________________
2. For cash advance for payroll
a. Net amount of approved payroll for the period
b. Others (please specify) ____________________
3. Liquidation of cash advances
a. Payroll Fund – paid Disbursement Voucher/Payroll
b. Others (please specify) ____________________

Part II. General Policies and Procedures

Directions: Please rate the following as to the extent of compliance to the specific
policies and procedures set by the New Government Accounting System (NGAs) based
on the following code.

3 – Always
2 – Often
1 – Sometimes
0 – Never

OPERATING PROCEDURES
 72

Disbursement by Check
Statements 3 2 1 0
1. The disbursement of fund is made only on duly certified and
approved payroll.
2. The Payrolls are prepared by the Barangay Record Keeper.
3. The Barangay Treasurer is responsible for paying claims against
the barangay.
4. All claims are approved by the Punong Barangay and certified as
to the validity, propriety and legality of the claim.
5. Payments are drawn against the depository account maintained
with depository bank by the barangay
6. The check is issued in the name of the payee as indicated in the
Payroll.
7. The check is signed by the Barangay Treasurer and countersigned
by the Punong Barangay.
8. All disbursement by checks is reported in the Summary of Checks
Issued.
9. In case checks are waylaid, lost through theft or force majeure,
etc., the Barangay Treasurer is immediately notify and issue a
Stoppage of Payment notice to the bank.
10. Stale check is reported only when the original is submitted to the
Barangay Treasurer for replacement.

Disbursement out of Cash Advance for Payroll

Statements 3 2 1 0
1. Cash payments are made out of the cash advance given to the
Barangay Treasurer.
2. The cash advance is used solely for payment of salaries, honoraria
and other allowances due the barangay officials and employees.
3. The cash advance is not used for the encashment of checks or for
liquidation of previous cash advances.
4. The cash advance is equal to the net amount of the payroll
corresponding to the pay period.
5. The cash advance is liquidated within five (5) days after the end
of the pay period.
6. Any unclaimed honoraria/salaries/allowances are refunded to
close the account.
7. All paid payrolls are recorded in the Summary of Cash Payments.
8. The Summary of Cash Payments supported by paid Payroll is
accomplished to support the liquidation of the cash advance for
payroll.
 73

9. In case the cash advance is more than the disbursement, the

excess is returned to the Barangay Treasurer and an Official
Receipt is issued.
10. Succeeding cash advance is granted only after full liquidation of
the previous cash advance.

RECORDING PROCEDURES
Disbursement by Check
Statements 3 2 1 0
1 All checks issued including cancelled ones are recorded by
Barangay Treasurer in correct numerical sequence in the
Summary of Checks issued.
2 Recordings are based on the original paid Payroll supported with
carbon copy of the checks issued and other supporting
documents.
3 All the checks issued are recorded daily by the Barangay Treasurer
in the Summary of Checks Issued.
4 The Summary of Checks Issued is sub totaled and recorded in the
Cash on Hand and in Bank Register daily.
5 The Summary of Checks Issued is submitted to the Barangay
Record Keeper for recording in the Check Disbursement Register
weekly.
 74

Disbursement of Cash Advance for Payroll

Statements 3 2 1 0
1. Cash advance for payroll is recorded by the Barangay Record
Keeper in the Cash Disbursement Register based on Summary of
Checks Issued submitted by the Barangay Treasurer.
2. All payment out of cash advances for payroll is recorded by the
Barangay Treasurer in the Summary of Cash Payments based on
the paid Disbursement Vouchers/Payrolls.
3. Submission of the Summary of Cash Payments to the Barangay
Record Keeper is supported with original paid Disbursement
Vouchers/Payrolls.
4. Liquidation of cash advances are supported by Summary of Cash
Payments and paid Disbursement Vouchers/Payrolls.
5. The Barangay Record Keeper is responsible in recording
transactions in the Cash Disbursement Register.

REPORTING PROCEDURES
Disbursement by checks
Statements 3 2 1 0
1. The Barangay Record Keeper record check disbursement based on
the certified Summary of Check Issued in the Check Disbursement
Register weekly.
2. At the end of the month, the Check Disbursement Register is
totaled, balanced, ruled, recapitulated and certified.
3. The Barangay Record Keeper submits the Check Disbursement
Register together with the Summary of Checks Issued to the
City/Municipal Accountant for recording of the checks issued in
the books on or before the 5th day of the following month.
 75

Disbursement by Cash
Statements 3 2 1 0
1. The Barangay Record Keeper records the cash disbursement on
the certified Summary of Cash payments in the Cash
Disbursement Register.
2. At the end of the month, the Check Disbursement Register is
totaled, balanced, ruled, recapitulated and certified.
3. The Barangay Record Keeper submits the certified Cash
Disbursement Register to the City/Municipal Accountant for
recording of the payments made in the books and posting of
the transactions to the subsidiary ledger maintained for the
Barangay Treasurer on or before the 5th day of the following
month.

Directions: Please mark one or more box to indicate the answer you consider as the
possible reasons of non-compliance to the specific policies, procedures and standards
the NGAs provides.

Which of the following could be the possible reasons why your barangay does not follow
some of the payroll procedures stated in the New Government Accounting System
(NGAs)?
 Unawareness of the policies and procedures
 No New Government Accounting System (NGAs) Manual
 Difficulty in understanding the policies due to ambiguous statements
 Tedious procedures
 Lack of Forms
 Voluminous data
 Complexity of the system
 Others (please specify) _____________________________________________

I certify that the foregoing responses are accurate and correct to the best of my
knowledge.

_______________________ ______________________ __________________

Signature over Printed Name Position Date signed:
 76

Appendix C
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108
109
110
111
112
113
114
 115

Appendix D
116
117
118
119
120
121
122
123
 124

CURRICULUM- VITAE

RICO C. BALANAY JR.

Zone 6, Bagong Sirang, SanFelipe,Naga City
Cell. No.: 09776152377
 125

Email Address: kayrico07@gmail.com

PERSONAL INFORMATION

Age: 20
Birthday: October 13,1995
Birthplace: Naga City
Gender: Male
Religion: Roman Catholic
Status: Single
Father’s name: Rico Q. Balanay (deceased)
Occupation: N/A
Mother’s name: Ma.Teresa C. Dacuba
Occupation: Housewife

EDUCATIONAL ATTAINMENT

Elementary: Naga Central School

Naga City
2001 – 2008

Secondary: Camarines Sur National High School

Naga City
2008 – 2012

Tertiary: Naga College Foundation

Naga City
2012 – present

Course: Bachelor of Science in Accountancy

Major: Accounting

CURRICULUM- VITAE

KAYCEE AUGIE A. BARELA

Zone 4, Puro-Batia, Libmanan, Camarines Sur
Cell. No.: 09282431318
Email Address: kaycee_18negima@yahoo.com
 126

PERSONAL INFORMATION

Age: 19
Birthday: August 1, 1996
Birthplace: Libmanan, Camarines Sur
Gender: Female
Religion: Roman Catholic
Status: Single
Father’s name: Henrico F. Barela
Occupation: Driver
Mother’s name: Emerlina A. Barela
Occupation: Teacher

EDUCATIONAL ATTAINMENT

Elementary: Fundado Elementary School

Libmanan, Camarines Sur
2001 – 2008

Secondary: Bicol Central Academy

Libmanan, Camarines Sur
2008 – 2012

Tertiary: Naga College Foundation

Naga City
2012 – present

Course: Bachelor of Science in Accountancy

Major: Accounting
 127

CURRICULUM- VITAE

REGINE M. MEDALLON
Bulawan Sr. Lupi, Camarines Sur
Cell. No.: 09087073677
Email Address: reginarejj777@gmail.com

PERSONAL INFORMATION

Age: 19
Birthday: June 1, 1996
Birthplace: Lupi Camarines Sur
Gender: Female
Religion: Iglesia Ni Cristo
Status: Single
Father’s name: Rogelio R. Medallon Sr.
Occupation: N/A
Mother’s name: Anita M. Medallon
Occupation: Teacher-Principal

EDUCATIONAL ATTAINMENT

Elementary: Bulawan Sr. Elementary School

Lupi Camarines Sur
2001 – 2008

Secondary: St. Peter Baptist College Foundation

Lupi Camarines Sur
2008 – 2012

Tertiary: Naga College Foundation

Naga City
2012 – present

Course: Bachelor of Science in Accounting Technology

Major: Accounting
 128

CURRICULUM- VITAE

CYRENE I. NORTE
Zone 1, Sacred Heart St., SanFelipe,Naga City
Cell. No.: 09776152377
Email Address: cyrenenorte@gmail.com

PERSONAL INFORMATION

Age: 21
Birthday: July 1,1994
Birthplace: Paracale Camarines Norte
Gender: Female
Religion: Roman Catholic
Status: Single
Father’s name: Ricky Delos Santos Norte
Occupation: N/A
Mother’s name: Richel Egi
Occupation: Housewife

EDUCATIONAL ATTAINMENT

Elementary: Paracale Elementary School

(2000-2002)
Naga Central School II
(2002-2004)
Pasacao Elementary School
(2004 – 2006)

Secondary: Lyceo de Pasacao

(2006-2008)
Naga College Foundation
(2008 – 2010)

Tertiary: Naga College Foundation

Naga City
2012 – present

Course: Bachelor of Science in Accountancy

Major: Accounting