KNOWLEDGE AND COMPETENCE OF BARANGAY OFFICIALS IN THE

PREPARATION OF ANNUAL AND SUPPLEMENTAL BUDGETS

AN UNDERGRADUATE THESIS
Presented to the Faculty
College of Arts and Sciences
Guimaras State University - Salvador Campus
McLain, Buenavista, Guimaras

In Partial Fulfillment of the Requirements for the Degree

Bachelor of Public Administration

By

Constantino, Gener Rose

Bagonoc, Trixcy
Catanos, Emerson Carl
Dela Cruz, Glezzerie

November 2023
 Chapter 1
INTRODUCTION

Background of the Study

Raising funds, allocating and spending public resources

are considered major activities and the foundation of any

government. The achievement of public policy objectives is

dependent on the availability of resources for the

implementation of programs, activities and projects. Through

proper budgeting, the government is able to maximize the use

of scarce resources to meet the needs of the people as well

as sustain economic growth (DBM Report No 2005 -05).

Budgeting is an essential tool for planning and

control. It involves the steps of setting short or long-term

objectives and programs specifying how resources, primarily

money, will be allocated or spent during a particular

period.

The budget is made to ensure that there is at least a

balance between income earned and the expenses incurred. It

is a comprehensive and coordinated plan, expressed in

financial terms, for the operations and resources of an

agency or institution for some specified period in the

future. In other words, it is a numerical plan of action

that must be prepared in advance of commencing operations,

stating what and how things are to be done. (Dagohoy, 2021)

Article XI of the Philippine Constitution stressed that

"public office is a public trust." All government officials

and employees are at all times accountable to the people.

This particular provision mandates all officials and

employees in the government to serve the people with utmost

integrity, loyalty, responsibility, and efficiency,

including the officials in the basic political unit of the

government, the barangay.

Further, RA 7160, Article 2 obligates the punong

barangays, barangay treasurers, and barangay kagawads to be

the key players in the preparation, authorization,

execution, and accounting of the barangay budget.

The researchers intended to know the knowledge and

competence of Barangay officials in the preparation of

annual and supplemental budget in the Municipality of

Jordan, Guimaras.
STATEMENT OF THE PROBLEM
This study aims to determine the knowledge and

competence of Barangay officials in the preparation of

annual and supplemental budget in the Municipality of Jordan

.Specifically, this study sought answers to the following

questions;

1. What is the profile of the respondents in terms of age,

sex, educational attainment and length of service?

2. What is the level of knowledge of barangay officials

when taken as a whole and when classified according to

age, sex, educational attainment and length of service?

3. What is the level of competence of barangay officials

when taken as a whole and when classified according to

age, sex, educational attainment and length of service?

4. Are there significant differences in the level of

knowledge of barangay officials when taken as a whole

and when classified according to age, sex, educational

attainment and length of service?

5. Are there significant differences in the level of

competence of barangay officials when taken as a whole

and when classified according to age, sex, educational

attainment and length of service?

 6. Are there significant relationship between the level of

knowledge and competence of government of barangay

officials?

Null Hypotheses

The following hypotheses in this study are hereby advance:

1. There are no significant differences in the level of

knowledge of barangay officials when taken as a whole

and when classified according to age, sex, educational

attainment and length of service?

2. There are no significant differences in the level of

competence of barangay officials when taken as a whole

and when classified according to age, sex, educational

attainment and length of service?

3. There is no significant relationship between the level

of knowledge and competence of government of barangay

officials?

Theoretical Framework

This study is anchored on the assertion that the

capability to perform relates to the degree to which an

individual possesses task-relevant skills, abilities,

knowledge, and experiences. Unless an employee knows what is

supposed to be done and how to do it, a high level of job

performance is not possible. Thus, the capability of

barangay officials in the local budgeting process relates to

the performance and accomplishment of the barangay. This

concept is supported by the accountability theory of

Carińothat "the concept of accountability flows from the

concept of stewardship." If a democracy rests on the consent

of the governed, then the government must answer to the

people for its actions. The populace selects Punong

barangays and barangay kagawads by virtue of suffrage at the

end of fixed terms, and they might not be returned to the

office if voters believe that they have not performed

according to their mandate. Barangay appointed officials,

including barangay treasurers and secretaries, are

indirectly accountable as they submit to higher officials in

the hierarchy, which at its apex is composed of those chosen

by the voters.

This theory is supported by Article XI Section 1 of the

Philippine Constitution of 1987, which states that public

office is a public trust. Public officers and employees

must, at all times, be accountable to the people, serve them

with utmost responsibility, integrity, loyalty, and

efficiency. Due to the need for accountability in a barangay

local government, the theory will be applied as it

necessitates answering to others the barangay treasurer who

assists the local chief executive in the preparation of the

annual budget, barangay kagawad as a member of the

Sangguniang barangay who is responsible for the legislative

enactment of the annual budget and the punong barangay who

is the leading responsible in the operation of the local

budgeting process of the barangay as mandated by Section 331

of the RA 7160. Hence, faithfully executing and performing

the duties and functions assigned to them can truly make a

difference not just in their locality but to the entire

Philippines as well.

As mandated by the Local Government Code of 1991

Section 318, the local chief executive shall prepare the

executive budget for the ensuing fiscal year. The first

phase in the local government budget process is budget

preparation. This refers to the issuance of the local

government budget call, cost estimation, preparation of

budget proposals, executive review of budget proposals, and

finally, the preparation of the budget message, local

expenditure program, and budget expenditures and sources of

financing. The second phase in the local government budget

process is a budget authorization. It starts from the time

the local chief executive submits the budget to the

sanggunian for legislative deliberation and ends with the

corresponding enactment of the appropriations ordinance. The

punong barangay, as far as the local legislation is

concerned, also serves as the presiding officer of the

Sangguniang barangay as mandated in the LGC. The third phase

is on budget execution. This involves the release and actual

disbursement of funds appropriated to perform and undertake

projects and activities. The collection of funds such as

disbursements does not exceed appropriations and the

determination of the actual funding requirements of

programs, projects, and activities. This process also

includes the procurement of goods and services in accordance

with Republic Act 9184, also known as the Government

Procurement Reform Act of 2003.

Budget accountability involves the accurate recording

and reporting of LGU's income and expenditures and the

evaluation of LGU's physical and financial performance. This

is the last stage of the budget process whereby the

financial and physical performance of the barangays are

monitored, recorded, validated, and evaluated purposely to

assess whether performance is in accordance with targets or

budget plans.

Conceptual Framework of the Study

This study aims to determine the knowledge and

competence of barangay officials in the preparation of
annual and supplemental budget in the Municipality of
Jordan, Guimaras, for year 2023-2024.
The interplay of the relationship among variables is
reflected in the schematic diagram of the study found in
figure 1.

Schematic Diagram of the Study

Independent Variables Dependent Variables

Profile of the Knowledge in the

Respondents preparation of annual and
supplememental budget
Age
Sex
Educational Attainment
Length of Service Competence in the
preparation of annual and
supplememental budget

Figure 1 Shows the schematic diagram of the study.

Significance of the Study

This study will add knowledge to the expanding
literature regarding the knowledge and competence of
Barangay officials in the preparation of annual and
supplemetal budget in the Municipality of Jordan, Guimaras,
for the Year 2023-2024.

This will also provide valuable insights to the

different groups of people.

Barangay Officials. This study may serve as guide in

planning and identifying oneself. The findings may provide
useful information, ideas regarding preparation of annual
and supplemental budget.

LGU. This study may serve as guide in overseeing the

needs of a barangay. The findings may provide useful
information, ideas regarding preparation of annual and
supplemental budget.

Researchers. The different aspects of this study will

enable the researchers to look on the other aspects needed
in the barangays.

Future Researchers. The result of this study may serve

as a reference for future studies. It will also encourage
future researchers to conduct further or similar studies for
the improvement and help in the preparation of annual and
supplemental budget of barangays.
Definition of Terms

The following terms will be defined conceptually and

operationally for clarity, precision and better
understanding of the study.

Knowledge. Knowledge is understanding gained through

learning or experience.(study.com)

In this study, it refers to the individual’s

understanding in preparation for their work or task.

Competence. Competence refers to the skills and

characteristics that enable you to perform a job. (indeed

editorial, 2021)

In this study, it refers to how you perform a required task

at a targeted level of proficiency.

Barangay Officials. Barangay officials refer to the punong

barangay, barangay kagawad, barangay treasurer, and the

indigenous peoples' mandatory representatives. They were

elected by the populace where the local government is

geographically located.
In this study, it refers to the one in-charge in the

preparations of annual and supplemental budget of the

barangay.

Scope and Limitations of the Study

This Study will determine the knowledge and competence

of barangay officials in the preparation of annual and
supplemental budget in the Municipality of Jordan, Guimaras
for the year 2023-2024.
The respondents will be the barangay officials in the
Municipality of Jordan, Guimaras, 2023-2024. The respondents
will be taken from 3 Barangays, Barangay Morobuan, BArangay
Balcon Maravilla and Brangay Poblacion, in the Municipality
of Jordan,.
The researcher made instrument will be used to gather
the needed data. It will be composed of two parts, wherein
part 1 will be about the personal information of the
respondents; Part 2 will be about the knowledge and
competence of Barangay Officials in the preparation of
annual and supplemental budget.
The study will be done through the utilization of
questionnaire to the respondents. After which it will be
gathered, tabulated and analyzed.
The statistical tools used will be the frequency count,
mean, and one way analysis of variance (ANOVA).
 CHAPTER 2
REVIEW OF RELATED LITERATURE AND STUDIES

This chapter presents the literatures which have

bearing on the study, as well as related research studies
which are considered relevant to the present investigation.

Conceptual Literature

On Barangay Budgeting

The barangay, as the basic political unit, plays a

significant role in the country’s economic development and

nation-building efforts. With the enactment of Republic Act

No. 7160, otherwise known as the Local Government Code of

1991, the country’s 41,882 barangays began to assume even

greater responsibilities with corresponding powers vested in

them in line with the intent of local autonomy. To sustain

and deepen their roles in the devolution process and live up

as effective partners of the National Government in nation-

building, barangay officials need to master the use of one

basic instrument of local governance -- the budget. The

skillful management of barangay budgets means the ability to

efficiently manage revenues and expenditures to ensure

fiscal balance and propel the barangay towards self

sufficiency which is the real essence of local autonomy.

(dbm.gov, 2012)

Related Literature

Local Studies

According to the study of Dagohoy, R.G. entitled

“Capabilities and Difficulties of Barangay Officials on

Local Budgeting Process”, (2021) states that the barangay

officials in the Municipality of Santo Tomas can properly

perform local budgeting duties and functions along with

preparation, authorization, execution, and accountability

processes. It also revealed a significant difference in the

extent of the capability on local budgeting process of the

non-degree holder and degree holder barangay officials.

Furthermore, several problems encountered by barangay

officials on the local budgeting process were also revealed.

This study would serve as a basis for the higher authorities

in fiscal administration, particularly those who are

responsible for barangay governments in improving the

process in budgeting. The research instrument is anchored in

the Department of Budget and Management Manual, wherein its

reliability was tested through pilot testing.

 “Budgeting Process in a Barangay Unit: An Anaysis,

Lopez, M.O. (2019), states that a well-prepared barangay

budget serves as a basis for the operation of barangays,

thus, the entire local government unit along with the

barangay is needed to be evaluated and assessed in terms of

its fiscal management. The study used the descriptive

analysis method to 150 barangay officials from 15 barangay

units in the selected municipality. Findings revealed that

majority of the officials and staff of selected barangay

units belonged to middle adulthood, male, have finished

college level, composed of barangay chairman, barangay

councilors, barangay secretary and barangay treasurer, less

than a year in service and have blue collar jobs. The

budgeting process with respect to budget preparation, budget

authorization, budget execution, and budget accountability

are highly performed. The challenges encountered in the

budgeting process are challenging.

According to Gurani and Viray, in their study entitled

“Internal Revenue Allotment: The Case of Barangay Calamba,

Cebu City”, (2023), states that to determine the answer 1.

What is the demographic profile of the respondents, 2. What

is the level of awareness of the respondents towards

internal revenue allotment? 3. What are the strategies used

by the Barangay Captain in collecting internal revenue

allotment and its level of implementation? 4. What is the

perception of the respondents on the contribution of the

collected Real Property Tax to the operation of Barangay

Calamba? The research design used was descriptive, that is

by employing percentage distribution and frequency counts in

presenting and analyzing the data obtained from a sample of

fifty-eight (58) respondents. A validated researcher-made

questionnaire was used to collect the primary data. The

findings on this study revealed there was a barangay

development plan; however, budget allocation is the problem

observed, and these plans were not fully implemented. With

those problems, this paper suggests that education be given

importance, it is recommended that barangay personnel and

authorities participate in an integrated capacitybuilding

program. Educating people on practical issues such as

dealing with the administration of IRA towards development,

not only the officials but most importantly, the residents

or the ordinary people too, so that they will be able to

participate and contribute to their own development.

 Assessment of the Barangay Financial Management

Performance, Atillo, G.N. (2019), to assess the important

issues on financing of devolved function at the barangay

level with particular focus on budget performance and

program allocation; how barangays are able to fulfill these

devolved functions; and how can this be related to the

measurement of a successful performance with regards to the

delivery of basic services to their constituents. Data

mining technique was used for collecting, searching and

analyzing annual financial data and reports for FY 2012 –

2014 Annual Budget Utilization Rate Reports filed by the 28

barangays to the Accounting and Budget Office of Bayawan

City, Negros Oriental were used as first-hand information.

The result found that majority of the barangays in Bayawan

City have not complied with the 90% budget utilization rate

requirement as prescribed in the Inter- Agency Task Force on

the Harmonization of the National Government Performance

Monitoring, Information and Reporting Systems Memorandum

Circular No 2014-01. While the average compliance rate to

the mandatory services as required in RA 7160 are considered

poor and below 100% on the following services: Juvenile

Justice Delivery, Gender and Development, and Senior

Citizens and PWD Services.

Relevance of the Review of Related Literature and Studies

The related literature and studies herein had published

as series of “exemplars” that illustrate levels of
performances established by researcher which are designed to
help understand the knowledge and competence of barangay
officials in the preparation of annual and supplemental
budget.
 CHAPTER 3

METHODOLOGY

This chapter presents the research design, respondents

of the study, the data gathering instrument, data gathering
procedure, and the statistical tools and procedures used in
the study.

Research Design

The descriptive research method will be employed using

descriptive – survey research design. According to R Borro

(2015) descriptive studies are of the large value providing

facts on which professional judgment may be based. It

involves some types of comparison and attempts to discover

relationship among existing non-manipulative variables.

Respondents of the Study

The respondents of the study will be randomly selected

using proportionate stratified random sampling from the

three barangays of the Municipality of Jordan, Guimaras for

the year 2023-2024.

Sampling Procedure
According to R Borro (2015) the proportionate sampling
design is use by selecting; the most convenient sample of
the population to allocate proportionality of the total
sample of the government workers of Municipality of
Buenavista, Guimaras.

Data Gathering Instrument

The researcher made questionnaire will be used as a
research instrument. It will be composed of two parts. Part
I will be on the Personal Information which consist of name
(optional), age, sex, educational attainment and length of
service. Part 2 will be on the knowledge and competence of
Barangay Officials in the preparation of annual and
supplemental budget.

Reliability of the Instrument

After the questionnaire is found valid the researchers
sought the approval of the Barangay Captain to conduct the
the questionnaire for final administration. The
questionnaire will be reproduced according to the number of
respondents for this study.
The retrieval of the research instruments will then be
after all the respondents finished answering.
After the retrieved accomplished questionnaire, the
data will be organized and tabulated. Computation analysis
and interpretation will be done using Statistical package
for Social Sciences (SPSS) software.
Data Gathering Procedure
After the research instrument will be established the
researchers sought the concurrence of the Dean of the
Department to administer the research instrument to the
respondents. The researcher will personally distribute the
instrument to the respondents after which they will gather
the accomplished or finished instruments. The respondent’s
responses will be tabulated using the Statistical Package
for Social Sciences (SPSS).

Statistical Tools
The statistical tools used for this study will be the
frequency count, mean, ANOVA.

The Frequency Count. It will be used in determining

the distribution of respondents as variables.
Mean. It will be used to determine the knowledge and
competence of the respondents as perceived by the
respondents when taken as a whole group and classified
according to categories of variables.
One-Way Analysis of variance (ANOVA). It will be used
to determine the significant difference as perceived by the
respondents and when classified according to educational
attainment.