BARANGAY TREASURERS’ COMPETENCIES, CASH CONTROL, SUPPLY AND PROPERTY MANAGEMENT
PRACTICES AT THE LOCAL GOVERNMENT OF OLONGAPO CITY
DR. DAVID CABABARO BUENO
AB, BSE, MASE, MBA, MPM, Ed.D., DBA (c)
Dean, Graduate School
Columban College, Inc., Olongapo City
+63 917 3299 033 // +63 999 7064 865
docdave30@yahoo.com // docdave3090@gmail.com
PROF. CARLITO S. GALANGUE
BSA, MMBM, DBA(C)
Graduate School Professor
Columban College, Inc., Olongapo City
+63 917 9753 829 // +63 928 8342 059
carlgalangue_23@yahoo.com
MELANIE BALUYOT – MACKAY
BSA, MBA, CPA
Student-Researcher
Abstract- As the basic political unit, the barangay serves as the primary planning and implementing unit of
government policies, plans, programs, projects, and activities in the community, and as a forum wherein the
collective views of the people may be expressed, crystallized and considered, and where disputes may be amicably
settled (Section 384, Republic Act No. 7160). Pursuant to Section 2 of Presidential Decree 1445, the Government
Auditing Code of the Philippines, all resources of the government shall be managed, expended or utilized in
accordance with law and regulation, and safeguarded against loss or wastage through illegal or improper disposition,
with in view of ensuring economy, efficiency and effectiveness in the operation of the government. With that, the
government should ensure that the barangay funds and property are effectively managed and utilized which lead to
the need for capable and dedicated treasurers who play a vital role in the revenue generation and disbursement of
funds. This study assessed the competency of barangay treasurers in the City of Olongapo and determined its
relationship to effective management and custody of funds and property. The descriptive-correlational design
involving barangay captains, treasurers, record keepers and COA auditors assigned to audit the barangay
transactions at the City of Olongapo was used. The barangay treasurers were assessed to be having “High
Competence” in terms of knowledge and skills. They always practice good behavior in the conduct of their duties and
responsibilities. There was an effective management and custody of barangay funds and property relative of cash
management and control system on collections, deposits and disbursements and in property and supply
management system. Competency of barangay treasurers was correlated with effective management and custody of
funds and property with regards to cash management and control system on collections, deposits and disbursements
and in property and supply management system. Thus, competency is an integral part of an organization’s workforce
which is necessary for the organization to scale up. Be it private or public organization, competency plays a vital role
for effective and efficient job performance. Programs and activities that would further enhance the competency level
of barangay treasurers such as trainings, seminars and conferences are highly encourage as these would definitely
help them carry out their respective duties and responsibilities in the barangay in a more effective and more efficient
manner.
Keywords- Local governance, competencies, management and custody of funds and property, descriptivecorrelational design, Olongapo City, Philippines
Introduction
As the basic political unit, the barangay serves as the primary planning and implementing unit of
government policies, plans, programs, projects, and activities in the community, and as a forum wherein the
collective views of the people may be expressed, crystallized and considered, and where disputes may be amicably
settled (Section 384, Republic Act No. 7160). Historically, a barangay is a relatively small community of around 50 to
100 families. Most villages have only thirty to one hundred houses and the population varies from one hundred to five
hundred persons. The word itself is derived from an ancient Malayo-Polynesian boat called a balangay (Merino,
1975). As years passed by, the concept of the word barangay has change in many ways. A barangay now is a
government structure that is led and governed by its barangay officials. Basically, each barangay shall have a
punong barangay (barangay chairman), seven (7) sangguniang barangay members (barangay council members), a
sangguniang kabataan chairman, a barangay secretary, and a barangay treasurer.
Republic Act No. 7160, otherwise known as the Local Government Code of 1991, empowers the barangay
to strive to provide basic services and facilities to the people. However, this function can only be performed if the
funds are available and sufficient. Sadly, it has been observed that most of the barangays have not attained financial
independence not merely because of economic instability and worsening social conditions but more on because the
barangay funds are not effectively and efficiently managed and utilized. These realities give rise to the need for
capable barangay treasurers who play a vital role in revenue generation and disbursement of funds. It goes without
saying that the success of financial management in the barangays rests primarily on the hands of the barangay
treasurers because they are the ones who are responsible for the collection of all taxes, fees and other charges
accruing to the barangay, keep custody of barangay funds and property, and disburse funds in accordance with the
provisions of RA 7160 (Macalma, 2012).
Although trainings and seminars are provided to barangay treasurers to help them carry out their duties and
functions effectively, it remained apparent that some of the barangay treasurers are still experiencing difficulties in
the performance of their responsibilities. This is evidenced by inaccurate or improperly accomplished documents,
delayed submission or sometimes non-preparation of the required reports. Said lapses greatly affect the work of
government auditors who audited the documents and reports of the barangays. As an auditor, this situation aroused
the researcher’s interest to determine and analyze what factors mainly affect the performance of the barangay
treasurers. Hence, this research was proposed to assess if the barangay treasurers’ competency has impact on the
effectiveness of management and custody of funds and property. This research is made possible by making a
research on 17 barangays of the City of Olongapo.
Pursuant to Section 2 of Presidential Decree 1445, the Government Auditing Code of the Philippines, all
resources of the government shall be managed, expended or utilized in accordance with law and regulation, and
safeguarded against loss or wastage through illegal or improper disposition, with in view of ensuring economy,
efficiency and effectiveness in the operation of the government. With that, the barangay government should ensure
that the funds and properties of the barangay are effectively managed and utilized which led to the need for capable
and dedicated barangay treasurers. Thus, further intensifies the interest of the researcher to conduct this study.
Statement of the Problem
The main concern of this study was to assess the competency of the barangay treasurers in the City of
Olongapo and determine its relationship to the effective management and custody of funds and property.
Specifically, the study sought to answer the following questions:
1. How can the competency of the barangay treasurers be described in terms of knowledge, skills, and
behavior?
2. How can the effectiveness of management and custody of funds and property be described by the
following:
2.1. Cash Management and Control System; and
2.1.1. Collections and Deposits
2.1.2. Disbursements
2.2. Property and Supply Management System?
3. Is there a significant relationship on the competency of barangay treasurers and the effectiveness of
management and custody of funds and property?
4. What is the implication of the findings towards improving the management and custody of funds and
property?
Research Methodology
This study used the descriptive-survey method of research employing the questionnaire, unstructured
interview and observation as data gathering approaches. It determined and analyzed the competency of the
barangay treasurers and the effectiveness of management and custody of barangay funds and property, and
measured the relationship that exists between variables. In descriptive-survey method research, participants answer
questions administered through interviews or questionnaires. After participants answer the questions, researchers
describe the responses given. Survey was orchestrated through dissemination of questionnaires to selected
barangay officials and employees for which the responses gathered were applied in assessing the extent of validity of
the established hypothesis and where conclusions and recommendations were based. Unstructured interview was
also used by the researcher to follow up vague responses.
The respondents of the study comprised not only of the incumbent barangay treasurers of the 17 barangays
in the City of Olongapo but also of the barangay captains who appointed the barangay treasurers, the barangay
record keepers who directly work with the barangay treasurers and the COA auditors assigned to audit the barangay
transactions at the City of Olongapo. A total of 54 respondents answered the survey-questionnaires prepared by the
researcher.
The ultimate source in the gathering of data was the survey-questionnaire that is divided into parts. Part 1
was a closed-ended questionnaire with five options which will measure the barangay treasurers’ competency in terms
of knowledge, skills and behavior, while Part 2 was adopted from various COA auditing handbooks and barangay
manuals, deals with two (2) determining factors that will assess the effectiveness of management and custody of
barangay funds and property. Secondary sources of information were the Annual Barangay Audit Report, Local
Government Code of 1991 (R.A. 7160), Government Auditing Code of the Philippines (P.D. 1445), Code of Conduct
and Ethical Standards for Public Officials and Employees (R.A. 6713) and COA circulars, resolutions and
memoranda pertaining to collections, cash advances, petty cash funds and disbursements. The questionnaires were
disseminated to the incumbent barangay captains, barangay treasurers and barangay record keepers of the 17
barangays as well as to the three (3) COA auditors assigned to audit the barangay transactions at the City of
Olongapo. To validate the adequacy and suitability of the questionnaire in attaining the objective of the research,
aside from consultation with the thesis adviser and fellow auditors in COA, it was also pretested to some of the
barangay captains, barangay treasurers and barangay record keepers in the Municipality of Subic, Zambales. Based
on the responses, some items were further reviewed or modified to enhance the validity of the instrument. Those who
answered the pilot questionnaires were not included in this study.
The data gathered were classified, tallied, recorded and analyzed then treated using Percentage, Mean,
Pearson (r) Product Moment Correlation Coefficient.
Results and Discussion
1. Assessment on the Level of Competency of Barangay Treasurers in Olongapo City
2.1 Knowledge. The mean assessment of the respondents on the competencies of barangay treasurers in
terms of their knowledge of barangay transactions is shown in Table 1. The barangay treasurers were assessed to
be having very high competence on the sources of income and expenses incurred by the barangay with weighted
means of 4.37 and 4.39, respectively. Since two of the primary duties of the barangay treasurers as discussed under
Section 395 of the Local Government Code of 1991 is to collect and issue official receipts for taxes, fees,
contributions, monies, materials and all other resources accruing to the barangay treasury and deposit the same in
the account of the barangay and to disburse funds in accordance with the financial procedures provided in the Code,
it is therefore important that they were assessed to possess adequate knowledge about collection, deposit and
disbursement functions. Based on the assessment, they also believe that the barangay treasurers are highly
competent when it comes to knowledge of the systems and procedures manual on the management of barangay
funds and property, familiar with laws and regulations affecting their work as collecting/disbursing officer, with
sufficient knowledge on all transactions held by the barangay and familiar with documentary requirements of every
transaction. Knowledge of these factors is very important as every barangay transaction should need to comply with
various laws, rules and regulations especially on documentary requirements to avoid audit suspensions and
disallowances. The barangay treasurers were also assessed to have high competence in terms of knowledge in
accounting/bookkeeping, know the properties and liabilities of the barangay and have attended in seminars/trainings
for self-development and improvement with weighted means of 3.83, 4.06, 4.11 and 4.06, respectively. The overall
weighted mean assessment is 4.03 which have a descriptive rating of “High Competence”.
Table 1. Mean Assessment on Knowledge as Competency Factor
Knowledge
1
2
3
4
5
6
7
8
9
10
Understand the Systems and Procedures Manual on the Management of Barangay Funds
and Property.
Familiarity with the laws and regulations affecting his/her work as collecting/disbursing
officer.
Sufficient knowledge on all transactions held by the barangay through its operations.
Familiarity with the basic documentary requirements of every transaction.
Attended in seminars/trainings for self-development and improvement.
Sufficient knowledge in accounting/bookkeeping.
Know the properties owned by the barangay.
Know the liabilities of the barangay.
Know the sources of income of the barangay.
Know the expenses incurred by the barangay.
Overall Mean
__
wx
DR
3.80
HC
3.78
HC
3.89
3.98
4.06
3.83
4.06
4.11
4.37
4.39
4.03
HC
HC
HC
HC
HC
HC
VHC
VHC
HC
Knowledge refers to a body of information about the theoretical and practical understanding of a subject,
acquired by a person through experience or education. It can also be obtained through sources such as trainings,
seminars, workshops, lectures and conversation with peers. Knowledge may be explicit or tacit. Explicit
knowledge can be articulated into formal language, including grammatical statements (words and numbers),
mathematical expressions, specifications, manuals, etc. Explicit knowledge can be readily transmitted to others. Also,
it can easily be processed by a computer, transmitted electronically, or stored in databases. Tacit knowledge is
personal knowledge embedded in individual experience and involves intangible factors, such as personal beliefs,
perspective, and the value system. Tacit knowledge is hard to articulate with formal language (hard, but not
impossible). It contains subjective insights, intuitions, and hunches. Before tacit knowledge can be communicated, it
must be converted into words, models, or numbers that can be understand. Knowledge possess by barangay
treasurers is very important because it would help them carry out their respective duties and responsibilities in the
barangay in a more effective and more efficient manner. If the appointive barangay treasurers have deep
understanding of what they are doing, they would definitely be able to perform/execute their assigned tasks in a
better capacity which would result to superior services to the barangay constituents.
1.2 Skills. The mean assessment of respondents on competency of barangay treasurers in terms of skills is
shown in Table 2. The barangay treasurers were assessed to have very high competence with regards to capability
of handling figures and cash and have ability to prepare summary reports on collections, deposits and checks issued
of which the weighted means range from 4.20 – 4.22. On the other hand, they were assessed to have high
competence when it comes to ability to process papers/documents of the barangay with minimum supervision, work
in a logical and orderly manner, keep good records, possess good communication and interpersonal skills, prepare
cash on hand and in bank register, summary of cash payments and in the application of MS Word and MS Excel in
their job. The overall weighted mean assessment is 4.10 which have a descriptive rating of “High Competence”.
Table 2. Mean Assessment on Skills as Competency Factor
Skills
1
2
3
4
5
6
7
8
9
10
Ability to process papers/documents of the barangay with minimum supervision.
Ability to work in a logical and orderly manner.
Ability to keep good records.
Capable of handling figures and cash.
Good communication and interpersonal skills.
Ability to prepare the Summary of Collections and Deposits.
Ability to prepare the Cash on Hand and in Bank Register.
Ability to prepare the Summary of Checks Issued.
Ability to prepare the Summary of Cash Payments.
Apply MS Word and MS Excel.
Overall Mean
__
wx
DR
4.15
3.98
4.00
4.20
4.11
4.20
4.11
4.22
4.13
3.93
4.10
HC
HC
HC
VHC
HC
VHC
HC
VHC
HC
HC
HC
Skill is the ability to perform a certain physical or mental task. Skill competency tends to be visible and
relatively surface characteristic that is relatively easy to develop and training is the most cost-effective way to secure
this employee ability (Spencer & Spencer, 1993). Skills refer to the application of data or information with manual,
verbal, or mental proficiency. Skills can be tested to measure quantity and quality of performance, usually within an
established time limit. Examples of skills include typing and computation using decimals (Kravetz, 2008). Curtis and
McKenzie (2002) defined the eight employability skills as follows: 1. Communication skills that contribute to
productive and harmonious relations between employees and customers; 2. Teamwork skills that contribute to
productive working relationships and outcomes; 3. Problem solving skills that contribute to productive outcomes; 4.
Initiative and enterprise skills that contribute to innovative outcomes; 5. Planning and organizing skills that contribute
to long-term and short-term strategic planning; 6. Self-management skills that contribute to employee satisfaction and
growth; 7. Learning skills that contribute to ongoing improvement and expansion in employee and company
operations and outcomes; and 8. Technology skills that contribute to effective execution of tasks. Submission of
monthly reports such as Summary of Collections and Deposits, Cash on Hand and in Bank Register, Summary of
Checks Issued and Summary of Cash Payments is among the primary the duties and responsibilities of a barangay
treasurer. It is therefore important that the appointive barangay treasurer has the ability to prepare accurate and
timely reports as this would facilitate the timely preparation of financial statements by the City Accounting Office,
expedite the audit of barangay transactions by the Commission on Audit and would benefit the other users of the
reports. It should also be noted that this reporting function could be better and easier accomplish through the aid of
computer technology such as the use of MS Word and MS Excel. Barangay treasurer should also be capable of
handling figures and cash because her primary responsibility is the collection, deposit and disbursements of
barangay funds. It is therefore important that the barangay treasurer should possess the skills necessary in order for
him/her to perform collection and disbursement function more effectively.
1.3 Behavior. The mean assessment on behavior of barangay treasurers as competency factor is shown in
Table 3. Result showed that respondents are very satisfied with the behavior shown by the barangay treasurers in
the performance of their duties and functions in the barangay as shown in the weighted mean ranging from 4.19 4.61. This is a good indication that the barangay treasurers always or often practice the standard behavior of public
officials and employees as embodied in Republic Act No. 6713 or Code of Conduct and Ethical Standards for Public
Officials and Employees. The overall weighted mean assessment is 4.33 which have a descriptive rating of “Always”.
Behavior refers to a pattern of actions or conduct. Behaviors are typically evaluated in terms of consistent adherence
to a set of behavioral standards. Section 2 of the Code of Conduct and Ethical Standards for Public Officials and
Employees declared that it is the policy of the State to promote a high standard of ethics in public service. Public
officials and employees shall at all times be accountable to the people and shall discharge their duties with utmost
responsibility, integrity, competence, and loyalty, act with patriotism and justice, lead modest lives, and uphold public
interest over personal interest. Therefore, as a public employee, the barangay treasurer should at all times observe
good behavior in the conduct of their duties and functions in the barangay.
Table 3. Mean Assessment on Behavior as Competency Factor
Behavior
1
2
3
4
5
6
7
8
9
10
Uphold the public interest over and above personal interest.
Perform and discharge his/her duty with the highest degree of excellence,
professionalism, intelligence and skill.
Respect the rights of others and refrain from doing acts contrary to law, good morals,
good customs, public policy, public order, public safety and public interest.
Act with justness and sincerity and does not discriminate anyone.
Extend prompt, courteous and adequate service to the public.
Maintain the principle of public accountability.
Lead modest life appropriate to position and income.
Prohibits dispensing or extending undue favors on account of his/her office to his/her
relatives whether by consanguinity or affinity.
Avoid using or divulging confidential or classified information officially known to him/her
by reason of his/her office.
Avoid solicitation/acceptance of any gift, gratuity, favor, entertainment, loan or anything
of monetary value from any person in the course of his/her official duties, in connection
with any operation being regulated by, or any transaction which may be affected by the
functions of his/her office.
Overall Mean
__
wx
DR
4.22
4.19
A
O
4.48
A
4.61
4.41
4.33
4.43
4.19
A
A
A
A
O
4.19
O
4.22
A
4.33
A
2. Assessment of Effectiveness of Management and Custody of Funds and Property
2.1 Cash Management and Control System
2.1.1 Collections and Deposits. The mean assessment of respondents on the effectiveness of cash
management and control system on collections and deposits is shown in Table 4.
Table 4. Mean Assessment on Cash Management and Control System – Collections and Deposits
Cash Management and Control System - Collections and Deposits
1
2
3
4
5
6
7
8
9
10
All collections are acknowledged by the issuance of a pre-numbered Official Receipt or
its equivalent like Real Property Tax Receipt and Community Tax Certificate.
Issuance of temporary or provisional receipts is prohibited.
Sequential issuance of official receipts is strictly observed.
Prohibits acceptance of postdated and endorsed checks as payment of obligations to the
barangay.
All collections and deposits by the Barangay Treasurer for the barangay are reported in
the Summary of Collections and Deposits.
Collections by the Barangay Treasurer including those turned over by the Deputized
Barangay Collector are deposited intact daily or not later than the following banking day
in authorized government depository bank.
Prohibits payment of any expenditures of the barangay out of collections.
All persons who handle cash or cash transactions are adequately bonded.
Maintain complete record of the receipts, issuances and transfers of accountable forms.
Safes and other facilities should be provided to ensure protection of cash and unused
accountable forms like vaults or cash registers.
Overall Mean
__
wx
DR
4.57
A
4.31
4.57
4.39
A
A
A
4.70
A
4.22
A
4.15
4.43
4.59
4.35
O
A
A
A
4.43
A
It reveals that respondents believe that there is an effective cash management and control system on
collections and deposits existing in their respective barangays as evidenced by weighted mean assessment rating
ranging from 4.15 – 4.70 with descriptive rating of “Often” and “Always”. The overall weighted mean assessment is
4.43 which have a descriptive rating of “Always”. Existence of effective cash management and control system on
collections and deposits is vital for effective implementation of barangay programs and projects. Familiarity with the
different manners and procedures of collections and the laws and regulations over cash receipts and collections is
therefore important to enable the barangay treasurers to perform their work efficiently and effectively.
2.1.2 Disbursements. The mean assessment of the respondents on the effectiveness of cash management
and control system on disbursements is shown in Table 5. It shows that respondents believe that there is an effective
cash management and control system on disbursements existing in their respective barangays as evidenced by
weighted mean assessment rating ranging from 4.35 to as high as 4.85 with descriptive rating of “Always”. The
overall weighted mean assessment is 4.60 which have a descriptive rating of “Always”. Familiarity with different
manners of disbursements and the common rules on internal control over disbursements and some laws and rules
governing them is important for the effective management and control system over barangay disbursements. High
weighted mean assessment of the factors affecting cash management and control system on disbursements is an
indication that good internal control over disbursements is observed in the barangay level thus funds are properly
safeguarded against misuse or improper disposition.
Table 5. Mean Assessment on Cash Management and Control System - Disbursements
Cash Management and Control System - Disbursements
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
All disbursements are covered with duly processed and approved Disbursement
Vouchers/Payrolls.
All disbursements are paid by checks and minor expenses are paid in cash.
Checks are pre-numbered and issued in numerical sequence.
Signing and countersigning of checks in advance or in blank is prohibited.
Check is issued in the name of the payee as indicated in the DV/Payroll.
Signatories of check review the supporting documentation prior to signing it.
Check is signed by the Barangay Treasurer and countersigned by the Punong Barangay.
All disbursements by check are reported in the Summary of Checks Issued.
Unused and spoiled checks are properly safeguarded.
Personal expenses are not charged to the barangay.
Cash advance is given only to duly designated disbursing officer who is adequately bonded
except for cash advances for official travel.
Cash advance is used solely for the purpose for which it was given.
Cash advance is liquidated as soon as the purpose of which has been served.
Succeeding cash advance is granted only after full liquidation of the previous cash advance.
Cash advance is not used for the encashment of checks or for liquidation of previous cash
advances.
Excess cash advance is refunded and an official receipt is issued by the Barangay Treasurer.
Maintain separate controls/records of the petty cash transactions.
Expenses paid out of the Petty Cash Fund are non-recurring and emergency petty expenses.
All disbursements out of Petty Cash Fund are covered by duly approved and accomplished
Petty Cash Vouchers.
Petty Cash Vouchers do not exceed P1,000.00.
Overall Mean
__
wx
DR
4.74
A
4.54
4.76
4.46
4.81
4.54
4.85
4.81
4.69
4.56
4.65
A
A
A
A
A
A
A
A
A
A
4.63
4.43
4.44
4.48
A
A
A
A
4.63
4.57
4.35
4.56
A
A
A
A
4.54
4.60
A
A
2.2 Property and Supply Management System. The mean assessment of respondents on the
effectiveness of property and supply management system is shown in Table 6. It shows that respondents believe that
there is an effective property and supply management system existing in their respective barangays as evidenced by
weighted mean assessment rating ranging from 4.19 - 4.61 with descriptive rating of “Often” and “Always”. The
overall weighted mean assessment is 4.43 which have a descriptive rating of “Always”. Property and supply
management system covers the rules on internal control for property/supplies, procurement, other modes of
acquiring government property, forecasting, ordering, delivery, inspection, acceptance and payment,
custodianship, issuance and utilization up to disposal (COA Training Handbook on Property and Supply
Management Sytem). Title VI, Section 376 of the Local Government Code of the 1991 states that the person in actual
physical possession of government property or entrusted with its custody and control shall be responsible for its
proper use and care and shall exercise due diligence in the utilization and safekeeping thereof. Section 377 (a) of the
same Code also states that person immediately accountable for government property shall be liable for its money
value in case of the illegal, improper or unauthorized use or misapplication thereof, by himself or any other person for
whose acts he may be responsible, and he shall be liable for all loss, damage, or deterioration occasioned by
negligence in the keeping or use of such property unless it is proved that he has exercised due diligence and care in
the utilization and safekeeping thereof. Therefore, as property officer of the barangay, the barangay treasurer is
responsible for ensuring the proper management and custody of barangay property.
Table 6. Mean Assessment on Property and Supply Management System
Property and Supply Management System
1
2
3
4
5
6
7
8
9
10
Barangay Treasurer acts as Property Officer of the barangay.
All procurement is in accordance with the requirements of Republic Act 9184.
Orders for procurement of supplies and property are covered by approved Purchase
Requests while purchases are covered by approved Purchase Orders.
All deliveries are covered by Inspection and Acceptance Report and inspected by the
Inspection Committee headed by the Barangay Treasurer with a designated Kagawad as
member.
Issuances of supplies and materials are covered by an approved Requisition and Issue
Slip (RIS).
Issuances of property to end-user are covered by Property Acknowledgement Receipts
(PAR) while small tangible items with serviceable life of more than one year are covered
by Inventory Custodian Slip (ICS).
Any unserviceable property, plant and equipment and small tangible items which could no
longer be used is returned to the Barangay Treasurer for cancellation of PAR/ICS and its
eventual disposal.
A physical inventory of all barangay property is conducted at least once a year and the
result on the physical inventory is reported in the Report on the Physical Count of
Property, Plant and Equipment (RPCPPE).
Notice of Loss is immediately rendered by accountable officer to the Punong Barangay
through the Barangay Treasurer for property lost through force majeure, theft, robbery or
negligence.
Outgoing barangay officials /employees are cleared of property accountabilities by
accomplishing the Transfer of Money and Property Accountabilities.
Overall Mean
__
wx
DR
4.61
4.52
4.52
A
A
A
4.57
A
4.46
A
4.39
A
4.33
A
4.19
O
4.22
A
4.50
A
4.43
A
4. Correlation between the Competency of Barangay Treasurers and the Effective Management and Custody
of Funds and Property
The computed Pearson r values for the correlation of the factors of competency of barangay treasurers and
the effective management and custody of funds and property are shown in Table 7. There is moderate correlation
between the knowledge competency of barangay treasurers and cash management and control system on
collections, deposits and disbursements and property and supply management with r-values of 0.470, 0.454 and
0.493, respectively. All the computed r-values are significant at 0.01 and 0.05 level of significance. The skills
competency of barangay treasurers was also moderately correlated to cash management and control system on
collections, deposits and disbursements and property and supply management system with r-values of 0.510, 0.528
and 0.534 r-values, respectively. Likewise, the behavioral competency of barangay treasurers has moderate
correlation with cash management and control system on collections, deposits and disbursements and property and
supply management system with r-values of 0.640, 0.667 and 0.570, respectively. Since the computed sig (2-tailed)
values for the correlation of the factors of competency of barangay treasurers and the effectiveness of management
and custody of funds and property are less than 0.01 and 0.05, we can conclude that there is significant correlation
between the two variables. That means, increases or decreases in one variable significantly relate to increases or
decreases in the second variable. Thus, reject the null hypothesis at 0.01 and 0.05 level of significance.
4. Implications of the Findings to Improve the Management and Custody of Funds and Property
A competency is the capability to apply or use a set of related knowledge, skills, and abilities required to
successfully perform "critical work functions" or tasks in a defined work setting. Competencies often serve as the
basis for skill standards that specify the level of knowledge, skills, and abilities required for success in the workplace
as well as potential measurement criteria for assessing competency attainment. Competencies are behaviors that
encompass the knowledge, skills, and attributes required for successful performance. In addition to intelligence and
aptitude, the underlying characteristics of a person, such as traits, habits, motives, social roles, and self-image, as
well as the environment around them, enable a person to deliver superior performance in a given job, role, or
situation. Competency can be acquired through formal education. It can also be developed through actual
experience; attending trainings, seminars and conferences; reading, peer discussions; etc.
Table 7. Computed r-values and sig (2-tailed) values Correlate Competency of Barangay Treasurers to
Effective Management and Custody of Funds and Property
VARIABLES
Knowledge
Skills
Behavior
r-value
Interpretation
Sig.
Interpretation
Decision
r-value
Interpretation
Sig.
Interpretation
Decision
r-value
Interpretation
Sig.
Interpretation
Decision
Cash Management and Control
System
Collections and
Deposits
Disbursements
Property and
Supply
Management
System
0.470
Moderate
0.000
Significant
Reject Ho
0.510
Moderate
0.000
Significant
Reject Ho
0.640
Moderate
0.000
Significant
Reject Ho
0.454
Moderate
0.001
Significant
Reject Ho
0.528
Moderate
0.000
Significant
Reject Ho
0.667
Moderate
0.000
Significant
Reject Ho
0.493
Moderate
0.000
Significant
Reject Ho
0.534
Moderate
0.000
Significant
Reject Ho
0.570
Moderate
0.000
Significant
Reject Ho
In the barangay level, where the term of the barangay treasurer usually depends on the term of the
barangay captain who appointed him/her unless sooner terminated/replaced for a justifiable cause or retained by the
succeeding barangay captain, it is quite apparent that a new barangay treasurer was appointed every three years or
as soon as a new barangay captain has been elected. These give rise to the issue of competency especially that
there is no specific qualifications mentioned in the Local Government Code of 1991 with regards to educational
qualifications, skills, experiences, etc. of the person to be appointed as barangay treasurer. It is therefore a question
whether the competency level of appointive barangay treasurer have significant correlation on the effective
management and custody of funds and property which is a primary function of the barangay treasurer. Result of the
study conducted on the 17 barangays of Olongapo City revealed that a significant relationship exists between the
competency of barangay treasurers and the effective management and custody of funds and property. With that,
programs and activities that would further enhance the competency level not only of barangay treasurers but as well
as other barangay officials and employees such as trainings, seminars and conferences are highly encourage as
these would surely help them carry out their respective duties and responsibilities in a more effective and more
efficient manner. These could be made possible through proper coordination between the barangay governance and
DILG, DBM, Association of Barangay Treasurers in Olongapo City, City Government of Olongapo and other
authorities. Likewise, other factors that might have impact on performance should be considered such as motivating
employees and maximizing their potentials and abilities, providing fair salaries and benefits, good working condition,
proper supervision, recognition, etc. Good performance would definitely benefit a greater number of barangay
constituents and would eventually lead to better public satisfaction.
Conclusions
The barangay treasurers were assessed to be having “High Competence” in terms of knowledge and skills
competency with overall weighted mean of 4.03 and 4.10, respectively. Result of assessment also showed that they
always practice good behavior in the conduct of their duties and responsibilities in the barangay which has an overall
weighted mean of 4.33. The assessment of the respondents revealed that there is an effective management and
custody of barangay funds and property in terms of cash management and control system on collections, deposits
and disbursements and in property and supply management system as evidenced by overall weighted means of
4.43, 4.60 and 4.43, respectively, with descriptive ratings of “Always”. Competency of barangay treasurers in terms of
knowledge, skills and behavior is moderately correlated with effective management and custody of funds and
property with regards to cash management and control system on collections, deposits and disbursements and in
property and supply management system. Computed sig (2-tailed) values are less than 0.01 which is an indication
that there is significant relationship existing among the variables. Competency is an integral part of an organization’s
workforce which is necessary for the organization to scale up. Be it private or public organization, competency plays
a vital role for effective and efficient job performance. Programs and activities that would further enhance the
competency level of barangay treasurers such as trainings, seminars and conferences are highly encourage as these
would definitely help them carry out their respective duties and responsibilities in the barangay in a more effective
and more efficient manner.
Recommendations
Appointive barangay treasurers should at least possess basic competencies necessary to carry out their
respective duties and responsibilities in the barangay. Newly appointed barangay treasurers who have little or no
knowledge about barangay transactions should exert earnest effort to learn the duties and responsibilities associated
with their appointment. Although all of the barangay treasurers in the City of Olongapo are college graduates and
most have background in Accounting, they should continue to attend trainings, seminars and conferences that would
further enhance their knowledge and skills about their duties and functions in the barangay. They must also continue
to practice good behavior in the performance of their job despite of peer pressures and environmental influences.
The Department of Interior and Local Government, Department of Budget and Management, Liga ng mga Barangay,
City Government of Olongapo and other authorities should have regular training programs like seminars and
workshops for the barangay treasurers and other barangay officials so that they will better comprehend the
responsibilities and accountabilities provided for in the Local Government Code. These may include seminars and/or
workshops on basic duties and functions, accountabilities, fund management, budgeting, property and supply
management, computer literacy enhancement, code of conduct and ethical standards, etc. Likewise, the Association
of Barangay Treasurers in Olongapo City should regularly conduct meetings and activities where the barangay
treasurers could consult, share ideas and help one another in resolving any problem that they might encounter in the
performance of their duties and functions in the barangay. Barangay government should ensure that barangay funds
and property are effectively managed and utilized. Fiscal responsibility shall be observed at all times and the
barangay captain should ensure that barangay funds and property are properly safeguarded against any loss,
wastage or improper disposition to deliver the best services and facilities to the barangay constituents. Encourage
stronger support from the other barangay officials and employees. Let them know that the effective management and
custody of barangay funds and property is not the sole responsibility of the barangay treasurer but collective effort
and cooperation is necessary for its successful implementation.
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