Effectivity Date:
Reference No.: Revision No.: 00
January 3, 2017
BatStateU-FO-COL-03
Title: TOPIC ABSTRACT FORM
College of Accountancy, Business, Economics, and International Hospitality
College
Management
Proponent Enriquez, Kaye Michaela M.
Program BS- Management Accounting
Proposed Title:
EFFECTS OF FINANCIAL ACCOUNTABILITY ON THE FINANCIAL/BUDGET
PERFORMANCE OF BARANGAYS IN SARIAYA, QUEZON
Background of the Proposed Topic
One way to promote good governance is by optimizing the utilization of government
resources. Governments must demonstrate excellent management of their components and be
responsive, collaborative, and professional in carrying out essential tasks and functions to
ensure government sustainability. Access to information regarding government
implementation is essential for ensuring transparency in the government's decision-making,
execution, and outcomes across all government operations. Hence, it is essential to continually
implement the concepts of transparency, accountability, responsiveness, and professionalism
to improve governance circumstances. Accountability should be viewed as a continuing,
reliable, and transparent procedure for improving organizational circumstances.
Accountability is essential when handling finances on behalf of others. The individuals
entrusted with the task of managing the funds must demonstrate their ability to effectively and
responsibly oversee the financial resources entrusted to them. It is crucial to safeguard them
from succumbing to the temptation of misappropriating the funds for personal gain.
Individuals entrusted with the management of funds encompass personnel within the financial
division of a non-governmental organization, a church financial officer, a treasurer overseeing
a village development committee, a credit and savings group, a water committee, and similar
roles. The term 'treasurer' is the most frequently utilized.
Many countries have legislation in place to promote sound financial responsibility,
although compliance with these rules is not always observed. When dealing with smaller sums
of money, it is more likely for responsibility to be disregarded. However, establishing
financial accountability procedures can be a straightforward process. Accountability has been
viewed since time immemorial as a channel for ascertaining the use of power by an individual
or an organization that has been entrusted with the task of performing prescribed tasks. The
means through which accountability has been achieved, however, have varied over the years.
Financial performance encompasses not only the ability of a corporation to make profits
but also other important aspects. This is a representation of all the factors that contribute to
profitability, both individually as independent components and together as a whole system.
Verma (2023) defines financial performance as the extent to which financial goals have been
achieved, and it is a crucial component of risk management in finance. It refers to the act of
quantifying the outcomes of a company's strategies and activities in terms of money. It is
utilized to assess the overall financial well-being of a company during a specific time frame
and can also be employed to compare similar companies within the same industry or to
compare industries or sectors as a whole.
The barangay is viewed as the government's closest associate to the people in terms of
access and closeness, playing a crucial role in local service delivery. To maximize its
economic benefits, it is critical for a barangay to practice effective financial management in
order to make the most of its meager resources. Effective fiscal management allows a barrio to
generate its own funds for development goals and establish economic control. Barangays need
to have the required competencies and financial resources to fulfill their roles as outlined in
the Local Government Code. This includes the administrative capabilities and funding
necessary for creating self-sufficient entrepreneurial communities that can benefit from
economic empowerment, demand improved services, and practice democratic governance,
ultimately achieving the goal of decentralization. Accountability should be seen as an
ongoing, reliable, and transparent process for improving organizational circumstances.
This research aims to know the effects of financial accountability on the financial
performance of barangays in Sariaya, Quezon. It will also examine the relationship between
the financial accountability and financial performance of the barangays.
Fraud Theory/Differential Association Theory
An American sociologist, Edwin H. Sutherland, propounded the “Differential Association
Theory." This is one of the criminological theories explaining criminal behavior through the
process of socialization and the contacts between members of social groups to which one
belongs as a certain delinquent. This theory proposes that through interaction with others,
individuals can learn the values, attitudes, techniques, and motives for criminal behavior. The
nuclear family, with which the person is raised, serves as the main reference group. These
conversations shape people's awareness of the rules and ideals of society. When someone is
able to learn what is socially acceptable, it is therefore thought that they are unable to learn
what is regarded as inappropriate.
According to Ward & Brown (2015), politicians, corporate executives, and other “pillars of
society” are constantly being found guilty of some form of crime, resulting in inadequate
socialization. In other words, poor examples are set: employees may observe managerial
illegalities and then act similarly. In many businesses, because so many people are stealing,
those who do not steal are the deviants and outcasts; theft becomes normal and honesty
becomes abnormal. Some managers believe that employee theft improves morale and makes
boring jobs exciting. In certain workplaces, employees are actually instructed to be dishonest.
When receiving department employees' supervisor instructs them to accept overages during
truck deliveries without informing the vendor, this is evident. The implications for security
from differential association theory point to the importance of ethical conduct by top
management, who should set a good example in the socialization of all employees. In
addition, since criminal laws can be impotent, preventive security strategies are essential.
(Ward & Brown, 2015)
The implications of the theory for the study are that accountability systems reduce the
chances of committing fraud, hence safeguarding an organization’s financial sustainability.
General Objectives
The general objectives of studying The Effects of Financial Accountability on the
Financial/Budget Performance of Barangays in Sariaya, Quezon, are to evaluate the extent to
which barangays in Sariaya, Quezon, adhere to financial regulations. It will examine the
transparency, accuracy, and compliance with financial regulations. It will investigate how
financial accountability practices influence the financial and budget performance of
barangays.
STATEMENT OF THE PROBLEM
1. What is the demographic profile of the respondents?
a. Name
b. Position of respondent(s)
c. Gender
d. Age
e. The highest level of education attained
f. Number of years of experience in the barangay sector
2. To what extent does your organization ensure the given in relation to:
a. Financial Accountability
b. Quality of the Financial Report
c. Financial Performance
3. To what extent does fraud affect the activities and performance of your
organization?
4. Do you have recent technology that can detect any fraud intended?
5. Does your organization have set measures for detecting and controlling fraud?
6. What implications can be drawn based on the results of the findings?
Research Methodology
The researcher will use quantitative research, defined as a systematic investigation of
phenomena by gathering quantifiable data and performing statistical, mathematical, or
computational techniques. The study utilizes a descriptive method of research. Descriptive
research aims to explain and understand the current state of things like people, places,
conditions, or events. Here, the researcher’s goal is to gather general observational data
without exploring the reasons behind them. The study will be conducted in Sariaya, Quezon.
Specifically, in the barangays in the aforementioned locale. The researcher will conduct a
survey of the barangay treasurer or persons who have positions in the barangay for the reason
that they have more knowledge about the financial status of the barangay. The researcher
will have heterogeneity in both male and female respondents. The researcher will select
thirty (30) barangay treasurers or persons who have positions in the barangay to serve as the
respondents to this study. The researcher will employ convenience sampling in determining
the respondents. To define convenience sampling, it is a form of non-probability sampling
where you include people who are easy to reach..
TOPIC EVALUATION COMMITTEE
The topic abstract has been thoroughly reviewed by the Topic Evaluation Committee.
Signature Remarks
VP - Research Development and
Extension Services
College Dean/ Dean of Colleges
Department/Program Chair
Faculty Experts
References
Fleetwood, D. (2023, November 27). Quantitative Research: What It Is, Practices &
Methods. QuestionPro.
[Link]
%20is%20a%20systematic,%2C%20mathematical%2C%20or%20computational%20techniques.
Pedamkar, P. (2023, September 8). Types of Quantitative Research. EDUCBA.
[Link]
[Link]
354126442_Assessment_of_the_Barangay_Financial_Management_Performance
[Link]
321349373_The_Concept_Of_Accountability_In_Good_Governance