CHAPTER I

INTRODUCTION

Background of the Study

Barangay is considered to be the most significant local

government unit as specified in the Local Government Code,

Sec. 384, "Barangay is the basic political unit, serves as the

primary planning and execution arm of government policies ,

strategies, services, projects and activities in the city, and

as a platform for voicing, crystallizing and considering the

collective views of the citizens.”

Government budgeting is a crucial process in the

distribution of revenues / income and borrowed funds for the

achievement and achievement of social, political and economic

priorities and the provision of much-needed public services,

and thus it is very important to prioritize their (barangays)

programs to be included in the budget (Clemente, 2017).

The barangay budget is one of the most important

instruments for fostering and improving barangay-based

management and accountability that the national government

continues to make available more resources to barangay, to

assist them in enabling communities to acquire better services

(Gupuela, 2017).
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The budget for the Internal Revenue Allocation (IRA) is

useful to all barangays if properly managed as it provides the

barangay officials to be used for upkeep, programs and

activities, and regular barangay operations. Nevertheless, if

the funds are not properly managed by barangay officials, it

creates dissatisfaction with the community and the services

that the barangay offers. In some cases, some of the barangay

officials used the fund for their personal necessities and

merely realigned the barangay's expenditures to match what

they used for personal purposes.

As a future public servant, the researcher needs to learn

the implications of successful IRA budget control, and what

are the key items to consider in the management process. The

researcher also aims to know how successful the officers of

barangay are in handling the said budget.

Statement of the Problem

This study sought to assess the IRA management practices of

Barangays in terms of Planning, Allocation, and Utilization.

More specifically this study attempted to answer the

following questions:

1. What is the profile of the barangays when group according

to?

a) Population

b) Land Area
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c) Share from Internal Revenue Allotment (IRA)

2. What is the extent of management practices of barangays

when assessed and when taken as a whole with the above-

mentioned variables according to the following areas of

management?

a) Planning

b) Allocation

c) Utilization

3. What are the IRA management practices of barangays

according to the following areas?

a) Planning

b) Allocation

c) Utilization

4. Is there a significant difference on the extent of

management practices of barangays planning, allocation

and utilization when group according to selected

variables?

a) Population

b) Land Area

c) Share from Internal Revenue Allotment (IRA)

5. What improvement plan can be crafted to improve further

the IRA management practices of the barangays in

Escalante City?
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Statement of Hypothesis

It is hypothesized that there is no significant

difference in the extent of management practices on barangays

planning, allocation, and utilization when they are grouped

according to:

a) Population

b) Land Area

c) Share from Internal Revenue Allotment (IRA)

Theoretical Framework

This study is focused on the principle of effectiveness

and organizational performance. According to the theory, there

are two fundamental approaches to organizational

performance-the model of purpose and model of resource

acquisition (Hall & Clark, 1980).

The organizational effectiveness purpose model is

basically a logical organizational model which is both simple

and complex. Effectiveness has been described in its simple

version as "the degree to which an organization achieves its

goal." Decisions are focused on goals, as well as the creation

of capital. These acquisitions can be seen as a requirement

for achieving the target (Etzioni, 1964).

At the other hand, according to Papadimitriou and Taylor

(2013), the resource acquisition model is described as "the

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ability to exploit the environment by acquiring scarce and

valued resources to maintain its functioning." Such resources

can take many forms, including raw materials, energy, clients,

staff, and so on.

In this research, the theory of effectiveness and

organizational effectiveness deal with management activities

for barangay preparation, allocation and utilization of

resources, in particular the budget for internal revenue

allocation (IRA). The person directly related to the IRA

budget must set the goals to be accomplished and use the money

to develop and support the people in the community.

Conceptual Framework

With more initiatives and diminishing budgets in today's

global economic setting. Project and budget managers are expected to

do more with certain projects / programs with fewer resources.

Firstly, is to have a concrete plan to start any projects /

programs. When the concrete plan is ready you switch to build a

detailed list of activities and include it in the project / program

planning. You then find out the form, priority and amount of

resources to be allocated to the said programs / projects.

Typically, the way that you distribute the money to the program /

project would have a significant effect on profitability. Typically,

resources include money, personnel, time, supplies, and equipment

required to execute or perform the tasks in a project / program.

There may be periodic changes to the personnel and programs /

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projects. Some activities can need to assign extra resources, and in

several ways the time spent on each task is important. While its

apparent resources are often minimal, good resource planning and

allocation is important for the efficient use and management of

scarce resources. Upon deployment of resources and monitoring of

expenditures, it is crucial to close the loop and evaluate the

real expenditure against the initial projected budget. Through

identifying anomalies and knowing the primary triggers, a

project can thus be accurately measured and the resources used

more effectively in the future. The consequence of executing a

successful business plan should be generated to enhance the

control of capital further.

Barangay, as given in the 1991 Local Government Code, is

the required factor in implementing local level economic and

social growth. The barangays, through the use of local

government funds and intergovernmental transition, are the

implementers of basic services and government machinery. The

barangay's local autonomy supports the argument that they play

a critical role in the community and make it self-reliant with

respect to its sources of revenue.

The scope of barangay management practices in improving

barangay affairs and the full implementation of prioritized

programs, projects and activities are the objectives to be

achieved under good governance. The extent of barangay

planning, allocation and usage management practices can be

assessed through the survey carried out and administered

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taking into account the population using the 2015 census, land

area (in hectares) and share of the Internal Revenue Allotment

(IRA).

The Sangguniang Barangay's enacted appropriation order as

the barangay's legislative body serves as the basis for the

Barangay 's payment of products and services, in compliance

with the accounting and auditing rules and regulations issued.

INPUT PROCESS OUTPUT OUTCOME

Implemented
Prioritized PPAs

Barangay Barangay
Researcher- Appropriation
Planning, Well planned,
Allocation, and made Survey Ordinance allocated and
Utilization Questionnair utilized budget

e to 21
 Population
Barangays of Programs,
 Land Projects, and
Well organized
Escalante risk-return
Area Activities evaluation plan
City
 Share (PPAs) and forecasting

from IRA
The constituents
are educated about
the IRA budget

Improvement Plan

Figure 1: A Schematic Diagram Illustrating the Conceptual

Framework of the Study

Significance of the Study

This research study was important and applicable to the

following as it sought to provide information on the barangay

activities of IRA management in Escalante City.

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Department of Interior and Local Government (DILG). The study

would give the Chairman an idea of how the barangay officers

use the Internal Revenue Allotment (IRA) in their barangay

programs.

Local Government Unit of Escalante City (LGU). To the City

Mayor, the significance of this study is to have a clearer overview

of how a certain barangay uses its budget and how they meet the

needs of the community. And this will serve as the city government's

basis for assisting low-income barangays by allocating financial

assistance or assistance through local funds transfer to execute the

barangay's identified services, projects, and activities. Through

this report, the city government will classify those barangays that

have to be recognized due to their exemplary performance as to the

degree of their management practices on their barangay affairs. It

will also allow town officials to know the PPAs that the

barangays have adopted in line with sustainable development

achievement and promotion.

Barangay Officials. The importance of this study to the

barangay officials to help them assess the barangay community's

services and needs, and to have a better understanding of the

barangay allocations and track the barangay's current status. This

may also be of interest to the barangay officials concerned so that

they are aware of the current status as to the degree of barangay

preparation, allocation, and usage management practices. The results

of this study can also enable the Barangay Development Council of

the barangays to be more descriptive in formulating the annual

budget for barangay and planning the development plan for Barangay.
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The study may be a framework for defining initiatives,

projects, and events that need to be prioritized and immediate

action taken. Encourage them to become more active and to be

involved in strategic planning and budgeting. In addition,

this study will be very useful to the barangay officials who

are committed to serving and

willing to take action from the feedback received in this

study to establish PPAs which will contribute to good

governance.

Constituents. The importance of this study to the barangay

community is to have better access to the barangay services

and more attention to barangay affairs. Results from this

study are useful when determining which services,

projects and events are sensitive to the goals of sustainable

development.

Future Researchers. For potential researchers, the study 's

importance is to become a foundation for their future

studies and a source of relevant knowledge that would be

useful in their prospective research.

Scope and Limitation of the Study

This study focused on the management practices on

barangays in the management of funds specifically from

planning, allocation, up to utilization of funds of the

Calendar Year 2019-2020.

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Respondents to this study were forty-two (42) people,

representing 100% of the population of barangay captains

and barangay treasurers in Escalante City, Negros Occidental,

namely Alimango, Balintawak, Binaguiohan, Buenavista,

Cervantes, Dian-ay, Hda. Fe, Japitan, Jonobjonob, Langub,

Libertad, Mabini, Magsaysaysay, Malasibog, Old Poblacion,

Paitan, Pinapugasan, Rizal, Tamlang, Udtongan, and Washington.

This study was carried out on February 20, 2020 until

February 28, 2020, the second semester of the 2019-2020

academic year.

A researcher-made questionnaire was the primary

instrument used to gather data.

Definition of Terms

The following definitions are described conceptually and

operationally to arrive at a clear understanding of the words

used in this study.

Accountability. It is a guarantee that a person or an

entity will be judged on their performance or actions in

connection with something they are responsible for (Rouse &

Wigmore, 1999).

In this study it covers the financial records of Barangay

and reports are sent to the City Accountant on time to assess

whether the performance is consistent with the budget plan.

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Allocation. Is a sum of something given to a specific

individual or used for a particular purpose, especially money

(Baltazar M., 2016).

For this study, it is the budgeting of the barangays'

PPAs.

Barangay. It is the Philippines's smallest administrative

division and the original Philippine word for a town, district

or city. (Gomez L., 2016)

In this study, it referred to twenty-one barangays in

Escalante City namely: Alimango, Balintawak, Binaguiohan,

Buenavista, Cervantes, Dian-ay, Hda. Fe, Japitan, JOnobjonob,

Langub, Libertad, Mabini, Magsaysay, Malasibog, Old Poblacion,

Paitan, Pinapugasan, Rizal, Tamlang, Udtongan, and Washington.

Budget. It is a quarterly national income and expenditure

assessment and plan introduced by the government by the

Chancellor of the Exchequer to the Parliament (Chambers 21st

Century Dictionary, 2015).

This study refers to the budget for the barangays in

Escalante City for the internal allocation of revenue.

Financial Records. Financial documents describing a

company, entity, or other organization 's transactions

(Prieston B., n.d).

In this analysis it refers to the account book, income

statement and expenses, balance sheet, the barangay trial

balance.
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Internal Revenue Allotment (IRA). Local governments' annual

share of the income from national internal revenue taxes

(Section No. 284 of the 1991 Local Government Code).

This referred in this study to the Barangay Internal

Revenue Allotment in Escalante City, Negros Occidental.

Management Practice. This is the strategies and

technologies used to make the company more effective

(Luenndonk M., 2017).

In this analysis it applies to the IRA budget management

practices.

Planning. Helps an organization chart a course to

accomplish its objectives. The cycle begins by reviewing the

organization's current activities and assessing what will need

to be operationally changed in the coming year. From there,

planning involves visualizing the outcomes that the

organization wants to achieve, and deciding the steps needed

to reach the intended destination – success, whether

financially assessed, or objectives that include being the

highest-rated customer satisfaction organization (Hill B.,

2019).

In this study it is referring to the barangay PPAs

programme.

Population. It is defined as a whole group of individuals,

objects, events, or measures (Kenton W., 2019).

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In this analysis it applies to the 2015 Population Census

at the 21 barangay residences in Escalante City.

Utilization. It is an activity to use it, i.e. to make

practical and effective use of it. Simply put; the word refers

to the effective use of something or the method of using it

(Borton K., 2017).

This applies in this analysis to using the IRA budget.