THE LEVEL OF ACCOUNTING KNOWLEDGE AND SKILLS OF SELECTED

BARANGAY TREASURERS IN A CAPITAL TOWN

The word barangay originally came from “balangay” a Malayan terminology for boat that

was used and brought during the Pre-Spanish period. Later became a political structure that

scientists accounted as decentralized government independent from each other.

Gracia et al., (2015) defined barangay as the village or district which is the basic political

unit (BPU) of the Philippines.

The Philippines is divided into subdivisions which include the provinces, municipalities,

cities and barangays to supervise the responsibilities of the administration. Yet these are under

the Executive committee through the Department of Interior and Local Government (DILG).

Under the Local Government Code of the Philippines Section 384, barangay serves as the

primary planning and implementing unit of the 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.

Provided in Section 387, in each barangay, there shall be (a) a Punong Barangay also

known as Barangay Captain, Seven (7) Sangguniang Barangay members also known as

Barangay Kagawads, a Sangguniang Kabataan chairman, a Barangay Secretary, and a Barangay

Treasurer; also, (b) a Lupong Tagapamayapa.

It is mandatory for provincial, municipal or city government to provide barangay located

within its vicinity a financial aid of not less than 1000. Furthermore, a barangay is also allowed
to receive donations, grants or aids voluntarily given by any public or private entity provided that

it is not included in their budget and it shall be used for the purposes they are intended.

One of the sources of income of barangay is its share from national, provincial, city or

municipal revenues like (a) Real property tax (RPT) collections of the province and city; (b)

Community tax collections of barangay; (c) Internal revenue collections; (d) The development

and utilization of the national wealth; (e) The proceeds of tax on sand, gravel, and other quarry

sources; and (f) Tobacco excise tax pursuant to RA No. 7171.

Every barangay will be given an IRA (Internal Revenue Allotment) as a stake in the

national revenue taxes funds as a fulfillment of its functions. These revenues include income tax,

estate tax, donor’s tax, VAT other percentage taxes and taxes imposed by special laws such as

travel tax. In addition to the IRA, the income of barangay is also generated from their own

source revenues (OSR) including operating and miscellaneous income, grants, and extraordinary

receipts capitol revenues and from borrowings.

Barangay treasurer is also known as Ingat – Yaman of Barangay. A treasurer’s main

responsibilities are collection and disbursement of cash.

Under Section 395, Barangay Treasurer is (a) Barangay treasurer shall be appointed by

the Punong Barangay with the concurrence of the majority of all the Sangguniang Barangay

members and its appointment shall not be subject to attestation by the Civil Service

Commission; (b) Barangay treasurer shall be of legal age, a qualified voter, and an actual

resident of the Barangay concerned; (c) no person shall be appointed Barangay treasurer if he is a

Sangguniang Barangay member, a government employee, or a relative of the Punong Barangay

within the fourth civil degree of consanguinity or affinity; (d) Barangay treasurer shall be bonded
in accordance with existing laws in an amount to be determined by the Sangguniang Barangay

but not exceeding Ten thousand pesos (P=10,000.00), premiums for which shall be paid by the

barangay; (e) Barangay Treasurer has the responsibility to: (i) keep custody of Barangay funds

and properties; (ii) 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 as provided under Title Five, Book II of this Code; (iii) disburse funds

in accordance with the financial procedures; (iv) submit to the Punong Barangay a statement

covering the actual and estimates of income and expenditures for the preceding and ensuing

calendar years; (v) render a written accounting report of all Barangay funds and property under

his custody at the end of each calendar year, and ensure that such report shall be made available

to the members of the Barangay assembly and other government agencies concerned; (vi) certify

as to the availability of funds whenever necessary; (vii) plan and attend to the rural postal circuit

within his jurisdiction; and (viii) exercise such other powers and perform such other duties and

functions as may be prescribed by law or ordinance.

Knowledge is the entirety of what is known- the body of truth, information, and

principles attained by humankind.

Accounting knowledge is teachable – one may acquire knowledge through readings and

learning in a classroom setting. It is guided by provisions. According to the COA Code, there are

general policies shall be observed in the accounting for barangay funds and property; policies in

receipts and disbursement activities of the barangay; and procedures in preparing the financial

reports.
 Skill refers to the ability to perform a certain physical or mental task with pre-determined

results often within a given amount of time, energy and both. Skills can be classified into two –

hard skills and soft skills.

Hard skills refer to the ability of a person that can be measured quantifiably and can be

gained through teaching. Soft skills relate to a person’s personality and ability to work with

others – is the interpersonal aspect of a person.

Accounting skill includes a wide range of abilities. Accounting skills quires numeracy

skills, organizations skills, computer, and communication skills. 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 duties and responsibilities

of a Barangay Treasurer (Bueno, D. et al, n.d).

Hence, it is essential that the appointive Barangay Treasurer has the ability to accurately

prepare the significant information that is essential in the preparation of Financial Statements by

the City or Municipal Accounting Office. Additionally, it should be better and easier to

accomplish the reporting function if Barangay Treasurers are literate enough in computer

technology such as the use of MS Word and MS Excel.