Can financial performance analytical tools be applied to a non-business entity? Yes it can! Department of Accountancy’s Prof. Daisy Anacleto used four sets of financial ratios that measure different aspects to determine barangay performance in Iligan City in her research on Financial Performance of the Six LGU-Barangays: 2010 – 2015 – Implications to Sustainability of Barangay Governance. The study earned the nod of the Social Sciences Research Society, Turkey and was among the papers presented during the International Conference on Regional Development and Local Governance held at the Holy Name University in Tagbilaran City, Bohol on February 10 and 11, 2017.
The paper presented by Prof. Anacleto, the result for only 6 barangays surrounding MSU-II, is part of the grand research design that calls for the total 44 barangays financial performance measurement. The ongoing study is slated for completion by May 31, 2017.
The research has also been presented during the 25th National Association of CPAs in Education (NACPAE) Accounting Teachers Conference held in Tagaytay in April 24-26, 2017. The paper was already accepted by the NACPAE for presentation in Singapore last year when it held its annual midyear out-of-the country conference but Prof. Anacleto had to defer presentation due to funding problem.
Financial statements summarize transactions completed by an economic entity as of a given date/for a given period. Financial statement analysis is one of the staple tools that accountants use to measure strengths and weaknesses as well as determine trends. The analysis serves as a basis for initiating improvements and changes within an organization.
The research findings will be a determining factor in setting the direction of the department’s future extension and community engagement activities. Already, five barangays’ officials had already been informed of their respective performance during one of their respective monthly council meetings. The study hopes to later on, in collaboration with the other CBAA departments, help the barangays determine ways to reduce their internal revenue allotment (IRA) dependency by assisting them in finding ways of increasing their internally generated revenue.
Accountancy’s Ms. Divina Gallardo is co-researcher of the study.
Topics : Department of Accountancy