1

Chapter 1

PROBLEM AND ITS SETTING

Background of the Study

Every organization both business and non-business requires

and uses finance for its various activities. The business organizations

are set up primarily for profit making like banks, companies and other

related ventures while non-profit organizations (NPOs) are to provide

services for public benefits, not to generate profits for partners or

shareholders. NPOs incur expenditures when providing services to

help people, while they are finance by grants or donations, not by

market transactions from selling products or services, which makes

their accounting requirements and treatments different from

commercial accounting in many ways. In many cases, the incoming

resources have their unique usages, which demand separate

accounting records.

NPOs are now being faced with the problem of finance, the

inadequacy of funds to carry outs their services. Most of the NPOs are

incapacitated in terms of fund, yet there are several sources of finance

but these seem not to meet up its financial demand. For good

financial records, there must be a well-developed financial decision

and reporting procedures and financial control being used or

operated. It is based on this that the researcher topic is chosen to

assess the financial record keeping of non-profit organizations.

 2

Therefore, the importance of finance, its adequacy to the NPOS and

how these were managed and controlled has led to the topic of the

study financial record keeping of it.

The non-profit organizations require fund to administer its

affairs and to carry out its daily obligations. The funds are not

necessarily adequate to meet up to its numerous demands, though

there are various sources of generating income. It is then necessary to

determine the financial income being used, whether there are proper

record keeping, the financial decisions and reporting made and the

accounting system or procedure adopted.

There arises the need for the NPOs to keep track of its financial

operations, this helps form an adage for it to control its income

against its expenditure. Thus, a house built on a solid foundation

remains a strong house but that whose foundation is shaky can

crumble at any time. In the same way, a good financial background of

NPOs can be said to be the foundation on which these are built.

Statement of the Problem

This study aimed to determine the level of financial

recordkeeping practices. It sought to answer the following problem.

1. What is the level of the financial recordkeeping practices

among Non-Profit Organizations in terms of:

1.1 Identification;
1.2 Classification;
1.3 Recording;
1.4 Storage and protection; and
1.5 Retention of records for preparation of financial

statements?
 3

Research Questions
1. What are the challenges NPOs face in their recordkeeping?
2. How do NPOs cope with the challenges encountered in

recordkeeping?

Theoretical Framework and Conceptual Framework

This study is anchored on the theory of Ademola et al. (2012)

which explains that record keeping is essential to organization

management. Record keeping involves identification, classification,

recording, storage and protection, and retention of records for

preparation of financial statements. He also included that the

accounting system should be adopted by a nonprofit organization to

enhance the accountability and transparency of financial records and

activities of organizations. And in record keeping, policies, systems,

procedures, operations and personnel are required to administer the

records. Modern organizations are concerned with the capture, use

and storage of knowledge. Record keeping has become the foundation

on which the totality of modern organization depends. This is because

without it, it will be impossible to ascertain the level of profitability

and the level of business susceptibility to fraud.

The most important reasons to set up a good record

management is to control the creation and growth of records, to

improve efficiency and productivity, to assimilate new records

management technologies and to ensure regulatory compliance.

Keeping records is crucial for the successful performance of an

 4

organization. Nonprofit organizations also depend on correct

accounting records to make good decisions in improving performance

and financial structure. Therefore, if proper records are kept they will

facilitate efficient, proper timely decision-making and enhance

performance.

With the financial report generated from a good recordkeeping

system, performance during one period of time (month, quarter or

year) with another period can be compared. An accurate record of the

organization' financial performance is vehicle to monitor performance

in specific areas. Record keeping cycle involves a process that is

followed by Accountants and bookkeeping staff in processing raw

financial data into output information inform of financial statements.

Nonprofit organization in recent time has witnessed

remarkable achievements in the areas of accurate record keeping,

easy accessibility to information on the financial activities of the

organization, a drastic reduction in the appropriation and high

embezzlement of funds by a top official. These notable achievements

are because of the adoption of accounting system in generating

financial information needed to aid decision-making process on the

financial activities of the organization. The use of accounting system

has a strong effect on the financial activities of the organization,

accounting system enhances reliability and accuracy of financial

records, effective accounting system has a significant impact on its

financial reporting, the use of accounting system reveals the financial

records and expenditure of the organization.

 5

The independent variable of this study is financial record

keeping practices. The most common financial record keeping

practices are: Identification, it is identifying events that will provide the

financial statements with the needed information. Classification, it is a

sorting and grouping of activities according to their respective classes.

Recording, it is an accounting process in maintaining specific books

and records which typically includes general ledgers and other

supporting documents. Storage and Protection, record storage as the

housing of records when whether semi-active or inactive, must still be

retained. Records should be stored in a well built records center, the

archives, commercial storage and the basement. And Retention, refers

to the practice of retaining copies of business or personal records over

time.

Financial Recordkeeping

 Identification
 Classification
 Recording
 Storage and protection Thematic Analysis
 Retention of records
for preparation of financial
statements
 6

Figure 1. Schematic Paradigm of the Study

Significance of the Study

The result of this study will have a good impact to the

organizations operating in the City of Tagum. By gaining

understanding of the most crucial financial recordkeeping practices

 7

applicable to their need, organizations will have to organize

themselves in a way that ensures success. In addition, this study will

be beneficial for the following entities:

Non-Profit Organizations. This study could give ideas to the

NPOs in terms of how proper financial record keeping is important for

future purposes. The importance of good financial records can’t be

overstated. They are key to complying of NPOs with government

reporting requirements, measuring program success, and avoiding

problems that can have devastating consequences. No matter how

small the organization, following good financial management

procedures makes good sense. Doing so helps ensure the staff and

board of the organization are fulfilling their stewardship

responsibilities, and makes it more likely the organization will be

sustainable for the long term and continue to fulfill its mission.

Students. This study will be beneficial to students of finance and

accounting so as to enlighten them more on finance and accounting

system of non-profit organizations because as an accounting

students, our focus is more on profit-oriented organizations. And this

will serve as their guide or tool in order to success in their career in

the future. Future Researchers. The outcomes of this study will be

beneficial for the future researchers as they conduct study having

similar variables of study in their chosen settings.

 8

Definition of Terms

For reason of clarity, we wish to define terms we used in our

study for further understanding.

Financial Record Keeping. As used in this study, it refers to the

process of recording transactions and events in an accounting system.

Since the principles of accounting rely on accurate and thorough

records, record keeping is the foundation accounting. It is the

maintenance of a history of one’s activities, as financial dealings, by

entering data in ledgers or journals, putting documents in files, etc.

Non-profit Organizations. A nonprofit organization is a business

granted tax-exempt status by the Internal Revenue Service (IRS).

Donations made to a nonprofit organization are typically

tax deductible to individuals or businesses that make them, but the

nonprofits must make financial and operating information public so

that donors are certain their contributions have been used effectively.

Nonprofits pay no income tax on the donations they receive or any

money they earn through fundraising activities.

Wikipedia stated that nonprofit organization formed by a group

of people in order "to pursue a common not-for-profit goal", that is, to

pursue a stated goal without the intention of distributing excess

revenue to members or leaders. A nonprofit organization is often

dedicated to furthering a particular social cause or advocating for a

particular point of view.

 9

Chapter 2

REVIEW OF RELATED LITERATURE

This section includes some studies and literatures that are

related to the present study. Articles are taken from books, internet,

and other resources that will support the findings of the study.

Financial Record Keeping

The origin of recording can be traced back to ancient civilization

in Babylon, Egypt, Rome and Greece. Early Babylonians had begun by

4500BC, to levy and collect taxes and records the receipts and

disbursements. The development of “papyrus” and “calamus” as paper

and pen respectively by early Egyptians is a great impetus to record

keeping. Before the advent of writing, man could talk and could

express himself in drawing but he could not write. Therefore, record

keeping could be dated back to about 300BC with the discovery of

“hieroglyphics and cuneiform” writing by early Egyptians and

Babylonians respectively. The introduction of the decimal system by

the Arabs as early as 850AD greatly enhanced the development of

recording keeping. (Okafor et al, 1996)

The emergency of money as a medium of exchange has provided

impetus for development of accounting and record keeping. It becomes

 10

necessary to record business events on monetary aspect rather

than on physical quantities. Moreover, the industrial revolution of

18th century, which brought about ample growth in the world trades

and industry, provided an important stimulus to accounting and

record keeping (Okafor, 1996:1).

The businesses have been on continuous growth and expansion,

resulting in increased need for information through proper recording.

Before this era, businesses were on small scale and individual

proprietors were so personally involved in the business that the need

for information was less required. The industrial revolution was in

effect the basis of the modern business enterprises ranging from

partnership to joint stock companies. Described business organization

as the vehicle for mobilization of funds and human resources”. He

further stressed that it involves the principle of stewardship or

accountability, which marks a step further in the development of

accounting and record keeping. There is great need for effective and

efficient communication network between the enterprises and the

interested parties especially for showing how the resources are utilized

(Okpe, 1988:1).

The man or an entity just going into business, experience has

clearly indicated that an adequate record keeping system helps to

increase the chances of survival and reduces probability of early

failure. Similarly, for established industrialist, it has been clearly

demonstrated that a good recordkeeping system increases his chances

of staying in business and or earning desirable profits. Record keeping

 11

can help owner managers of small enterprises keeping their business

on a sound basis (Okpe 1998:1).

The non-profit making organizations are established mainly to

render services and not to make profits the objectives of most non-

profit organizations are to provide as many goods or as much service

each year as their financial and other resources permit. They typically

operate on a year-to-year basis, raising as much financial resources

as possible and expending them in serving their constituency. The

non-profit organizations include a wide variety of organizations in the

present social and economic environment. They include government

units – Federal, State and other educational institutions, hospitals

and health care organizations, voluntary association, research

organizations, foundation and other social and cultural organization.

Financial management of a non-profit organization typically

focuses on “acquiring and using financial resources upon sources and

uses of working capital, budget status and cash flow rather than on

net income or earning per share”. There is no profit motive and there

is no individual shareholders to whom dividends are paid. Businesses

may be re-organized, sold or liquidated, NPOs are difficult to re-

organize or liquate and their properties are rarely considered as

cash assets. The use of funds is restricted when given by donor for

specific purpose. In other words, some assets are restricted for a

particular purpose like in a club, the members may be assessed for

certain capital improvements such as the construction of a swimming

 12

pool, the proceeds from the assessment will be set in a restricted fund

to be used only for that particular purpose (Freeman, 1988).

The measurement of the benefits resulting from sacrifices of

the non-profit organizations are much more difficult since the

attainment of goals can be measured only in term of “performance” to

compare to that of commercial enterprises which can be

measured as net income. The commercial organizations do have

the responsibilities to report on the stewardship of their

resources, the emphasis of their accountability is on the utilization of

the resources to earn a profit. But in non-profit organization, the

emphasis is placed on accountability and stewardship (James et al.,

1976)

It is important to understand that the standard of reporting for

non-profit organizations have developed differently from commercial

accounting standards because there is a difference in emphasis

in the objectives for recording the date and because of legally binding

restrictions in non-profit organizations which have no real counterpart

in business enterprises. One of the characteristics of non -profit

organization is that those contributing financial resources to the

organization do not necessary receive or proportionate share of

its goods or services (Freeman, 1988).

The non-profit organizational financial reporting should provide

the economic resources, obligations and net resources of an

organization and the effects of transactions, events and

circumstances that change resources and interests in those resources.

 13

The performance of an organization during a periodic

measurement of the changes in the amount and nature of the

net resources of a non-business organizations, and information

about its service efforts and accomplishment provided that the

information most useful in accessing its performance. How an

organization obtains and other factors that may affect an

organization’s liquidity should include an explanations and

interpretation to help users understand financial information provided

(Harry, 1993).

The objective of record keeping and the presentation of data is

to make available meaningful financial information. This requires

appropriate and adequate disclosure of the information required by

the users of financial data. The purpose of preparing and presenting

such data are comparable to the purposes of presenting financial

statements for commercial profit seeking corporations. Because of

both and special nature of the data required and historical

developments specialized accounting principles and reporting

practices can and, in a number of instance, do differ materially

from the principles and reporting practices of commercial

organizations.

The emphasis in a non-profit organization accounting is

on “stewardship” rather than on matching cost with revenues.

This emphasis arises from the fact that non-profit organizations

receive funds for which they must maintain accountability. This takes

the form of general accountability and specific accountability. The

 14

non-profit organization (school or colleges, church, hospital,

community funds, etc.) are established to carry out special functions

and to meet the designed objectives of the organizations. The

organizations have the general accountability to use the funds and

resources it receives for the established objectives. In some cases,

funds are contributed for use in a specific accountability to be

certain that the specific requirements on the donor are carried out.

The general characteristics of recording and reporting data for

the various types of non-profit organizations are similar; the historical

development of accounting principles and procedures has resulted in

a variety of record-keeping procedures and forms of presentation of

the financial data. Recognizing the need for uniformity in reporting

some of the organization groups (e.g. colleges and universities,

hospitals, states and local government, churches, voluntary

health and welfare organizations) developed manual doe use by

their groups (James et al., 1976),

Internal control system is defined as the whole system of

controls, financial and otherwise established by the management in

order to carry on the business of the enterprise in an orderly and

efficient manner, ensure adherence to management policies, safeguard

the assets and secure as far as possible the completeness and

accuracy of the record. The individual components of an internal

control system are known as “control” (Millichamp, 1986).

The principle purpose of a nonprofit organization is not to

make a profit, and not to benefit individuals as owners, but to

 15

advance the welfare of society. In short, the principle purpose of a

nonprofit is to realize its mission of public service. It must do this

within ethical and accountable financial management practices

established by the Financial Accounting Standards Board (FASB), the

state, and the Internal Revenue Service (IRS). Primarily the

organization must produce three important annual financial

statements: the statement of financial position (balance sheet), the

statement of activities (operating statement), and the statement of

cash flow. Together, these reports, along with an evaluation by the

chief executive officer, reflect the performance and financial condition

of the organization (Harrington Bryce).

Increasingly, funders, government bodies, and various

auditing agents are requiring that the organizations they audit follow

program accounting methods. Nonprofit organizations, dependent on

federal and state governments, are required to have financial

verification and established accounting procedures to receive monies

from such agencies. Constituencies dependent on nonprofit

organizations’ programs are also affected by consistent, detailed

record keeping of financial statements that indicate the costs of

services and programs provided by an organization. Through cost

analysis, nonprofits can make plans to provide more effective services

and programs, or conversely, decide to cut services and programs

because of the costs involved. In essence, good financial record

keeping affects not only the internal aspects of the organization but

also external partnerships (Grobman, 2002).

 16

There are three types of major accounting methods for

nonprofits, cash basis accounting, accrual-based, and a modified cash

accounting system To determine which accounting method is used by

a nonprofit, the organization must first choose to show when revenues

or expenses will be recorded and then determine which system will

reflect the financial condition of the organization in a more accurate

manner. (Dreezen, C. & Korza, P., 1998)

Most people are familiar with cash basis accounting because

it is synonymous with their own checking and savings account. When

following a cash basis accounting system financial transactions are

recorded only when cash changes hands. When a person receives

money and deposits it in the bank, the deposit is recorded as income

and is added to the bank account balance. [Inversely], when cash is

withdrawn from the bank…the transaction is recorded as an expense.

In cash basis accounting receivables and payables are not recorded.

Although this system of accounting is quite straightforward it often

results in misleading financial information because it tells nothing

about what the organization may owe or is owed during a given period

(Wolf, 1990).

The second form of accounting is the accrual-based

accounting method. The accrual method is not as simplistic as cash

basis accounting but it does “paint” a picture of the overall financial

health of the nonprofit. Accrual method accounting takes into account

all committed income and expenses, whether or not they have been

actually received or paid, are entered in the books. Most people are
 17

familiar with the accrual method of accounting because it is

synonymous with credit card transactions and payments. The system

of recording not only what has been purchased and paid for but also

what is owed to the credit card company is a simplified version of

accrual accounting (Dreeszen, C. & Korza, P., 1998).

Grants are typically entered into the accrual system of

accounting as income once a confirmation of the grant is received. The

organization may not actually have the money in their account but

will receive the money at a later date and therefore can record the

grant as income. On the other hand, expenses will be recorded in the

same fashion as accounts payable and will reflect the actual amount

owed at a given time and will include all activities of the organization

not just cash transactions. The accrual basis classifies revenues and

expenses by taking into account not only the accounting period in

which the bill is paid, but also more importantly, the period in which

the activity involved occurred. With the accrual method specific

revenues and expenses are recognized as a current, accrued, or

deferred revenue or expense (Olenick, A. & Olenick, P., 1991, p. 219).

Many organizations use the modified cash basis of accounting

to “rectify” their bookkeeping entries to reflect that actual revenues

and expenses of the organization and to create an opportunity to

summarize financial statements in an accrual method. Often the

accrual accounts in the modified cash accounting are reoccurring or

important outstanding obligations of the organizations. According to

this system, the books are kept on a cash basis except for a few
 18

accounts that are kept on accrual and that are usually updated only

at the end of the month or at financial reporting time” (Wolf, 1991)

To avoid accounting problems, a nonprofit must review the

entire organization as a whole and implement an accounting program

suited to its individual needs. To do this an organization must address

five questions: What personnel are responsible for each duty? What

are the safety mechanisms in place for the organization’s resources?

What approval and authorization systems are needed or are in

operation? What methods are available to verify the safeguards? Does

the organization have any insurance to cover losses? The

organization must also look at the size and scope of the organization’s

activities. Finally, an organization should determine its accounting

purposes at the various levels. (Wolf, 1991, p. 174) (Olenick, A. &

Olenick, P., 1991)

Choosing a type of accounting system for a nonprofit can be a

difficult and vexing task. A nonprofit must remember that if it

chooses to use a modified or strictly cash basis accounting method

that at least once a year the system must be modified to an accrual

method. This modification must take place to reflect the financial

solvency of the entire organization and its activities. The accrual

method is mandated by the generally accepted accounting procedures

or GAAP. It should be obvious that knowing the financial condition of

an organization is more revealing than knowing its bank balance.

Each accounting method has advantages and disadvantages for its

use by a nonprofit. An organization should always seek the help of

 19

professionals to assist it in implementing and, if possible,

administrating its accounts. In the end, the best system is a system

that gives the members of an organization control over its financial

health and portrays this health through their records. (Wolf, 1991)

Each component of a nonprofit organization’s existence, such

as the organization’s programs and projects, is dependent on the

organization’s financial feasibility. Financial feasibly is accounted for

through a variety of financial statements, primarily the balance sheet,

cash flow and operating statement. One of the principle differences in

nonprofit financial statements compared to for-profit entities is that

the overall objective of a nonprofit is to realize its socially desirable

goals and objectives for the community it serves, rather than to realize

a net profit.

Nonprofits can only serve their goals and objectives if they

have sufficient cash to provide for various programs. This dependence

upon cash flow has created a heavy responsibility for nonprofits to

account for the resources they have received. Nonprofit fund

accounting has enabled organizations to segregate assets into

categories by the restrictions placed on their use. Unlike the systems

used by for profit corporations in which “owner equity” is shown, a

nonprofit tax-exempt entity reports a fund balance on its balance

sheet” (Dreeszen and Korza , 1998).

Other differences include: fixed assets may not be recorded by

a nonprofit; pledges, contributions, and other noncash contributions

can be legally enforceable and recorded as an asset if the organization

 20

chooses to collect them; and smaller nonprofits can choose to use the

cash basis accounting instead of the accrual method (Connors, 1993).

These differences reflect the unique nature of formulating financial

statements for nonprofits and enable nonprofits to manage their

assets and record them in an accurate and understandable manner.

The above-mentioned articles discuss about the nature of financial

record keeping in an organization and its important for the financial

decision making in the future. The readings will also serve as a rigid

foundation in conducting the study.

 21

Chapter 3

METHOD

This chapter deals with the method and procedures to be used

in gathering the necessary data and these are research design,

research subject, research instrument, data gathering and procedure

and the statistical treatment.

Research Design

This study will be using mixed method employing quantitative and

qualitative using explanatory sequential approach type of research

design through the use of standardized questionnaire and interview

guide questions on financial recordkeeping practices of Non-Profit

Organizations. Sequential Explanatory Analysis is characterized by

collection and analysis of quantitative data followed by a collection

and analysis of qualitative data to use qualitative results to assist in

explaining and interpreting the findings of a quantitative study,

(Creswell, 2003).

The Explanatory Design is a two-phase mixed methods design.

The overall purpose of this design is that qualitative data helps

explain or build upon initial quantitative results. This design starts

with the collection and analysis of quantitative data. This first phase

is followed by the subsequent collection and analysis of qualitative

data. The second, qualitative phase of the study is designed so that it

 22

follows from (or connects to) the results of the first quantitative phase.

Because this design begins quantitatively, investigators typically place

greater emphasis on the quantitative methods than the qualitative

methods, (Creswell, Plano Clark, et al., 2003).

The follow-up explanations model is used through qualitative

data to explain or expand on quantitative results. In this model, the

researcher identifies specific quantitative findings that need additional

explanation, such as statistical differences among groups, individuals

who scored at extreme levels, or unexpected results. The researcher

then collects qualitative data from participants who can best help

explain these findings. In this model, the primary emphasis is usually

on the quantitative aspects, (Creswell, Plano Clark, et al., 2003).

One forms of qualitative study is the in-depth interview (IDI, one-

on-one). These types require an interview with a single individual a

group interview with a duration that may last depending on the

subject matter and the context. In our study there are three research

questions and the interview guide will directed and approved by the

members of the panel. The purpose of conducting an in-depth

interview and among NPOs in this study is to know about their

financial record keeping.

Research Subject

This study will be conducted at Tagum City. The respondents of

this study are the finance administrator of NPOs. When selecting the

business to study we decided to use simple random sampling. The

study will focused directly from the chosen NPOs in Tagum City.
 23

The random sampling method is conducted where each member

of a population has an equal opportunity to become part of the

sample. As all members of the population have an equal chance of

becoming a research participant, this is said to be the most efficient

sampling procedure. In order to conduct this sampling strategy, the

researcher defined the population first, listed down all the members of

the population, and then selected members to make the sample.

Furthermore, when conducting random sampling the findings cannot

be generalized and will not statistically represent the population,

(Saunders et al., 2012). This is not our intention with the study but

rather to contribute with a greater understanding.

Research Instrument

In this study, the adapted modified questionnaire and interview

guide questions will be used in order to gather the relevant data. The

questionnaire as an inquiry device, has gained widespread acceptance

as a practical way to collect data to answer the specific problems in

the study. There is only one (1) set of questionnaire that will be use in

this study. The original questionnaire will be adapted modified and

question items will be simplified or translated to the vernacular for the

understanding of the respondents. The set of questionnaire is to

determine the level of financial recordkeeping practices with the

following indicators: identification, classification, recording, storage

 24

and protection, and retention of records for preparation of financial

statements

Range Description Interpretation

4.3 – 5.0 Very High This means that the Financial

Recordkeeping Practices
are
very much observed.

3.5 – 4.2 High This means that the Financial

Recordkeeping Practices are
much observed.

2.7 – 3.4 Moderate This means that the Financial

Recordkeeping Practices are
observed.

1.9– 2.6 Low This means that the Financial

Recordkeeping Practices are
rarely observed.

1.0 – 1.8 Very Low This means that the Financial

Recordkeeping Practices are
not observed.

Data Gathering Procedure

 25

Gathering the data needed of the study follow these steps and

procedures:

The first thing will be done is the construction of questionnaires to

determine the level of financial recordkeeping practices of NPOs. The

draft of the said instrument will be read and checked by the adviser.

This will be submitted to the panel of members for validation and then

it was finalized after incorporating of all the corrections and

suggestions of the panel.

The data gathering instrument will be distributed to the finance

adminstrator soon after we will be given the permission to conduct the

study from Dean of College in UM Tagum. The data collected will be

given to the statistician for analysis and interpretation.

Data Collection

Data collection component of research is common to every phase

of study, the process of accumulating and assessing information on

variables enables the researcher to answer stated research questions

and interview guide, and evaluate outcomes (Mouton, 2001). On the

other hand, qualitative data collection methods involved providing

information useful to understand the processes behind observed

results and assess changes in people's perceptions. In this study, the

collection of data was pin patterned to the five steps given by Creswell

(2007).

It is necessary for a researcher to understand the nature of the

research and the reason to conduct the study so it would be easier to

introduce and request permission to the respondents to conduct the

 26

study and involve them in the quest. This is deliberately to

understand the study. It is important also to gain the confidence and

trust of each of our participant. First, we will ask the permission to

conduct the study from the seven (7) finance administrators of NPOs

for individual discussion. As the researchers, we assured them that

their involvements in the study were voluntary and that if they do not

feel like answering the question, they could withdraw anytime from

the interview or could refuse to answer the question. The participants

of our study will be informed through letter communication and face-

to-face encounter. We will also inform them about the three-screening

committee and the flow of the interview. Upon the permission and

approval, the participants will be given a chance to read first the

purpose of our study before we started the formal interview. Further,

all participants were oriented that the interview will be recorded and

each of them were given a copy of the interview guide. Matters like

identity and personal information will keep and treated with utmost

confidentiality.

Second, we choose the appropriate sites that best cater the

interview to help us understand the study. Each of the seven

participants will be given his choice to select his most convenient day,

time, and place for the interview.

Third, we will identify the data from various sources. After

evaluating the research questions, we took into consideration the

sources of data that were necessary only for the information to

understand the study.

 27

Fourth, we will administer and record the data using the

protocols. The researchers develop protocols or written forms for

recording process through gathering information about the

participants, (Creswell, 2008). Finally, when we will administer the

data collection we assure that the process was in a manner sensitive

to individuals.

Statistical Treatment

The data gathered will be tabulated and analyzed using the

following statistical tool:

Mean. This will be used to analyze the extent of using financial

record keeping practices of NPOs in Tagum City.

Analysis of Data

Analysis of data in a research study involves summarizing the

mass of information gathered and showing the outcomes in a way that

conveys the most vital components. It is also a form of knowledge

management that involves overseeing systematic procedures to

change data into information and information into knowledge and

knowledge into wisdom (Hancock et al., 2009; Davenport & Prusak,

1998).

Before the data is analyzed, all the data gathered in the survey will

be computed by the statistician and the interviews, observations, and

documents will be transcribed and translated in English. The process

of transcribing will allow us to become acquainted with the data. The

 28

data gathered, interviews, observations, and documents, will be

analyzed carefully.

In this fashion, it combines both logical thoroughness and

aesthetic aplomb to create systematized and creative product. It

additionally involves us as the researcher to oversee ourselves all

throughout the whole endeavor as we go through the essential logical

instrument (Patton, 2002). It also implies we should have to focus on

complex and fine detail and at the same time, not to dismiss the

comprehensive view of the research project. Obviously, it requires an

extensive variety of aptitudes and learning on your part, including the

capacity to write well when showing the outcomes.

Furthermore, there are two different forms of qualitative research,

which are based on different assumptions about what constitutes

appropriate inquiry, (Marshall and Rossman (2006). Within these two

main streams of qualitative analysis, the traditional and the critical, it

identifies different modes of qualitative thus it describes how each of

them is applied, discusses its strengths and weaknesses, and defines

the principles that should guide the research process. In order to

accomplish these tasks, we followed the Colaizzi (2011) method of

analysis.

Data reduction is the abstraction of data from the translations

erasing information which is not necessary and changing it into a

comprehensive material, easily comprehended by many (Namey et al,

2007; Paul, 2006; Suter; 2012). This mix and filtering of information

is often termed as thematic analysis, a type of sorting and arranging.

 29

With data reduction, we utilized the expertise of a professional data

analyst for data analysis.

Data display on the other hand is the organization of information

and display it in the form of graphic organizers such as: matrices,

charts, graph, that would empower the viewer to make his conclusion

(Suter, 2012). It is one step beyond data information, showing the

data in an arrangement and orderly manner, obviously demonstrating

the interrelationships of bits of data, promptly accessible to the

viewer. At this stage, other higher order classes could turn out beyond

those discovered during the first phase of data reduction (Namey et al,

2007; Paul, 2006).

Conclusion drawing and verification is the last step of qualitative

analysis. It involves going back to consider what the examined

information mean and to evaluate their aftermaths for the inquiries at

hand while verification, integrally connected to conclusion drawing,

required revisiting the data as many times as necessary to cross-

check or confirm these developing conclusions (Paul, 2006). At this

point, no authoritative judgments were made yet but rather, the data

will be permitted to "speak for themselves" by the emergence of

conceptual categories and descriptive themes. These themes were

generally implemented in a structure of interconnected ideas that is

sensible. We also came to correlate the result of the study with the

theory in which this case study is based.

Trustworthiness
 30

Trustworthiness is highly essential to any research inquiry. It is

emphasized, that trustworthiness is the period which the findings are

an authentic reflection of the personal and lived experiences of the

phenomenon under investigation. With so many considerations to

establish and achieve trustworthiness, we chose to follow and apply

the concepts of Shenton. Hence, we employed four important criteria

in assuring trustworthiness such as credibility, transferability,

dependability, and conformability in our study (Curtin &Fossey, 2007;

Shenton, 2004).

To address credibility on our study, we will employ several

techniques such as ensuring the qualification and experience of the

investigator, thick description of the phenomenon under scrutiny,

examination of previous research findings, tactics to help ensure

honesty in informants, triangulation, peer debriefing, member

checking, persistent observation, and referential adequacy, in order

build confidence in the truth of the findings. Credibility deals with the

question how congruent are the findings with reality (Merriam, 2009;

Shenton, 2004).

To achieve transferability, we will provide background data to

establish context, and write the detailed, sufficient and careful

contextual information about the participants’ experiences by means

of a thick description of each case for comparisons to be made.

Transferability shows that the findings are applicable in other

contexts. Moreover, we will clear the boundaries of the study because

 31

this additional information is important before any transference is

made (Patton, 2005; Polit& Beck, 2010; Shenton, 2004).

In order to address dependability, we will apply three basic

techniques by Shenton: full description of the implemented research

design, the in-depth methodological description, and the inquiry

audit. The processes done in the study should be reported in detail to

ensure that the findings are consistent, thereby enabling a future

researcher to repeat the work. To ensure further the full description of

the implemented research design, we will include the operational

detail of data gathering and reflective appraisal of the project, which

is, evaluating the effectiveness of the process undertaken. On the

other hand, each participant will be interviewed thoroughly using a

detailed question guide and impromptu open-ended questions related

and significant to the issue under inquiry, then everything that will be

transpired including the emotions displayed by the interviewee will be

recorded and will be written without cut (Miles et al., 2013; Shenton,

2004).

Further, we ensured that confirmability of the inquiry will be

established, through the use of audit trail, triangulation and member

checking. Conformability is the degree of neutrality, which the

findings of a study are shaped by the respondents and researcher

bias, motivation, or interest. An audit trail is a transparent description

of the research steps taken from the start of a research project to the

development and reporting of the findings (Bowen,2009; Miles et al.,

2013).
 32

We will also request all of our participants to sign the certificate of

verification. Prior to that, we will make sure that the informants will

be given the opportunity to read the transcripts of dialogues in which

they have provided during the interviews and that our interpretations

of the data are shared with the participants, and they have the

opportunity to discuss and clarify the interpretation. Hence, all of

these four criteria are substantial and effective enough to ensure

trustworthiness and credibility when followed properly can equate

validity and reliability in qualitative research.

Ethical Consideration

In respect to the rights of the participants, we made sure that they

are well informed about the items to be discussed. We have provided

them with the consent approved by university. Therefore, we have to

ensure their safety, give full protection so that they will not lose their

trust to us. We followed ethical standards in conducting this study

these are the following: respect for person, beneficence justice,

consent and confidentiality (Boyatzis, 1998; Mack et al, 2005).

Respect for persons needs an obligation of the researcher not to

exploit the weakness of the research participants. Self-sufficiency was

avoided in order to maintain friendship, trust, and confidence among

participants and the researcher (Creswell 2012).

Consent is another most important way of showing respect to

persons during research. This is to let all participants became aware

on the purpose and objectives of the research study that they are

going to involve. Written consent will provide for them to get their
 33

approval. After getting their nod, they have actively participated the

in-depth interviews and individual discussions. Of course, they were

informed on the results and finding of the study (Creswell 2012).

Beneficence requires a commitment of minimizing risks to the

research participants rather maximizing the profits that are due to

them. Anonymity of the interviewee will kept in order not to put each

participant into risks. At all times, participants were protected, so

every files of information were not left unattended or unprotected

(Bricki and Green, 2007).

Confidentiality towards the results and findings including the

safeguard of the participants, coding system were used. Meaning, the

participants’ identities were hidden. All materials including

audiotapes, encoded, transcripts, notes, and others should be

destroyed after the data were being analyzed. Some of the informants

were hesitant to be interviewed at first because they were afraid what

to say but because of our reassurance to them in regards to the

confidentiality of their response, they later gave us the chance and

showed comfort in answering the interview questions. We will extra

careful and with our questions and due respect will give importance to

this study (Maree and Van Der Westhuizen, 2007).

Justice requires a reasonable allocation of the risks and benefits as

result of the research. It is very important to acknowledge the

contributions of all the participants as they generally part of the

success of the research. They must be given due credits in their

endeavors. They were not able to spend any amount during the
 34

interview. Sensible tokens were given to them as sign of recognition to

their efforts on the study. We hope that through this study, they will

be set free into whatever negative experiences they had as they teach

non-readers and maintain a good name into what positive

contributions they could offer in this study (Bloom and Crabtree,

2006).
 35

Chapter 4
PRESENTATION AND ANALYSIS OF FINDINGS

This chapter presents the analysis and interpretation of data with

regards to the level of the variable.

Level of Financial Record Keeping

Shown in Table 1 is the level of Financial Record Keeping. The

overall mean for the level of Financial Record Keeping is 4.42, with a

standard deviation of 0.46, described as Very High. This means that

the Non-Profit Organizations or NPOs in Tagum City have very much

observed financial record keeping.

The mean for Identification is 4.36, with a standard deviation of

0.59, described as Very High; classification the mean is 4.15, with a

standard deviation of 0.67, described as High; the mean for Recording

is 4.38, with a standard deviation of 0.58, described as Very High; The

Storage and Protection mean is 4.57, with a standard deviation of

0.46, described as Very High; and of Retention mean is 4.65, and a

standard deviation of 0.39, described as Very High.

Table 1
Level of Financial Record Keeping of NPOs
 36

Indicators Mean SD Description

4.36 0.59 Very High

Identification
4.15 0.67 High
Classification
4.38 0.58 Very High
Recording
4.57 0.46 Very High
Storage and Protection
4.65 0.39 Very High
Retention

Overall 4.42 0.46 Very High

Legend:
4.30 – 5.00 Very High
3.50 – 4.20 High
2.70 – 3.40 Moderate
1.90 – 2.60 Low
1.00 – 1.80 Very Low
 37

Based on the statistical result, retention has the highest level of

financial record keeping. This means that the NPOs in Tagum City

have possessed more of this skill than the other four determinants in

terms of financial record keeping.

Record retention refers to the practice of retaining copies of

business or personal records over time. It is important for

organizations’ administrator not only to keep good records, but also to

know which ones to retain and for how long. It can help organizations

improve the efficiency and productivity of day-to-day activities and

reduce their costs.

After the result of the survey was analyzed, the interview was

then conducted to validate the result of the quantitative data. This

detailed the information obtained and interpreted on this explanatory

sequential study, which centered on the financial record keeping of

NPOs.

Moreover, this study also aimed to determine the challenges and

endeavors faced by the finance administrator when it comes to record

keeping, their experiences throughout the whole organization, their

hopes for the organization, and their perspectives and realizations

about financial record keeping. The participants of this study were

finance administrator from the Non-Profit Organizations (NPOs) of

Tagum City.
 38

Table 2

Themes and Core Ideas on the Challenges encountered in

Classifying the Record Keeping

Essential Themes Core Ideas

 “Here, everything should be recorded
properly because after a certain period our
financial record will be audited.
Sometimes, vouchers do not have a receipt
attachment, that’s why during audit
corrections are made.”
 “We do not really possess a huge amount
of money. At times, purchasers forgot to
Keeping Receipts as
ask for a receipt or vendors especially in
Supporting Evidence sari-sari stores do not provide receipts
when it involves small amounts and I
think that is the only problem we are
struggling now.”
 “In the challenges, we sometimes incurred
expenses that there are no proofs like
receipts that is why it is difficult to
account the expenses. But the rest of the
transactions were easily recorded because
it was set already on the given activities.”
 “It just happened sometimes when the
money set for the program does not
coincide of what have been incurred that
is why there is conflict in recording but we
make solutions for this.”
 “There are times that the actual cash do
Improper Recording of not coincide with our records. Sometimes
Incurred Expenses we have cash shortage and there are also
times that we have cash overage but it’s
not at all times.”
 “Sometimes, we incur expenses that were
not included in the approved budget but
during the assembly we carry this issue
and justify it.”
 “It’s just a minimal consequence like
having trouble with unmatched record
and actual count where we would wonder
where the minimal amount been placed
but it’s just a small issue.”
 “What’s that?.. Ahhh.. We do not really
 39

observe an accounting framework in our

organization. As long as the transactions
are properly stored and recorded, I think
that’s all it matters.” (IDI 2)
 “In our organization, we do not follow a
particular accounting framework but we
have our organization’s mission and vision
where we base our dealings and work.
No Accounting
Since this was not built for a single
Framework and
beneficiary, we are doing these efforts for
Accounting Procedure everybody’s sake.” (IDI 5)
being Practiced or  “We do not practice proper accounting
Followed procedure because this is just a small
organization. We just assure that the
outflow of cash is based on the approved
budget.” (IDI 3)
 “As a non-profit organization we are not
particular in applying Accounting
framework instead we are using policies
and procedures in our organization to
continue our operation.” (IDI 7)

Keeping receipts as supporting evidences

A receipt is an umbrella term for different kinds of source

documents or electronic references that record transactions. By

documenting every receipt, an organization’s activities are made

 40

certifiable, transparent, and easily comprehensible, making it one of

the most important aspects of company accounting.

Keeping receipts is essential to the bookkeeping and

accounting process as it is the evidence that a financial transaction

occurred. If an organization is audited, source documents back up the

accounting journals and general ledger as an indisputable audit trail.

Another defining feature of receipts is the fact that, in the increasingly

digitized arena of accountancy, they are a remnant of manual

bookkeeping. This is physically issued, collected, stamped, and

retained for future reference.

“Sa amo gang, everything should be recorded jud kay after

sa isa ka period gina audit jud among financial record.
Usahay nay mga voucher nga walay naka attach nga
resibo maong maglisod mi pag mag audit na.” (IDI 1_1.2)

Here, everything should be recorded properly because after

a certain period our financial record will be audited.
Sometimes, vouchers do not have a receipt attachment,
that’s why during audit corrections are made.

“Kanang dili man jud kaau ingon nga dagko nga kwarta
among gina gunitan dre. Kana lang mga makalimot ug
resibo sa mga paliton kay usahay nay uban dili mag hatag
ug resibo labi na gamay ug kantidad labi na sa sari-sari
store.” (IDI 2_1.3)

We do not really possess a huge amount of money.

At times, purchasers forgot to ask for a receipt or vendors
especially in sari-sari stores do not provide receipts when
it involves small amounts and I think that is the only
problem we are struggling now.

“Sa challenges ky usahay naa mi mga magasto nga walay

mga proof like receipts mao usahay maglisod ug account sa
mga expenses. Pero the rest na mga transactions ky madali
 41

lang ky naa namay nakalaan na mga activities para ato

nila.” (IDI 3_1.0)

In the challenges, we sometimes incurred expenses that

there is no proofs like receipts that is why it is difficult to
account the expenses. But the rest of the transactions
were easily recorded because it was set already on the
given activities.

Improper Recording of Incurred Expenses

While every organization has the best intentions to maintain

accurate and complete accounting records, sometimes accidents

happen. Improper recording of transactions can cause problems when

reporting, during financial statement audits and while planning for

future years.

Good records allow you to identify all of your assets, expenses,

income, and liabilities. This lets you see the strengths and weaknesses

of your organization, which will enable you to make better financial

decisions. Accurate accounts give real-time data for better reporting

and forecasting. Goals and objectives that are created with accurate

information are more easily measurable. (Flores, 2015)

“Panagsa lang man na mahitabo kanang usahay dili mag

coincide ang kwarta nga nakalaan ana nga program ug sa
mga nagasto mao naa mga conflict sa pag record pero ma
solusyonan raman pud. Kay amo man ginasubay then
ginatarong sad ug account sa bookkeeper jud namo.” (IDI
4_1.0)

It just happened sometimes when the money set for the

program does not coincide of what have been incurred that
 42

is why there is conflict in recording but we make solutions

for this.

“Usahay ang kwarta dili mag coincide sa among record nay

gamay kulang usahay pod naa pud sobra. Pero panagsa
rana sya.” (IDI 4_1.3)

There are times that the actual cash do not coincide with
our records. Sometimes we have cash shortage and there
also times that, we have cash overage but it’s not at all
times.

“Usahay ang wala sa budget nga expenses naa mi ma

gasto maong mag lisod mi pag mag meeting na mga tao ani
nga organization amo gina explain kung nay ing-ani nga
gasto.” (IDI 3_1.3)

Sometimes, we incur expenses that were not included in

the approved budget but during the assembly we carry
this issue and justify it.

No accounting framework and accounting procedure followed

An accounting framework is a theory of accounting prepared by a

standard-setting body against which practical problems can be tested

objectively. Benefits of an accounting framework are providing

guidance to accounting standard setters when developing and

reviewing financial reporting rules, helping to ensure that accounting

standards are internally consistent, and helping preparers and

auditors to resolve financial reporting problems.

So if there is no accounting framework followed then it might be a

problem for the organization. But then, some non-profit organizations

have their own set of rules and guidelines which they follow and

seems like effective.

 43

“Unsa mana sya? …Ahhh. Wala man jud mi gna sunod nga
accounting framework. As long as ang tanan transaction
namo kay properly done lang jud. Mao jud na pinaka
importante sa tanan.” (IDI 2_1.1)

What’s that?.. Ahhh.. We do not really observe an

accounting framework in our organization. As long as the
transactions are properly stored and recorded, I think
that’s all it matters.

“Sa among organization, wala man jud mi kanang

accounting framework nga gina sunod pero naa mi
amoang mission vision nga amo gna basehan sa among
paghimo sa mga butang dre. Kay natukod mani nga
organization dili para sa isa ka tawo kundili para sa uban
ug sa tanan nga nanginahanglan ani. Ang tanan maka
benepisyo.” (IDI 5_1.1)

In our organization, we do not follow a particular

accounting framework but we have our organization’s
mission and vision where we base our dealings and work.
Since this was not built for a single beneficiary, we are
doing these efforts for everybody’s sake.

“Wala man mi ga practice ug kanang sakto jud nga

accounting2 kay gamay raman ni among organization.
Basta ang mga naa sa budget nga gastuhon mao lang jud
na ang I pagawas.” (IDI 3_1.2)

We do not practice proper accounting procedure because

this is just a small organization. We just assure that the
outflow of cash is based on the approved budget.

“Kami as a non-profit organization wala mi gina sunod nga

accounting framework pero gina-apply namu ang policies
and procedures sa among organization para ma continue
among operation.” (IDI 7_1.1)

As a non-profit organization we are not particular in

applying Accounting framework instead we are using
policies and procedures in our organization to continue
our operation.
 44

Table 3

Themes and Core Ideas on How the NPOs

Cope with the Challenges encountered in Record Keeping

Essential Themes Core Ideas

 “We remind everyone that they should
follow the guidelines that apply in the
organization because it is for everyone.
And that's the basis of things to do and for
organizing the activities of the
organization.”
 45

 “The record keeper will not struggle if he

will follow what he always does. And he
Follow Rules and should follow what must be done.”
Guidelines of the  “Everytime our organization is struggling
Organization we just follow our Financial Management
standard and in that way our records or
account of transaction is clear. After that,
we then submit it to our admin for us to
know if there is still lacking or problem.”
 We just follow the guidelines in our work
so no inefficiencies would happen and
that’s the only strategy we are employing.
 “Every duty of the officers or those who
facilitate should do with honesty. For
everything starts with it.”
 “I think we do not need to struggle in
order to survive because if you have done
every work you have with honesty, then
why would you expect struggles? Right?”
 “Money is a great tempter, that’s why we
Uphold the Value of
need to possess and practice honesty in
Honesty and Maintain everything we do so that we might not be
Professional Ethics tempted to do wrong. This is just a small
issue to ponder but it may test and reveal
who and what you are.”
 “During assembly, tons of questions are
raised; there are what’s and why’s, but
surely if you do all things with honesty
then, you would not hesitate to answer
their questions with confidence.”
 “We have practiced the so called
accountability because if inefficiencies
arise we could easily identify the person
responsible of this job.”
 “By the way, what does that mean?
Ahhhhh. Here, we do all things with
honesty. Even if the primary purpose of
this organization is not earn profit,
because this is not actually a business,
but still it involves money to be managed
for the sake of everyone who benefits this
organization.”
 “If there are any problems or challenges in
record keeping, it's just a matter of
helping and get a little bit easier because
 46

we're all together and then the record

keeper will not struggle.”
 “For us, teamwork has been the way of
making this organization continues to
Practice Cooperation and
exist because if some are not doing their
Teamwork among part as a team this wouldn’t be like this
Employees now.”
 “Without teamwork and oneness, this
organization is surely inexistent. Maybe,
that’s the reason why we managed to
preserve this organization’s mission to
serve others.”
 “By God’s grace, we are still continuing
the service we have been offering. Even if
this non-profit organization does not
generate huge amount of income, by the
extreme efforts and sacrifices exerted by
the employees and the supporters of this
organization we still manage to have
Commitment to Work harmonious work environment.”
 “Those are not really a struggle that’s why
we haven’t faced consequences because
we knew what we are doing with the
guidance of the head of our organization.”
 “Those minor problems we have gone
through have been surpassed because of
the effort of the people who managed this
organization. They have done what they
need to do.”
 “I think, the reason of the success of this
organization is the dedicated and
committed persons we have hired. If we
have not chosen them maybe this
organization would be inexistent now.”
 “This organization still exists because
everyone had done their part as a team in
making this organization succeed.”

Follow rules and guidelines of the organization

Not all rules were "made to be broken." The organization benefits

from the rules set and enforce. They define your organization and give
 47

it its personality, and they can keep your organization in compliance

with the law. Those rules also help everyone in the organization

understand where they fit into your organization. When your

organization follows the rules and guidelines of recording, your

decisions spread throughout your organization uniformly. Larger

decisions spread through your organization efficiently when everyone

obeys the rules of the organization.

“Ano lang, gina remind namo ang tanan nga dapat

mosunod ug mosobay jud sa mga gipatupad na patakaran
in terms sa pag record ky kani para rapud sa tanan. And
mao jud nay basehan sa mga angay lihokon ug mao ng
basehan para mapahan-ay ang mga kalihokan sa
organization.” (IDI 1_2.0)

We remind everyone that they should follow the guidelines

that apply in the organization because it is for everyone.
And that's the basis of things to do and for organizing the
activities of the organization.

“Dili man guro magkalisod ang isa ka tig record if musobay

lang jud siya sa katong ginabuhat jud niya. And dapat
mosunod jud siya sa mga kailangan nga buhaton.”(IDI
4_2.0)

The record keeper will not struggle if he will follow what he

always do. And he should follow what must be done.

“Everytime nga magkalisod-lisod man among organization

gina follow lang namo ang Financial Management standard
para sa kana nga way mapaayo namo ang among pag
record or account sa mga transactions. Tapos gina submit
nako dayon sa admin para makita ug masobay kung asa
tong medyo nay problema.” (IDI 7_2.0)

Everytime our organization is struggling we just follow our

Financial Management standard and in that way our
records or account of transaction is clear. After that, we
then submit it to our admin for us to know if there is still
lacking or problem.
 48

“Among strategy nga gina himo kay musunod lang jud mi

sa guidelines sa among organization para walay problema
nga ma abot.” (IDI 1_2.3)

We just follow the guidelines in our work so no

inefficiencies would happen and that is the only strategy
we are employing.

Uphold the value of honesty and maintain professional

ethics

If every financial transaction that ever took place was correctly

recorded and everyone in the organization especially the finance

administrators was completely honest and knowledgeable about

recording transactions, financial statements could be prepared and

used with 100% certainty. Uphold the value of honesty and

professional ethics can guide decision-making and help preserve the

reputation of the organization.

“Among gina kuan nga ang tanan nga bulohaton sa mga

officers or sa mga tig facilitate kay with honesty jud. Kay
magsugod man jud diraa ang tanan.” (IDI 5_2.0)

Every duty of the officers or those who facilitate should do

with honesty. For everything starts with it.

“Para sa ako dili man guro kailangan mag struggle para

mag survive kay kung imung work kay gi himo nimu with
honesty then unsay rason para mag struggle ka? Diba
gang?” (IDI 1_2.2)

I think we do not need to struggle in order to survive

because if you have done every work you have with
honesty, then why would you expect struggles? Right?

“Gamay raman ni nga butang pero dire ta matistingan

kung unsa ta. Siguro ang paghimu lang jud sa tinud.anay
sa tanan butang. Kay usahay kita man matintal man jud ta
sa kwarta dapat himuon jud nato unsa ang maau kay
kung dili naa jud dili maayo mahimu.” (IDI 4_1.5)
 49

Money is a great tempter, that’s why we need to possess

and practice honesty in everything we do so that we might
not be tempted to do wrong. This is just a small issue to
ponder but it may test and reveal who and what you are.

“Kanang pag mag assembly mi daghan jud mga pangutana

gikan sa mga tao kung ngano ni, ngano na. mao to ang
naka challenge sa amo nga himuon namo among trabaho
with honesty jud kay kung tama ang imo ginahimo dili ka
na mag duha2 sa imo itubag sa pangutana.” (IDI 5_1.5)

During assembly, tons of questions are raised; there are

what’s and why’s, but surely if you do all things with
honesty then, you would not hesitate to answer their
questions with confidence.

“Ang among strategy nga gina himu kay dapat nay

accountable nga isa ka tao sa is aka trabaho kay para if
nay unfavorable nga mahitabo isa lang ka tao among ma
basol.” (IDI 4_2.3)

We have practiced the so called accountability because if

inefficiencies arise we could easily identify the person
responsible of this job.

“Unsa diay na sya? Ahhhhhh. Sa amo kay dapat tanan

butang himuon lang jud namu with honesty. Kay bisan dili
man jud ni negosyo amo. Pero ang kwarta nga makuha
namo ani para mga mani sa mga tao ani nga organization
tanan maka benepisyo.” (IDI 4_1.1)

By the way, what does that mean? Ahhhhh. Here, we do

all things with honesty. Even if the primary purpose of this
organization is not earn profit, because this is not actually
a business, but still it involves money to be managed for
the sake of everyone who benefits this organization.

Practice cooperation and teamwork among employees

Good teamwork structures provide the organization with a

diversity of thought, perspectives, and problem-solving approaches. A

proper team environment allows individuals to brainstorm collectively,

 50

which in turn increases their success to problem solves and arrives at

solutions more efficiently and effectively.

Effective teams also allow the initiative to innovate, in turn

creating a competitive edge to accomplish goals and objectives.

Sharing differing opinions and experiences strengthens accountability

and can help make effective decisions faster, than when done alone.

“Kung naa may mga problems or challenges sa pag record

keeping eh amo lang ginatabangan ang mga nagkalisod ky
tapos madali lng pud kay kami tanan magkasinabot man
tapos mao to pati ang tig record dili sya maglisod.” (IDI
6_2.0)

If there are any problems or challenges in record keeping,

it is just a matter of helping and get a little bit easier
because we are all together and then the record keeper will
not struggle.

“Para sa amo teamwork among nahimung way para mag

padayon ni nga organization kay kung walay pakig hiusa
ang mga part sa organization wala jud mahitabo nga
maayo ana.” (IDI 4_2.5)

For us, teamwork has been the way of making this

organization continue to exist because if some are not
doing their part as a team this wouldn’t be like this now.

“Kung walay pagkahiusa sa kani nga organization, wala ni

naga lungtad hangtod karun. Mao sigura na ang rason
bantog nagapadayon ni nga organization.” (IDI 3_2.5)

Without teamwork and oneness, this organization is surely

inexistent. Maybe, that’s the reason why we managed to
preserve this organization’s mission to serve others.

Commitment to work

True work commitment is a quality that everyone appreciates and

reward. When you are committed to a work, it means fully completing

all tasks on time. Commitment also means using critical thinking

 51

skills to analyze your performance and being determined to exceed

your best self. It is also means always tries to do better, reach farther

and aim higher and willing to push through to achieve the collective

goal of the organization.

“Sa gihapon, kaluoy sa Ginoo nagapadyon gihapon ni nga

organization bisan dili ni sya ga generate ug dako nga
income sama kay non profit mani sa gihapon tungod sa
sakripisyo sa matag member ug sa mga tao nga naga
padayon ug support ani mas ni han.ay pajud ang pag dala
ani nga organization.” (IDI 5_2.4)

By God’s grace, we are still continuing the service we have

been offering. Even if this non-profit organization does not
generate huge amount of income, by the extreme efforts
and sacrifices exerted by the employees and the
supporters of this organization we still manage to have
harmonious work environment.

“Dili man jud to siya as in nga struggle namo maong wala

mi na face na consequences kay kami kabalo pd mi sa
among ginabuhat pd with the guidance sa ga pamalakad
ani.” (IDI 7_1.4)

Those are not really a struggle that’s why we haven’t faced

consequences because we knew what we are doing with
the guidance of the head of our organization.

“Kotong ginagmay nga problema among na agihan na

overcome namo to tungod sa effort sa mga nadapadagan
ani nga organization. Ginahimu nila kung unsa ang gi
kinahanglan ug dapat himuon.” (IDI 2_2.5)

Those minor problems we have gone through have been

surpassed because of the effort of the people who managed
this organization. They have done what they need to do.

“I think, ang reason aning success sa amo organization kay

tungod we have hired committed and dedicated person .
kay kung dili right persons among na hire, maybe this
organization wala nag exist karun tungod sa incompetent
persons.” (IDI 6_2.5)
 52

I think, the reason of the success of this organization is

the dedicated and committed persons we have hired. If we
have not chosen them maybe this organization would be
inexistent now.

“Ang rason ngano naga exist gihapon ni nga organization

tungod kay gina himu sa every part sa management team
ang dapat nila himuon.” (IDI 5_2.5)

This organization still exists because everyone had done

his or her part as a team in making this organization
succeed.

Chapter 5

SUMMARY, CONCLUSION AND RECOMMENDATION

This chapter presents the summary of the findings, the pertinent

conclusions, and the recommendations.

Summary

The main purpose of this study was to know about the financial

record keeping of non-profit organizations. In this research, an

explanatory sequential analysis method was used or the combination

of quantitative and qualitative methods. A survey was first conducted.

The respondents were finance administrators of NPOs in Tagum City.

In formulating the questionnaires, the basis was the data gathered

 53

from the internet which were modified by the researchers. The

questionnaires were then checked and validated by the panel

members. The researchers then asked permission from the Dean’s

Office to conduct the study. The questionnaires were answered by the

respondents of the study and were retrieved by the researchers. The

tabulated data were then forwarded to the statistician for proper

statistical treatment and analysis. The summary of findings follows;

the level of financial record keeping is very high.

After the result of the survey, the interview was then conducted.

There were seven participants in the in-depth interview. There were

two (2) set of research questions which they answered during our

interview. The chapter 4 discussed the quantitative and qualitative

results of the study. The data about financial recordkeeping are

encapsulated into major themes and core ideas in a tabulated format.

Conclusions

Based on the summary as the result of the survey and interview

conducted, the conclusions were drawn:

1. The level of financial record keeping among NPOs is very high.

2. The challenges faced of the finance administrator in financial record

keeping are: forgot to keep receipts as supporting evidence, improper

recording of incurred expenses, no accounting framework and

accounting procedure followed.

Recommendations
 54

On the basis of findings and conclusions of this study, the

following recommendations are offered:

1. Finance Administrators of NPOs in Tagum City must continue to

invest in the training and development of all staff, regarding the

financial management practices. The under spending of budget,

unauthorized expenditure and poor budget planning can be largely

ascribed to the lack of continuous training.

2. Future Researchers may examine the Financial Management

Practices of the SMEs in Tagum City by finding other factors that may

affect it. They may also use other indicators to evaluate the other

areas of the Financial Management Practices of the SME’s in Tagum

City.