World Education Connect Multidisciplinary e-Publication, Vol. VI, Issue II (February 2026), pp.33-39
Evaluating the Need for Reinstituting COA Pre-Audit Mechanisms: A Competency-Based Assessment of Barangay Financial Management in Masbate Province
Vicente E. Francisco, Jr., CPA
State Auditor IV/ Audit Team Leader
Commission on Audit
Abstract
Barangays in the Philippines serve as the basic political units responsible for implementing government programs and delivering public services. Barangay treasurers manage public funds and ensure financial transparency and accountability. However, financial mismanagement and weak internal control systems at the barangay level persist, exposing local government units (LGUs) to potential errors and irregularities. This study evaluates the competencies of barangay treasurers and the status of internal control systems in Masbate Province to assess the need for reinstituting the Commission on Audit (COA) pre-audit mechanisms. Descriptive-correlational survey methods were employed to gather data from 16 accountants and 5 auditors in Masbate’s LGUs, yielding a 100% response rate. The results reveal significant gaps in the competency of barangay treasurers, particularly in financial laws, accounting principles, and software proficiency, with internal control systems rated as "Poor" in key areas such as report submission, documentation, and reconciliation. A moderate positive correlation (Pearson r = 0.570) was found between the competency of barangay treasurers and the effectiveness of internal controls. The study highlights the urgent need for capacity-building programs, the reintroduction of COA pre-audit procedures, and the provision of accounting software training to enhance financial management at the barangay level. The study suggests a coordinated approach involving COA, DILG, and LGUs to improve financial oversight and strengthen governance practices in local government units.
Keywords: Barangay treasurers, financial management, internal control, pre-audit mechanisms, capacity-building, governance.
https://doi.org/10.65494/pinagpalapublishing.135
