FUNDS MANAGEMENT OF COLLEGE STUDENT COUNCILS IN BICOL UNIVERSITY 1

CHAPTER I

PROBLEM AND ITS SETTING

Introduction

Student councils are representative structures through which students can become
involve in the affairs of the school. Hence whatever concerns students have can be
directly communicated to the officers and the officers will then act on whatever matter
that arises to solve the problems and concerns of the student body. Student councils
also become a training ground for students in preparation for the individual careers they
pursue like accountant, bookkeepers, cash custodians and human resource
management. Student councils are also organized to safeguard funds and interest of
the students and to make sure that the funds are used for the betterment of the
students, the college, the university and nothing else. According to the Harvard College
Office of student Life, a healthy financial structure is an important factor in a student
organization’s success and sustainability.

Funds management describes how people and institutions manage investments on

behalf of investors. It is commonly described as the management of the cash flows of an
entity. It is also referred to as asset management – covers any kind of system that
maintains the value of an entity. It may be applied to both intangible assets like
intellectual property, goodwill and financial assets, or human capital, and tangible
assets, such as real estate. It is the systematic process of operating, deploying,
maintaining, disposing and upgrading assets in the most cost-efficient and profit-yielding
way possible. In the financial world, the term "fund management" ultimately describes
people and institutions that manage investments on behalf of investors.

Tom York stated that it is important for the student officers and advisers to maintain
a proper balance between control and oversight of the organization’s activity and their
funds. He also noted that there are higher risk in terms of keeping track with the
organization’s transaction and report preparation, internal control, budgeting and
maintaining cash receipts.

Cash management and Budgeting goes hand in hand in every organization. Cash
management is the corporate process of collecting and managing cash, as well as using
it for (short-term) investing. It is a key component of ensuring a company's financial
ABADESA I ALMILLA 2

stability and solvency. The objective of cash management is to minimize the use of cash
and maintain optimum cash at the right time. While budgeting or financial plan is the
process of transforming the planned courses of action into quantitative terms. Budget is
the basis for planning activities and how to maintain and keep track of it involves cash
management.

Receivable management is the process of determining, handling and administering

account receivable related to sales and credit policies. Every organization should
consider its materiality.

Internal Control and Auditing are also very important when it comes to managing
funds of an organization. After the preparation of the needed financial statements and
the actual implementation of the activities projected, auditing and internal control are
now done. Internal control, as defined in accounting and auditing, is a process for
assuring achievement of an organization's objectives in operational effectiveness and
efficiency, reliable financial reporting, and compliance with laws, regulations and
policies. Auditing on the other hand is the process of examining an organization's (or
individual's) financial records to determine if they are accurate and in accordance with
any applicable rules (including accepted accounting standards), regulations, and laws.

According to AICPA , Effective internal control reduces the risk of asset loss, and
helps ensure that plan information is complete and accurate, financial statements are
reliable, and the plan’s operations are conducted in accordance with the provisions of
applicable laws and regulations. When internal control is effective, you have reasonable
assurance that your plan is achieving its financial reporting objectives. When it is not
effective, you have little or no such assurance.

Every organization is engaged in the different practices in order to keep their

expense at minimum or at least attain a benefit more than its costs. One way of
achieving this is to properly manage cash, receivables and its budget plan or their
financial plan.

There are a lot of circumstances to be taken into consideration when one is

involved in an organization. Internal control, auditing, budgeting and other factors should
always be taken into account. The laws and guidelines set for an organization to follow
should always be used to guide the members in every decision and activity. The same
goes with every small unit of organization, school-based or even government based.
FUNDS MANAGEMENT OF COLLEGE STUDENT COUNCILS IN BICOL UNIVERSITY 3

Fluctuations in funds , participants and small changes will cause a lot of problems and
revisions in financial statements and reports.

Through the years Bicol University and its student councils have been active in
promoting the welfare and academic affairs of the students. They have conducted
various activities that elevates the involvement and participation of students. This
activities require in-depth analysis, work and precise budgeting capabilities. Varied
reports have been published to show transparency with the budget plans and how funds
are managed by these organizations.

This research deals with comparing how student councils in Bicol Univerity
prepared and managed their funds for the past years and how will they continuously
improve their funds management practices applied within their organization.

Statement of the Problem

The proposed study intends to evaluate how College Student Councils in Bicol
University manage their funds. Specifically, the proposed study aims to answer the
following questions:

1. What are the fund management practices implemented by the different

student councils in Bicol University in terms of:

A. Budgeting

B. Utilization

C. Financial Statement Preparation

D. Internal Control

E. Auditing

2. What evaluations can be made from the funds management practices of student

councils in Bicol University?

3. What recommendations can be given to improve the fund management

ABADESA I ALMILLA 4

practices of student councils

Scope and Limitations

Evaluation of Funds Management of College Student Councils covers cash and

receivable management, internal control, auditing and financial plan preparation
strategies. This will not cover other fields of financial management or other variables will
not be taken into consideration.

The respondents of the study only includes college student councils located in the
Bicol University Main, East and Daraga campuses. It will also include the school year
2017-2018 and newly elected college student council officers for data gathering
purposes.

Significance of the Study

The proposed study intends to evaluate the fund management strategies of college
student councils in Bicol University. The proposed study will be beneficial to the
following:

DIRECT BENEFICIARIES:

College Student Councils in Bicol University. This proposed study will be beneficial
in implementing and preparing semestral or yearly budget plans. The evaluations are
necessary to guide the respective officers in managing their funds and imposing
adequate and substantial internal control processes and auditing guides

University Student Council. The university student council as the umbrella of all the
college student councils will find it difficult to generate funds for their projected activities
because of the long processing and justification needed in filing for an activity. As the
broader aspect of student organization improved fund management and strategies will
help them in the decision making process and calculations.
FUNDS MANAGEMENT OF COLLEGE STUDENT COUNCILS IN BICOL UNIVERSITY 5

Different Student Organizations. The per course organizations are also responsible
for their budget control and management. Each course organization are asked to
prepare financial reports for transparency and relevance. The study will be beneficial for
their part for it will provide strategies and plans to account for funds generated by each
department.

INDIRECT BENEFICIARIES

Students of Bicol University. The students are the ones who provide for the inflow of
funds aside from solicitations and other fund raising activities. The financial statements
or reports are often asked by the students for transparency and faithful representation.
The study can help in preparing the financial reports and budget for an accurate and
neutral financial plan to be presented for the students.

Faculty Adviser of Student Organizations. The study will be beneficial for the faculty
adviser in charge in guiding the student officers in preparing yearly budget plans to
avoid errors and strategically provide relevant financial reports.

Financial Management and Cost Accounting Professors. The study will help in
providing concrete and student related examples during class discussions. It will also
provide actual foundations in explaining the principles of budgeting and financing. It can
also help in assessing the performance and financial management capacity of student
councils.

Bicol University as a whole. The study will be beneficial not only to the organizations,
students and faculty; it will also benefit the non teaching staff and the office settled
group in evaluating their financial reports and quarterly budgets or their budgeting
strategies as a whole. It may serve as a basis for change and assessments.
ABADESA I ALMILLA 6

THEORETICAL BACKGROUND

Related Studies and Literature

Student Councils

A College Student Council is an organization of the students as an independent

organization of the university. The purpose of the student council is to give students an
opportunity to develop leadership by organizing and carrying out school activities and
service projects. In addition to planning events that contribute to school spirit and
community welfare, the student council is the voice of the student body. They help
share student ideas, interests and concerns with the school wide community.

The College Student Council as a whole has responsibility for: Working with the
staff ; Communicating and consulting with all of the students in the school ;Involving as
many students as possible in the activities of the Council; Planning and managing the
Council’s program of activities for the year and above all, Managing and Accounting for
any funds raised by the Council.

The officers, particularly the Treasurer is responsible for managing any funds raised
by the Student Council and should keep a complete account of all income and
expenditure of the Council. Advice and assistance in this regard may be provided by
school management or a teacher acting on its behalf. The Treasurer should provide the
Council with a complete financial report at the end of the school year. Given the
responsibility of the post, a Student Council may reasonably require the Treasurer to be
a Senior Cycle student. As a general rule any payments made by the Treasurer should
be countersigned or endorsed by another member of the Council or a teacher
designated for this purpose.

For any organization the main goal can be achieved only with the help of effective
Finance Management.

Budgeting

Finance is the lifeblood and financial management needs to meet the requirement
of every concern. To grow and to sustain in every organization is a must to maintain an
FUNDS MANAGEMENT OF COLLEGE STUDENT COUNCILS IN BICOL UNIVERSITY 7

adequate amount of finance for their smooth running and maintaining the organization
carefully to achieve its goal. Financial planning implies deciding what to spend, how to
spend and how much to spend according to the funds that are available. This spending
plan is called a budget. Creating this spending plan allows you to determine in advance
whether you will have enough money to do the things you need to do or would like to
do.Budgeting is simply balancing your expenses with your income.

Financial planning needs to be done by everyone from individuals to large multi-

national corporations. The larger the quantum of funds, the more the effort required to
plan its usage appropriately.

The estimate of the capital requirements of the organization short term needs must
be prioritized for the council members’ term are for a limited period of time. In estimating
the capital requirements of the business or an organization, the treasurer or the officers
incharge of financing must take help of the budgets of various activities of the business
prepared by the concerned departments. In the preliminary stage, estimation is done by
promoters but in a growing concern it is done by the finance department. Unless the
financial forecast is correct, business is likely to run into difficulties due to excess or
shortage of funds. Correct estimates ensure the availability of funds as and when they
are needed. In estimating the requirement of funds, nature and size of the business,
modernization and expansion plan should be given due consideration.

Budgeting is entirely optional, but it’s an important component of financial success.

It’s not difficult to implement, and it’s not just for people with limited funds. Budgeting
makes it easier for people with incomes and expenses of all sizes to make conscious
decisions about how they’d prefer to allocate their money. It can also help people save
for retirement, emergencies, a new car, college tuition or just about anything. (Fontinelle
2017)

For many people, having a solid budget in place, knowing how much money they
have and knowing exactly where that money is going makes it easier to sleep at night.
Forgoing a budget, on the other hand, can mean going into debt and failing to save for
important goals. And when you’re not in control of your money, you’re not in control of
your life. (Fontinelle 2017)
ABADESA I ALMILLA 8

Utilization of Funds

Financial management cannot be addressed without first designing a strategy to

ensure the proper utilization of funds. This helps to evade situations in which the funds
remain idle or lack of profitable utilization of funds in hand. When availing of funds for
the business it is important to understand the involved cost and risk factors. Wastage of
funds will only result in the business short and long-term objectives not being met and
ultimately - loss. The funds existent within the business should be critically reviewed
from time to time and employed properly and profitably

The funds raised from different sources should be prudently invested in various
assets -short term as well as long term to optimize the return on investment. For taking
decisions for the investment of long term funds, a careful assessment of various
alternatives should be made through capital budgeting, opportunity cost analysis and
many other techniques used to evaluate the investment proposals. A part of the long
term funds should be invested in working capital of the company. While taking decision
for the investment of funds in long term assets, management should be guided by three
basic principles, viz. safety, profitability and liquidity.

The responsibility of finance manager is to see that an adequate supply of cash is

available at proper time for the smooth running of the business. Cash is needed to
purchase raw materials, pay off creditors, to pay to workers and to meet the day to day
expenses of the business. Availability of cash is necessary to maintain liquidity and
credit- worthiness of the business. Excess cash must be avoided as it costs money. If
there is any cash in excess, it should be invested in near cash assets such as
investments etc. which may be converted into cash within no time. A cash flow
statement should be prepared by the department to know the correct need of cash is
essential to achieve the goal of profitability and liquidity.

When individuals and institutions invest in a fund, they actually invest in the fund's
manager. He is responsible for managing the fund's investments and ensuring that the
fund's strategy is aligned with its goals. He is also responsible for the over-all operation
of the fund, from customer service to risk management. Therefore, investors should
consider fund managers a key factor in their selection of a fund. (Dye)

A business without a funding source will flounder under the weight of its own debt.
Funding is the fuel on which a business runs. A business can take different avenues to
FUNDS MANAGEMENT OF COLLEGE STUDENT COUNCILS IN BICOL UNIVERSITY 9

attain funding, and more than one option can be used. The chosen funding will depend
on the business' desire to be in debt, how solvent the business owners are at the time
the business is founded and the amount of money a business will need to launch and
maintain itself through a variety of events. (K.A. Francis)

The concept of working capital should be easily understood, as it is very much

connected with student councils’ management and resource tracking activities. In the
sense, sufficient money is needed for our cost of living. We would like to collect the
money owed to us, at the same time, we would like to pay whom we owe. If the ready
money is not maintained properly or we fail to do so, the situation is called as
bankruptcy or insolvency. The same applies to a business and the task of financial
management in terms of working capital is to maintain sufficient funds for its day-to-day
requirements, while safeguarding the business against the possibility of insolvency.
Thus, the term working capital refers to the excess of the current assets over the current
liabilities. (Siddiqui 2015)

The aim of good working capital management is to maintain balance in having

sufficient working capital to ensure that the business is liquid to meet its current
requirements. At this stage, it must be noted that being liquid does not mean to be in
such a way that it affect or reduce the profitability of the business. Rather, it means to
maintain balance by finding ways to smooth out cash payments in order to keep working
capital stable. Thus, the importance of managing good working capital emerges due to
the fact a business that manages its working capital effectively can survive while
meeting its day-to-day operations successfully which in turn leads to the long term
success. (Siddiqui 2015)

Financial Statement Preparation

Preparing general-purpose financial statements; including the balance

sheet, income statement,statement of retained earnings, and statement of cash flows; is
the most important step in the accounting cycle because it represents the purpose
of financial accounting. Student councils are highly dependent on the financial
statement of the previous councils for it serves as their guide in maintaining and coping
up with the financial structure and standing of the organization.
ABADESA I ALMILLA 10

Financial statements are the most important documents that students not only the
officers and the administration needs. This provides the breakdown and the specific
expenses and utilization strategies of the council. It reflects where the contributions and
miscellaneous fees paid by the students went.

The same undergraduate studies have been conducted regarding budgeting

practices and work capital management which are interrelated with the study being
conducted for student councils and also organizations. It may be of a small form but it
also constitutes the characteristics , standards and policies imposed by bigger
corporations and institutions. They are instructed to prepare financial statements that
constitutes not only estimates but also the actual events and the variance analysis
embedded within the latter.

The same were imposed of the proposed studies of Abanto, Rachel Anne and
Manzanades, Melissa as well as the study of Arena, Camille and Inzon, Mariz, entitled
Budgetary Practices of Charitable Institutions for Children in Legazpi City and Working
Capital Management Practices of Local Restaurants in Legazpi City respectively.

To capture revenue opportunities, senior executives in fund management

companies have to apply best practice and understand operational issues. This is not as
easy as it sounds. Executives have numerous calls on their time and their core focus
should always be investment performance. This guide allows senior executives to
manage their time as effectively as possible and maximize its effectiveness. (Broby
2010)

Internal Control

Internal control is a process — effected by plan management and other personnel,

and those charged with governance, and designed to provide reasonable assurance
regarding the achievement of objectives in the reliability of financial reporting.

Internal controls have become a key business function for every U.S. company
since the accounting scandals in the early 2000s. In their wake, the Sarbanes-Oxley Act
of 2002 was enacted to protect investors from fraudulent accounting activities and
improve the accuracy and reliability of corporate disclosures. This has had a profound
effect on corporate governance, by making managers responsible for financial reporting
FUNDS MANAGEMENT OF COLLEGE STUDENT COUNCILS IN BICOL UNIVERSITY 11

and creating an audit trail. Managers found guilty of not properly establishing and
managing internal controls face serious criminal penalties.

Internal controls are typically comprised of control activities such as authorization,

documentation, reconciliation, security and the separation of duties. And they are
broadly divided into preventative and detective activities.

Preventive control activities aim to deter the errors or fraud from happening in the
first place, and include thorough documentation and authorization practices. And the
separation of duties ensures that no single individual is in a position to authorize, record
and be in custody of a financial transaction and the resulting asset. Authorization of
invoices and verification of expenses are internal controls. In addition, preventative
internal controls include limiting physical access to equipment, inventory, cash and other
assets.

Detective controls are backup procedures that are designed to catch items or
events that have been missed by the first line of defense. Here the most important
activity is reconciliation, used to compare data sets, and corrective action is taken upon
material differences. Other detective controls include external audits from accounting
firms and internal audits of assets such as inventory.

Every student organization should practice implementing a concrete internal control

policy. Managing funds and its utilization is crucial specially within times where peak
seasons of colleges are coming. Every member should be oriented and thees guidelines
should reflect on the councils’ constitutions and bylaws.

A study conducted by Jade Tan and Korina Legazpi from the University of Eastern
Philippines, they have found that every college related organization are subjected in
implementing internal control policies and financial reporting standards that could
improve the financial management abilities of elected officers. They also found that lack
of supervision and concrete platform in implementing controls within organizations
would result in poor management and implementation of college organizations.

Auditing

An audit is a systematic and independent examination of books, accounts, statutory

records, documents and vouchers of an organization to ascertain how far the financial
ABADESA I ALMILLA 12

statements as well as non-financial disclosures present a true and fair view of the
concern.

Audits performed by outside parties on private companies can be extremely helpful

in removing any bias when it comes to the state of a company's financials. Audits look
for what can be called a "material error" in statements on any specific object. They help
provide stakeholders with a sense of accuracy when regarding the state of the subject
being audited and can help enable them to make better, more informed decisions
regarding the subject being audited. When audits are performed by third parties, the
opinion on whatever is being audited (a business’ books, an organization as a whole or
a system) can be candid and honest without it affecting daily work relationships.

Almost all companies receive an audit once a year, while even larger companies
can receive audits monthly. For some companies, audits are a legal requirement due to
the compelling incentives to intentionally misstate financial information in an attempt to
commit fraud. For some publicly traded companies, auditors are used as a resource to
evaluate the effectiveness of internal controls on financial reports.

Student councils are also trained to practice auditing in a simple manner, an over
look of financial transactions and non financial transactions, simple comparisons of
actual and budgeted reports and determination of the surplus and deficit and their
causes.

In the United States, as in many other countries, an audit has to meet a general set
of accepted standards as established by their respective governing bodies.

Standards for external audits, called the Generally Accepted Auditing Standards
(GAAS) are set out by the American Institute of Certified Public Accountants. A separate
set of International standards, called the International Standards on Auditing, were set
up by the International Auditing and Assurance Board.

Internal audit serves an important role for companies in fraud prevention. Recurring
analysis of a company's operations and maintaining rigorous systems of internal
controls can prevent and detect various forms of fraud and other accounting
irregularities.

Evaluation of effectiveness of the company’s internal controls is a work performed

in audit. There are ways to maintain effective system of internal controls which is vital
FUNDS MANAGEMENT OF COLLEGE STUDENT COUNCILS IN BICOL UNIVERSITY 13

for achieving a company’s business objectives. This also includes obtaining reliable
financial reporting on its operations, prevention of fraud and misappropriation of its
assets, and minimizing its cost of capital. Auditors contribute in Both internal as well as
independent audit system in different but important ways.

Objective of audit is to pursue and attain its various corporate objectives. Company
should follow audit system. There are various forms needed in Business processes to
facilitate supervision and monitoring, prevent and detect irregular transactions, measure
ongoing performance, maintain adequate business records and to promote operational
productivity. It also enables further investigation by management if it is warranted under
the circumstances.

Risk of Misstatement is assessed by the Auditor in a Company’s financial reports.

Company would not be able to create reliable financial reports for internal or external
purposes or system of internal controls. It is not easy to allocate resources to know
which of its segments or product lines are profitable. Management of affairs and also it
would not have the ability to tell the status of its assets and liabilities and would be
rendered undependable in the marketplace due to its inability to consistently produce its
goods and services in a reliable fashion.

Fraud Prevention can be obtained internal audit as it serves an important role for
companies. Maintenance of rigorous systems of internal controls can prevent and detect
various forms of fraud and other accounting irregularities. It can also in analyzing
company’s operations. Deterrence is one of the important part of fraud prevention.
In case a company is known to have an active and diligent audit system in place, by
reputation alone it may prevent an employee or vendor from attempting a scheme to
defraud the company.

Cost of Capital is an important aspect for every company taking size into
consideration. It largely comprises of the risk associated with an investment and in case
the investment is at more risk then there is a requirement of higher rate of returns.
Strong audit systems has the ability to reduce various forms of risk in an enterprise
which also risk of information. Learning experience for any start-up business owner or
management team.
The concept of implementing proper management and financial look out for student
councils are also provided by the student handbook of every university. Student
ABADESA I ALMILLA 14

handbooks of Bicol University, De La Salle University and University of the Philippines

have provided detailed and specific pointer for the management and involvement of
students in their respective council affairs.

A study conducted by Harvard University which is posted and updated on their

online data based have provided a list of best applied practices in handling and
managing finances ,auditing financial statements and reports and ways in tolerating risk
at every situation it I applicable.

Synthesis of the Art

The information collected from related literature and studies will be given emphasis
in this chapter.

Over the years, the students of Bicol University have been actively participating in
every activities held by the different Student Councils in each departments. Students
pay their fees in order for them to move and conduct such activities that would benefit
the welfare of the students. With these investments comes the responsibility of the
student councils to handle properly the funds to be effective in conducting activities.

The goal of Funds management is to ensure that an organization is able controland

make it possible for the resources to be available and properly managed for utilization in
current and future pruposes.

The studies and literature used in this study will constitute the general model to
which the study is all about. These shall strengthen the aim of Funds Management to
ensure that Student Councils are able to continue and implement its activities and that
they have the sufficient funds to allocate properly.

Gap bridged by the study

Over time, several studies have been conducted about funds management.
However, these studies focused only on a certain types of organizations. This proposed
 FUNDS MANAGEMENT OF COLLEGE STUDENT COUNCILS IN BICOL UNIVERSITY 15

study covered funds management practices of the different Students Councils in Bicol
University and evaluated the practices that they are currently implementing in handling
funds and thus highlighted the importance of Funds Management strategies of the
student councils.

Theoretical Framework

The study was based on the theory Kepner-Tregoe Discrepancy Theory. It is a

structured methodology for gathering information and prioritizing and evaluating it. It
was developed by Charles H. Kepner and Benjamin B. Tregoe in the 1960s.

The idea is not to find a perfect solution but rather the best possible choice, based
on actually achieving the outcome with minimal negative consequences. It is marketed
as a way to make unbiased decisions in that it is said to limit conscious and
unconscious biases that draw attention away from the outcome.

There are four basic steps when using the Kepner Tregoe decision matrix: (1)
Situation appraisal (2) Problem analysis (3) Decision analysis (4) Potential problem
analysis. Following this step-by-step approach, allows the use of critical thinking skills in
considering many possible factors that may be vital in making the decision.

Using the Kepner-Tregoe Decision Making methodology, the researchers will be

able to get the relevant data to evaluate the practices that the student councils
implement, the effects of changes in the amount of fund generated and the
improvements in generating and managing the funds.

Situation
Current Practice Potential Problem

Problem
 ABADESA I ALMILLA 16

Causes
Figure 1.1: Theoretical Paradigm

Conceptual Framework

The study is concerned about Funds Management of College Students Councils in

Bicol University. An evaluation of the comparative financial statements and the
techniques or practices applied by the student councils regarding budgeting, utilization
of funds, preparation of financial statements, internal control and auditing will be done.
The benefits and risks regarding their applied decisions and practices will also be
presented and reviewed. Recommendations for improvements will also be suggested.

Funds Management Practices of

College Student Councils

Financial Auditing
Utilization Internal Control
Budgeting Statement
Preparation
FUNDS MANAGEMENT OF COLLEGE STUDENT COUNCILS IN BICOL UNIVERSITY 17

Determining benefits, risks and

evaluation based on effective funds
management practices

Improvements and Factors to

Address

Figure 1.2: Conceptual Paradigm

Definition of Terms

Funds management - is the management of the cash flow of a financial institution. In

the financial world, the term "fund management" ultimately describes people and
institutions that manage investments on behalf of investors. An example would be
investment managers who fix the assets of pension funds for pension investors.

College Student Councils- it is described as the top organization within the different
college outlets of Bicol University.

University Student Council- The mother council within a university which heads the
college student councils.
ABADESA I ALMILLA 18

Cash management- is the corporate process of collecting and managing cash, as well
as using it for (short-term) investing. It is a key component of ensuring a company's
financial stability and solvency.

Receivable management- is the process of determining, handling and administering

account receivable related to sales and credit policies.

Financial Planning - is the process of estimating the capital required and determining
it’s competition. It is the process of framing financial policies in relation to procurement,
investment and administration of funds of an enterprise.

Internal Control- is a process for assuring achievement of an organization's objectives

in operational effectiveness and efficiency, reliable financial reporting, and compliance
with laws, regulations and policies.

Auditing- is the process of examining an organization's (or individual's) financial

records to determine if they are accurate and in accordance with any applicable rules
(including accepted accounting standards), regulations, and laws.
FUNDS MANAGEMENT OF COLLEGE STUDENT COUNCILS IN BICOL UNIVERSITY 19

CHAPTER II

RESEARCH DESIGN

Research Method

The study focused on how college student councils managed their funds. A
descriptive research design involving a survey questionnaire was utilized.

Descriptive research design specifically a descriptive survey technique was used to

analyze, interpret and evaluate the data gathered. It was chosen for the reason that the
data needed will be gathered through the distribution of survey questionnaires with the
officers in charge of preparing the financial and budget plan of the different student
councils and those who are involved in managing these funds.

The study also used content analysis technique in analyzing and evaluating the
budgetary practices applied by the student councils for the management of their funds,
auditing and other works involved within the organization.

The study required both qualitative and qualitative approaches. It is qualitative for it
involves the use of non-numerical data, which includes a series of questions and review
of financial plans. It is considered quantitative for it will use statistics in analyzing parts
of the interview schedule presented to the respondents.

The use of the above mentioned methods enabled the researchers to understand
the trends and practices applied by the student councils. The same methods guided the
researchers to yield results that are reliable and appropriate for the study.

Sources of Data
ABADESA I ALMILLA 20

The study used primary data gathered from the distribution of the survey
questionnaires directed to the officers in charge of preparing the financial and budget
plan of the college student councils, the officers in charged of internal control and
auditing duties ; specifically the Presidents, Treasurers, Auditors and Advisers which will
be used in evaluating their current and expected practices in managing their funds.

The set and list of best ways and proper practices in funds management were
extracted from:

A. Bicol University Student Handbook

B. De La Salle University- Dasmarinas Amended University Student Council

Constitution

C. Internal Control Guidance by Georgia Tech

D. Risk Management and Audit Services( Best Practices) by Harvard University

E. Financial Management of Student Organization in the Univerity of Eastern

Philippines by Jade Tan and Korina Legazpi

There was also a 100% retrieval rate with the survey questionnaires but only 92%
for the interview and further discussion with the council officers.

Population

The respondents of the study will be the officers in charge of the preparation of the
financial and budget plan of their respective college student councils and the officers
responsible for the internal control and auditing duties .

The targeted respondents will be the eleven (11) College Student Councils and the
University Student Council.

College Student Council

FUNDS MANAGEMENT OF COLLEGE STUDENT COUNCILS IN BICOL UNIVERSITY 21

ELECTED NON ELECTED

Institute of Architecture 8 20

College of Engineering 11 10

College of Industrial Technology 9 12

College of Nursing 8 0

College of Science 10 20

University Student Council 10 15

College of Arts and Letters 10 35

Institute of Physical Education and 8 7

Social Recreation

College of Medicine 9 0

College of Education 10 10

College of Social Sciences and 9 50

Philosophy

College of Business, Economics and 10 32

Management

METHODOLOGY

Research Instrument

The study utilized a questionnaire in gathering the data. A questionnaire is

a research instrument consisting of a series of questions (or other types of prompts) for
the purpose of gathering information from respondents. The questionnaire was invented
by the Statistical Society of London in 1838.
ABADESA I ALMILLA 22

The questionnaire has two parts. Part I dealt on the profile of each college student
councils in terms of legality of operations, sources of funds and the designations of the
officers and advisers. Part II elicited responses on the financial practices of the
organization in terms of budgeting, utilization, financial statement preparation, internal
control and auditing. Further, follow-up inquiry from the respondents were done and
necessary provisions were traced back from the university code and student handbook.

Data Gathering Procedure

The questionnaire was formulated to evaluate the practices and implemented ways
of how college student councils manage their funds. The researchers scheduled an
interview and personally distribute the questionnaires to the officers who are in charge
of preparing the necessary documents. The respondents are believed to have the most
knowledge about the processes and practices implemented by the student councils
regarding funds management.

The researchers prepared the needed documents for the interview which includes
the letter from the respondent and their respective adviser that is allowing them to
conduct the interview.

After gathering the data needed, the researchers analyzed and interpreted the
response of the chosen population together with the supervision of their adviser.

CHAPTER III
 FUNDS MANAGEMENT OF COLLEGE STUDENT COUNCILS IN BICOL UNIVERSITY 23

DATA PRESENTATION, ANALYSIS AND INTERPRETATION

This chapter presents the analysis and interpretation of the data gathered relating to
the Funds Management Practices of College Student Councils in Bicol University.

Table 3.1 Budgeting

Budgeting Yes No N/A

1.Are budgets prepared for the organization annually? 10 2

2. Are budgets prepared according to the year round planned activities of 12

the Organization?
3. Are budget plans prepared only by designated personnel ( i.e. 5 7
President, Vice President, Treasurer and Adviser)
4. Do your adviser supervise the preparation and budgeting process? 10 2

5. Are budgets approved by authorities (ie. Students, Adviser, Dean and 11 1

University President)

Table 3.1 shows that most budget are prepared annually. Student councils prepare
their budget plan according to their year round planned activities. The Student Councils
are very good in terms of budget proposal preparation as budgets were always done.
Some councils find it easier and more convenient to prepare budget plans every
semester. It has something to do with their practice of decentralization within the
council. Budget is an invaluable tool to help prioritize spending and manage money.
Budget proposals should be prepared and approved and serve as a tool to prepare
comparison of budgeted and actual disbursements and evaluate variances.

Decentralization is practiced in most Student Councils in which certain tasks aren’t

only prepared by the President and the officers involve in managing funds. Some
officers specifically the executive committee in charge of the events are liable and are
tasked to prepare budget plans according to their planned events.
 ABADESA I ALMILLA 24

Budget plans regarding different activities are done by the executive committees
responsible for the events they want to hold. As for the USC it is the secretary that
prepares the budget plan. The risk of these practice is that there will be little to no
comparative data that can be provided for the other councils and the university student
council to assess. This should be taken into consideration and there should be a policy
regarding the preparation of the budget plans and the officers designated for its
preparation. The policy should be applicable and followed strictly by all councils.

Some colleges’ advisers can’t overlook and supervise the councils’ budget
preparation for their schedules are overlapping. The risk of these practice is that the
opinions of the adviser/s aren’t taken into consideration and that some activities and
budget related decisions may not be appealing and practical for the council to make it
materialize. The advisers’ opinion and suggestions should always be taken into
consideration for the plans are also for the benefit of the whole college.

Table 3.2 Utilization of Funds ( Cash Receipts)

Utilization of Funds ( Cash Receipts) Yes No N/A

1. Are remittances by collectors to the treasurer done every day (during enrolment 7 5
period)?

2. Are cash collections issued with official receipts 12

3. Are the assigned collectors authorized through resolutions and other pertinent 10 2
Documents?

4. Are remittances supported by control sheet and/or cash count sheet 12

5. Are collections for the day kept intact and deposited within the next banking day? 9 3

6. Do you keep the funds generated in a bank or other financial institution? 10 2

7. Is Petty Cash Fund is maintained by the organization? 10 2

8. Is the Petty Cash Fund kept in a safe place by the custodian or the treasurer? 10 2

9. Are comparison of actual and budgetary expenses and income done? 10 2

 FUNDS MANAGEMENT OF COLLEGE STUDENT COUNCILS IN BICOL UNIVERSITY 25

10. Do you reconcile cash receipts log to bank statement each month? 8 4

Table 3.2 depicts that 5 out of 12 student councils opt to remit to the treasurer
weekly. This practice helps councils to accumulate funds first rather than having to
account for small amount of inflows daily. The amount of collection for the day should
always be deposited the next banking day by any authorized officer with signatories
present on the council’s bank account. Keeping cash and funds that is not part of the
petty cash fund bears a higher risk than depositing whatever amount is onhand for the
day the nest banking day for safekeeping purposes.

Some councils doesn’t have Petty Cash Fund which serves as little amounts for
sudden expenses. Student Councils which doesn’t have an existing Petty Cash Fund
account pays most of their expenses “out-of-pocket” then issues a reimbursement form.
The use of the petty cash system eliminates the practice of reimbursing every time small
expense arise. There will be less reimbursement forms that will reflect on financial
reports and the auditing process will be faster and concise.

Comparison of financial statements are done every semester but is difficult to do

during the early months of the first semester. Records and reports from previous
councils aren’t immediately transferred to the current council for various reasons.

Comparison of actual and budgeted data and reports should be done for funds are
kept in track. Not comparing these data can lead to an over budget expense or going
lower than the alloted budget. These information may be the source of conflict during
audits and will add to the work and record tracking of the council.

Two out of 12 student councils in Bicol University don’t have their own bank
accounts. Some student councils said that banking is risky that’s why they chose not to
 ABADESA I ALMILLA 26

deposit their funds in the bank, especially when there are emergency payments. This
decision bears a much larger risk for the student council because the money can’t be
guaranteed safe even if it is in the hands of the treasurer ot their assigned custodian.
The possibility of theft and other internal and cash management conflicts shall arises
because cash is just within the reach of anyone. Council should practice banking
system because it bears its advantages and excessive cash isn’t left on the care of just
any assigned custodian or the treasurer. They opt to have their resources within a fast
transaction for it is difficult to open an account and continue transactions. “Withdrawals
are risky. It has to be approved by the concerned parties( adviser, dean, etc.). Even
banking is risky for our part.” the statement was given by two council presidents who
are subject to a lot of limitations with regards on keeping funds in fiduciary party.

Bank reconciliation is practiced but is rarely done. Student councils compares

transactions and cash balances to bank records but rarely does bank reconciliation.
Bank reconciliation will make audit and internal control faster and easier. If the council
knows how much were their actual cash spent and earned, then the preparation of
reports will flow smoothly. There will also be a more strict management for what is the
balance reflected on the bank statement should also reconcile with all the receipts and
disbursement stated in the councils’ records.

Table 3.3 Utilization of Funds ( Cash Disbursements)

Utilization of Funds ( Cash Disbursements) Yes No N/A

1. Are your disbursements in accordance with approve budget? 12

2. Have you established a process by paying expenses through checks or vouchers? 6 6

3. Do you review invoices and receipts prior to payment? 11 1

4. Are Cash Disbursement Vouchers duly approved by the President of the 8 4

organization and the adviser?

5. Are the disbursements supported by official receipts and acknowledged by 12

payee?
 FUNDS MANAGEMENT OF COLLEGE STUDENT COUNCILS IN BICOL UNIVERSITY 27

6. Are disbursements on petty cash fund approved by approving authorities? 10 2

7. When you purchase of tangible assets are the documents supported by canvass 9 3
by supplier?

8. Do the council has a policy on cash advances and liquidation. 11 1

9. Are withdrawal slips prepared once CDV and resolution were approved? 9 3

10. Do you maintain copies of invoices and receipts after payment? 12

11. Do you reconcile check book or journal with monthly bank reconciliation? 9 3

Table 3.3 shows that all councils pattern their disbursements according to their
planned budget. They all review invoices and receipts prior to payment. Copies of
invoices and official receipts are kept intact for it is an important rule that every council
imposes and the handbook implies.

Student councils in Bicol University practice the voucher system in compliance with
the student handbook and the requirements of the respective higher parties. ( ie. Dean,
admin). The use of the check system isn’t very much employed because the funds that
they hold aren’t as big as other student organization holds. They mostly do an over the
counter withdrawal and they find it much more convenient. These vouchers are duly
approved by the President, Advisers and the Treasurer. The treasurer must take note
first of what are the expenses demanded and if these are necessary to be charged
against the councils’ funds.

Most expenses are paid through cash. It is because some councils don’t have a
bank account and others doesn’t really find it convenient. They opt to pay through cash.
Purchase of tangible assets which includes equipment and other plant assets is more
difficult to process for other student council for there are a lot of authorities involved.
With regards on the purchase of fixed assets, it sometimes take years before these
purchases are approved.

Table 3.4 Financial Report Preparation

 ABADESA I ALMILLA 28

Financial Statement Preparation Yes No N/A

1. Do you list income and expenses by major category? 12

2. Is the Financial report format is consistent with budget format? 11 1

3. Do you compare current year actual result to budget and prior year’s actual 9 3
result?

4. Do you prepare financial report throughout the semester with adviser’s 10 2

assistance/ involvement?

5. Are reports reviewed and approved by organization’s members? 11 1

6. Do you submit reports to College Dean through Office of Student Affairs 12

Coordinator or to the Office of Student Services for clearance and renewal?

7. Are your financial reports accompanied with proof of purchase (i.e. official 12
receipt, sale invoice, acknowledgment receipt) and proof of acceptance (i. e.

delivery receipt)?

8. Do you provide an immediate photocopy of receipts printed on thermal paper 10 2

upon conclusion of transactions?

Table 3.4 shows that income and expense accounts are listed by major category.
They also submit reports to the College Dean through Office of Student Affairs
Coordinator or to the Office of Student Services for clearance and renewal and have
their proof of purchases accompany their reports. These practices are mandated by the
student handbook thus implies strict compliance.

According to the University Student Council, it is not all the time that the budgeted
comes at par with the actual expenses and collections. Some of these are retained as
receivables and unpaid expenses. The budget was prepared for the sake of setting a
limit and guidance as to where the resources can be and should be traced. There are
times when there is really no comparisons that were made during the entire school year.
It so happened that change in population and the decreasing number of students for the
 FUNDS MANAGEMENT OF COLLEGE STUDENT COUNCILS IN BICOL UNIVERSITY 29

past two years was a major factor for the amounts to be incomparable and very far and
different from each other.

The comparison of the previous and current financial reports can’t be done by
some because obtaining the previous councils’ takes a long time and some councils
give no reports to the present council.

. The involvement of the adviser relies mainly on the supervision and constant
check-ups on the student councils’ preparation process. Some councils prepares their
plans even without their advisers’ supervision for overlapping schedules. Thermal paper
is the material that the student handbook suggests but most councils try to keep their
original receipts intact for faster comparison.

Table 3.5 FUNDS MANAGEMENT PRACTICES: Internal Control

Internal Control Yes No N/A

1. Do you have an internal control policy within your organization? 11 1

2. Do you keep a photocopy of your bank book? 8 4

3. Do your adviser oversee the financial management process and accountability 11 1

of your council?

4. Are Financial Statements or Reports prepared every semester? 12

5. Are physical inventory count of unused accountable forms regularly done? 9 3

6. Do you maintain cash receipts and disbursement journals or books? 12

7. Is the treasurer solely responsible for collecting and receiving all incoming funds? 8 4

8. Is the treasurer the sole person in charge of monitoring cash flows, supervising 11 1
financial related transactions and keeping financial records?

9. Aside from the Auditor are there other officers or personnel in charge with 3 9
auditing your financial reports?

10. Do you segregate tasks according to the guidelines provided by the student 10 2
handbook and organization policies?

11. Are bank reconciliations done by the auditor independently? 2 10

 ABADESA I ALMILLA 30

12. Do you often review your plans according to the budgets prepared by the 12
council?

13. Do you arrange meetings regarding updates on financial status and health of the 12
council?

Table 3.5 depicts that there is a concrete internal control policy implemented by
college student councils. All councils prepare their financial reports every semester.
They also maintain log books for transactions. They review their budget plans regularly
and arrange meetings to update their financial status. Four out of 12 councils doesn’t
have a photocopy of their bank book this number includes the councils which really
doesn’t have their bank accounts. The treasurer and the officers delegated to examine
the bank book usually have the authority over them thus not needing the photocopy of
the material.

Inventory count that involves small amount of supplies aren’t done. They usually try
to estimate when to buy materials and supplies. There is a rule for councils to assign an
officer of the day who is in charge of collecting funds available specially if the treasurer’s
schedule is overlapping. The risk of implementing this practice is that the treasurer can’t
facilitate and keep track of the amounts. What is given to her is presumed to be the
actual amount collected. The supporting information provided by the collecting officer for
the day may not be sufficient at times of surplus or deficit. The risk is still borne by the
treasurer. Thus the treasurer must still overlook the activities and the custodian incharge
for the day.

The treasurer and auditor are the ones responsible for auditing the financial
statements. Some student councils provide that the president should be involve in the
auditing process for he or she knows everything that is happening or what happened
and he or she have the access on certain information that other officers don’t. the risk of
this practice is that auditing should only be done by an independent party or the auditor.
In some case account manipulation and certain adjustments can be done so that
financial statements cater to the likes of the officers involve. Auditing must be done by
the auditor alone or with an audit liaison that is not a member of the council but has a
certain degree of knowledge with auditing, financial management and record tracing.
 FUNDS MANAGEMENT OF COLLEGE STUDENT COUNCILS IN BICOL UNIVERSITY 31

Table 3. 6 Auditing

Auditing Yes No N/A

1. Are your official receipts and vouchers pre-numbered? 12

2. Aside from the auditor, are there any other audit liaison person that acts as your 3 9
auditors contact?

3. Do you maintain a list of transactions related to council activities? 12

4. Do you often review files and transactions related to year round activities? 11 1

5. Do you conduct regular updates and check ups on your data bases regarding 12
financial management and adjustments?

6. Do you maintain duplicate copies of your vouchers, invoices and other transaction 12
related documents?

7. Do you compare your recent and present financial reports? 9 3

8. Do your adviser supervises and guide you in auditing and reviewing your financial 10 2
reports and records?

Table 3.6 shows that all student councils have pre numbered receipts and
vouchers. They all conduct regular check-ups on their data bases regarding financial
management and adjustments and they maintain duplicate copies of their transaction
related documents ( invoices, receipts, vouchers, etc. ).

An audit liaison from outside the council members isn’t employed. The treasurer
and the president are the ones that helps the treasurer audit their financial statements.
The risk of not employing or requiring an audit liaison is that reports can be subjected to
objective adjustments which may produce eye catching results but may be subject to
higher risks. Most of them compares their recent and present financial statements when
it is available. At times that the reports aren’t available for comparison, it isn’t done. The
risk of not comparing this financial statements is that students may require payment
ABADESA I ALMILLA 32

breakdown and may require a comparison from previous years of the same event and
may raise concerns. It is important to know the gaps and major and minor difference
and changes from previous statements to present. This will also ensure the council of
the financial health and standing of the council. Their advisers also supervises and
guide them in auditing their reports and records. There are times when the presence of
the advisers are remote for some activities ahead or sudden. Councils should always
inform their advisers of what I going on within the major transactions and end pf the
semester or school year reports. The advisers’ supervision and guidance in auditing will
still be a big help in catering the councils’ inquiries and problems.

CHAPTER IV

CONCLUSIONS AND RECOMMENDATIONS

FUNDS MANAGEMENT OF COLLEGE STUDENT COUNCILS IN BICOL UNIVERSITY 33

Summary of the Findings and Results Obtained:

The objective of the study is to disperse facts regarding the Funds Management
practices of College Student Councils in Bicol University. Also, this study conducted to
evaluate if the respondents are applying the proper accounting practices prescribed in
the handbook , the implemented rules regarding student council rules and regulations of
the University wide and CHED to ensure a good financial performance of the
organizations. The results are achieved by handing out questionnaires to the Student
Councils and ask some further questions to clear out some answers.

After analyzing and interpreting the data gathered, the following findings were
acquired.

1. Some student councils said that banking is risky that’s why they chose not to
deposit their funds in the bank, especially when there are emergency payments.
2. An audit liaison from outside the council members isn’t allowed for the reason
that financial statements are regarded as confidential information.
3. Student councils compares transactions and cash balances to bank records but
rarely does bank reconciliation.
4. Decentralization is practiced in most Student Councils. Budget plans regarding
different activities are done by the executive committees responsible for the
events they want to hold. As for the USC it is the secretary that prepares the
budget plan.
5. The president, treasurer and auditor have the most engagement in managing
the fund of the council which involves monitoring cash flows and record keeping
and preparing financial statements.
6. Comparison of financial statements are done every semester but is difficult to
do during the early months of the first semester. Records and reports from
previous councils aren’t immediately transferred to the current council for
various reasons.
7. Remittances to the treasurer are done weekly same as to the deposits. Deposits
and remittances are done weekly because funds needs to be accumulated first
rather than remitting small amount daily for faster and easier transactions.
8. The voucher system is practice by some council yet some find it difficult and it
bears limitations. Most council opt the cash basis payment rather than issuing
ABADESA I ALMILLA 34

checks and vouchers. They just need to keep the receipts and present
photocopies during accreditation and FS presentation.

The researchers gathered these statements from the respondents during the
interview and survey:
1. “Withdrawals are risky. It has to be approved by the concerned
parties( adviser, dean, etc.). Even banking is risky for our part.”
2. “We don’t use journals. We use log books.”
3. “Regarding inventory, if we notice that the supply is little to no stock,
then we purchase.”
4. ”Sometimes our advisers aren’t there to supervise everything and
our financial statement preparation and budget plans”
5. “Budget plans per activity are prepared by the event head.”
6. “ Yes, we compare financial statements but as of now (July- August)
still there are no financial statements that were passed to us by the
previous council”
7. “We still don’t have access on the bank accounts because there I no
transfer yet of signatories. It is not yet done”
8. “ The adviser will only check the budget plan. He/she is not involve in
formulating the plan.”
9. “We have two treasurers. The Deputy who is incharge for accounting for
inflows and another treasurer for outflows”

Conclusions:

1. All of the practices being employed by the College Student Councils are in
conformity with the University wide and CHED implemented rules regarding
student council rules and regulations.
2. There were some student councils whose funds were not yet deposited in a
bank or other financial institutions and also some doesn’t have Petty Cash Fund
obtained for small expenses.
3. In terms of financial practices, generally organizations are very good in doing
their job, however there are exceptions that should be given emphasis for a
better financial management system like the establishment of revolving fund, a
comparison of the actual and budgetary expenses.
FUNDS MANAGEMENT OF COLLEGE STUDENT COUNCILS IN BICOL UNIVERSITY 35

4. Student councils rely mainly on the miscellaneous fees collected from the
students during enrolment.
5. The presidents, treasurers and auditors work hand in hand for the overall fund
management, auditing and internal control processes within the council.

Recommendations:

College Student Councils in Bicol University. The conducted study suggests that
college student councils in Bicol University should properly oriented before the
assumption of their respected posts. Comparison of actual and budgeted reports should
be done and be presented to its beneficiaries for transparency. Their constitution and
bylaws should also include a set of guideline in auditing, internal control and financial
report preparation. There must be a tie up between the Accountancy department and
various college student councils to audit the financial statements of the organization
after their term.

University Student Council. The conducted study suggests that the university student
council issue a set or list of funds management practices regarding budgeting, financial
reporting, utilization, internal control and auditing that should be followed by all the
college student councils for a comparable and consistent information that will help in the
reporting and dissemination of information to all the concerned parties. There should be
at least a uniform set of guidelines and standards that student councils should follow for
comparability and consistency purposes. There must be a tie up between the
Accountancy department and various college student councils to audit the financial
statements of the organization after their term.

Different Student Organizations. The conducted study suggests that even College
Based Organizations should be informed of the best practices regarding funds
management for transparency and to provide relevancy in their financial reports.
ABADESA I ALMILLA 36

Students of Bicol University. The conducted study shall provide students the actual
practices that their respective CSC’s are implementing. It also suggests that students
should also be informed of the financial status of the council to avoid conflict.

Faculty Adviser of Student Organizations. The conducted study suggests that the
adviser of the respective student councils should be informed of everything that goes
around the council even without his or her physical presence. The adviser should also
coordinate with the other council advisers and officers and to the Department of
Accountancy in conducting training regarding handling fiduciary functions and fund
management practice.

Financial Management and Cost Accounting Professors. The conducted study

suggests that the financial management and cost accounting professors provide
trainings or seminars for the council officers and their respected advisers in order to
orient them with the proper conduct of the processes that will enhance their funds
management within their own organizations. The conducted study will also be of help in
giving a concrete example in class discussions specials in managerial accounting
subjects.

Bicol University as a whole. The conducted study suggests that the practices
implemented within the councils and the best practices that should be implemented be
also at par with what the other organization in Bicol University is implementing. Not all of
the practice may be effective and applied by the other councils but their should be a
uniform set of standards that all councils and organizations should practice.
FUNDS MANAGEMENT OF COLLEGE STUDENT COUNCILS IN BICOL UNIVERSITY 37

REFERENCES

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Ng, Mark Francis G. (2010). Quantitative Methods in Accounting: A Modular

Approach. 1st Edition. Sampaloc, Manila, 2010.

Ou, Charles. (2009). U.S. Small Business Administration: Small Business in Focus:
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Timbang, Ferdinand L. (2015). Financial Management Part 1. 1st Edition. South

Triangle, Quezon City, 2015.

Online Source

Bragg, Steven. (October 28, 2017). Financial Statement Analysis. Retrieved

from:https://www.accountingtools.com/articles/2017/5/14/financial-statement-analysi
s. (Visited April 9, 2018)

Brobby, Daniel. (2010). A Guide to Fund Mangement. Retrieved from http://riskbooks.

ABADESA I ALMILLA 38

com/a-guide-to-fund-management

Browne, David. (2001). Heinemann Business Studies for AS Level. . Retrieved

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PA352&lpg=PA352&dq=%EF%82%B7Heinemann+Business+Studies+for+
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Charantimath, Poornima M. (2005). Entrepreneurship Development and Small Business

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Fontinelle, Amy. (2017). Budgeting Basics. Retrieved from https://www.investopedia.

com/university/budgeting/

Hanson, Richard O. (2009). The Small Business Controller. Retrieved from:

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(Visited April 7, 2018).

Sullivan, Jay (2017). Agreed Upon Procedures and Audit Guidelines: Student Activity
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Funds.pdf ( Visited April 27, 2018)

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ABADESA I ALMILLA 40

( 2013) . Amended University Student Council Constitution - De La Salle University. Pdf

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Unpublished Thesis

Abanto, Rachel Anne; Manzanades, Melissa. Budgetary Practices of Charitable

Institutions for Children in Legazpi City. BU CBEM

Arena, Camille; Inzon, Mariz. Working Capital Management Practices of Local

Restaurants in Legazpi City. BU CBEM.

Published Thesis

Pinca-Legazpi, Korina; Tan, Jade. Financial Management of Student Organizations in

the University of Eastern Philippines. University of Eastern Philippines.

Frejas Abegail; Polo Abegail. Accounting and Entrepreneural Finance Practices of

Newly Established Small Service- Type Enterprises in elected Barangay of Irosin
Covered by Negosyo Center. Bicol University CBEM.
FUNDS MANAGEMENT OF COLLEGE STUDENT COUNCILS IN BICOL UNIVERSITY 41

APPENDIX A: SURVEY QUESTIONNAIRE 1

(ORGANIZATIONAL PROFILE)

BICOL UNIVERITY

COLLEGE OF BUSINESS ECONOMICS AND MANAGEMENT

DARAGA, ALBAY

FUNDS MANAGEMENT OF STUDENT COUNCILS IN BICOL UNIVERSITY

College of ______________________________________________

ORGANIZATIONAL PROFILE

A. NUMBER OF MEMBERS
______ Actual Elected Officers
______ Non Elected Working Committee

B. LEGALITY OF OPERATION

YES NO
 ABADESA I ALMILLA 42

1. Do you have existing constitution and by-laws approved by members?

2. Do the establishment and operation of the organization upon compliance with the
requirements prescribed under the guidelines of University committee Accreditation/
College Committee Accreditation?

3. Do all the provisions under the guidelines of the organization conform to the existing
rules and regulations of the University and the CHED based on the list in the student
handbook?

4. Does the student council select the officers through election?

A. SOURCES OF FUNDS

Miscellaneous Fee of Students Donations Others : ______________________

Solicitations Fund Raising Events

C.FUNCTION OR DESIGNATION OF OFFICER AND ADVISERS

President Vice Secretary Treasurer Auditor Advisers Other

President Officers

Budget Proposal
Preparation and
Approval

Prepares the
resolution for cash
disbursements:
Cash Custodian
Record keeper/
Bookkeeper
Prepares the
financial statements

Prepares and
approves cash
vouchers
Deposits cash
collections
 FUNDS MANAGEMENT OF COLLEGE STUDENT COUNCILS IN BICOL UNIVERSITY 43

Monitors receipts
and disbursements
on every activity of
the organization

Devise methods of
generating funds for
the organizations

SURVEY QUESTIONNAIRE 2

(FUNDS MANAGEMENT PRACTICES)

A. Budgeting Yes No N/A

1. Are budgets prepared for the organization annually?

2. Are budgets prepared according to the year round planned activities of the

Organization?

3. Are budget plans prepared only by designated personnel ( i.e. President, Vice
 ABADESA I ALMILLA 44

President, Treasurer and Adviser)

4. Do your adviser supervise the preparation and budgeting process?

5. Are budgets approved by authorities (ie. Students, Adviser, Dean and University

President)

B. Utilization of Funds ( CASH RECEIPTS)

1. Are remittances by collectors to the treasurer done everyday ( during enrollment

period)?

2. Are cash collections issued with official receipts

3. Are the assigned collectors authorized through resolutions and other pertinent

Documents?

4. Are remittances supported by control sheet and/or cash count sheet

5. Are collections for the day kept intact and deposited within the next banking day?

6. Do you keep the funds generated in a bank or other financial institution?

7. Is Petty Cash Fund is maintained by the organization?

8. Is the Petty Cash Fund kept in a safe place by the custodian or the treasurer?

9. Are comparison of actual and budgetary expenses and income done?

10. Do you reconcile cash receipts log to bank statement each month?

C. Utilization ( CASH DISBURSEMENT)

1. Are your disbursements in accordance with approve budget?

2. Have you established a process by paying expenses through checks or vouchers?

3. Do you review invoices and receipts prior to payment?

4. Are Cash Disbursement Vouchers duly approved by the President of the

organization and the adviser?

5. Are the disbursements supported by official receipts and acknowledged by

payee?

6. Are disbursements on petty cash fund approved by approving authorities?

7. When you purchase of tangible assets are the documents supported by canvass

by supplier?

8. Do the council has a policy on cash advances and liquidation.

 FUNDS MANAGEMENT OF COLLEGE STUDENT COUNCILS IN BICOL UNIVERSITY 45

9. Are withdrawal
E.Internal Control slips prepared once CDV and resolution were approved?
10. Do
1.Do you
you maintain
have copiescontrol
an internal of invoices
policyand receipts
within your after payment?
organization?

11.Doyou
2.Do youkeep
reconcile checkbook
a photocopy or journal
of your with monthly bank reconciliation?
bank book?

D.Financial
3.Do Reportoversee
your adviser Preparation
the financial management process and accountability
1.Do
of you
your list income and expenses by major category?
council?

2.Is the
4.Are Financial
Financial report format
Statements is consistent
or Reports withevery
prepared budget format?
semester?

3.Do you
5.Are compare
physical current
inventory yearofactual
count unusedresult to budgetforms
accountable and prior year’sdone?
regularly actual

result?
6.Do you maintain cash receipts and disbursement journals or books?

4.Dothe
7.Is youtreasurer
prepare solely
financial report throughout
responsible the and
for collecting semester withall
receiving adviser’s
incoming funds?

8.Is assistance/ involvement?

the treasurer the sole person incharge of monitoring cash flows, supervising
5.Are reportsrelated
financial reviewed and approved
transactions by organization’s
and keeping members?
financial records?

6.Do you submit reports to College Dean through Office of Student Affairs

Coordinator or to the Office off Student Services for clearance and renewal?

7.Are your financial reports accompanied with proof of purchase (i.e. official

receipt, sale invoice, acknowledgment receipt) and proof of acceptance (i. e.

delivery receipt)?

8.Do you provide an immediate photocopy of receipts printed on thermal paper

upon conclusion of transactions?

 ABADESA I ALMILLA 46

9.Aside from the Auditor are there other officers or personnel incharge with

auditing your financial reports?

10.Do you segregate tasks according to the guidelines provided by the student

handbook and organization policies?

11.Are bank reconciliations done by the auditor independently?

12.Do you often review your plans according to the budgets prepared by the

council?

13.Do you arrange meetings regarding updates on financial status and health of the

council?

F.Auditing

1. Are your official receipts and vouchers pre-numbered?

2. Aside from the auditor, are there any other audit liaison person that acts as your

auditors contact?

3.Do you maintain a list of transactions related to council activities?

4.Do you often review files and transactions related to year round activities?

5.Do you conduct regular updates and check ups on your data bases regarding

financial management and adjustments?

6.Do you maintain duplicate copies of your vouchers, invoices and other transaction

related documents?

7.Do you compare your recent and present financial reports?

9. Do your adviser supervises and guide you in auditing and reviewing your financial

reports and records?

FUNDS MANAGEMENT OF COLLEGE STUDENT COUNCILS IN BICOL UNIVERSITY 47

APPENDIX B: DRAFT LETTER

Bicol University
College of Business, Economics and Management
DEPARTMENT OF ACCOUNTANCY
Daraga, Albay 4501

________________________
________________________
________________________
________________________

The undersigned are conducting an undergraduate thesis entitled, “ Funds management

of Student Councils in Bicol University” and are hoping for your cooperation for the
success this study.

In this regards, we would like to request for an interview with the College Student
Council officers which are involved with the preparation of their respective financial and
budget plans’ for they are the most knowledgeable about the financial process of the
organization. They are the most appropriate respondents for our study.

Thank you very much and God Bless!

Sincerely,

Nicole C. Abadesa

Ellaine Pearl A. Almilla

Researchers
ABADESA I ALMILLA 48

Noted by:

Teresita Q. Galang ,CPA, DBA

Adviser

APPENDIX C

( LIST OF BEST PRACTICES IN MANAGING FUNDS )

Budgeting:

1. Budget/ Budget Plans are prepared annually.

2. Budget are prepared according to the year-round planned activities of the organization.

3. Budgets should only be handles and prepared by the designated officers and adviser as

instructed by the councils laws and university guidelines.

4. Council or Organization advisers should be involved ij the budgeting and preparation process.

5. Budget plans should be approved by the members, adviser, the dean and university president.

Utilization of Funds: Cash Receipts:

FUNDS MANAGEMENT OF COLLEGE STUDENT COUNCILS IN BICOL UNIVERSITY 49

1. Remittances of collectors to treasurers every enrollment should be done daily.

2. Cash collections should be issued with official receipts

3. The assignment of collectors should be based on resolution or other pertinent documents.

4. Whenever remittances are done, it should be supported or followed by an entry to the control

sheet or cash count sheet.

5. Collections for the day should be kept intact and deposited immediately the nest day.

6. Funds should be kept in a bank or any other financial institution.

7. The establishment of Petty Cash Fund should be done.

8. There should only be one designated officer to manage the Petty Cash Fund.

9. Actual and Budgetary income and expenses should be done.

10. Reconciliation of cash receipts with bank statement should be done.

Utilization of Funds; Cash Disbursement:

1. Disbursements should be in accordance with budget plan.

2. Disbursement should be done through issuance of vouchers or checks.

3. Invoices and receipts should be reviewed prior to payment.

4. Vouchers or checks should be duly approved by the college dean and university president.

5. Disbursements should be supported by official receipts and are acknowledged by the payee.

6. Disbursements done through petty cash fund should be approved by authorities.

7. Purchase of tangible assets should be documented by canvass by supplier.

8. The council should have policies regarding cash usage and liquidation.

9. Withdrawal should be done after the preparation and approval of CDV and resolutions.

10. Copies of invoices and and receipts should be maintained after payment.

11. Reconciliation of cash disbursement with bank statement should be done.

Financial Report Preparation:

1. List income and expenses by major category.

2. Financial report format should be consistent with budget format.

3. Compare current year actual result to budget and prior year’s actual result.

4. Prepare financial report throughout the semester with adviser’s assistance/ involvement.
ABADESA I ALMILLA 50

5. Reports are reviewed and approved by organization’s members.

6. Reports should be submitted to College Dean through Office of Student Affairs

Coordinator or to the Office off Student Services for clearance and renewal.

7. Financial reports are accompanied with proof of purchase (i.e. official receipt, sale invoice,

acknowledgment receipt) and proof of acceptance (i. e. delivery receipt).

8. Provide an immediate photocopy of receipts printed on thermal paper upon conclusion of

transactions.

Internal Control:

1. Council must have an internal control policy.

2. Council must keep a photocopy of bank book.

3. The adviser must oversee the financial management process and accountability of council.

4. Financial Statements or Reports are prepared every semester.

5. Physical inventory count of unused accountable forms must be regularly done.

6. Council must maintain cash receipts and disbursement journals or books.

7. The treasurer is solely responsible for collecting and receiving all incoming funds.

8. The treasurer is the sole person incharge of monitoring cash flows, supervising

financial related transactions and keeping financial records.

9. Auditor should be responsible for auditing financial reports unless otherwise stated by council

laws.

10. Segregate tasks according to the guidelines provided by the student handbook and

organization policies.

11. Bank reconciliations should be done by the auditor independently.

12. Review plans according to the budgets prepared by the council.

13. Arrange meetings regarding updates on financial status and health of the council.

Auditing:

1. Official receipts and vouchers are pre-numbered.

2. Auditor and a professional liaison should be in charged of auditing affairs.

 FUNDS MANAGEMENT OF COLLEGE STUDENT COUNCILS IN BICOL UNIVERSITY 51

3. Maintain a list of transactions related to council activities.

4. Often review files and transactions related to year round activities.

5. Conduct regular updates and check ups on data bases regarding financial management

and adjustments.

6. Maintain duplicate copies of vouchers, invoices and other transaction related documents.

7. Compare recent and present financial reports.

8. The adviser supervises and guide officers in auditing and reviewing financial reports and

records.

The above presented guidelines and best practices were from existing university policies duly
published within their handbooks and studies conducted regarding organizational and council
related financial management.

The set and list of best ways and proper practices in funds management were extracted from:

 Bicol University Student Handbook

 De La Salle University- Dasmarinas Amended University Student Council Constitution

 Internal Control Guidance by Georgia Tech

 Risk Management and Audit Services( Best Practices) by Harvard University

 Financial Management of Student Organization in the Univerity of Eastern Philippines by

Jade Tan and Korina Legazpi