Control Activities and Cash Management of Catholic Churches in Cavite Sept 24

THE CONTROL ACTIVITIES AND CASH MANAGEMENT PRACTICES
OF SELECTED ROMAN CATHOLIC CHURCHES IN CAVITE:

A BASIS FOR ENHANCEMENT
An Undergraduate Thesis
Presented to
The Faculty of the Manila Tytana College of Accountancy and Management
MANILA TYTANA COLLEGES
Pasay City
In Partial Fulfilment
Of the Requirements for the Degree
BACHELOR OF SCIENCE IN ACCOUNTANCY
Camille Q. Hilario
Daniela Teri R. Co
Jan Allana R. Ilagan
John France A. Mariano
Mary Lynn E. Sta. Prisca
Mr. Amir T. Auditor, CPA
May 2017
ii
APPROVAL SHEET
In partial fulfillment of the requirements for the degree BACHELOR OF
SCIENCE IN ACCOUNTANCY, this research paper entitled “THE CONTROL
ACTIVITIES AND CASH MANAGEMENT PRACTICES OF SELECTED
ROMAN CATHOLIC CHURCHES IN CAVITE: A BASIS FOR
ENHANCEMENT” has been prepared and submitted by CAMILLE Q. HILARIO,
DANIELA TERI R. CO, JAN ALLANA R. ILAGAN, JOHN FRANCE A.
MARIANO, MARY LYNN E. STA. PRISCA, who are hereby recommended for
Oral Examination.
__________________________
AMIR AUDITOR, CPA, MBA
Adviser
Approved by the Committee for Oral Examination with the grade of ____
______________________________________ _____________________________
DON M. MAGPANTAY, PhD, DPA, SPBE ATTY. MARIO P. BRAVO, CPA
Member Member
_____________________________________________
MARIA VERONICA JOY M. BINUYA, CPA, PhD
Chairman
Accepted and approved in partial fulfillment of the requirements for the
degree BACHELOR OF SCIENCE IN ACCOUNTANCY.
____________________________________________
MARIA VERONICA JOY M. BINUYA, CPA, PhD
Dean, College of Accountancy and Management
Date: May 2017
iii
ACKNOWLEDGMENT
The researchers would like to express their gratitude to the following
individuals who in one way or another contributed and extended valuable assistance
in the preparation and completion of their research paper.
To Professor Amir Auditor, CPA, their research adviser, who diligently
supported and believed in the capacity of the researchers. His criticism, patience,
guidance and support helped the researchers successfully accomplish their study.
To Dean Maria Veronica M. Binuya, CPA, PhD, head of the
Accountancy program and chairman of the panel, who tirelessly shared her
knowledge and answered the inquiries of the researchers to help them improve their
study.
To Dr. Don M. Magpantay, PhD, DPA, SPBE, their professor in business
research and one of the panel members, who monitored the researchers in their
thesis journey and whose insights greatly helped for the best results of the research.
To the panel members in proposal and final defense, Dr. Adrian Lawsin,
Professor Chua, Professor Eden Alberto, and Atty. Mario P. Bravo, whose
comments and suggestions helped in fixing up the important details that the
researchers had overlooked and made the study more interesting and more reliable
for the benefit of the users.
To Most Rev. Bishop Reynaldo G. Evangelista, Bishop of Diocese of
Imus, for willingly giving the researchers an authorization to conduct surveys and
interviews in the selected Roman Catholic Churches in Cavite.

iv
To the Parish Priests, secretaries, employees, and volunteers of the
selected Roman Catholic Churches in Cavite who participated in this research for
their valuable time spent in answering the questionnaires and entertaining the
researchers’ inquiries. Their participation made this research a success.
To Abigail G, Leron, Andrea Q. Tayoto, Emmelyn I. Posada, Kryssel G.
Del Rosario and Lordson Rey E. Ramos, the researchers’ friends and seniors,
whose all-out support, advice and generous assistance greatly helped the
researchers successfully finish their study and motivated them to do their best.
The researchers would also like to express their deepest gratitude to their
families and friends whose unceasing love, financial and moral support, and sincere
prayers empowered the researchers to do their best and never give up.
Above all, the researchers would like to express their extreme
gratefulness to the Almighty God for His amazing grace and favor which became
the source of the researchers’ wisdom and strength from the very beginning to the
end of this journey. All the praises, honor and glory to Him alone. AMEN!
C. Q. H.
J. A. R. I.
D. T. R. C.
J. F. A. M.
M. L. E. SP.
v
DEDICATION
We wholeheartedly dedicate this thesis to our beloved parents who are always
behind of our success, for their moral and financial support. Thank you for the love and
trust in us while doing this research, for always giving positivity.
To Sta. Prisca and Hilario family for accommodating us to do this entire thesis all
the time. Thank you for their love and support as well.
To the BSA IV, especially to Abigail Leron, Andrea Tayoto, Emelyn Posada,
Krysel Del Rosario, and Lordson Rey Ramos who were there to help us in the little things
they can and for also supporting us all throughout and lifting us when feeling down and
stress.
Lastly, we indeed dedicate this thesis to our Almighty God because with His
strength, power and faith we have successfully attained this research fruitfully.
To all of you, we are truly blissful.
Thank you very much.

vi
RESEARCH ABSTRACT
Research Title : THE CONTROL ACTIVITIES AND CASH

MANAGEMENT PRACTICES OF SELECTED
ROMAN CATHOLIC CHURCHES IN CAVITE:
A BASIS FOR ENHANCEMENT
Researchers : CAMILLE Q. HILARIO

DANIELA TERI R. CO
JAN ALLANA R. ILAGAN
JOHN FRANCE A. MARIANO
MARY LYNN E. STA PRISCA
Degree : BACHELOR OF SCIENCE IN ACCOUNTANCY

Conferred
School : MANILA TYTANA COLLEGES
Adviser : MR. AMIR T. AUDITOR, CPA
Date : May 2017

Completed
No. of pages : 208
The study was conducted in order to assess the control activities and
cash management practices of selected Roman Catholic Churches in Cavite which
served as a basis for enhancement. Control activities are the policies and procedures
established to address risks and to achieve the entity’s objectives. The researchers
have chosen this component of internal control since it tackles about the day-to-
vii
day activities of an organization and is normally observed by stakeholder. In
relation to this, is cash management which is the stewardship or proper use of an
entity’s cash resources. Cash management assists to keep an organization
functioning by making the best use of their cash or liquid resources. The
researchers believe that control activities and cash management have significant
impact on the parish’s effective and efficient operations and management of its
resources. This research aimed to determine if there is a significant difference in the
assessment of the respondents regarding the practices of selected Roman Catholic
Churches in Cavite on control activities and cash management when grouped
according to profile. The researchers also aimed to determine if there is a
significant relationship between the control activities and cash management
practices of selected Roman Catholic Churches in Cavite.
This study used a quantitative research method, specifically descriptive
research method on assessing the control activities and cash management practices
of selected Roman Catholic Churches in Cavite. The locale of the study were the
selected Roman Catholic Churches in episcopal districts of St. Matthew and St.
John which includes the municipalities of Imus, Bacoor, Kawit, Noeveleta, Cavite
City, Rosario, Tanza, Naic, Maragondon, Magallanes, and Ternate. The researchers
used a non-random sampling technique, specifically purposive sampling technique.
The respondents were selected based on two criteria: number of years of
establishment of parish affiliated and monthly collection of parish affiliated. The
respondents that were chosen are the parish priest, secretary and finance staff
because they are the ones involved in parish’s finance administration thus, in the
viii
best position to provide information in the study conducted. The research is based
from the Diocesan Internal Control Framework by the United States Conference of
Catholic Bishops which was modified by the researchers to formulate questions in
line with the topic of the research. The 29-question questionnaires were approved
by the advisers and validated by three (3) experts and were distributed to the
respondents to answer. The data gathered were subjected to different statistical
tools accordingly. The researchers used the Statistical Package for the Social
Sciences (SPSS) for the analysis of gathered data and the hypothesis was based on
the 0.05 level of significance. The profile of the respondents was illustrated in
frequencies and percentages. The assessment of the respondents regarding the
control activities and cash management practices of selected Roman Catholic
Churches in Cavite was determined by mean and standard deviation. One-way
ANOVA or F-test was used to compare the differences in the assessment of the
respondents regarding the control activities and cash management practices of
selected Roman Catholic Churches in Cavite when grouped according to number of
years of establishment and monthly collection of parish affiliated. The researchers
also tested the data gathered using Pearson Correlation to determine the relationship
between the assessment of the respondents regarding control activities in relation to
cash management practices of selected Roman Catholic Churches in Cavite. The
results had been the basis for the acceptance and rejection of the hypothesis.
The researchers had thirty (30) respondents. In terms of the frequency
of the participants regarding the number of years of establishment of parish
affiliated, nine (9) churches have been established between twenty-six (26) to fifty
ix
(50) years; three (3) from seventy-six (76) to one hundred (100) years; and eighteen
(18) from one hundred one (101) years and above. Regarding the monthly
collection of parish affiliated, ten (10) churches have a monthly collection of below
P25,000; eight (8) collect between P25,001-P50,000; four (4) collect P75,001-
P100,000; and eight (8) collect P100,001 and above.
Statistical analyses showed the following findings on the variables of
control activities: delegation of authority and supervision has a composite mean of
3.48 and interpreted as “practiced”; segregation of duties has a composite mean of
3.41 and interpreted as “practiced”; checking of transaction documents and reports
has a composite mean of 3.58 and interpreted as “highly practiced”; physical
control over assets and accounting records has a composite mean of 3.45and
interpreted as “practiced”; independent verification of performance has a composite
mean of 3.38 and interpreted as “practiced”.
The overall assessment of the respondents regarding the practices of
selected Roman Catholic Churches in Cavite on control activities turned out to be
“practiced” with a composite mean of 3.46. This means, majority of the
respondents practice good control activities. Despite this high assessment of control
activities, based on the observation and interviews by the researchers, there are
parishes that find it hard to implement all variables of control activities effectively,
thus need to be paid attention and improved.
Statistical analyses showed the following findings on the variables of
cash management: cash receipts has a composite mean of 3.33 and interpreted as
“practiced”; cash disbursement has a composite mean of 2.63 and interpreted as

x
“practiced”; pety cash has a composite mean of 3.39 and interpreted as “practiced”.
The overall assessment of the respondents regarding the practices of selected
Roman Catholic Churches in Cavite on cash management turned out to be
“practiced” with a composite mean of 3.12. This means, majority of the
respondents practice good cash management. Despite this high assessment of cash
management, based on the observation and interviews by the researchers, there are
parishes that find it hard to implement an effective and consistent cash management
practices, thus need to be paid attention and improved.
The results of the statistical analyses using F-test showed that there is
no significant difference in the assessment of the respondents regarding the control
activities of selected Roman Catholic Churches in Cavite when grouped according
to number of years of establishment of parish affiliated however, control activities
showed a significant difference when grouped according to monthly collection of
parish affiliated. F-test also showed that there are both no significant differences in
the assessment of the respondents regarding the cash management of selected
Roman Catholic Churches in Cavite when grouped according to number of years of
establishment of parish affiliated and when grouped according to monthly
collection of parish affiliated. A factor that the researchers observed that might
have an effect in their differences is that there is no established internal control
procedures mandated to all Roman Catholic Churches in the Philippines. The
parishes have the liberty to implement control procedures they deemed appropriate
for them but might still be further improved or perhaps in the contrary of generally
accepted standards.
xi
Further statistical analysis was done by the researchers using Pearson
Correlation, which showed that there is no significant relationship between the
Churches in Cavite on control activities and cash management. A factor that the
researchers observed that might have an effect to the result of the correlation is the
differences in the effectiveness and implementation of the variables of control
activity in each variable of cash management. An effective control activity in one
variable of cash management might not be that effectively implemented in the other
variables of cash management. Another reason could be the assumption of Pearson
correlation such as linearity that the variables did not meet. More statistical
analyses could be made to further understand the relationship between control
activities and cash management.
Based on the analysis of the researchers, although overall, the selected
Roman Catholic Churches in Cavite practice good control activities and cash
management, there are parishes that find it hard to effectively and consistently
practice good control activities and cash management. A possible reason is that
there is no established internal control framework prescribed to parishes in the
Philippines and the parishes have the liberty to implement control procedures they
deem appropriate for them but might still be further improved or perhaps in the
contrary of generally accepted standards. Enhancement of practices of selected
Roman Catholic Churches in Cavite on control activities and cash management can
be found in the recommendation of the paper which served as the researchers’
output.
xii
To the future researchers and faculty members who will conduct studies
related to this topic, the researchers recommend using more intensive statistical
analyses to further understand the relationship between control activities and cash
management. The researchers also recommend improving the research instrument
and adding more respondents which may increase the reliability of their study.
They may also apply the study to the other religious sectors or parishes of other
cities or provinces, exploring the other components of internal control such as
control environment, risk assessment, communication and information, and
monitoring, to contribute more understanding about the internal control of nonprofit
sector.
To the parish administrators, the researchers recommend to evaluate
different components of internal control of the parishes and ensure that appropriate
attention is devoted to important areas of the organization that need improvement.
A recommendation studying the other Roman Catholic Churches in other
municipalities of Cavite to find out more accurate results about their internal
control and cash management is highly advised. From that recommendation, the
researchers also suggest the Diocese of Imus to establish an internal control system
that will be uniformly implemented in each Roman Catholic Church under their
jurisdiction for the improvement of the administration of every parish.

xiii
TABLE OF CONTENTS
Approval Sheet ii
Acknowledgment iii
Dedication v
Research Abstract vi
Table of Contents xiii
List of tables xv
List of Figures xviii
List of Appendices xix
CHAPTER PAGE
I PROBLEM AND ITS BACKGROUND
Introduction 1
Background of the Study 3
Theoretical Framework 6
Statement of the Problem 14
Hypotheses 16
Significance of the Study 16
Scope and Delimitation 17
Definition of Terms 20
II REVIEW OF RELATED LITERATURE AND STUDIES
Local Literature 25
Foreign Literature 29
Local Studies 33
Foreign Studies 35
Relevance to the Present Study 38

xiv
III METHOD AND PROCEDURE
Research Method/Design 41
Sample and Sampling Technique 42
Research Instrument and Technique 45
Data Gathering Procedure 46
Statistical Treatment of Data 47
IV PRESENTATION, ANALYSIS AND 50
INTERPRETATION OF DATA
V SUMMARY OF FINDINGS, CONCLUSIONS
AND RECOMMENDATIONS
Summary of Findings 103
Conclusions 112
Recommendations 113
Enhancements 115
REFERENCES 117
APPENDICES 121
xv
LIST OF TABLES
TABLE PAGE
1 Frequency and Percentage Distribution of the Respondents’ 50
Profile According to Number of Year of Establishment of
Parish Affiliated
2 Frequency and Percentage Distribution of the Respondents’ 51

Profile According to Monthly Collection of Parish Affiliated
3 Assessment of the Respondents Regarding the Extent of the 53

Practice of Control Activities of selected Roman Catholic
Churches in Cavite in Terms of Delegation of Authority and
Supervision

Churches in Cavite in Terms of Segregation of Duties

Churches in Cavite in Terms of Checking of Transaction
Documents and Reports

Churches in Cavite in Terms of Physical Control Over Assets
and Accounting Records

Churches in Cavite in Terms of Independent Verification of
Performance

Churches in Cavite
9 Assessment of the Respondents Regarding the Cash 65

Management of selected Roman Catholic Churches in Cavite in
Terms of Cash Receipts
xvi

Terms of Cash Disbursements

Terms of Petty Cash

Management Practices of selected Roman Catholic Churches in
Cavite
13 Differences in the Assessment of the Respondents Regarding 73

the Practices of Selected Roman Catholic Churches in Cavite
on Control Activities when Grouped According to Number of
Years of Establishment of Parish Affiliated

on Cash Management when Grouped According to Number of
Years of Establishment of Parish Affiliated

on Control Activities when Grouped According to Monthly
Collection of Parish Affiliated

on Cash Management when Grouped According to Monthly
Collection of Parish Affiliated
17 Relationship between the Assessment of the Respondents 86

Regarding the Practices of Selected Roman Catholic Churches
in Cavite on Delegation of Authority and Supervision in
relation to Cash Management

in Cavite on Segregation of Duties and Cash Management

in Cavite on Checking of Transaction Documents and Reports
and Cash Management
xvii

in Cavite on Physical Control over Assets and Accounting
Records and Cash Management.

in Cavite on Independent Verification of Performance and
Cash Management.

in Cavite on Control Activities and Cash Management.
xviii
LIST OF FIGURES
FIGURE PAGE
1 Research Paradigm 9
xix
LIST OF APPENDICES
APPENDIX PAGE
A Recommendation and Suggestions of the Panel Members 121
B Methods 125
C Statistical Analyses 131
D Communication Letters 153
E Certifications 164
F Gantt Chart and Line Item Budget 171
G Photographic Documentations 175
H Curriculum Vitae 179
1
CHAPTER I
THE PROBLEM AND ITS BACKGROUND
Introduction
The nonprofit organizations help people to have a better livable environment in
different aspects like education, health, religion, social services, arts and others and not
intended in making profit but rather to provide service needed by the public. Even if the
goal of a nonprofit is in contrast with a business’ objective both of the two depends its
success to the effectiveness of the management. The effectiveness of an internal control is
a critical component of a management and a foundation for a good shaped operation of
organizations. However, ineffective internal control results in ineffective programs and
losses. Internal control is measure utilized by an organization to safeguard assets from
waste, fraud, and inefficient use. (Richardson, 2016)
A church is one of many organizations that make up the not-for-profit sector,
although a number of financial reporting differences exist due to the constitutional
concept of "separation of church and state." Internal control and cash management
practices can be a sensitive issue in churches or nonprofits, especially those that relies on
volunteers. This organization is built on the concepts of honesty, truthfulness, and mutual
trust. (Richardson, 2013) The National Internal Revenue Code (NIRC) under Chapter IV
Section 30(E) states that religious organizations, among others, are exempt from paying
income tax, except those whose income was earned from activities conducted for profit.
The tax exemption granted under the law is not automatic since they are required to
secure confirmatory rulings or certificates of tax exemption from the Bureau of Internal
2
Revenue (BIR). The tax exemption privileges are not absolute since it does not cover all
types of income and activities. (Antonio, 2013)
The Catholic Church’s global spending matches the annual revenues of the
planet’s largest firms, and its assets—huge amounts of real estate, Vatican City, some of
the world’s greatest art—surely exceed those of any corporation by an order of
magnitude. (Yglesias, 2013).
In the Philippines, The Roman Catholic Archdiocese of Manila (RCAM) is one of
the richest Catholic dioceses in the entire world. (Rufo, 2015) In fact, reports submitted
to the Philippine Stock Exchange (PSE) show that the Church and affiliate Catholic
groups are top stockholders in companies such as the Bank of the Philippine Islands
(BPI), Philex Mining Corporation (PX), San Miguel Corporation (SMC), Ayala
Corporation (AC), and Phinma Corporation (PHN), among others. (PinoyMoneyTalk,
2011) With these millions of peso owned by the Catholic Church it made the organization
as the fifth largest owner of BPI as of December 2015. Most volunteers and church staff
members are good honest people and do not mind controls put into place that protect the
organization's assets from theft or loss, development and growth in the church, improper
account of activities that often times lead to the church being fined just like the other
businesses, protect asset and deterring fraud both physical like machinery and property
and intangible such as reputation or intellectual property and enthrone the desired
transparency in church are some of the problems faced by the Catholic organization.
3
Background of the Study
Internal control is a set of policies and regulations implemented by the members
of an organization which serves as a foundation to be followed in achieving the
objectives. It also takes a big role to ensure an efficient and reliable financial reporting of
an organization. If this will be applied, internal control works best but practicing of these
controls often lacks in many organization. In connection of these controls is cash
management.
The researchers considered that employees of a profit government organization
are well-trained, knowledgeable and more observant on the proper cash management
procedures. And nonprofit organizations have a different objective with profit
organizations. Management of these organizations usually have difficulties in
implementing policies, or if ever they have, they don't practice it as better as the profit
organizations due to the small number of members and staff and most are volunteers.
"A part-time bookkeeper is typically all these agencies can afford and is a
resource intended to meet only the most fundamental, immediate need for accountability
and compliance... With this limited financial capacity, these organizations have only the
most basic of financial reports on which to rely. Without real-time financial tools, data-
driven decision making is a significant challenge."
- Small Nonprofits Solving Big Problems, 2012
It is essential for a nonprofit organization specially the churches to have this cash
management to ensure the protection of the donations coming from devotees and other
assets. Proper cash handling also helps to avoid fraud among the organization's
4
employees and volunteers. An article from Rappler (2015) says that "In truth, the bishop
is assisted by financial experts and self-styled financial gurus, acting as the financial
board, on how to handle Church funds." These experts give suggestions to churches on
how they can allocate funds. It is not enough that cash will be handled by one person and
the internal control will be supervised by few people. "The Church financial adviser said
there had been incidents where Church funds were abused and misused by the very
financial experts they trusted. The victims are not only the dioceses, but even some
religious congregations. “There were cases where millions of funds disappeared after
these were entrusted to these so-called experts." (Rappler, 2015). This is a proof that even
the employees and volunteers must be aware of internal control and be knowledgeable of
cash management.
In most Roman Catholic Churches, the donations from the parishioners during the
mass are collected by the members of the Collectors Guild- volunteers who are assigned
just to collect and count the donations. The collected donations are then counted in front
of the parish priest every after mass. The parish priest signs the document stating the total
amount of the collection for that day as a witness of the collected fund. After recording
the donations, the fund is kept in the safe cabinet or vault. This process is repeating over
the week and the accumulated fund for the whole week is deposited in the church bank
account.
Aside from the daily mass collection, sacramental fees are the second source of
the church's fund. There are forms for "Pamisa" and sacramental events like christening,
weddings, first communion, funeral mass and others displayed in the offices for the
formal application of the parishioners. These filled-out forms together with their
5
corresponding required fee are presented to the parish secretary to be signed and
recorded. The recorded fees are safely kept by the secretary and presented to the parish
priest for further approval. When approved, the secretary deposits the money to the bank
or in the vault. Also, each parish is obliged to fill up and submit the financial report form
given by the Diocese every month. There is also percentage of the total monthly donation
of each parish that is forwarded to the Diocese. As per the expenses, each church has
bank accounts and petty cash fund as place of withdrawal. The secretary orally asks for
permission of the parish priest about the expense, and every after transaction, the receipts
are presented and approved by the parish priest. The difference of the petty cash is that
sometimes, there is no receipt to be presented because expenses are from sari-sari store
nearby the churches.
The researchers are taking Bachelor of Science in Accountancy, and at the same
time most of the researchers are devotees of Catholic churches. Part of the ceremony of
churches is the collection of donations in form of goods and/or money. Out of the
concern of the researchers, curiosity, and search for knowledge, they have come up with
this study.
The main purpose of the study is to assess control activities and cash management
practices of selected Catholic churches in Cavite which may serve as a basis for
enhancement. The highlight of the study are the control activities and cash management
of selected ten (10) parishes which were chosen as the subjects of the study since other
than they are known, they also have a large quantity of devotees.
6
Theoretical Framework
This research is mainly created based on Diocesan Internal Control Framework
drafted by the United States Conference of Catholic Bishops which is derived from the
Committee of Sponsoring Organizations (COSO) of the Treadway Commission
Framework of Internal Control. The Diocesan Internal Control Framework was issued as
a general guidance document for all the bishops of the United States, which may also be
applied to the dioceses and parishes in the Philippines. The concept stated below will
give an assurance that this research will have a reasonable basis and significant results.
The Diocesan Internal Control Framework was a directive initiated by the United
States Catholic Conference and the Diocesan Fiscal Management Conference to provide
a comprehensive paper whose objective is to alert bishops to areas of concerns and steps
they can take to minimize diocesan risk of fraudulent financial reporting and other
improprieties. The guidelines are approached from a managerial perspective and
acknowledge the functions and relationships of the bishops, the finance officer, the
finance council, and the independent outside auditor. Although, the document does not
specifically deal with issues at a parish or other institutional level, the guidelines may be
useful for all organizations in a diocese.
As defined by COSO, internal control is a process, effected by an entity's board of
directors, management, and other personnel, designed to provide reasonable assurance
regarding the achievement of objectives in the following categories: effectiveness and
efficiency of operations; reliability of financial reporting; and compliance with applicable
laws and regulations. In the context related to Roman Catholic Churches, internal control
7
is a process designed to ensure that a parish's goals are met with respect to effective and
efficient operations, reliable financial reporting, and compliance with laws and
regulations. However, because of inherent limitations (e.g., human error, possible
collusion, and intentional disregard), an effective internal control system can provide
only reasonable, not absolute, assurance that these goals are met. Internal controls will
vary based upon the size and organizational structure of a parish and should be
established only if the costs of the controls do not exceed their potential benefits.
Fundamentally, internal control deals with the safeguarding of assets, both physical and
monetary. Internal control can help the parishes achieve efficiency in achieving its
objectives and prevent mismanagement of resources. It can also help ensure reliable
financial reporting and compliance with laws and regulations, avoiding damage to the
parishes’ reputation and other consequences.
Internal control consists of five interrelated components, namely: (1) control
environment; (2) risk assessment; (3) control activities; (4) information and
communication; and (5) monitoring. These are derived from the way management runs a
business, and are integrated with the management process. Although the components
apply to all entities, nonprofit organizations such as the Roman Catholic Church may
implement them differently than corporations. Its controls may be less formal and less
structured, yet a parish can still have an effective internal control.
Among these five components, the researchers focused on one component of
internal control which is the control activities. Control activities are the policies and
procedures established to address risks and to achieve the entity’s objective. The
researchers have chosen this component since it tackles about the day-today activities of
8
an organization and is normally observed by stakeholder. The researchers believe that
control activities have significant impact on the parish’s effective and efficient operations
and management of its resources. The researchers have chosen to correlate control
activities with cash management since according to Njeri (2014) control activities have a
positive relationship with a success in financial performance, wherein cash management
is a form of control activity. Mismanagement of the parish’s fund often results to
controversies therefore, assessment of the control activities and cash management of the
selected Roman Catholic Churches in Cavite will be of great importance.
The Diocesan Internal Control Framework provided guidelines on the basic
elements of internal control as well as a design for different business cycles such as
financial planning and control, cash management, payroll and purchasing. The
researchers will focus on the internal control design of the parishes’ cash management
cycle and will include those over cash/non-cash assets that are readily convertible into
cash.
Since all dioceses, parishes and related institutions are different in size and in
organizational structure, application of the policies, practices, procedures, and techniques
of internal control may vary. However, there are a number of basic elements of internal
control that should be part of any system. Each diocese and parishes should evaluate its
business cycles to design elements of an internal control system.
The basic elements of internal control that are provided by the Diocesan Internal
Control Framework are (a) delegation of authority and supervision; (b) segregation of
9
duties; (c) checking of transaction documents and reports; (d) physical control over assets
and accounting records; (e) independent verification of performance.
Once the basic elements are covered, the diocese/parish needs to design internal
control for the following business cycles. Cash management cycle includes those
cash/non-cash assets that are readily convertible into cash. The framework provided
guidelines on the following: (a) cash receipts; (b) cash disbursements; and (c) petty cash.
Enhancement on
the Practices of
selected Roman
Catholic Churches
in Cavite on
Control Activities
and Cash
Management
Figure 1. Research Paradigm
The Research Paradigm shown in Figure 1 illustrates the relationship of the
variables of the study. The first box (1) represents the profile of the respondents. The data
gathered will be categorized based on the profile of the respondents in terms of the
position, episcopal district affiliation, number of years of establishment of parish
affiliated, and monthly collection of parish affiliated.

10
The second box (2) represents the assessment of the respondents regarding control
activities of selected Roman Catholic Churches in Cavite. Many practices today about the
internal control are based on the updated framework of Committee of Sponsoring
Organizations of the Treadway Commission (COSO), just like the Diocesan Internal
Control Framework by USCCB. The guidelines in the framework are based on the
following components:
 Delegation of Authority and Supervision
In general, a basic element of internal control is proper authorization. It is imperative
that the day-to-day operating authority be delegated to the appropriate manager(s) with
specific guidelines to follow. Employees must know what they are to do and what others
are responsible for. Establishing an organizational chart is clearly important for defining
responsibility lines. Job descriptions should be used to further explain proper delegation.
The bishop delegates the parish priest which in turn gives the parish priest the
authority and responsibility to delegate members under him. The secretary does not do
any more than recording the finances. The staff who hold and count the collection money
are separate from the secretary. Auditing of financial statements shall be done by an
internal auditor, and also by the auditor of the diocese. Regarding authorization of
transactions, the parish priest is the only one who can give approval. Safekeeping of
church finances is also one of the obligations of the priest.
 Segregation of Duties
The system should provide for an appropriate segregation of duties between the
custody of and the accountability for assets. This segregation should preclude any one
11
person from performing all aspects of a function. Custody of assets must be separated
from the record-keeping of those assets. Also, authorizing transactions must be
segregated from recording the transactions. Generally, involving more people in the
accounting system reduces the potential for fraud, unless, of course, there is collusion. In
situations where this is impractical due to financial constraints, a responsible officer,
finance council member or trustee who is not involved in the daily record-keeping should
oversee the accounting activities.
It is important to remember that while the vast majority of people are honest, all
organizations need to take steps to avoid putting people in situations where they might be
tempted to defraud. Also, if a church fails to issue proper guidelines, individuals may, out
of ignorance, act in a way which damages the reputation of the church. One of the prime
means of control is the separation of those responsibilities or duties which if combined
would enable one person to record and process a complete transaction. If duties are
segregated, this reduces significantly the scope for errors and oversights, as well as
deliberate manipulation or abuse, and builds in additional checks. For example, if the
person who records incoming cash is the same person who checks that cash received is
recorded on the bank statements, it would not be easy to detect any dishonesty. Mistakes
are also more likely to go undetected if a person checks their own work. The principle of
segregation is important with regard to both income and expenditure, and capital
transactions. The degree of segregation of duties which can be achieved will vary
according to the size and nature of the church concerned.

12
 Checking of Transaction Documents and Reports
Accounting records and documents should be maintained to provide an audit trail.
One major objective of an internal accounting control system is to provide reasonable
assurance that the financial records reflect all financial transactions that have occurred.
The recording of all transactions must be correct as to quantity and dollar amount, and
must be made in the proper accounting period.
 Physical Control Over Assets and Accounting Records
The safeguarding of assets is an important aspect of a system of internal control.
Accounting records can be protected by physical barriers, such as locked rooms or
drawers accessible only to select individuals. The safeguarding of assets, however, is
much more than just establishing physical control. The system should also provide
documentation authorizing the movement of assets into or out of an organization.
 Independent Verification of Performance
Procedures to reconcile actual transactions with those transactions that have been
recorded are another element of internal control. The taking of a physical inventory or the
reconciling of a bank account to the general ledger are two methods for such activity.
No one can objectively evaluate his/her own performance effectively, and no one can
record large numbers of transactions with perfect accuracy. Supervisors must periodically
assess the performance of their subordinates to help ensure that any accounting and
internal control system is functioning properly. If internal auditors are used, they should
13
report to the audit committee or finance council. Additionally, an annual audit should be
performed by an outside independent accounting firm.
The third box (3) represents the assessment of the respondents regarding cash
management of selected Roman Catholic Churches. The framework provided guidelines
on the following cash management components:
 Cash Receipts
It is the amount of money collected by a church for goods or services. It could be by
means of currency, coins or check. There are two factors that should be the focus which
are the collection and the personnel for this particular process. The collection must be
recorded abruptly and produce copies and the personnel must be independent with each
other.
 Cash Disbursements
It is the outflow of cash paid in exchange for the provision of goods and services. In
some cases, checks are used as payments. Since church is an organization, there are
numerous or a major person assigned for the signing of the check. This piece of paper
should be handled with care at every aspect. And check signing should be the
responsibility of individuals having no access to the accounting records.
 Petty Cash
An imprest petty cash fund with one custodian should be used. The imprest fund
involves replenishing petty cash only when properly approved vouchers are presented
14
justifying all expenditures. For accountability, only one person should be in charge of the
fund.
The broken line that shows the fourth relationship (4) is aiming to test the
significant difference in the assessment of the respondents regarding the practices of
selected Roman Catholic Churches in Cavite on control activities and cash management
when grouped according to profile.
The one-headed arrow (5) shows the significant relationship of the assessment of
control activities in relation to cash management of the respondents of the selected
Roman Catholic Churches in Cavite. The last relationship (6) shows the output of this
study which is to create a guideline for the enhancement of the practices of selected
Roman Catholic Churches in Cavite on control activities and cash management.
Statement of the Problem
The study aims to assess the control activities and cash management practices of
selected Roman Catholic Churches in Cavite with a view for enhancement.
Specifically, the following research questions will be answered:
1. What is the profile of the selected Roman Catholic Churches in Cavite in terms
of:
1.1 number of years of establishment; and
1.2 monthly collection?

15
2. To what extent are the following control activities practiced by the selected
Roman Catholic Churches in Cavite in terms of:
2.1 delegation of authority and supervision;
2.2 segregation of duties;
2.3 checking of transaction documents and reports;
2.4 physical control over assets and accounting records; and
2.5 independent verification of performance?
3. To what extent are the following cash management practiced by the selected
Roman Catholic Churches in Cavite in the areas of:
3.1 cash receipts;
3.2 cash disbursements; and
3.3 petty cash?
4. Is there a significant difference in the assessment of the respondents regarding
the practices of selected Roman Catholic Churches in Cavite on control activities and
cash management when grouped according to profile?
5. Is there a significant relationship between the assessment of the respondents
regarding the practices of selected Roman Catholic Churches in Cavite on control
activities and cash management practices?

16
6. Based from the results of the study, what guidelines can be designed as a basis
for enhancement on the selected Roman Catholic Churches in Cavite on control activities
and cash management?
Hypotheses
Based from the problem of the study, the research was formulated and tested at the
level of significance of 0.05:
Ho: There is no significant difference in the assessment of the respondents
activities and cash management when grouped according to profile.
Ho: There is no significant relationship between the assessment of the respondents
activities and cash management.
Significance of the Study
The outcome of the study shall provide information and improved perception to the
following:
The result of the study may serve to help the parish administration to assess their
current operations, existing policies and accounting practices, and help the religious
organization for the betterment of their management related to control activities and cash
management.
17
This study may also benefit the parishioners who regularly attend and donate to
their respective parish. This is to enable them to visualize whether the donations given
are put in good use and/or expensed properly.
The community may also benefit from this study for the reason that the
stereotypical malice of the Church being corrupt could be lifted from the minds of the
people.
The study may provide the accountancy students with more insights and
knowledge about the control activities and cash management practices of nonprofit
organizations particularly the church. The findings of the study may also be made
available to the faculty members for their future researches especially to those who will
be conducting studies related to this topic.
Future researchers may also use the study if they intend to improve or conduct
another study related to this topic. The future researchers may also acquire information
from the findings, especially those who seek related facts about internal control,
particularly control activities and how it affects the cash management of an organization.
Scope and Delimitation
The study focused only on the assessment of the respondents regarding the
practices of selected Roman Catholic Churches in Cavite on control activities and cash
management which may serve as a basis for enhancement. The researchers focused on
one component of internal control which is control activities since it is refers to the day-
18
to-day activities of the parish and is normally observed by the parishioners. The
researchers were not able to assess the other components of internal control due to limited
time. The researchers also correlated it with the cash management since other studies
proved control activities to have a positive relationship with financial performance.
Mismanagement of the parish’s fund often results to controversies therefore assessment
of the control activities and cash management of the selected Roman Catholic Churches
in Cavite will be of great importance.
The practices on control activities were measured according to: delegation of
authority and supervision; separation of duties; checking of transaction documents and
reports; physical control over assets and accounting records; and independent verification
of performance. The study was a survey-questionnaire type and the primary respondents
in this research are the parish priest, secretary, and other members of finance council of
selected Roman Catholic Churches in Cavite. They were chosen to be the respondents on
the basis that they are the ones usually involved in the parish’s finances. Due to time
constraint, the selected Roman Catholic Churches are only limited to the episcopal
districts of St. Matthew which includes the cities of Imus and Bacoor, and St. John which
is comprised of the municipalities of Kawit, Noveleta, Cavite City, Rosario, Tanza, Naic,
Magallanes, Maragondon and Ternate. The selected churches were chosen based on the
following criteria: number of parishioners; number of masses held per week; and has the
same finance management structure. Those churches who have more than 1,000 attendees
(average number of parishioners) every Saturdays and Sundays, conduct 5 or more
masses per week, have the same organizational structure in particular with the finance
department consisting the priest, secretary and finance staff, are part of the study.
19
The researchers used a non-random sampling technique specifically purposive
sampling technique. Two demographic profiles were used: number of years of
establishment, and monthly collection. Number of years of establishment was included
because length of existence may have relevance in the parish’s control activities and cash
management practices. Monthly collection is also included with an assumption that
differences in the amount of monthly collection between parishes may have a significant
effect on their control activities and cash management practices.
The respondents were given questionnaires that have three (3) parts namely: basic
information; control activities practices; and cash management practices. The control
activities practices part have five (5) subparts namely: delegation of authority and
supervision; segregation of duties; checking of transaction documents and reports;
physical control over assets and accounting records; and independent verification of
performance. The cash management practices part have three (3) subparts namely: cash
receipts; cash disbursements; and petty cash.
The questionnaire was designed using 4-point Likert scale to measure control
activities and cash management. The scales ranged from (1) Never, (2) Rarely, (3) Often,
and (4) Always. The questionnaire was presented to the researchers’ adviser and to three
(3) professionals whom are experts in the field for validation before distribution. The
reliability of the questionnaires was tested using the Cronbach alpha test. The data
collected were evaluated using frequency distribution tables, mean, standard deviation, t-
test of two independent sample means and one-way ANOVA (Analysis of Variance) or f-
test, and Pearson Correlation.

20
Definition of Terms
This quantitative study is descriptive about the control activities and cash
management practices of selected Roman Catholic Churches in Cavite. Majority of the
terms are technical terms commonly used in the business and religious fields specifically
by accounting professionals and the Catholic Church, respectively. Thus the terms
inferred to be uncommon for non-accounting and non-Catholic readers are defined for a
fuller understanding of the study.
These definitions of terms are defined operationally and conceptually:
Cash disbursement is the outflow of cash paid in exchange for the provision of
goods and services. In some cases, checks are used as payments. Since church is an
organization, there are numerous or a major person assigned for the signing of the check.
This piece of paper should be handled with care at every aspect. And check signing
should be the responsibility of individuals having no access to the accounting records.
Cash management is the stewardship or proper use of an entity's cash resources.
It assists to keep an organization functioning by making the best use of cash or liquid
resources of the Church. It means the proper handling of cash (collections, donations etc.)
by the Church.
Cash receipts is the amount of money collected by a church for goods or
services. It could be by means of currency, coins or check. There are two factors that
should be the focus which are the collection and the personnel for this particular process.
The collection must be recorded abruptly and produce copies and the personnel must be
independent with each other.

21
Catholic Church, also known as the Roman Catholic Church, is the
largest Christian church, with more than 1.27 billion members worldwide. The Roman
Catholic Church is governed by a hierarchy with the Pope at the top and, at the lower
levels, bishops and priests. The Catholic Church teaches that it is the one true
church founded by Jesus Christ, that its bishops are the successors of Christ's apostles,
and that the pope is the successor to Saint Peter.
Checking of Transaction Documents and Reports is maintaining of accounting
record and documents to provide an audit trail. One major objective of an internal
accounting control system is to provide reasonable assurance that the financial records
reflect all financial transactions that have occurred. The recording of all transactions must
be correct as to quantity and dollar amount, and must be made in the proper accounting
period.
Code of Canon Law is a code of ecclesiastical laws governing the Roman
Catholic Church. It is the collection of order and discipline, structures, rules, and
procedures, made and enforced by the hierarchical authorities of the Church to regulate
its external organization and government and to order and direct the activities of
Catholics toward the mission of the Church.
Control activities are the actions established through policies and procedures that
help ensure that management’s directives to mitigate risks to the achievement of
objectives are carried out. Control activities are performed at all levels of the entity, at
various stages within business processes, and over the technology environment.
22
Delegation of authority and supervision is having an individual knowledge
about the responsibilities assigned in an organization. The day-to-day operations are
managed by the authorities and monitored by the supervisors. Establishing an
organizational chart is clearly important for defining responsibility lines. Job descriptions
should be used to further explain proper delegation.
Diocese is a district under the care of a bishop. In the study, the researchers
studied about the Diocese of Imus which includes the whole Cavite.
Enhancement is defined conceptually on this study as an improvement in the
effectiveness and efficiency of the existing control activities and cash management
practice of selected Roman Catholic Churches in Cavite
Episcopal districts are districts governed by vicars. The Cavite has four
episcopal districts, namely: St. Matthew, which refers to the north of Cavite; St. John, the
north-west side; St. Luke, the east area; and St. Mark which refers to the south of Cavite.
The research will only cover the episcopal districts of St. Matthew and St. John.
Independent Verification of Performance is reconciling actual transactions with
those transactions that have been recorded. The taking of a physical inventory or the
reconciling of a bank account to the general ledger are two methods for such activity.
Internal control are policies and procedures adopted by the management that
foster the most beneficial result for the entity. Its objective is to assure that resources will
be put to economic, efficient and effective use in order to achieve the goals set by the
management. There is no established internal control system among parishes in the
Philippines
23
Non-profit sectors are entities that conduct business without a profit motive.
Generally, churches are said to be a non-profit sector specifically, non-stock corporation.
The Catholic Church is the pioneer organization that greatly influenced the development
of the non-profit sectors in the Philippines.
Parish is a small administrative district typically having its own church and a
priest or pastor. In the whole Cavite, there are fifty six (56) parishes and four (4) quasi-
parishes. The research focused only on ten parishes within the episcopal districts of St.
Matthew and St. John.
Parish Finance Council is an administrative council mandated by the Code of
Canon Law to manage the church’s temporal goods in accordance with the norms issued
by the diocesan bishop. The respondents of the study are particularly the members of the
parish finance council.
Parishioners are the Roman Catholics who devote in their local parishes. Aside
from hearing the homily of the priest, as part of their worship is the donation for the
church. One of the significance of the study is particularly for the parishioners, in order
for them to be aware of how well their donations are being managed by their local
parishes.
Petty cash is a small amount of cash on hand that is used for paying small
amounts owed, rather than writing a check.
Physical Control Over Assets and Accounting Records is providing reasonable
assurance that assets are safeguarded. Accounting records can be protected by physical
barriers, such as locked rooms or drawers accessible only to select individuals. The
24
safeguarding of assets, however, is much more than just establishing physical control.
The system should also provide documentation authorizing the movement of assets into
or out of an organization.
Segregation of Duties is reducing the risk of error and fraud by requiring that
more than one person is involved in completing a particular process. The system should
provide for an appropriate segregation of duties between the custody of and the
accountability for assets. This segregation should preclude any one person from
performing all aspects of a function

25
Chapter II
REVIEW OF RELATED LITERATURE
This chapter talks about the related literature and studies regarding internal
control, cash management and the controversies faced by the Roman Catholic Church.
Local and foreign literature and studies were researched in the library and using different
sources to further explain the topic.
Local Literature
As cited by Cariño et al. (2001) from Johns Hopkins Comparative Nonprofit Sector
Project’s structural-operational definition, “an organization must meet five criteria to be
considered part of the nonprofit sector. These criteria are: organized, private, self-
governing, nonprofit-distributing, and voluntary.” The term “nonprofit sectors” can also
be called with various names depending on their functions and membership. One of those
terms that have legal validity in the country is “non-stock corporations”.
According to the Corporation Code of the Philippines Section 87 and 88, a non-
stock corporation is one where no part of its income is distributable as dividends to its
members, trustees, or officers. It may be formed or organized for charitable, religious,
educational, professional, cultural, fraternal, literary, scientific, social, civic service or
similar purposes like trade, industry, agricultural and like chambers, or any combination
thereof.
26
The stages in the development of the formal nonprofit sector roughly coincide with
the major periods of Philippine history. From the Spanish colonial period to the
democratization period after the Marcos era, the Roman Catholic Church contributed
significantly in the development of the nonprofit sector. The Roman Catholic Church
could be credited with the establishment of the first organizations of the nonprofit sector
in the country. Religious orders established the first hospitals, asylums, orphanages, and
other welfare institutions. The Roman Catholic Church truly played an influential role in
introducing and developing the organizational form although used by people for various
purposes. The Catholic religion infused Filipino culture that many organizers
acknowledge Christian values and ideals as their inspiration in the formation and conduct
of many organizations. (Cariño et al., 2001)
Despite being the pioneer in establishing nonprofit sectors, the Roman Catholic
Church has been challenged of its integrity as a good steward of the Church’s resources.
The first of its kind in the Philippines, the book Altar of Secrets: Sex, Politics, and
Money in the Philippine Catholic Church (2013) by veteran journalist Aries Rufo,
contains groundbreaking exposés on ranking bishops. These include investigative stories
on the sexual indiscretions of high-profile bishops and multimillion-peso donations that
remain unaccounted for. (Rappler, 2013)
As reviewed by GMA News Online (2013), the book is about the sexual
misconduct of individuals who are preachers of morality. It is also about injustice,
corruption, financial mismanagement, and the abuse of power by people who happen to
be bishops and priests. Part II of the book revolves around the Philippine version of
corruption and financial mismanagement in the Catholic church. There's a rich narrative
27
on the Archdiocese of Manila's Monte de Piedad, a bank rendered bankrupt due to the
lavish lifestyles and poor management skills of bishop-administrators.
Rufo (2013) also describes how millions of pesos in donations to charity were
squandered by some bishops. In one diocese in Metro Manila, donations for disaster
victims were never released for their intended purpose. An attempt by the faithful for a
“transparency” dialogue, the author claims, was met with the bishop’s condescension.
Rufo (2013) likewise tackled the “mystery” of the millions in cash donations for the
improvement of the church-run Radio Veritas, the communications outfit that played a
big role in the 1986 People Power uprising that ousted the Ferdinand Marcos. The book
hints that until now, no transparent accounting has been made to explain how the money
was spent. There are other, similar issues of financial irregularities all up and down the
church, from the priests dipping into the collection baskets all the way up to the top of the
institution’s hierarchy. The bottom line is: poor internal control system and cash
management. (Rappler, 2013)
Philippine Standards on Auditing (PSA) 315 defines internal control as the process
designed and effected by those charged with governance and management to provide
reasonable assurance about the achievement of an entity’s objectives with regard to
reliability of financial reporting, effectiveness and efficiency of operations and
compliance with applicable laws and regulations.
According to Salosagcol, et al. (2014) in their book entitled Auditing Theory,
control activities is defined as component of internal control. Control activities are the
policies and procedures that help ensure that management directives are carried out.
28
Specific control procedures that are relevant to financial statement audit would include:
performance reviews, information processing, physical controls, and segregation of
duties. Performance reviews are control activities that include reviews and analyses of
actual performance versus budgets, forecasts, and prior period performance: relating
different sets of data to one another, together with analyses of the relationships and
investigative and corrective actions. Information processing is a variety of controls
performed to check accuracy, completeness, and authorization of transactions. Physical
controls encompass the physical security of assets, including adequate safeguards such as
secured facilities over access to assets and records: authorization for access to computer
programs and data files: and periodic counting and comparison with amounts which are
shown on control records. Segregation of duties is assigning of different people the
responsibilities of authorizing transactions, recording transactions, and maintaining
custody of assets is intended to reduce the opportunities to allow any person to be in a
position to both perpetrate and conceal errors or fraud in the normal course of the
person's duties. Examples of segregation of duties include reporting, reviewing and
approving reconciliations, and approval and control of documents.
Cash management is “the strategy and associated processes for managing cost-
effectively the government’s short-term cash flows and cash balances, both within
government, and between government and other sectors”. The primary objective of cash
management in every organization is to efficiently maximize the use of cash in line with
the direction, plans and goals of the agency. Specifically, cash management aims to:
maintain the liquidity of the agency; optimize cash; and manage risk. It is important that a
parish has an effective cash management system which will efficiently maximize the use
29
of the donations that they receive from the parishioners in order to fulfill the role of the
Church in our society. (As cited by Philippine Science High School Module I: Financial
Management System, 2013)
Foreign Literature
According to an article, “How transparent should church finances be?”, any time
finances are involved, it can be a touchy issue, and this is true in regards to church
finances. Some of this is understandable. If a person is sacrificially giving to a church, it
is good for that person to show an interest in how the finances are managed. In some
churches, virtually every financial decision is subject to a congregational vote. In other
churches, no one other than the pastor and/or a few leaders know how the finances of the
church are being managed. The biblical balance is somewhere in between. The Bible
does not record the early church having expense reports or budgetary meetings. The
pattern appears to be that the church entrusted a leader (or leaders) with the finances, and
then those leaders managed the finances. Romans 15:25-28 and 1 Corinthians 16:1-4
record churches taking up a collection and then giving the money to Paul and a group of
others for distribution.
A long time ago, finances haven't been an issue to the churches since they have
been focused on spirituality. It is only the person with the highest position in church or
the pastor who's taking responsible with the holdings of donations and from the devotees.
But as time passes, churches continuously expanding with the growing number of
devotees. The donations and gifts coming from people also growing that is why aside
from the pastor, another person should help on the finances. Since it is talking about cash,
30
it is important for the church to handle this with care and put on a safeguard. And upto
now, more and more people are trained to take the responsibility of the finances of
church. For more organize and better protection of money, churches from the modern era
implemented internal control specifically the control activities.
According to COSO, internal control means different things to different people.
This causes confusion among businesspeople, legislators, regulators and others. Resulting
miscommunication and different expectations cause problems within an enterprise.
Problems are compounded when the term, if not clearly defined, is written into law,
regulation or rule. The three primary objectives of an internal control system are to
ensure (1) efficient and effective operations, (2) accurate financial reporting, and (3)
compliance with laws and regulations. The report also outlines five essential components
of an effective internal control system which are the control environment, risk
assessment, control activities, information and communication and monitoring.
This research focused only in the control activities which are the policies and
procedures as well as the daily activities that occur within an internal control system. A
good internal control system should include the control activities listed below. These
activities generally fit into two types of activities, Preventive and Detective. Preventive
control activities aim to deter the instance of errors or fraud. Preventive activities include
thorough documentation and authorization practices. Preventive control activities prevent
undesirable "activities" from happening, thus require well thought out processes and risk
identification. Detective control activities identify undesirable "occurrences" after the
fact. The most obvious detective control activity is reconciliation. (NDB Accountants and
Consultants, 2016)
31
As discussed by Kendra James (2016) a system of internal control is necessary to
help employees and other partners understand the attitude and objectives of the
organization as a whole. Internal controls provide reasonable assurance to customers and
other parties that transactions are recorded properly and in a timely manner. For instance,
many consumers have a favorite store because the business is known for providing
quality service in a timely manner. In other words, consumers choose to patronize
businesses that have good systems of internal control.
Cash management is an aspect of working capital management which deals
managing monies of an entity in order to maximize cash availability as well as obtaining
the maximum interest from idle cash. Cash cycle is a term used to describe all that
happened between when an organization makes payment for its purchases or services
received and the period when receivables are collected. Notice that cash management is
not the same thing as working capital management. (Rank, 2016)
Non- profit organizations are ‘cash poor’ organizations, so managing cash flow
management is very important for the survival of a nonprofit sector. The objective of
cash flow management is to have enough cash to pay necessary payments at the
appropriate time Cash flow management helps organizations to be prepared for cash
surpluses and cash deficits by observing the actual and the projected cash flow of the
organization (Matan & Harnett, 2012).

32
According to Office of Financial Management (2016) Control activities, no matter
how well designed and executed, can provide only reasonable assurance regarding
achievement of objectives. The likelihood of achievement is affected by limitations
inherent in all control systems. Even if control activities are well designed, they can break
down. Personnel may misunderstand instructions or simply make mistakes. Errors may
also stem from new technology and the complexity of computerized information systems.
Even in an effectively controlled agency, high-level personnel may be able to override
prescribed policies or procedures for personal gain or advantage. This should not be
confused with management intervention, which represents management actions to depart
from prescribed policies or procedures for legitimate purposes. Collusion between two or
more individuals can result in control failures. Individuals acting collectively can often
alter financial data or other management information in a manner that cannot be
identified by the control system. In determining whether a particular control activity
should be established, the cost of establishing the control must be considered along with
the risk of failure and the potential impact. Excessive control is costly and
counterproductive. Too little control presents undue risk. Agencies should make a
conscious effort to strike an appropriate balance.
Without the proper resources, an organization may not achieve its mission or
survive this rough economy. This is why management and protection of financial
resources is crucial to the life of a not-for profit organization. Financial resources consist
of money, goods and services. Money is cash, checking, savings, securities, and
investments an organization has. Goods are the merchandise, supplies and equipment.
Services are the programs and activities that are offered to the clients. These resources
33
have to be protected so the risks associated with financial management can be reduced.
These risks can be caused by the reduction in value or loss of financial assets caused by
an action of an internal or external source (Center, 2011).
While the budget is critical in maintaining or improving the financial stability of
the organization, it fails to plan and monitor the organization’s ability to meet its cash
requirements. The assumption is usually if the budget is balanced, all is well.
Unfortunately, that is not necessarily the case as the accrual method of accounting does
not measure cash flows, but rather the earnings and expenditures as services or goods are
provided. Oftentimes, cash is received and spent at a different time which could expose
the organization to cash shortfalls during the year.
In Financial Management of not-for-profit Organizations you must report how
finances are managed daily and you have to be able to show where donated resources are
going. Fund Accounting is also important because it helps differentiate donated money
by time and purpose. This is important because these financial resources come with
restrictions from their providers. Not-for-profit organizations should also perform a self-
assessment to assess the health of the organization so they can continue to grow and
survive. (Hodge, 2011)
Local Studies
The Church exists in every single nation in the world. In almost everywhere, an
existing Church will be available.
Undeniably, the Church has made a huge impact on how our daily lives work.
Based on the study “The Catholic Church in the Philippine Public Sphere” by Hermida
34
(2015), since then religion, more specifically the Catholic Church, has occupied a central
place in Philippine society throughout its history. The involvement of the Church was
initially and for the most part in community organizing and development and in citizen
movements.
The Catholic Church definitely wields social power. The influence that it seeks in
the political as in all other areas of life is its avowed mission as an institution. (Hermida,
2015) Having so many devotees, the Church has accumulated respect and power, with the
addition of the people’s irrefutable willingness to obey the Lord. The politics has long
been said to be concerned and tied with the Church. Saying that Churches might as well
be business institutions from the concurrent collection of donations.
Though as cited from the aforementioned study, the positive accommodation
accorded to the Catholic Church appears confined to when it serves as a catalyst of a
popularly desired social or political change however. (Hermida, 2015) The power of the
Church remains constrained when it comes to political decisions due to majority of the
people’s misconception that the members of the religious group should not be concerned
with the endeavors outside their relations.
Any individual who has invested much energy in the Church is likely mindful of
its chain of occupations. There are full-time priests and pastors, followed by other
laborers in Christian service. Their employments are commonly viewed as “calling”,
even made more convincing by religious ceremonials. According to (Hermida, 2015), the
activism of the Catholic hierarchy in the Philippine political public sphere can be viewed
from two angles. With good reason the people should look up to the bishops’ leadership
35
because of their political influence which, as the history of this country attests to, can be
wielded as a form of social power to hasten political change.
The other remedy is for the other members of the public sphere and the citizenry
at large to prevent the colonization of the public sphere by a social power be it of the
Catholic Church or any other group for that matter. Although the public sphere is
primarily a counterpoint to the illegitimate use of power by the state, it should also be a
safeguard against members of the public sphere that assert their social power to use the
same sphere to advance exclusively their agenda and interests. (Hermida, 2015)
Foreign Studies
The embezzlement and mismanagement of funds from religious organizations
particularly in churches is becoming common. Such disgraceful acts have raised a lot of
concerns about the effectiveness of internal control systems in churches (Ahiabor and
Mensah, 2013). Internal Controls are made and implemented by those with governance,
management, and other personnel to provide reasonable assurance about the achievement
of an entity’s objectives. It is expected that the organization will encompass reliability of
the financial reporting, effectiveness and efficiency of operations and compliance with
applicable laws and regulations (Kinyua et al, 2015).
Brown (2012) studied about the internal financial control for churches and listed
different reasons and elements of financial controls. The reasons for financial controls
include safeguarding of assets, staff protection, fostering fund, and deterrence. Financial
controls, including necessary transparency, help donors feel comfortable that the ministry
is a trustworthy steward of their gifts. Deterrence is a system of proper and well

36
documented financial controls, in which all involved staff is well trained, extends its
staff, asset, and reputational protection. Whereas, elements of financial controls include
staff-related controls, board oversight, physical protection, budget, expense control,
documentation and reporting, fixed assets, transparency, related parties, and audit or
review.
There must be a proportionate relationship between the size of the operation of an
organization and the implementation of control practices. It is necessary since if there are
broader the operation, more reports are needed and more people are assigned in every
department. There is an effective segregation of duties through reliable outputs. Churches
are categorized as non-profit organization but still have the nature of an organization to
preserve its existence. Myers (2012) has a hypothesis that there will be no significant
differences between the internal controls of a church that claims an external stakeholder
and those that do not claim an external stakeholder. But the study rejected the null
hypothesis and revealed that churches with an external stakeholder will have more
stringent internal controls on average than a church without outside budgetary control or
funding. But the study directly said that it is inappropriate to look for the results and
suggests that churches should have an external stakeholder just to improve the internal
control of the church. Churches have had their reasons either for being part of a
denomination where the local congregation that is indivisible from the rest of the diocese,
and those reasons are considered more important than a potential decrease in fraud risk.
Also, internal controls themselves are not necessarily created equal, but individually have
different goals. A church (or any institution) may have very weak controls for accuracy
(e.g. a non-computerized system) but very strong controls for fraud prevention purposes.
37
Since majority of the questions in the survey study are about the internal control focusing
fraud prevention, it could result onto a clean organization; but could still allow very
serious problems in the accounting system if mathematical errors occur, even if fraud
does not. Still, this potential relationship between external stakeholders and the churches
affected by them should be considered when examining aggregate church finances in the
future.
Suge (2013) established that churches receipted all the cash received. Most of the
churches recorded daily transactions on journals but did not monitor- flow by daily
reporting cash balance in the bank. The study also said that cash management practices
influenced the long term and short term investment of funds and most organizations
practiced budgeting which also includes long-term budgeting. The study findings
revealed that financial planning enhanced the balance between income and expenditure of
the church fund. The study also established that most organizations made production of
financial records such as balance sheet and ledgers to practice financial analysis. These
practices assisted the financial planning of the churches and enhanced the balance of
income and expenditures of the church fund. The findings of the study revealed that
sound investment decisions are the product of financial analysis practices. Suge (2013)
recommended that churches should adopt financial analysis in making investment
decisions.
There will be different reasons to fail on daily monitoring in the bank but one
should explain that churches are organizations do not have stable daily transactions. It
will also be costly, through transportation expenses, to deposit small amount of money if
daily transaction with the bank will took place. But it is an excellent idea for the churches
38
to deposit their fund in the bank for security purposes in terms of fortuitous events and
also to gain monetary interest. Bank will be the basic place for the funds and not the stock
market or any investments, unless the church will take a diligent care with its growth or
the church has a full knowledge to have the opportunity of the dividends.
Relevance to the Present Study
The above-mentioned literature and studies talked about importance and
limitations of internal control, cash management and some issues faced by Catholic
churches in relation to control activities. It tackled the assurance of effective internal
controls and cash management and its limitations that misguided most people. Internal
control should reduce the risks associated with undetected errors or irregularities, but
designing and establishing effective internal controls is not always a simple task and
cannot always be accomplished through a short set of quick fixes.
Local literature and foreign literature presented knowledge and understanding
about internal control that were related to control activities and are helpful to the
researchers. Those literatures explained the meaning of internal control and cash
management and how it affects the management of the organization. As a summary of the
previous literature, there were very few researches about the control activities of
organization that tried to describe the scenario.
Cariño et al. (2001) talked about the characteristic of the non-profit sectors and
the development of a formal non-profit sectors. This also showed the influence of the
Roman Catholic Church to the establishment of various non-profit sectors and its
39
significance in our country. These makes the researchers be concerned of how important
it is to determine the internal control and cash management practices of the Catholic
Church which may help identify the cause of problems and its solutions on how to solve
the controversies that the Catholic Church is facing, as exposed by Rufo (2013).
Meanwhile, Cortez (2011) and Labador (2015) studies had shown the effect of
effective control systems on certain organization. Their researches confirmed that
effective internal control will give favorable results to organization that give services to
public.
COSO, NDB Accountants and Consultants (2016) and James (2016) defined
internal control and its importance to affect the success of a business. Rank (2016), Ali
(2013), Kamau (2013), and Aramide and Bashir (2015) gave emphasis on how cash
management pave way to good accountability, effective utilization of resources and
significant positive relationship with financial performance of the business. On the other
hand, Office of Financial Management and Center (2011) stated that internal control has
limitations that prevent an organization to succeed.
Hodge (2011) discussed how important is cash management to a non-profit organization
because its resources are limited only.
Hermida (2015) discussed about the concerns of the Church to the economy. With
its vast population of devotees, it has accumulated social power. Its importance to the
study is that the people as a whole, may raise many questions about the cash management
of the Church regarding where their donations go to and whether it is put into good use.
40
With the mentioned studies, additional ideas about internal control were
discovered by researchers that motivated them to strive harder on finding results
significant to the studies that gave positive affirmation to internal control.
Ahiabor and Mensah (2013) said that mismanagement of funds is common too in
Churches. In solution, Brown (2012) constructed different reasons to mismanagement
and listed the elements to attain effective and efficient internal controls. Also, Myers
(2012) said that external activities and relationship of the church like being a stockholder
will strengthen the internal control of an organization. The transactions also in the church
are receipted, said Suge (2013) to attain transparency.
In conclusion, related literature and studies that highlighted control activities and
cash management of the Roman Catholic Church had been reviewed to enable and
enhance researchers’ understanding of the research work so that the intended aims and
objectives of the research can be met.

41
CHAPTER III
METHOD AND PROCEDURE
This chapter focused on the activities and processes for undertaking the study. It
presents accounts on data collection and processed into a research document. The
methodology for a research must therefore be scientific. That is, the process must be
systematic, rigorous and unbiased. In order to guard against potential statistical errors,
relevant and appropriate data collection instruments and models were applied to arrive at
accurate results. This discussion centered on research design, population under study, the
sampling technique and sample size, case study strategy, types of data and method of data
analysis.
Research Method/ Design
This study utilized the quantitative research method in particular with descriptive
method of research. As widely accepted, the descriptive method of research is a fact-
finding study that involves adequate and accurate interpretation of findings. Descriptive
research describes a certain present condition. Relatively, the method is appropriate to
this study since it aims to describe the present condition of technical analysis. This
method will ultimately help the researchers determine the type of approach necessary to
complete an accurate assessment of the topic at hand.
On the other hand, quantitative methods emphasize objective measurements and
the statistical, mathematical, or numerical analysis of data collected through polls,

42
questionnaires, and surveys, or by manipulating pre-existing statistical data using
computational techniques. Quantitative research focuses on gathering numerical data and
generalizing it across groups of people or to explain a particular phenomenon. A
structured questionnaire by means of a survey will be used as a primary method to
measure the current situation.
The variables for the control activities are categorized as: delegation of authority
and supervision; segregation of duties; checking of transaction documents and reports;
physical control over assets and accounting records; and independent verification of
performance. On the other hand, the variables for cash management are: cash receipts,
cash disbursements, and petty cash.
In this research, survey method, as well as preliminary interviews and post
interviews were used in collecting data on a phenomenon that cannot be directly gathered
and treated.
Sample and Sampling Technique
In selecting the respondents, purposive sampling technique was used to select
from different categories of personnel. In the case of the purposive sampling also known
as judgmental sampling, the researcher picks the sample that will deliver the best
information in order to satisfy the research objectives in question or with a purpose in
mind. Respondents from ten (10) selected Roman Catholic Churches in the Cavite were
chosen as the subject of this study to answer the survey. The Churches chosen are the
following; The Cathedral of Our Lady of the Pillar, commonly known as the Imus
43
Cathedral, is a Roman Catholic cathedral church in the city of Imus, in the province of
Cavite, Philippines. It is the seat of the bishop of the Diocese of Imus, the diocese that
has jurisdiction of all the Catholic parishes in Cavite. The patroness of the city and of the
diocese is the Nuestra Señora del Pilar (Our Lady of the Pillar). Saint John the Baptist is
also considered as a patron saint of the city. The Parish have an estimated 2500
parishioners per week and was built in the year 1812. The Parish conducted 7 masses a
week St. Michael the Archangel Parish is located at the center of Bacoor and dedicated to
its patron, Saint Archangel with estimated 250 parishioners per mass and conducted 7
masses a week. The parish was establish through “cedula real” on January 18, 1752.
First built by the Jesuits in 1618, Maragondon Church was constructed from 1630
to 1633, but was demolished between 1646 to 1649. The current stone building dates
back to 1714. Also known as Our Lady of the Assumption Parish, it played a major role
in the Philippine History when it was used as the base of the Philippine Revolutionary
Army when Maragondon became the headquarters of the forces of Gen. Emilio
Aguinaldo. Kawit Church was established by the Jesuits in 1624, the first church made
of wood was built in 1638 under the patronage of St. Mary Magdalene. The construction
of the current church started in 1737 and was restored several times until 1990. There
were 1500 parishioners who attended every week.
The San Roque Parish church located at Cavite City was established more than
three hundred years ago and has undergone numerous renovations and refurbishings since
then. The church had its massive renovation in early 2000 and the construction is still in
progress until now with 300 parishioners per mass. The Diocesan Shrine of Saint
Augustine, commonly known as the Sta. Cruz Parish, is a Roman Catholic cathedral
44
church in the city of Tanza, in the province of Cavite, Philippines. The patroness of the
town is San Agustin (Saint Augustine) and conducted 6 masses a week with estimated
250 parishioner per mass. The Nuestra Señora de Guia Parish or the Our Lady of the Way
Parish in Magallanes, Cavite is located at the Heart of the Mountain town of Magallanes.
Magallanes is located at the edge of the province of Cavite bordering the neighboring
province of Batangas. It was named in honor of the Portuguese Explorer Ferdinand
Magellan who discovered the Philippine Islands for the Kingdom of Spain in the 16th
Century.
Our Lady of Fatima Parish Church in Binakayan, Kawit Cavite. The place will
bring you in such a cozy atmosphere and what really makes it more distinctive above any
church is its nature-friendly Altar. The Parish conducted 5 masses a week with 250
seating capacity. Holy Cross Parish (Katolikong Parokya ng Banal na Krus) located at
Noveleta City was established on June 1, 1937. Holy Cross Parish was relatively small in
size and more look like a chapel but it is the most visited church in the municipality of
Noveleta. It can accommodate at least 350 parishioners per mass. San Isidro Labrador
Parish was located at San Roque , Naic. The construction of the churh started from 2006
until 2009 as a Quasi Parish until officially declared as an independent parish in 2012. It
conducted 6 masses a week and can accommodate an estimated of 300 parishioners every
mass.
Church administrative staff includes the parish priest, secretary and finance staff.
To maintain the quality and effectiveness of this research, the researchers chose to have
at least thirty (30) respondents from the selected Roman Catholic Churches.
45
Research Instrument and Technique
In constructing the questionnaires, the 4-point Likert scale was used. The scale
was divided into four (4) equal parts and the questionnaire is answerable by Always,
Often, Rarely, and Never. In numerical symbol, 1 representing Never, 2 for Rarely, 3 for
Often and 4 for Always. The researchers used four (4) measures to extract specific
responses from the respondents for the analysis to be straightforward either between
Often or Rarely and for safe or neutral option be avoided.
The questionnaire was divided into three (3) parts namely: background
information, control activities practices and cash management practices. The control
activities practices part was divided into five (5) subparts which corresponds to each
variable of control activities categorized as: delegation of authority and supervision;
segregation of duties; checking of transaction documents and reports; physical access
over assets and accounting records; and independent verification of performance. The
cash management practices part was divided into three (3) subparts which corresponds to
each variable of cash management: cash receipts; cash disbursement; and petty cash.
Each subpart contains four (4) statements to measure the practices on each variable. The
total number of statements in the questionnaire is thirty two (32).
The questionnaire was adapted from United States Catholic Conference’s
Diocesan Internal Control Framework with modifications. The questionnaire was
presented to the researchers’ adviser and to three (3) professionals whom are experts in
the field of study for validation before distribution. The researcher also conducted
46
observation, preliminary and post interviews for additional information on the answer of
the respondents.
Data Gathering Procedure
This is a step by step procedure that the researchers followed in the gathering of
data for the study which are as follows:
Formulation of Questionnaire. The questionnaire was formulated by adapting
statements from USCC’s Diocesan Internal Control Framework. The researchers
modified the statements to produce specific questions in order for the respondents to
clearly and easily understand and to come up with honest answers. The researchers also
conducted preliminary interviews for further improvement of the questionnaire to either
of the following staffs of the church - priest, secretary or finance staff.
Pre-validation of the Questionnaire. The formulated questionnaire was presented to the
researchers’ adviser for some suggestions for improvement and for the approval of the
questionnaire. The approved questionnaire by the adviser was presented to three (3)
professionals whom are experts in the field of study for validation. The validated
questionnaire was presented to the Research Center for further approval then it was
distributed.
Distribution of Questionnaires. The researchers first secured a letter of endorsement
from the Bishop of Cavite to formally conduct the study. Then, the researchers sent
letters of permission addressed to the priest of the ten (10) Roman Catholic churches
47
before the distribution of the questionnaires to the respondents to be able to gather data
and information pertaining to the problem under study. After the approval, the researcher
approached the respective finance council whom can competently answer the
questionnaire and whom are available during the time of the distribution of the
questionnaires.
Retrieval of the Accomplished Questionnaires. During the retrieval of the
accomplished questionnaires, field observations and interviews were conducted in each
of the ten selected Roman Catholic churches to further gather information pertaining to
the problem under study.
Statistical Treatment of Data
The study will be employing the descriptive statistics such as percentage, mean
and standard deviation to describe the demographic profile of the respondent; t-test of
two independent sample means and to test the differences in the assessment of the
respondents regarding the practices of selected Roman Catholic Churches on control
activities when grouped according to profile, the 4-point Likert scale to measure the
practices of ten (10) selected Roman Catholic Churches on control activities and cash
management, f-test to test the differences in the assessment of the respondents regarding
the practices of selected Roman Catholic Churches on control activities when grouped
according to demographic profile, and Pearson Correlation to find the relationship
between control activities and cash management The researchers used the Statistical
48
Package for the Social Sciences (SPSS) 18 for the analysis of gathered data. The
hypotheses are based on the 0.05 level of significance.
The following formulas were used in the study:
Frequency and Percentage are used to compare the frequencies of responses to
the total number of respondents.
Mean is used to obtain the average of the sum of the values of the answers of
respondents when grouped according to profile.
4-point Likert Scale is presented with the weighted mean and followed the
format below:
Adjectival
Point Point Range Interpretation
Description
4 3.51 – 4.00 Always Highly Practiced
3 2.51 – 3.50 Often Practiced
2 1.51 – 2.50 Rarely Poorly Practiced
1 1.00 – 1.50 Never Not Practiced
Standard Deviation is used to test the disbursement of the answers of the
respondents.
t-test of two independent sample means is used to test the significant difference in
the assessment of the respondents regarding the control activities and cash management
of selected Roman Catholic Churches in Cavite when grouped according to demographic
profile.
49
Analysis of Variance (ANOVA) or the f-test is used to test the significant
difference in the assessment of the respondents regarding the control activities and cash
management of selected Roman Catholic Churches in Cavite when grouped according to
demographic profile.
Pearson Correlation is used to test the relationship between the assessment of
the respondents regarding control activities and cash management of selected Roman
Catholic Churches in Cavite.

50
CHAPTER IV
PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA
This chapter contains the presentation, analysis and interpretation of data
gathered from the survey. The data gathered were tallied and analyzed using the
prescribed statistical tools. Statistical tools such as tables showing frequencies and
percentages were used to summarize the findings from the survey. The presentation is
guided by the research objective which was to determine the assessment of the
respondents regarding the control activities and cash management practices of selected
Roman Catholic churches in Cavite when grouped according number of years of
establishment and monthly collection. Statistics was conducted in order to analyze and
interpret the quantitative data gathered from the survey to answer the research questions.
1. Profile of the Respondents
1.1 Number of years of establishment
Table 1 illustrates the frequency and percentage of the respondents’ profile
in terms of number of years of establishment.
Table 1
Frequency and Percentage Distribution of the Respondents’ Profile According
to Number of Year of Establishment of Parish Affiliated
Number of years of Frequency (f) Percentage (%)
establishment
Below 25 0 0
26-50 9 30.0
51-75 0 0
76-100 3 10.0
101 and above 18 60.0
Total 30 100
51
The above table shows that eighteen (18) or sixty percent (60.0%) of the
respondents are affiliated to parishes that are 101 and above years old. Meanwhile,
nine (9) or thirty percent (30%) of the respondents are working at parishes
established 26-50 years ago, and three (3) or ten (10%) of the respondents is from a
parish that is 76-100 years old. On the other hand, there are no respondents from
parishes that are established in the years below 25 and the years 76 to 100.
There are more churches that were established more than 101 years ago
because it was the time of Spanish colonization and Cavite is one of historical places
where the Catholic faith is prominent. After the colonization of Spain in the
Philippines, fewer churches were built. Factors that had an effect in the increase or
decrease of its establishment were the times of Japanese colonization, Marcos’s
administration, and rise of other religious sectors.
1.2 Monthly Collection of Parish Affiliated
Table 2 illustrates the frequency and percentage of the respondents’ profile in
terms of monthly collection of parish affiliated.
Table 2
Frequency and Percentage Distribution of the Respondents’ Profile According to
Monthly Collection of Parish Affiliated
Monthly collection of Frequency (f) Percentage (%)

parish affiliated
Below 25,000 10 33.3
25,001-50,000 8 26.7
50,001-75,000 0 0
75,001-100,000 4 13.3
100,001 and above 8 26.7
Total 30 100
52
Table 3 shows that ten (10) or thirty three point three percent (33.3%) of the
respondents are affiliated to parishes that have monthly collection of less than
P25,000. Respondents from parishes that have monthly collections of P25,001-
P50,000 as well as those with P100,001 and above both have a frequency of eight (8)
and a percentage of twenty six point seven (26.7%). On the other hand, four (4) or
thirteen point three percent (13.3%) of the respondents have a monthly collection of
P75,001-P100,000. There are no respondents from parishes that have P50,001-
75,000 monthly collection.
The amount of monthly collection of parishes depends on various factors
such as number of masses held per week and population of parishioners. Those
parishes with monthly collection of P100,001 and above hold an average of seven (7)
masses per week and have approximately 2,000 to 3,000 parishioners per week. On
the other hand, those parishes with monthly collection below P25,000 hold five (5)
masses per week and have approximately 1,000 to 1,500 parishioners per week.
2. Assessment of the Respondents Regarding the Extent of the Practice of Control
Activities of Selected Roman Catholic Churches in Diocese of Imus.
2. 1 Delegation of Authority and Supervision
Table 3 shows the mean, standard deviation, adjectival description, and
interpretation of the assessment of the respondents regarding the extent of the
practice of control activities of selected Roman Catholic churches in Diocese of Imus
in terms of delegation of authority and supervision.

53
Table 3
Assessment of the Respondents Regarding the Extent of the Practice of Control

Activities of selected Roman Catholic Churches in Cavite in Terms of
Delegation of Authority and Supervision
Adjectival Interpreta
Delegation of Authority and Supervision Mean SD
Description tion
The parish establishes organizational chart with
3.43 .82 Often Practiced
clearly defined job descriptions.
The employees clearly understand their authority
Highly
and responsibility as well as the duty of their co- 3.60 .56 Always
Practied
workers’.
The parish delegates responsibilities to capable and Highly
3.57 .57 Always
trustworthy employees. Practiced
The employees are given trainings and are
supervised relating to their assigned duties and 3.33 .71 Often Practiced
responsibilities.
Composite Mean 3.48 .51 Often Practiced
Legend: 3.51-4.00 Always; 2.51-3.50 Often; 1.51-2.50 Rarely; 1.00-1.50 Never
Table 3 shows the assessment of the respondents regarding the extent of the
practice of the control activities of selected Roman Catholic Churches in Cavite in
terms of delegation of authority and supervision. The section of the questionnaire has
four (4) statements related to delegation of authority and supervision. Table entries
with their means, standard deviation, adjectival description, and interpretations were
presented as follows: “The parish establishes organizational chart with clearly
defined job descriptions.”, has a mean of 3.43, standard deviation of .82, adjectival
description as often, and interpreted as practiced; “The employees clearly understand
their authority and responsibility as well as the duty of their co-workers’.”, has a
mean of 3.60, standard deviation of .56, adjectival description as always, and
interpreted as highly practiced; “The parish delegates responsibilities to capable and
trustworthy employees.”, has a mean of 3.57, standard deviation of .57, adjectival
description of always and interpreted as highly practiced; “The employees are given
54
trainings and are supervised relating to their assigned duties and responsibilities.”,
has a mean of 3.33, standard deviation of .71, adjectival description of often and
interpreted as practiced. Composite mean is 3.48 with a standard deviation of .51 and
adjectival description of often which is interpreted as practiced.
As shown in the table, the statement with the highest mean is “The employees
clearly understand their authority and responsibility as well as the duty of their co-
workers’.”, while the one with the lowest mean is the statement “The employees are
given trainings and are supervised relating to their assigned duties and
responsibilities.”
Although the mean of respondents’ assessment ranges from practiced to
highly practiced, individually, several parishes do not practice or poorly practice
some of the statements under delegation of authority and supervision. According to
them, although they know the hierarchy in their organization and their respective
duty and authority, there is no constructed organizational chart that is posted for
everyone to know and be reminded of. Another poorly practiced control activity is
the training for employees with the reason that most of hired employees by the
parishes particularly in their finance council already have a background and are
knowledgeable in finance and accounting.
In summary, the assessment of the respondents regarding the extent of the
practice of control activities of selected Roman Catholic churches in Cavite in terms
of delegation of authority and supervision turned out to be practiced. This showed
that the parishes in Cavite let their employees clearly understand the nature and
55
extent of their duty and authority and let them improve in their work by giving them
trainings and supervisions.
2.2 Segregation of Duties
of segregation of duties.
Table 4
Segregation of Duties
Adjectival Interpre
Segregation of Duties Mean SD
Description tation
Key duties and responsibilities are divided Highly
3.67 .48 Always
among different employees. Practiced
Duties are appropriately segregated between
the custody of and the accountability for 3.30 .53 Often Practiced
assets.
Authorizing transactions are segregated from
3.63 .56 Always Practiced
recording the transactions.
A finance council member or a responsible
officer not involved in the daily record- 3.03 .61 Often Practiced
keeping oversees the accounting activities.
terms of segregation of duties. The section of the questionnaire has four (4)
statements related to segregation of duties. Table entries with their means, standard
deviation, adjectival description, and interpretations were presented as follows: “Key
duties and responsibilities are divided among different employees.”, has a mean of
56
3.67, standard deviation of .48, adjectival description as always, and interpreted as
highly practiced; “Duties are appropriately segregated between the custody of and
the accountability for assets.”, has a mean of 3.30, standard deviation of .53,
adjectival description as often, and interpreted as practiced; “Authorizing
transactions are segregated from recording the transactions.”, has a mean of 3.63,
standard deviation of .56, adjectival description of always and interpreted as highly
practiced; “A finance council member or a responsible officer not involved in the
daily record-keeping oversees the accounting activities.”, has a mean of 3.03,
standard deviation of .61, adjectival description of often and interpreted as practiced.
Composite mean is 3.41 with a standard deviation of .31 and adjectival description of
often which is interpreted as practiced.
As shown in the table, the statement with the highest mean is “Key duties
and responsibilities are divided among different employees.”, while the one with the
lowest mean is the statement “A finance council member or a responsible officer not
involved in the daily record-keeping oversees the accounting activities.”
As observed by the researchers, some of the smaller churches have a
secretary who also does finance duties such as recording and keeping of assets. In
order to minimize the risk of fraud, the priest who is also the head of the finance
council regularly oversees the accounting activities.
of segregation of duties turned out to be practiced. This showed that the parishes in
57
Cavite properly segregate key duties and responsibilities among their employees to
avoid fraud in order to protect their assets and promote accountability.
2.3 Checking of Transaction Documents and Reports
of checking of transaction documents and reports.
Table 5
Activities of selected Roman Catholic Churches in Cavite in Terms of Checking
of Transaction Documents and Reports
Checking of Transaction Documents and Adjectival Interpret

Mean SD
Reports Description ation
Accounting records and documents are Highly
3.67 .48 Always
maintained to provide an audit trail. Practiced
Recording of all transactions are correct as to
Highly
quantity and peso amount and made in the 3.63 .56 Always
Practiced
proper accounting period.
The supporting documentations are simple
and easy to use to help reduce error, as well Highly
3.53 .51 Always
as designed to ensure that they will be Practiced
completed properly.
Documents and reports are certified as to
their accuracy by the finance council head.
Composite Mean Highly
3.58 .34 Always
Practiced
terms of checking of transaction documents and reports. The section of the
questionnaire has four (4) statements related to checking of transaction documents

58
and reports. Table entries with their means, standard deviation, adjectival
description, and interpretations were presented as follows: “Accounting records and
documents are maintained to provide an audit trail.”, has a mean of 3.67, standard
deviation of .48, adjectival description as always, and interpreted as highly practiced;
“Recording of all transactions are correct as to quantity and peso amount and made
in the proper accounting period.”, has a mean of 3.63, standard deviation of .56,
adjectival description as always, and interpreted as highly practiced; “The
supporting documentations are simple and easy to use to help reduce error, as well as
designed to ensure that they will be completed properly.”, has a mean of 3.53,
practiced; “Documents and reports are certified as to their accuracy by the finance
council head.”, has a mean of 3.47, standard deviation of .68, adjectival description
of often and interpreted as practiced. Composite mean is 3.58 with a standard
deviation of .34 and adjectival description of always which is interpreted as highly
practiced.
As shown in the table, the statement with the highest mean is “Accounting
records and documents are maintained to provide an audit trail.”, while the one with
the lowest mean is the statement “Documents and reports are certified as to their
accuracy by the finance council head.”
of checking of transaction documents turned out to be highly practiced. This means

59
that every source document is properly compiled, certified and have a proper audit
trail.
2.4 Physical Control Over Assets and Accounting Records
of physical control over assets and accounting records.
Table 6
Activities of selected Roman Catholic Churches in Cavite in Terms of Physical
Control Over Assets and Accounting Records
Physical Control Over Assets and Adjectival Interpret

Mean SD
Accounting Records Description ation
All physical assets are properly secured,
numbered and inventoried.
Accounting records and all physical assets
Highly
are accessible only by authorized 3.73 .58 Always
Practiced
employees.
There is a proper documentation of
authorizing the movement of assets into or 3.33 .61 Often Practiced
out of the parish.
Information systems are properly secured
and backed-up.
terms of physical control over assets and accounting records. The section of the
questionnaire has four (4) statements related to physical control over assets and
accounting records. Table entries with their means, standard deviation, adjectival
description, and interpretations were presented as follows: “All physical assets are
60
properly secured, numbered and inventoried.”, has a mean of 3.27, standard
deviation of .83, adjectival description as often, and interpreted as practiced;
“Accounting records and all physical assets are accessible only by authorized
employees.”, has a mean of 3.73, standard deviation of .58, adjectival description as
always, and interpreted as highly practiced; “There is a proper documentation of
authorizing the movement of assets into or out of the parish.”, has a mean of 3.33,
standard deviation of .61, adjectival description of often and interpreted as practiced;
“Information systems are properly secured and backed-up.”, has a mean of 3.47,
standard deviation of .82, adjectival description of often and interpreted as practiced.
As shown in the table, the statement with the highest mean is “Accounting
records and all physical assets are accessible only by authorized employees.”, while
the one with the lowest mean is the statement “All physical assets are properly
secured, numbered and inventoried.”
Although the mean of respondents’ assessment ranges from practiced to
highly practiced, individually, several parishes do not practice or poorly practice
some of the statements under physical control over assets and accounting records.
According to them, not all assets are properly numbered and inventoried, and
movement of physical assets are not always logged or regulated. In some parishes,
accounting records and other relevant information are not electronically recorded and
are just filled up in a form and do not always have a back-up.

61
of physical control over assets and accounting records turned out to be practiced.
This shows that physical assets are safeguarded against destruction or theft and are
only accessible to authorized personnel. Information systems and accounting records
are also secured and backed-up.
2.5 Independent Verification of Performance
of independent verification of performance.
Table 7

Independent Verification of Performance
Independent Verification of Adjectival Interpreta

Mean SD
Performance Description tion
Both financial and non-financial
Highly
transactions are verified by authorized 3.70 .47 Always
Practiced
personnel.
Supervisors periodically assess the
performance of their subordinates.
There is a random checking of cash
collection.
terms of independent verification of performance. The section of the questionnaire

62
has three (3) statements related to independent verification of performance. Table
entries with their means, standard deviation, adjectival description, and
interpretations were presented as follows: “Both financial and non-financial
transactions are verified by authorized personnel.”, has a mean of 3.70, standard
deviation of .47, adjectival description as always and interpreted as highly practiced;
“Supervisors periodically assess the performance of their subordinates..”, has a mean
of 3.17, standard deviation of .70, adjectival description as often, and interpreted as
practiced; “There is a random checking of cash collection.”, has a mean of 3.27,
As shown in the table, the statement with the highest mean is “Both
financial and non-financial transactions are verified by authorized personnel.”, while
the one with the lowest mean is the statement “Supervisors periodically assess the
performance of their subordinates.”
of individual verification of performance turned out to be practiced. This shows that
every transaction is properly verified in order to avoid error, and the performances of
the employees are being evaluated to encourage excellence in work and
accountability.
63
2.6 Overall Control Activities
practice of control activities of selected Roman Catholic churches in Cavite.
Table 8

Activities of selected Roman Catholic Churches in Cavite
Adjectival Interpret
Control Activities Mean SD
Description ation
Delegation of Authority and Supervision 3.48 .51 Often Practiced
Segregation of Duties 3.41 .31 Often Practiced
Checking of Transaction Documents and 3.58 .34 Highly
Always
Reports Practiced
Physical Control Over Assets and 3.45 .54
Often Practiced
Accounting Records
Independent Verification of Performance 3.38 .54 Often Practiced
Overall 3.46 .45 Often Practiced
Table 8 shows the overall assessment of the respondents regarding the
extent of the practice of the control activities of selected Roman Catholic Churches
in Cavite. Table entries with their means, standard deviation, adjectival description,
and interpretations were presented as follows: “Delegation of Authority and
Supervision”, has a mean of 3.48, standard deviation of .51, adjectival description as
often and interpreted as practiced; “Segregation of Duties”, has a mean of 3.41,
standard deviation of .31, adjectival description as often, and interpreted as
practiced; “Checking of Transaction Documents and Reports.”, has a mean of 3.58,
practiced; “Physical Control Over Assets and Accounting Records.”, has a mean of
3.45, standard deviation of .54, adjectival description of often and interpreted as

64
practiced; “Independent Verification of Performance.”, has a mean of 3.38, standard
deviation of .54, adjectival description of often and interpreted as practiced.
“Overall” is 3.46 with a standard deviation of .45 and adjectival description of often
which is interpreted as practiced.
As shown in the table, the variable of control activities with the highest
mean is on “Checking of Transaction Documents and Reports”, while the one with
the lowest mean is the “Independent Verification of Performance”. As observed by
the researchers, “Checking of Transaction Documents and Reports” yielded the
highest mean and is highly practiced because parishes always have fill-up forms in
every transaction such as requests for baptismal certificate, wedding certificate, etc.
According to them, the parishes also submit every month a filled-out form of their
monthly income and expenses to the Cavite. Although parishes submit their financial
statements, verification of its reliability is rarely done by the Cavite which acts as the
auditing council. Administration of church finances is a sacred trust (Mason, 2009).
Trust could have been the reason why “Independent Verification of Performance”
has the lowest mean because it is a church, thus integrity and honesty of its
employees are assumed by the higher authorities who teach them the values in
Exodus 20:15-16 which states, “Thou shall not steal. Thou shall not bear false
witness.”
In summary, the overall assessment of the respondents regarding the extent
of the practice of control activities of selected Roman Catholic churches in Cavite
turned out to be practiced. This indicates that the selected Roman Catholic churches
in Cavite perform strong control activities despite the fact that there are no
65
established control policies and procedures prescribed to all parishes in the
Philippines. Lack of established control policies and procedures is also the reason
why not all Roman Catholic churches practice some of the basic elements of a strong
internal control system.
3 Assessment of the Respondents Regarding the Extent of the Practice of Cash
Management of Selected Roman Catholic Churches in Cavite.
3.1 Cash Receipts
practice of cash management of selected Roman Catholic churches in Cavite in terms
of cash receipts.
Table 9
Assessment of the Respondents Regarding the Cash Management of selected
Roman Catholic Churches in Cavite in Terms of Cash Receipts
Adjectival Interpret
Cash Receipts Mean SD Description ation
Cash and check receipts are deposited
intact.
Cash custody is separate from the task of
record keeping.
Undeposited cash is safely kept to a
3.13 1.04 Often Practiced
vault.
A responsible official periodically
compare the list with the journal record 3.30 .79 Often Practiced
and the bank deposit.
practice of the cash management of selected Roman Catholic Churches in Cavite in

66
terms of cash receipts. The section of the questionnaire has four (4) statements
related to cash receipts. Table entries with their means, standard deviation, adjectival
description, and interpretations were presented as follows: “Cash and check receipts
are deposited intact.”, has a mean of 3.43, standard deviation of .68, adjectival
description as often, and interpreted as practiced; “Cash custody is separate from the
task of record keeping.”, has a mean of 3.47, standard deviation of .57, adjectival
description as often, and interpreted as practiced; “Undeposited cash is safely kept to
a vault.”, has a mean of 3.13, standard deviation of 1.04, adjectival description of
often and interpreted as practiced; “A responsible official periodically compare the
list with the journal record and the bank deposit.”, has a mean of 3.30, standard
deviation of .79, adjectival description of often and interpreted as practiced.
As shown in the table, the statement with the highest mean is “Cash custody
is separate from the task of record keeping.”, while the one with the lowest mean is
the statement “Undeposited cash is safely kept to a vault.”
of cash receipts turned out to be practiced. This means that cash is properly received,
documented, safeguarded and reconciled.

67
3.2 Cash Disbursements
of cash disbursement.
Table 10
Roman Catholic Churches in Cavite in Terms of Cash Disbursements
Adjectival
Cash Disbursements Mean SD Interpretation
Description
All supporting documents are
marked paid or cancelled once 3.47 .68 Often Practiced
made.
The person mailing the check
is independent of those Poorly
1.80 .92 Rarely
requesting, writing, and Practiced
signing it.
Table 10 shows the assessment of the respondents regarding the extent of
the practice of the cash management of selected Roman Catholic Churches in Cavite
in terms of cash disbursements. The section of the questionnaire has two (2)
statements related to cash disbursements. Table entries with their means, standard
deviation, adjectival description, and interpretations were presented as follows: “All
supporting documents are marked paid or cancelled once made.”, has a mean of 3.47,
standard deviation of .68, adjectival description as often, and interpreted as practiced;
“The person mailing the check is independent of those requesting, writing, and
signing it.”, has a mean of 1.8, standard deviation of .92, adjectival description as
68
rarely, and interpreted as poorly practiced. Composite mean is 2.63 with a standard
deviation of .56 and adjectival description of often which is interpreted as practiced.
As shown in the table, the statement with the highest mean is “All supporting
documents are marked paid or cancelled once made.”, while the one with the lowest
mean is the statement “The person mailing the check is independent of those
requesting, writing, and signing it.” The reason for a low mean and poorly practiced
result is that not all parishes use checks in paying their expenses Another reason is
the lack of segregation of duty between the one who requests, authorizes and the one
who makes the payment.
of cash disbursements turned out to be practiced. This means that the cash is properly
disbursed and documented.
3.3 Petty Cash
of petty cash.
69
Table 11
Roman Catholic Churches in Cavite in Terms of Petty Cash
Adjectival Interpreta
Petty Cash Mean SD
Description tion
Only one person is in charged with the
fund.
Petty cash is replenished only when
approved vouchers are presented.
Supporting documents are returned to
custodian and attached to voucher.
Petty cash fund is maintained
3.20 1.00 Often Practiced
separately from the cash receipts.
Table 11 shows the assessment of the respondents regarding the extent of
the practice of the cash management of selected Roman Catholic Churches in Cavite
in terms of petty cash. The section of the questionnaire has four (4) statements
related to petty cash. Table entries with their means, standard deviation, adjectival
description, and interpretations were presented as follows: “Only one person is in
charged with the fund.”, has a mean of 3.53, standard deviation of .57, adjectival
description as often, and interpreted as practiced; “Petty cash is replenished only
when approved vouchers are presented.”, has a mean of 3.43, standard deviation of
.94, adjectival description as often, and interpreted as practiced; “Supporting
documents are returned to custodian and attached to voucher.”, has a mean of 3.40,
“Petty cash fund is maintained separately from the cash receipts.”, has a mean of
3.20, standard deviation of 1.00, adjectival description of often and interpreted as
practiced. Composite mean is 3.39 with a standard deviation of .70 and adjectival
description of often which is interpreted as practiced.

70
As shown in the table, the statement with the highest mean is “Only one
person is in charged with the fund.”, while the one with the lowest mean is the
statement “Petty cash fund is maintained separately from the cash receipts.”
of petty cash turned out to be practiced. This means that their assessment of their
petty cash fund is properly safeguarded and documented.
3.4 Overall Cash Management
practice of cash management of selected Roman Catholic churches in Cavite.
Table 12
Assessment of the Respondents Regarding the Cash Management Practices of
selected Roman Catholic Churches in Cavite
Adjectival
Cash Management Mean SD Interpretation
Description
Cash Receipts 3.33 .53 Often Practiced
Cash Disbursements 2.63 .56 Often Practiced
Petty Cash 3.39 .70 Often Practiced
Overall 3.12 .60 Often Practiced
Table 12 shows the overall assessment of the respondents regarding the
extent of the practice of the cash management of selected Roman Catholic Churches
in Cavite. Table entries with their means, standard deviation, adjectival description,
and interpretations were presented as follows: “Cash Receipts”, has a mean of 3.33,
standard deviation of .53, adjectival description as often and interpreted as practiced;
“Cash Disbursements”, has a mean of 2.63, standard deviation of .56, adjectival

71
description as often, and interpreted as practiced; “Petty Cash”, has a mean of 3.39,
As shown in the table, the variable of cash management with the highest
mean is on “Petty Cash”, while the one with the lowest mean is the “Cash
Disbursements”. As observed by the researchers, “Petty Cash” yielded the highest
mean and is practiced because most of the parishes have petty cash which they use
for small expenses like purchases of bond papers, envelopes for donations, and even
afternoon snacks for volunteers. However, some of the parishes still have to improve
the use of their petty cash fund. “Cash Disbursements” has the lowest mean since the
questions in the survey were mostly related to checks, some of the parishes answered
that they do not entertain such use of check. The parishes do not find it necessary to
use checks because they prefer using cash in making payments which is more
convenient. Also, coming from them, they do not make big purchases or payments
which make use of checks unnecessary. However, some of the churches use checks
but still have to improve the management of their cash disbursements.
In summary, the overall assessment of the respondents regarding the extent of
the practice of cash management of selected Roman Catholic churches in Cavite
turned out to be practiced. This indicates that cash in the selected Roman Catholic
Churches in Cavite are properly received, disbursed and documented, as well as their
petty cash fund.

72
4. Differences in the Assessment of the Respondents Regarding the Practices of
Selected Roman Catholic Churches in Cavite on Control Activities and Cash
Management when Grouped According to Profile
4.1a Differences in the Assessment of the Respondents Regarding the Practices of
Selected Roman Catholic Churches in Cavite on Control Activities when
Grouped According to Number of Years of Establishment of Parish Affiliated
Table 13 shows the mean, standard deviation, f-value, level of significance,
decision on null hypothesis, and interpretation of the differences in the assessment of
the respondents regarding the practices of selected Roman Catholic Churches in
Cavite on control activities when grouped according to number of years of
establishment of parish affiliated.

73
Table 13
Differences in the Assessment of the Respondents Regarding the Practices of
At 0.05 Level of Significance
Number of
Years of
Control Decision Interpretati
Establishment Mean SD f-value Sig
Activities on 𝐇𝐨 on
of Parish
Affiliated
Delegation of 26-50 3.69 .33
Not
Authority and 76-100 3.08 .14 1.86 0.12 Accepted
Significant
Supervision 101 and above 3.44 .58
26-50 3.58 .18
Segregation of
76-100 3.08 .38 3.77 0.04 Rejected Significant
Duties
101 and above 3.38 .31
Checking of 26-50 3.67 .47
Transaction 76-100 3.42 .29 Not
0.66 0.53 Accepted
Documents and Significant
101 and above 3.56 .28
Reports
Physical 26-50 3.36 .73
Control Over 76-100 3.17 .14
Not
Assets and 0.77 0.47 Accepted
Significant
Accounting 101 and above 3.54 .47
Records
Independent 26-50 3.48 .73
Not
Verification of 76-100 3.22 .19 0.30 0.74 Accepted
Significant
Performance 101 and above 3.35 .48
26-50 3.56 .43
Not
Overall 76-100 3.19 .03 1.47 0.25 Accepted
Significant
101 and above 3.45 .27
Table 13 shows the differences in the assessment of the respondents
activities when grouped according to number of years of establishment of parish
affiliated. Table entries with their f-values, level of significance, decisions on Ho
and interpretation are presented as follows: “Delegation of Authority and
Supervision” in relation to “number of years of establishment of parish affiliated”

74
has f-value of 1.86 and level of significance of 0.12 thus, decision on Ho is accepted
which is interpreted as not significant; “Segregation of Duties” in relation to
“number of years of establishment of parish affiliated” has f-value of 3.77 and level
of significance of 0.04 thus, decision on Ho is rejected which is interpreted as
significant; “Checking of Transaction Documents and Reports” in relation to
“number of years of establishment of parish affiliated” has f-value of 0.66 and level
of significance of 0.53 thus, decision on Ho is accepted which is interpreted as not
significant; “Physical Control Over Assets and Accounting Records” in relation to
“number of years of establishment of parish affiliated” has f-value of 0.77, level of
significance of 0.47 thus, decision on Ho is accepted which is interpreted as not
significant; “Independent Verification of Performance” in relation to “number of
years of establishment of parish affiliated” has f-value of 0.30, level of significance
of 0.74 thus, decision on Ho is accepted which is interpreted as not significant.
Overall, the table shows f-value of 1.47 and level of significance of 0.25 thus,
decision on Ho is accepted which is interpreted as not significant. The level of
significance used is 0.05.
ANOVA uses the F-test to determine whether the variability between group
means is larger than the variability of the observations within the group. As shown in
the table, the highest f-value is on the variable, “Segregation of Duties” which
indicates that not all the means in that variable are equal and has a greater dispersion
from the mean compared to the variable with the lowest f-value which is,
“Independent Verification of Performance”. “Segregation of Duties” also turned out
to have a significant difference when grouped according to number of years of

75
establishment. As discussed in a reference guide for managing university business
practice entitled, “Understanding Internal Controls” (n.d.), internal control may be
expected to change over time to reflect changes in an organization’s operating
environment. Although overall, the selected Roman Catholic Churches in Cavite
turned out to practice “Segregation of Duties”, the researchers observed differently in
some of the churches. Most of the older, bigger churches are observed to have
different employees in-charged of recording, authorizing, and safekeeping the assets
while others have different groups of people/organization under the church involved in
those tasks. However, there are older but smaller churches who find it hard to
segregate duties because of lack of fund for paying additional employees, thus, their
countermeasure is for the priest to regularly oversee the church’s accounting activities.
Those younger churches are observed to have a good segregation of duties, which is
because of modern internal control systems that they are using and are more versatile
to changes compared to older, traditional Roman Catholic Churches which somehow
find it hard to adapt to modern improvements.
In summary, the assessment of respondents regarding the practices of selected
Roman Catholic Churches in Cavite when grouped according to number of years of
establishment turned out to be not significant. Overall, the selected Roman Catholic
Churches in Cavite practice good control activities no matter when they were
established.
76
4.1b Differences in the Assessment of the Respondents Regarding the Practices of
Selected Roman Catholic Churches in Cavite on Cash Management when
Cavite on cash management when grouped according to number of years of
Table 14
Number of
Years of
Cash Decision Interpreta
Establishment Mean SD f-value Sig
Management on 𝐇𝐨 tion
of Parish
Affiliated
26-50 3.36 0.76
Not
Cash Receipts 76-100 2.92 0.14 0.99 0.39 Accepted
Significant
101 and above 3.39 0.44
26-50 2.50 0.43
Cash Not
76-100 2.67 0.76 0.36 0.70 Accepted
Disbursement Significant
101 and above 2.69 0.60
26-50 4.00 0.00
Petty Cash 7.84 0.00 Rejected Significant
76-100 2.75 0.25
101 and above 3.19 0.73
26-50 3.29 0.16
Not
Overall 76-100 2.78 0.19 2.35 0.12 Accepted
Significant
101 and above 3.09 0.44
Table 14 shows the differences in the assessment of the respondents
regarding the practices of selected Roman Catholic Churches in Cavite on cash

77
management when grouped according to number of years of establishment of parish
affiliated. Table entries with their f-values, level of significance, decisions on Ho and
interpretation are presented as follows: “Cash Receipts” in relation to “number of
years of establishment of parish affiliated” has f-value of 0.99 and level of
significance of 0.39 thus, decision on Ho is accepted which is interpreted as not
significant; “Cash Disbursement” in relation to “number of years of establishment of
parish affiliated” has f-value of 0.36 and level of significance of 0.70 thus, decision
on Ho is accepted which is interpreted as not significant; “Petty Cash” in relation to
“number of years of establishment of parish affiliated” has f-value of 7.48 and level of
significance of 0.00 thus, decision on Ho is rejected which is interpreted as significant.
Overall, the table shows f-value of 2.35 and level of significance of 0.12 thus, decision
on Ho is accepted which is interpreted as not significant. The level of significance
used is 0.05.
ANOVA uses the F-test to determine whether the variability between group
means is larger than the variability of the observations within the group. As shown in
the table, the highest f-value is on the variable, “Petty Cash” which indicates that not
all the means in that variable are equal and has a greater dispersion from the mean
compared to the variable with the lowest f-value which is, “Cash Disbursement”.
“Petty Cash” also turned out to have a significant difference in the assessment of the
respondents regarding the practices of selected Roman Catholic Churches in Cavite on
cash management when grouped according to number of years of establishment of
parish affiliated. Some of the parishes with number of years of establishment of “76-
100” and “101 and above” need improvement because according to them, they don’t
78
usually use petty cash in paying for their small expenses and just disburse it directly
from the church fund. When used however, tend to overlook the proper procedures in
replenishing and documenting the petty cash fund. On the other hand, “Cash Receipts”
and “Cash Disbursement” turned out to have no significant difference in the
Churches in Cavite on cash management when grouped according to the number of
years of establishment of parish affiliated. Although, they have no significant
differences, their means state otherwise, and needed to be improved. The cash has to
be properly recorded when received and disbursed, as well as safeguarded properly.
In summary, the differences in the assessment of the respondents regarding the
practices of selected Roman Catholic Churches on cash management when grouped
according to the number of years of establishment of parish affiliated is not
significant.
4.2a Differences in the Assessment of the Respondents Regarding the Practices
of Selected Roman Catholic Churches in Cavite on Control Activities when
Grouped According to Monthly Collection of Parish Affiliated
Cavite on control activities when grouped according to monthly collection of parish
affiliated.
79
Table 15
Monthly
Control Collection of Decision Interpreta
Mean SD f-value Sig
Activities Parish on 𝐇𝐨 tion
Affiliated
Delegation Below 25,000 3.70 0.44
of Authority 25,001-50,000 3.28 0.47 Not
1.10 0.37 Accepted
and 75,001-100,000 3.38 0.14 Significant
Supervision Above 100,001 3.47 0.69
Below 25,000 3.43 0.31
Segregation 25,001-50,000 3.34 0.33 Not
0.22 0.88 Accepted
of Duties 75,001-100,000 3.38 0.43 Significant
Above 100,001 3.47 0.28
Checking of Below 25,000 3.68 0.31

Transaction
25,001-50,000 3.44 0.29 6.97 0.00 Rejected Significant
Documents
and Reports 75,001-100,000 3.13 0.25
Above 100,001 3.81 0.18
Physical Below 25,000 3.65 0.36
Control Over
Assets and 25,001-50,000 3.81 0.26 7.49 0.00 Rejected Significant
Accounting 75,001-100,000 2.75 0.71
Records
Above 100,001 3.19 0.46
Independent Below 25,000 3.77 0.39

Verification
25,001-50,000 3.38 0.38 4.97 0.01 Rejected Significant
of
Performance 75,001-100,000 2.83 0.64
Above 100,001 3.17 0.50
Below 25,000 3.64 0.31
25,001-50,000 3.45 0.24
Overall 3.62 0.03 Rejected Significant
75,001-100,000 3.09 0.22
Above 100,001 3.42 0.31
80
Table 15 shows the differences in the assessment of the respondents regarding
the practices of selected Roman Catholic Churches in Cavite on control activities
when grouped according to monthly collection of parish affiliated. Table entries with
their f-values, level of significance, decisions on Ho and interpretation are presented as
follows: “Delegation of Authority and Supervision” in relation to “monthly collection
of parish affiliated” has f-value of 1.10 and level of significance of 0.37 thus, decision
on Ho is accepted which is interpreted as not significant; “Segregation of Duties” in
relation to “monthly collection of parish affiliated” has f-value of 0.22 and level of
significance of 0.88 thus, decision on Ho is rejected which is interpreted as significant;
“Checking of Transaction Documents and Reports” in relation to “monthly collection
of parish affiliated” has f-value of 6.97 and level of significance of 0.00 thus, decision
on Ho is rejected which is interpreted as significant; “Physical Control Over Assets
and Accounting Records” in relation to “monthly collection of parish affiliated” has f-
value of 7.49, level of significance of 0.00 thus, decision on Ho is rejected which is
interpreted as significant; “Independent Verification of Performance” in relation to
“monthly collection of parish affiliated” has f-value of 4.97, level of significance of
0.01 thus, decision on Ho is rejected which is interpreted as significant. Overall, the
table shows f-value of 3.62 and level of significance of 0.03 thus, decision on Ho is
rejected which is interpreted as significant. The level of significance used is 0.05.
As shown in the table, “Delegation of Authority and Supervision” and
“Segregation of Duties” have low f-values and levels of significance greater than the
alpha (α=0.05) which indicate that they have no significant differences when grouped
according to monthly collection of parish affiliated. This means that the employees of
81
selected Roman Catholic Churches clearly understand their authority and
responsibilities and are supervised, and also the key duties and responsibilities are
appropriately divided among them. On the other hand, “Checking of Transaction
Documents and Reports”, “Physical Control over Assets and Accounting Records”
and “Independent Verification of Performance” have relatively high f-values which
indicate that the data gathered are greatly dispersed from their means and their levels
of significance are lower than alpha (α=0.05), which mean they have significant
differences when grouped according to monthly collection of parish affiliated.
According to ACCA Global (2016), as organization grows, the need for
internal control increases due to increasing specialization, and awareness of every part
of the business is nearly impossible. Part of the growth of the size of the churches is the
increase in their revenues, therefore, the higher the monthly collection of the parish, the
greater the need for a strong internal control system.
Overall, selected Roman Catholic Churches in Cavite highly practice
“Checking of Transaction Documents and Reports” because every transaction is
evidenced with receipts and forms. Those parishes with a monthly collection of above
P100,001, despite the challenge of having a higher amount of monthly collection, have
a strong control activity because they are very strict with the documentation of each
transaction. However, those churches having a monthly collection between P75,001 and
P100,000, need more improvement in properly documenting their transactions as well
as certifying its accuracy.

82
Those parishes with monthly incomes of “75,001-100,000” and “Above
100,001” need improvement in their “Physical Control over Assets and Accounting
Records”. They have bigger churches, thus greater amount of assets to protect from
misuse, theft, loss, and destruction. They also have to improve their “Independent
Verification of Performance” because it is a challenge for them to keep on
monitoring and verifying a great number of transactions that their parishes have to
deal with every day.
In summary, the differences in the assessment of the respondents regarding
the practices of selected Roman Catholic Churches in Cavite on control activities
when grouped according to monthly collection of the parish affiliated is significant.
4.2b Differences in the Assessment of the Respondents Regarding the Practices
of Selected Roman Catholic Churches in Cavite on Cash Management when
Cavite on cash management when grouped according to monthly collection of parish
affiliated.
83
Table 16
Monthly
Cash Collection of Decision Interpreta
Mean SD f-value Sig
Management Parish on 𝐇𝐨 tion
Affiliated
Below 25,000 3.45 0.50
25,001-50,000 3.13 0.42 Not
Cash Receipts 2.66 0.07 Accepted
75,001-100,000 2.88 0.75 Significant
Above 100,001 3.63 0.44
Below 25,000 2.50 0.53
Cash 25,001-50,000 2.63 0.44 Not
0.75 0.53 Accepted
Disbursement 75,001-100,000 3.00 0.41 Significant
Above 100,001 2.63 0.74
Below 25,000 3.00 0.94
Petty Cash 25,001-50,000 3.28 0.45 3.14 0.04 Rejected Significant

75,001-100,000 4.00 0.00
Above 100,001 3.69 0.40
Below 25,000 2.98 0.36
25,001-50,000 3.01 0.30 Not
Overall 1.74 0.18 Accepted
75,001-100,000 3.29 0.37 Significant
Above 100,001 3.31 0.42
Table 16 shows the differences in the assessment of the respondents regarding
the practices of selected Roman Catholic Churches in Cavite on cash management
when grouped according to monthly collection of parish affiliated. Table entries with
their f-values, level of significance, decisions on Ho and interpretation are presented as
follows: “Cash Receipts” in relation to “monthly collection of parish affiliated” has f-
value of 2.66 and level of significance of 0.07 thus, decision on Ho is accepted which
is interpreted as not significant; “Cash Disbursement” in relation to “monthly

84
collection of parish affiliated” has f-value of 0.75 and level of significance of 0.53
thus, decision on Ho is accepted which is interpreted as not significant; “Petty Cash”
in relation to “monthly collection of parish affiliated” has f-value of 3.14 and level of
significance of 0.04 thus, decision on Ho is rejected which is interpreted as significant.
Overall, the table shows f-value of 1.74 and level of significance of 0.18 thus, decision
on Ho is accepted which is interpreted as not significant. The level of significance
used is 0.05.
As shown in the table, the highest f-value is on the variable, “Petty Cash” and
has a level of significance that indicate a significant difference in the assessment of the
respondents regarding the practices of selected Roman Catholic Churches on cash
management when grouped according to the monthly collection of the parish
affiliated. Petty cash fund, as described by FreeChurchForms.com (n.d.), can help in
easily distributing money to the church employees for small expenses, and can also
give reserve for times of need to purchase supplies and similar items. Those parishes
with monthly collections of “75,001-100,000” and “Above 100,001” have bigger
amount of money to deal with, thus they always use petty cash as a major source of
fund in their small expenses. In contrast, some of the parishes with monthly
collections of “Below 25,000” and “25,001-50,000” have smaller amount of money to
deal with, thus they sometimes set aside the petty cash and get directly from the
church fund to pay for their small expenses. They also tend to set aside the proper
procedures in replenishing and documenting the petty cash fund.
Also shown in the table, are the “Cash Receipts” and “Cash Disbursement”
which turned out to have no significant differences in the assessment of the

85
respondents regarding the practices of selected Roman Catholic Churches on cash
management when grouped according to the monthly collection of the parish
affiliated. Although, they have no significant differences, their means state otherwise,
and needed to be improved. The cash has to be properly recorded when received and
disbursed, as well as safeguarded properly.
In summary, the differences in the assessment of the respondents regarding
the practices of selected Roman Catholic Churches on cash management when
grouped according to the monthly collection of the parish affiliated is not significant.
5. Relationship between the Assessment of the Respondents Regarding the
Practices of Selected Roman Catholic Churches in Cavite on Control Activities
and Cash Management.
5.1. Relationship between the Assessment of the Respondents Regarding the
Practices of Selected Roman Catholic Churches in Cavite on Delegation of
Authority and Supervision in relation to Cash Management.
Table 17 shows the computed r, level of significance, decision on null
hypothesis, and interpretation of the relationship between the assessment of the
delegation of authority and supervision and cash management.

86
Table 17
Relationship between the Assessment of the Respondents Regarding the Practices of
Selected Roman Catholic Churches in Cavite on Delegation of Authority and
Supervision in relation to Cash Management.
Delegation of Authority
Computed Decision on
and Supervision in Sig Interpretation
r 𝐇𝐨
relation to:
Cash Receipts 0.48 0.01 Rejected Significant
Cash Disbursement -0.24 0.21 Accepted Not Significant
Petty Cash -0.01 0.95 Accepted Not Significant
Overall 0.11 0.57 Accepted Not Significant
Table 17 shows the relationship between the assessments of the respondents
regarding the practices of selected Roman Catholic Churches in Cavite on delegation of
authority and supervision and cash management. Table entries with their computed r,
level of significance, decisions on Ho and interpretation are presented as follows: “Cash
Receipts” has a computed r of 0.48 and level of significance of 0.01, thus decision on
H𝐨 is rejected and interpreted as significant; “Cash Disbursement” has a computed r of -
0.24 and level of significance of 0.21, thus decision on H𝐨 is accepted and interpreted as
not significant; “Petty Cash” has a computed r of -0.01 and level of significance of 0.95,
thus decision on H𝐨 is accepted and interpreted as not significant; Overall, the table
shows a computed r of 0.11 and level of significance of 0.57 thus, decision on Ho is
accepted which is interpreted as not significant. The level of significance used is 0.05.
Based on Table 17, delegation of authority and supervision has a significant
relationship with cash receipts. This indicates a significant linear relationship between
the two variables and they are positively correlated because of a positive value of the
computed r. This means, an increase in the assessment of practice of delegation of
authority and supervision may also make an increase in the assessment of practice of
87
cash receipts but it doesn’t necessarily mean they have a causal relationship.
According to Boutelle (n.d.), employees who do not have a clear understanding of
their job and how it affects the whole organization are more likely to exhibit
carelessness. This is why it’s important for the parish to let their employees
understand their job and the church’s policies and procedures, particularly in properly
handling cash which Hoare (2013) declared to be the easiest to misappropriate of all
the assets. The parishes’ main sources of revenue are the collections from donations
and sacramental fees, and most of the selected Roman Catholic Churches in Cavite
practice good accounting, recording and safeguarding of their cash collections. The
volunteers who collect the donations, to the staffs who count and record the collection,
and to the employees who manage the sacramental fees, they all understand how to
manage the cash receipts.
Logically, it can be guessed that delegation of authority and supervision may
also have relationship with cash disbursement and petty cash, just like cash receipts
since they always go together, but based from the data of the study, it turned out to not
have a significant relationship. A factor that might have affected the result of the
correlation is the difference in the effectiveness of the control activity variable in each
variable of cash management. As mentioned in an article entitled, “Internal Controls”
(n.d.), internal control systems operate at different levels of effectiveness and
determining whether a particular internal control system is effective is a judgment
resulting from an assessment of whether the five components are present and
functioning. Perhaps, the assessment of respondents in the practices of selected Roman
Catholic Churches in Cavite regarding the delegation of authority and supervision is

88
high and it has a significant linear relationship with the variable cash receipts,
however, it might not be true in all aspects of cash management such as cash
disbursement and petty cash. Delegation of authority and supervision might be
practiced in cash receipts, but poorly practiced in terms of cash disbursement and petty
cash. One example is that the employees in some parishes might know the proper
procedures in using petty cash for small expenses but sometimes overlook the
necessity for using it by directly deducting from the church fund their expenses. This
could be reason why the variables turned out to have no significant linear relationship.
In summary, the relationship between the assessment of the respondents
regarding the practices of selected Roman Catholic Churches in Cavite on delegation
of authority and supervision and cash management is not significant.
Practices of Selected Roman Catholic Churches in Cavite on Segregation of
Duties in relation to Cash Management.
segregation of duties and cash management.

89
Table 18
Relationship between the Assessment of the Respondents Regarding the Practices
of Selected Roman Catholic Churches in Cavite on Segregation of Duties and Cash
Management.
Segregation of Duties in Computed Decision on
Sig Interpretation
relation to: r 𝐇𝐨
Cash Receipts 0.02 0.91 Accepted Not Significant
Cash Disbursement -0.40 0.03 Rejected Significant
Petty Cash 0.15 0.43 Accepted Not Significant
Overall -0.09 0.63 Accepted Not Significant
regarding the practices of selected Roman Catholic Churches in Cavite on segregation
of duties and cash management. Table entries with their computed r, level of
significance, decisions on Ho and interpretation are presented as follows: “Cash
H𝐨 is accepted and interpreted as not significant; “Cash Disbursement” has a
computed r of -0.40 and level of significance of 0.03, thus decision on H𝐨 is rejected
and interpreted as significant; “Petty Cash” has a computed r of 0.15 and level of
significance of 0.43, thus decision on H𝐨 is accepted and interpreted as not significant;
Overall, the table shows a computed r of -0.09 and level of significance of 0.63 thus,
Based on Table 18, segregation of duties has significant relationship with cash
disbursements. This indicates that there is a linear relationship between the two
variables and they are negatively correlated because of negative value of computed r.
This shows that an increase in the assessment of segregation of duties may make a
90
decrease in the assessment in the practice of cash disbursements, but it doesn’t
necessarily mean that they have a causal relationship. On the other hand, there’s no
significant relationship between segregation of duties and cash receipts and petty cash.
A possible factor that could have led to these results is the differences in the
effectiveness of implementation of segregation of duties to the different areas of cash
management. There must always be a segregation of duties between the authorization,
recording and safekeeping of assets in order to prevent fraud and misappropriations. A
high assessment of segregation of duties in cash handling may mean that the parishes
practice good cash management. Although most of the selected parishes practice
segregation of duties, there are some who find it hard to segregate duties because of
lack of workers. Since church is a non-profit organization, managed by volunteers and
possibly one staff person, segregation of duties in cash can be difficult to put into
practice. According to the churches it is either the priest or the secretary was assigned
in collecting the cash and depositing the funds. And the same assigned person in
maintaining the log of cash and checks received, including copies of checks. In terms
of petty cash, it is only the secretary of the church who takes care of the fund. The
custodian, the parish priest, still approves and returns to the secretary the voucher to
check the proper use and care of the fund. According to an article entitled, “Best
Practices for Church Financial Internal Controls” (n.d.), because each church is
different to each other, and each denomination organization may have a unique set of
standards so they should establish an internal control outline for the responsibility of
the overall stewardship of the church. Possibly, the assessment of segregation of duties
91
in relation to cash receipts and petty cash are not significant because the policies and
procedures vary.
regarding the practices of selected Roman Catholic Churches in Cavite on segregation
of duties and cash management is not significant.
Practices of Selected Roman Catholic Churches in Cavite on Checking of
Transaction Documents and Reports in relation to Cash Management.
checking of transaction documents and reports and cash management.
Table 19
of Selected Roman Catholic Churches in Cavite on Checking of Transaction
Documents and Reports and Cash Management.
Checking of Transaction
Documents and Reports Sig Interpretation
r 𝐇𝐨
in relation to:
Petty Cash 0.35 0.06 Accepted Not Significant
Overall 0.42 0.02 Rejected Significant
regarding the practices of selected Roman Catholic Churches in Cavite on checking of

92
transaction documents and reports and cash management. Table entries with their
computed r, level of significance, decisions on Ho and interpretation are presented as
follows: “Cash Receipts” has a computed r of 0.64 and level of significance of 0.00,
thus decision on H𝐨 is rejected and interpreted as significant; “Cash Disbursement”
has a computed r of -0.21 and level of significance of 0.26, thus decision on H𝐨 is
accepted and interpreted as not significant; “Petty Cash” has a computed r of 0.35 and
level of significance of 0.06, thus decision on H𝐨 is accepted and interpreted as not
significant; Overall, the table shows a computed r of 0.42 and level of significance of
0.02 thus, decision on Ho is rejected which is interpreted as significant. The level of
Based on Table 19, checking of transaction documents and reports has a
significant relationship with cash receipts. This indicates that there is a linear
relationship between the two variables and they are positively correlated because of
positive value of computed r. This shows that an increase in the assessment of
checking of transaction documents and reports may also make an increase in the
assessment in the practice of cash receipts, but it doesn’t necessarily mean that they
have a causal relationship. Factors that could have led to this result is that all
transactions from sacramental fees are evidenced with receipts. The collections from
donations are collected, counted and accounted for by different workers and/or
volunteers. However, verification as to its reliability and accuracy are not regularly
done.
On the other hand, checking of transaction documents and reports does not
have a significant relationship with cash disbursements and petty cash. A possible
93
reason is that the control activity variable is not implemented at all times in these cash
management variables. Not all disbursements are evidenced with receipts because
some of the church’s expenses are relatively small and sometimes tend to overlook the
need for receipts. When attached with receipts however, rarely checks its reliability.
The monthly reports that the parishes submit to the Diocese of Imus, are also not
regularly assured as to its reliability.
regarding the practices of selected Roman Catholic Churches in Cavite on checking of
transaction documents and reports and cash management is significant.
Physical Control over Assets and Accounting Records in relation to Cash
Management.
physical control over assets and accounting records and cash management.
94
Table 20
Relationship between the Assessment of the Respondents Regarding the Practices of
Selected Roman Catholic Churches in Cavite on Physical Control over Assets and
Accounting Records and Cash Management.
Physical Control Over

Assets and Accounting Sig Interpretation
r 𝐇𝐨
Records in relation to:
Overall -0.01 0.98 Accepted Not Significant
regarding the practices of selected Roman Catholic Churches in Cavite on physical
control over assets and accounting records and cash management. Table entries with
their computed r, level of significance, decisions on Ho and interpretation are presented
as follows: “Cash Receipts” has a computed r of 0.40 and level of significance of 0.03,
thus decision on H𝐨 is rejected and interpreted as significant; “Cash Disbursement” has
a computed r of -0.02 and level of significance of 0.92, thus decision on H𝐨 is accepted
and interpreted as not significant; “Petty Cash” has a computed r of -0.30 and level of
Overall, the table shows a computed r of -0.01 and level of significance of 0.98 thus,
Based on Table 20, physical control over assets and accounting records has a
significant relationship with cash receipts. This indicates a significant linear relationship
between the two variables and they are positively correlated because of a positive value
of the computed r. This means, an increase in the assessment of practice of delegation of

95
cash receipts, but it doesn’t necessarily mean that they have a causal relationship. A
factor that could have caused this result is that the employees don’t deposit the cash
from the collected donations daily which is very important but rather some of them
deposited weekly, some deposit whenever they feel the fund is too big. In connection to
this, safes, vaults and safety deposits are important to safeguard the asset especially that
this is where their major income is coming from. It is also important to the church the
safeguarding of their asset because every day many people went to the office and they
cannot monitor every person who went in or out or whether there is some things are
missing. According also to the conducted interviews only the priest and the secretary
have limited access to the cash and where they store it.
Cash disbursement and petty cash turned out to have no significant relationship
with physical control over assets and accounting records. A factor that could have led to
this result could be the assumptions of Pearson correlation that the variables did not
meet such as linearity. There could be no linear relationship between independent
verification of performance and cash disbursement and petty cash, if the assessment of
the control activity variable is high, but is not properly implemented to the cash
management variable, thus, possibly creating non-linear relationship between the
variables.
regarding the practices of selected Roman Catholic Churches in Cavite on physical
control over assets and accounting records and cash management is not significant.
96
Practices of Selected Roman Catholic Churches in Cavite on Independent
Verification of Performance in relation to Cash Management.
independent verification of performance and cash management.
Table 21
of Selected Roman Catholic Churches in Cavite on Independent Verification of
Performance and Cash Management.
Independent Verification
of Performance in Sig Interpretation
r 𝐇𝐨
relation to:
regarding the practices of selected Roman Catholic Churches in Cavite on independent
verification of performance and cash management. Table entries with their computed
r, level of significance, decisions on Ho and interpretation are presented as follows:
“Cash Receipts” has a computed r of 0.54 and level of significance of 0.00, thus
decision on H𝐨 is rejected and interpreted as significant; “Cash Disbursement” has a
computed r of -0.04 and level of significance of 0.84, thus decision on H𝐨 is accepted
and interpreted as not significant; “Petty Cash” has a computed r of -0.18 and level of

97
Overall, the table shows a computed r of 0.13 and level of significance of 0.50 thus,
Based on Table 21, independent verification of performance has a significant
relationship with cash receipts. This indicates a significant linear relationship between
the two variables and they are positively correlated because of a positive value of the
computed r. This means, an increase in the assessment of practice of delegation of
cash receipts, but it doesn’t necessarily mean that they have a causal relationship. As
described by Lohrey (n.d.), independent internal verification works to make sure the
employees are following the rules and not shortcutting internal controls. Making sure
that the parish’s employees follow the proper procedures will help in assuring that cash
is properly handled. Independent verification of performance is done by the priests, in
most of the selected Roman Catholic Churches in Cavite, and the researchers observed
that the parishes are careful in handling their cash receipts.
Cash disbursement and petty cash turned out to have no significant
relationship with independent verification of performance. A factor that could have led
to this result could be the assumptions of Pearson correlation that the variables did not
meet such as linearity. There could be no linear relationship between independent
verification of performance and cash disbursement and petty cash, if the assessment of
the control activity variable is high, but is not properly implemented to the cash
management variable, thus, possibly creating non-linear relationship between the
variables.
98
regarding the practices of selected Roman Catholic Churches in Cavite on independent
verification of performance and cash management is not significant.
5.6 Relationship between the Assessment of the Respondents Regarding the
in relation to Cash Management.
control activities and cash management.
Table 22
of Selected Roman Catholic Churches in Cavite on Control Activities and Cash
Management.
Control Activities in Computed Decision on
Sig Interpretation
relation to: r 𝐇𝐨
activities and cash management. Table entries with their computed r, level of
significance, decisions on Ho and interpretation are presented as follows: “Cash
99
H𝐨 is rejected and interpreted as significant; “Cash Disbursement” has a computed r of -
0.22 and level of significance of 0.25, thus decision on H𝐨 is accepted and interpreted as
not significant; “Petty Cash” has a computed r of -0.60 and level of significance of 0.76,
thus decision on H𝐨 is accepted and interpreted as not significant; Overall, the table
shows a computed r of 0.15 and level of significance of 0.44 thus, decision on Ho is
accepted which is interpreted as not significant. The level of significance used is 0.05.
Based on Table 22, the overall control activities have a significant relationship
with cash receipts. This indicates a significant linear relationship between the two
variables and they are positively correlated because of a positive value of the computed
r. This means, an increase in the assessment of practice of control activities tends to
make an increase in the assessment of practice of cash receipts, but it doesn’t
necessarily mean that they have a causal relationship. It also turned out that control
activities doesn’t have a significant relationship with cash disbursement and petty cash.
This indicates that they have non-linear relationship which means by doubling one
variable, the other variable will not double (Kalla, n.d.).
Njeri (2014) states otherwise, proving a positive relationship between control
activities and financial performance, in which control activities are formed into cash
management practices. Technically, cash management is a form of control activity, thus,
they are related with each other, in fact they are the same thing. However, control
activities is a broad area that encompasses not only cash management but all aspects in
an organization.
Effective controls, as described by American Institute of CPAs (n.d.), reduce
the risk of assets loss and help ensure that plain information is complete and accurate,
100
financial statements are reliable, and that the plan complies with laws and regulations.
However, internal control systems operate at different levels of effectiveness (“Internal
Controls”, n.d.). An effective control procedure in one area of organization may not be
as effective to another. General assessment of extent of practice of control activity in the
whole parish might not be the same when assessed in a specific level. Effective
implementation of control activity in each of the variable of cash management might be
needed for them to have a significant linear relationship. In contrary, an ineffective
implementation of control activity could be the reason why it does not have a significant
linear relationship with cash management.
activity and cash management is not significant. Other factors that could have been the
reason for this result are the assumptions of Pearson correlation such as level of
measurement, related pairs, absence of outliers, normality of variables, linearity and
homoscedasticity, that were not met, thus resulting to non-linear relationship (“Pearson
Correlation Assumption”, n.d.). Other statistical analyses could be used to further
understand the relationship between control activities and cash management practices of
selected Roman Catholic Churches in Cavite.

101
CHAPTER V
SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS
This chapter presents the findings of the research according to the statement of
the problem. These findings were supported by the statistical figures that were calculated
during the analysis of the data gathered. Moreover, it also includes a conclusion that was
based only from the findings of the study. Lastly, the recommendations are also part of
this chapter. These were addressed to different possible users of the research.
This research was conducted to determine if there is a significant difference in
the assessment of the respondents regarding the control activities and cash management
practices of selected Roman Catholic churches in Cavite when grouped according to
profile. The study also aims to determine the significant relationship between the
assessment of the respondents regarding the control activities and cash management
practices of selected Roman Catholic Churches in Cavite. The researchers formulated
questions in line with the topic of the research and were approved by the adviser and
validated by three (3) experts. The researchers distributed these 29-question
questionnaires to the three (3) respondents in each Roman Catholic Church namely:
Parish Priest, Secretary, and Finance Head or finance staff. The data gathered were
subjected to different statistical tools accordingly. The profiles of the respondents were
illustrated in frequencies and percentages. After the questionnaires were accomplished,
each item was analyzed separately to determine the mean. The assessment of the
respondents regarding the practices of the selected Roman Catholic churches in Cavite on
each variable of control activities and cash management practices were determined by
102
mean and standard deviation. The overall assessment of the respondents regarding the
practices of selected Roman Catholic churches in Cavite on control activities and cash
management practices were also determined. Further tests were conducted to determine
the difference in the assessment of the respondents regarding practices of the ten (10)
selected Roman Catholic churches in Cavite on each variable of control activities and
cash management when grouped according to profile, as well as to determine the
significant relationship between the assessment of the respondents regarding the control
activities and cash management practices of selected Roman Catholic Churches in
Cavite.. The mean was used in determining the standard deviation which was a
requirement in performing the statistical method to arrive at an appropriate conclusion. F-
test was also used to compare the difference in the assessment of the respondents
regarding the practices of selected Roman Catholic churches in Cavite on control
activities and cash management when grouped according to number of years of
establishment, and monthly collection of parish affiliated. Pearson correlation, on the
other hand was used to determine the significant relationship between the assessment of
the respondents regarding the control activities and cash management practices of
selected Roman Catholic Churches in Cavite. The results had been the basis for the
acceptance and rejection of the hypothesis.

103
Summary of Findings
The research obtained the following results:
1. Profile of the Respondents in terms of:
1.1 Number of years of establishment
In terms of the frequency of the participants regarding number of years of
establishment, out of thirty (30), none of the churches were established under twenty-five
years (25) and from fifty-one (51) to seventy-five (75) years. Nine (9) churches have
been established for about twenty-six (26) to fifty (50) years, three (3) from seventy-six
(76) to one hundred (100) years, and eighteen (18) from one hundred one (101) years and
above.
1.2 Monthly Collection of Parish Affiliated
According to the data collected, ten (10) churches have a monthly collection of
below P25,000; eight (8) collect around P25,001-P50,000; four (4) collect P75,001-
P100,000; and eight (8) collect a total of around P100,001 and above.
2. Assessment of Respondents on the Practices of Selected Roman Catholic churches
in Cavite on Control Activities
2.1 Delegation of Authority and Supervision
Based on statistical analysis on the delegation of authority and supervision, the
statement with the highest mean with a rate of 3.60 is “The employees clearly understand
their authority and responsibility as well as the duty of their co-workers’.”, while the one
104
with the lowest mean with a rate of 3.33 is the statement “The employees are given
trainings and are supervised relating to their assigned duties and responsibilities.”
Overall, the composite mean on delegation of authority and supervision is 3.48 and
interpreted as “practiced”.
2.2 Segregation of Duties
Statistical analysis showed that in terms of segregation of duties, the statement
with the highest mean of 3.67 is “Key duties and responsibilities are divided among
different employees.”, while the one with the lowest mean of 3.03 is the statement “A
finance council member or a responsible officer not involved in the daily record-keeping
oversees the accounting activities.” This variable turned out to be “practiced” with a
composite mean of 3.41.
2.3 Checking of Transaction Documents and Reports
Results of the analysis on the third variable of control activities which is
checking of transaction documents and reports, the statement with the highest mean of
3.67 is “Accounting records and documents are maintained to provide an audit trail.”,
while the one with the lowest mean of 3.47 is the statement “Documents and reports are
certified as to their accuracy by the finance council head.” It turned out that checking of
transaction documents and report is “highly practiced” with a composite mean of 3.58.
2.4 Physical Control over Assets and Accounting Records
Based on statistical analysis on the physical control over assets and accounting
records, the statement with the highest mean with a rate of 3.73 is “Accounting records
105
and all physical assets are accessible only by authorized employees.”, while the one with
the lowest mean with a rate of 3.27 is the statement “All physical assets are properly
secured, numbered and inventoried.” Overall, the composite mean is 3.45 which is
interpreted as “practiced”.
2.5 Independent Verification of Performance
Statistical analysis showed that in terms of independent verification of
performance, the statement with the highest mean of 3.70 is “Both financial and non-
financial transactions are verified by authorized personnel.”, while the one with the
lowest of 3.17 mean is the statement “Supervisors periodically assess the performance of
their subordinates.” It tuned out that the variable is “practiced” with a composite mean of
3.38.
Overall, the assessment of the respondents regarding the control activities of
selected Roman Catholic Churches turned out to be “practiced” with a composite mean of
3.46. This means that most of the selected Roman Catholic Churches in Cavite practice
good control activities.
3. Assessment of Respondents on the Practices of Selected Roman Catholic
Churches in Cavite on Cash Management
3.1 Cash Receipts
Results of the analysis showed that the statement with the highest mean of 3.47
is “Cash custody is separate from the task of record keeping.”, while the one with the
106
lowest mean of 3.13 is the statement “Undeposited cash is safely kept to a vault.”
Overall, the composite mean of the variable is 3.33 and interpreted as “practiced”.
3.2 Cash Disbursements
Statistical analysis showed that in terms of cash disbursements, the statement
with the highest mean with a rate of 3.47 is “All supporting documents are marked paid
or cancelled once made.”, while the one with the lowest mean with a rate of 1.80 is the
statement “The person mailing the check is independent of those requesting, writing, and
signing it.” It turned out that the variable is “practiced” with a composite mean of 2.63.
3.3 Petty Cash
Based on statistical analysis regarding petty cash, the statement with the highest
mean of 3.53 is “Only one person is in charged with the fund.”, while the one with the
lowest mean of 3.20 is the statement “Petty cash fund is maintained separately from the
cash receipts.” The variable turned out to be “practiced” with a composite mean of 3.39.
Overall, the assessment of the respondents regarding the cash management
practices of selected Roman Catholic Churches turned out to be “practiced” with a
composite mean of 3.12. This means that most of the selected Roman Catholic Churches
in Cavite practice good cash management.

107
4. Differences in the Assessment of Respondents Regarding the Practices of Selected
Roman Catholic Churches in Cavite on Control Activities and Cash Management
when Grouped According to Profile
4.1a Differences in the Assessment of the Respondents Regarding the
when Grouped According to Number of Years of Establishment of Parish Affiliated
Based from the results of the analysis using f-test, there were f-value of 1.86 for
delegation of authority and supervision; 3.77 for segregation of duties; 0.66 for checking
of transaction documents and reports; 0.77 for physical control over assets and
accounting records and 0.30 for independent verification of performance with an overall
f-value of 1.47. It showed that there is no significant difference on the assessment of the
respondents regarding the control activities of selected Roman Catholic Churches in
Cavite when grouped according to number of years of establishment of parish affiliated.
4.1b Differences in the Assessment of the Respondents Regarding the
Practices of Selected Roman Catholic Churches in Cavite on Cash Management
when Grouped According to Number of Years of Establishment of Parish Affiliated
cash receipts; 0.36 for segregation of duties; 0.89 for cash disbursement; 7.84 for petty
cash with an overall f-value of 2.35. It showed that there is no significant difference on
the assessment of the respondents regarding the cash management of selected Roman
Catholic Churches in Cavite when grouped according to number of years of

108
4.2a Differences in the Assessment of the Respondents Regarding the
when Grouped According to Monthly Collection of Parish Affiliated
delegation of authority and supervision; 0.22 for segregation of duties; 6.97 for checking
of transaction documents and reports; 7.49 for physical control over assets and
accounting records and 4.97 for independent verification of performance with an overall
t-value of 3.62. It showed that there is a significant difference on the assessment of the
respondents regarding the control activities of selected Roman Catholic Churches in
Cavite when grouped according to monthly collection of parish affiliated.
4.2b Differences in the Assessment of the Respondents Regarding the
Practices of Selected Roman Catholic Churches in Cavite on Cash Management
when Grouped According to Monthly Collection of Parish Affiliated
The results of the analysis using f-test showed an f-value of 2.66 for cash
receipts; 0.75 for cash disbursement; 3.14 for petty cash. It showed an overall f-value of
1.74. It showed that there is no significant difference on the assessment of the
respondents regarding the cash management of selected Roman Catholic Churches in
Cavite when grouped according to monthly collection of parish affiliated.
5. Relationship between the Assessment of the Respondents Regarding the Practices
of Selected Roman Catholic Churches in Cavite on Control Activities and Cash
Management
109
5.1 Relationship between the Assessment of the Respondents Regarding
the Practices of Selected Roman Catholic Churches in Cavite on Delegation of
Authority and Supervision in relation to Cash Management.
The results of the analysis showed a computed r of 0.48 for cash receipts; -0.24
for cash disbursement; -0.01 for petty cash. It showed an overall value of 0.11. It showed
that there is no significant difference on the assessment of the respondents regarding the
practices of selected Roman Catholic churches in Cavite on delegation of authority and
supervision in relation to cash management.
the Practices of Selected Roman Catholic Churches in Cavite on Segregation of
Duties in relation to Cash Management.
for cash disbursement; 0.15 for petty cash. It showed an overall value of -0.09. It showed
that there is no significant difference on the assessment of the respondents regarding the
practices of selected Roman Catholic churches in Cavite on segregation of duties in
relation to cash management.

110
the Practices of Selected Roman Catholic Churches in Cavite on Checking of
Transaction Documents and Reports in relation to Cash Management.
for cash disbursement; 0.35 for petty cash. It showed an overall value of 0.42. It showed
that there is a significant relationship on the assessment of the respondents regarding the
practices of selected Roman Catholic churches in Cavite on checking of transaction
documents and reports in relation to cash management.
the Practices of Selected Roman Catholic Churches in Cavite on the Physical
Control over Assets and Accounting Records in relation to Cash Management
for cash disbursement; -0.30 for petty cash. It showed an overall value of -0.01. It showed
that there is no significant relationship on the assessment of the respondents regarding the
practices of selected Roman Catholic churches in Cavite on the physical control over
assets and accounting records in relation to cash management.
the Practices of Selected Roman Catholic Churches in Cavite on Independent
Verification of Performance in relation to Cash Management
111
practices of selected Roman Catholic churches in Cavite on independent verification of
performance in relation to cash management.
5.6 Relationship between the Assessment of the Respondents Regarding the
Practices of selected Roman Catholic Church in Cavite on Control Activities and
Cash Management.
practices of selected Roman Catholic churches in Cavite on control activities in relation
to cash management.
6. Enhancement
Based on the analysis of the researchers, they found out that each of the selected
Roman Catholic Churches in Cavite has strengths in their control activities and cash
management practices, as well as weaknesses that need improvement. This was proven
during their observation and interviews during the survey. Enhancement on the practices
of selected Roman Catholic Churches in Cavite on control activities and cash
management can be found on recommendation of the paper that will be served as the
researchers’ output.
112
Conclusions
Through an extensive analysis of the data gathered, the researchers have
concluded the following:
1. There are more respondents affiliated to parishes 101 years old and above
and most of them are affiliated to parishes with a monthly collection below P25,000.
2. The extent of the practice of all the variables of the control activities of
selected Roman Catholic Churches in Cavite are all practiced except Checking of
Transaction Documents and Reports which is highly practiced. Most parishes in Cavite
practice good control procedures but some still have to improve.
3. The extent of the practice of all the variables of the cash management of
selected Roman Catholic Churches in Cavite are all practiced. Most parishes in Cavite
practice good cash management but some still have to improve.
4. There are no significant differences in the assessment of the respondents
activities when grouped according to number of years of establishment of parish
affiliated. However, there is a significant difference in the assessment of the respondents
activities when grouped according to monthly collection of parish affiliated. On the other
hand, there are no significant differences in the assessment of the respondents regarding
the practices of selected Roman Catholic Churches in Cavite on cash management when
grouped according to number of years of establishment of parish affiliated and monthly
collection of parish affiliated. A factor that the researchers observed that might have an
effect in their differences is that there is no established internal control procedures

113
mandated to all Roman Catholic Churches in the Philippines. The parishes have the
liberty to implement control procedures they deemed appropriate for them but might still
be further improved or perhaps in the contrary of generally accepted standards.
5. Overall, there is no significant relationship between the assessment of the
control activities and cash management. A factor that the researchers observed that might
have an effect to the result of the correlation is the differences in the effectiveness and
implementation of the variables of control activity in each variable of cash management.
An effective control activity in one variable of cash management might not be that
effectively implemented in the other variables of cash management. Another reason could
be the assumption of Pearson correlation such as linearity that the variables did not meet.
More statistical analyses could be made to further understand the relationship between
control activities and cash management.
6. Enhancement on the practices of selected Roman Catholic churches on
control activities and cash management can be found on recommendation of the paper
that will serve as the researchers’ output.
Recommendations
To the parish administrators, the researchers recommend to evaluate different
components of internal control of the parishes and ensure that appropriate attention is
devoted to important areas of the organization that need improvement. A
recommendation studying the other Roman Catholic Churches in other municipalities of
Cavite to find out more accurate results about their internal control and cash management
114
is highly advised. From that recommendation, the researchers also suggest the Diocese of
Imus to establish an internal control system that will be uniformly implemented in each
Roman Catholic Church under their jurisdiction for the improvement of the
administration of every parish.
To Accountancy students, the researchers recommend to study the five
components of internal control and its application to nonprofit organizations such as
churches. They may also research the possible effect if the proposed taxation of the
government to the churches will be implemented.
To the future researchers and faculty members who will conduct studies related
to this topic, the researchers recommend using more intensive statistical analyses to
further understand the relationship between control activities and cash management. The
researchers also recommend improving the research instrument and adding more
respondents which may increase the reliability of their study. They may also apply the
study to the other religious sectors or parishes of other cities or provinces, exploring the
other components of internal control such as control environment, risk assessment,
communication and information, and monitoring, to contribute more understanding about
the internal control of nonprofit sector.

115
Enhancements
The researchers recommend the following general guidelines to enhance the
practices of selected Roman Catholic Churches in Cavite on control activities and cash
management.
Variable of Control Specific Activity/ies

Activities
Delegation of  Jobs assigned to each employee are clearly stated and
Authority and organizational chart is posted at the office bulletin as
Supervision defined job description. It will set a scope and limitation on
the tasks and authority of the workers. Also, when there are
concerns, it is easily determine the responsible for the
problem. In this case, employees will be cautious about the
job because fraud could be aligned to tasks and so, culprit
could immediately determine.
Segregation of  Duties and areas of responsibility should be segregated
Duties properly to the staffs and employees to reduce opportunities
for unauthorized or unintentional change or misuse of the
organization’s assets.
 Fund custodian or authorized designee, either of whom
should be someone other than assigned staff, should review
and certify the ledger transaction review and other
accounting activities.
Checking of  Every transaction should have document (e.g. receipts) to
Transaction support the report and keep track on the cash flows.
Documents and  Fairly presented reports should consider matching principle
Reports between the expenses and the income.
 Finance council head must always certify the documents
and reports.
116
Variable of Control Specific Activity/ies

Activities
Physical Control  Safes, vaults, and safety deposit boxes for cash and business
over Assets and paper that limit access to storage areas in order for the
Accounting Records collected donations or other cash that are still undeposited
be kept in a much safer place.
 Locked warehouses and storage cabinets for inventory and
records and only authorized person have access to the key.
Also, computer facilities should have pass key access or
password whenever it opens. It will give the organization a
much assurance that the records were not changed by the
culprit when another counting of inventories happen.
Independent  Performance of subordinates should be assessed by the
Verification of supervisors periodically.
Performance  Recalculate previously reconciled financial statements, such
as last month’s unadjusted and adjusted trial balances or last
month’s bank reconciliation.
 There should be a verification whether work products
contain data entry or other errors and whether employees
are following established rules.
Variable of Cash Specific Activity/ies

Management
Cash Receipts  Cash collections that are not deposited must be
secured in a vault accessible only to the cash
custodian who must be different from the record
keeper.
 Amount of cash in journal records should be
regularly reconciled with the bank statement.
Cash Disbursement  All disbursements should be evidenced with
supporting documents and are verified as to its
accuracy by authorized personnel.
 The person making payments should be different
from the one who approves payment.
Petty Cash  Separate petty cash fund from cash receipts and pay
small expenses using only the petty cash which
should be replenished only when approved vouchers
are presented.
 Always return the supporting documents attached to
the voucher.
117
REFERENCES
BOOKS
Rufo, A. C. (2013). Altar of Secrets: Sex, Politics, and Money in the Philippine
Catholic Church. Pasig City: Journalism for Nation Building Foundation.
Salosagcol, J., Tiu, M., & Hermosilla, R. (2014). Auditing theory: A guide in
understanding PSA. Manila, Philippines: GIC Enterprises & Co., Inc.
In-text citation: (Salosagcol, et al., 2014)
ONLINE JOURNALS
ACCA Global. (2016). Internal Controls. Retrieved from

http://www.accaglobal.com/lk/en/student/exam-support-
resources/fundamentals-exams-study-resources/f1/technical-articles/internal-
controls.html
Ahiabor, G. and Mensah, C. C. Y. (2013). Effectiveness of Internal Control on the

Finances of Churches in Greater Accra, Ghana. Retrieved from
http://www.iiste.org/Journals/index.php/RJFA/article/viewFile/7792/11707
Brown, L, V. (2012). Internal Financial Controls for Churches and Other Christian
Ministries. Retrieved from
http://www.academia.edu/7093931/internal_financial_
controls_for_churches_and_other_christian_ministries
Cariño, Ledivina. (2013). Defining the Nonprofit Sector: The Philippines. Retrieved
from http://ccss.jhu.edu/wp-
content/uploads/downloads/2014/05/Philippines_CNP_WP39_2001.pdf
Francis, A., Talansky, J., (2012). Small Nonprofits Solving Big Problems. Retrieved
from http://ostrc.org/doclibrary/documents/SmallNonprofits.pdf
118
Kansas State. (2013). Internal Audit. Retrieved from https://www.k-

state.edu/internalaudit/internal-controls/
Kinyua, J. K., Gakure, R., Gekara, M., and Orwa, G. (2015). Effect of Internal
Control Environment on the Financial Performance of Companies Quoted in
the Nairobi Securities Exchange. Retrieved from http://seahipaj.org/journals-
ci/dec-2015/IJIFER/full/IJIFER-D-3-2015.pdf
Kucukba, Füsun. (2016). Cash Management in Non-Profit Organizations. Retrieved

from http://www.igi-global.com/chapter/cash-management-in-non-profit-
organizations/163751
Myers, D. (2012). External Stakeholders and Internal Controls in Churches.

Retrieved from
http://scholarworks.uark.edu/cgi/viewcontent.cgi?article=1001&context=acctuh
t
Njeri, K. C. (2013). Effect Of Internal Controls On The Financial Performance Of

Manufacturing Firms In Kenya. Retrieved from
http://chss.uonbi.ac.ke/sites/default/files/chss/Carol%20kamau%20Final%20rep
ort.pdf
Northwestern University. 2008. Policies and Procedures. Cash Handling, p. 8. Retrieved

from http://www.northwestern.edu/controller/treasury-operations/depository-
services/cash-policy.pdf
Suge, B.C. (2013). The Effect of Financial Management Practices on Church Funds
Stewardship. Retrieved from http://ir-library.ku.ac.ke/handle/123456789/7108
UC San Diego. (2014). Internal Control Practices: Purchasing. Retrieved November

25, 2016 from
http://blink.ucsd.edu/finance/accountability/controls/practices/purchasing.html
119
UCSD. (2015). Understanding Internal Controls: A Reference Guide For Managing

University Business Practices. Retrieved from
http://www.accaglobal.com/lk/en/student/exam-support-
resources/fundamentals-exams-study-resources/f1/technical-articles/internal-
controls.html
WEBSITES
AICPA. (n.d.). The Importance of Internal Controls in Financial Reporting and

Safeguarding Plan Assets. Retrieved from
https://www.aicpa.org/InterestAreas/EmployeeBenefitPlanAuditQuality/Resour
ces/PlanAdvisories/Pages/The%20Importance%20of%20Internal%20Controls%
20in%20Financial%20Reporting%20and%20Safeguarding%20Plan%20Asset.a
spx
Arufo, Aries. (2015). Can we know how rich the Catholic Church is? Retrieved
November 26, 2015, from http://www.rappler.com/newsbreak/in-depth/80233-
wealth-catholic-church
Civil Service India. (2016). Management of Cash, Receivables, Inventory and Current
Liabilities. Retrieved November 27, 2016 from
http://www.civilserviceindia.com/subject/Management/notes/management-of-
cash.html
Esmaquel II, Paterno. (2013). 'How can a book destroy the Church?' Retrieved from
http://www.rappler.com/nation/30898-altar-secrets-rufo-launch
FCF. (n.d.). Church Cash Receipts. Retrieved from

http://www.freechurchforms.com/church_cash_receipts.html
Frost, J. (2016). Understanding t-Tests: t-values and t-distributions. Retrieved from

http://blog.minitab.com/blog/adventures-in-statistics-2/understanding-t-tests-t-
values-and-t-distributions
Herminda, Ranilo. (2015). The Catholic Church In The Philippine Public Sphere.
Retrieved from http://journals.ateneo.edu/ojs/kk/article/viewFile/2037/2035
120
Hoare, D. (2013). Effective Internal Controls for Cash. Retrieved from

http://businessecon.org/2013/03/effective-internal-controls-for-cash/
James, Kendra. (n.d.). Purpose of Internal Control. Retrieved from

http://smallbusiness.chron.com/purpose-internal-control-3804.html
Lee, I. (2014). What Does a Negative T-Value Mean? Retrieved from

http://sciencing.com/negative-tvalue-mean-6921215.html
121
Appendix A
Recommendations and Suggestions of the Panel
Members
122
PANEL MEMBERS’ SUGGESTIONS AND RECOMMENDATIONS
Research Components Examinee Comments/Recommendations

-Triangulate the functions to
Dean Maria support the discussion
Chapter III Veronica Joy M. -Conduct preliminary interviews to
Binuya, CPA, PhD support the development of the
research instrument.
Use frequency in the adjectival
Description of the answers in the

Chapter III Dr. Adrian Lawsin
Research Instrument –Always
Often, Sometimes, Rarely, Never.
Survey the same positions in all

Chapter I Dr. Eden U. Alberto
the selected churches.
123
124
Research Components Examinee Comments/Recommendations

-Change to past tense
-Describe the churches in Chapter 3

Dean Maria
-Add the flow of cash in Churches
Chapter III Veronica Joy M.
-Discuss the analysis per church
Binuya, CPA, PhD
-Be specific in the definition of
terms
-Remove differences in episcopal
group
-Title: “Control Activities and Cash
Chapter I Dr. Don Magpantay Management Practices of selected
Roman Catholic Churches in Cavite:
A Basis for Enhance Cash
Management and Control
-Check the page numbers

Chapter III Atty. Mario P. Bravo
-Be specific in “functions” delegated
125
Appendix B
Methods
126
QUESTIONNAIRE
Good day! The researchers would like to get your honest opinion related to the topic: The
Control Activities and Cash Management Practices of Selected Roman Catholic Churches
in Cavite. The study seeks to assess the internal control and cash management practices
of selected Roman Catholic churches in Cavite which may serve as a basis for
enhancement. As one of the target respondents, your views and opinion are very
important to this study. We would appreciate you taking the time to complete the
following survey. The responses obtained will not be identified individually and will be
kept confidential, then it will be compiled together and analyzed as a group and strictly
be used for academic purpose only.
This questionnaire was adapted from the Diocesan Internal Control Framework drafted
by United States Conference of Catholic Bishops.
Thank you for your cooperation.
Part I: Background Information
1. Number of Years of Establishment of Parish Affiliated
 Below 25
 26-50
 51-75
 76-100
 101 and above
2. Monthly Collection of Parish Affiliated
 Below 25,000
 25,001-50,000
 50,001-75,000
 75,001-100,000
 Above 100,001
127
Part II: Internal Control (Control Activities) Practices
Instructions: Kindly encircle the number that corresponds to your answer.
Where:
1 – Never 3 – Often
2 – Rarely 4 – Always
a. DELEGATION OF AUTHORITY AND SUPERVISION

Statement Never Rarely Often Always
The parish establishes organizational chart with

1 2 3 4
clearly defined job descriptions.
The employees clearly understand their authority

and responsibility as well as the duty of their co- 1 2 3 4
workers’.
The parish delegates responsibilities to capable

1 2 3 4
and trustworthy employees.
The employees are given trainings and are

supervised relating to their assigned duties and 1 2 3 4
responsibilities.
b. SEGREGATION OF DUTIES
Key duties and responsibilities are divided among

1 2 3 4
different employees.
Duties are appropriately segregated between the

1 2 3 4
custody of and the accountability for assets.
Authorizing transactions are segregated from

1 2 3 4
recording the transactions.
A finance council member or a responsible officer

not involved in the daily record-keeping oversees 1 2 3 4
the accounting activities.
128
c. CHECKING OF TRANSACTION DOCUMENTS AND REPORTS

Accounting records and documents are maintained

1 2 3 4
to provide an audit trail.
Recording of all transactions are correct as to

quantity and peso amount and made in the proper 1 2 3 4
accounting period.
The supporting documentations are simple and

easy to use to help reduce error, as well as
1 2 3 4
designed to ensure that they will be completed
properly.
Documents and reports are certified as to their

1 2 3 4
accuracy by the finance council head.
d. PHYSICAL CONTROL OVER ASSETS AND ACCOUNTING RECORDS

All physical assets are properly secured, numbered

1 2 3 4
and inventoried.
Accounting records and all physical assets are

1 2 3 4
accessible only by authorized employees.
There is a proper documentation of authorizing the

1 2 3 4
movement of assets into or out of the parish.
Information systems are properly secured and

1 2 3 4
backed-up.
129
e. INDEPENDENT VERIFICATION OF PERFORMANCE

Both financial and non financial transactions are

1 2 3 4
verified by authorized personnel.
Supervisors periodically assess the performance of

1 2 3 4
their subordinates.
There is a random checking of cash collection. 1 2 3 4
Part III: Cash Management Practices
a. CASH RECEIPTS
Cash and check receipts are deposited intact. 1 2 3 4
Cash custody is separate from the task of record

1 2 3 4
keeping.
Undeposited cash is safely kept to a vault. 1 2 3 4
A responsible official periodically compare the list

1 2 3 4
with the journal record and the bank deposit.
b. CASH DISBURSEMENTS
All supporting documents are marked paid or

1 2 3 4
cancelled once made.
The person mailing the check are independent of

1 2 3 4
those requesting, writing, and signing it.
130
c. PETTY CASH
Only one person is in charged with the fund. 1 2 3 4
Petty cash is replenished only when approved

1 2 3 4
vouchers are presented.
Supporting documents are returned to custodian

1 2 3 4
and attached to voucher.
Petty cash fund is maintained separately from the

1 2 3 4
cash receipts.
131
Appendix C
Statistical Analyses
132
Pilot-Test
Scale: ALL VARIABLES
Reliability Statistics
Cronbach's
Alpha N of Items
.806 29
Item-Total Statistics
Cronbach's
Scale Mean if Scale Variance Corrected Item- Alpha if Item
Item Deleted if Item Deleted Total Correlation Deleted
CAA1 94.5333 58.602 .381 .797
CAA2 94.3667 58.033 .662 .789
CAA3 94.4000 58.179 .638 .790
CAA4 94.6333 60.654 .259 .803
CAB1 94.3000 63.872 -.009 .810
CAB2 94.6667 66.368 -.301 .820
CAB3 94.3333 61.540 .250 .803
CAB4 94.9333 59.720 .414 .797
CAC1 94.3000 59.459 .588 .793
CAC2 94.3333 59.747 .463 .796
CAC3 94.4333 60.116 .465 .796
CAC4 94.5000 63.155 .038 .811
CAD1 94.7000 57.459 .469 .793

133
CAD2 94.2333 61.151 .279 .802
CAD3 94.6333 61.344 .244 .803
CAD4 94.5000 57.845 .443 .794
CAE1 94.2667 59.513 .598 .793
CAE2 94.8000 57.407 .580 .789
CAE3 94.7000 57.390 .588 .789
CMA1 94.5333 60.051 .335 .800
CMA2 94.5000 59.155 .518 .794
CMA3 94.8333 56.006 .445 .794
CMA4 94.6667 54.851 .727 .780
CMB3 94.5000 64.948 -.126 .818
CMB4 96.1667 65.316 -.143 .825
CMC1 94.4333 60.116 .405 .798
CMC2 94.5333 60.947 .151 .810
CMC3 94.5667 60.323 .241 .804
CMC4 94.7667 59.840 .208 .808

134
Actual Data
Number of Years of Establishment
Cumulative
Frequency Percent Valid Percent Percent
Valid 26-50 9 30.0 30.0 30.0
76-100 3 10.0 10.0 40.0
101 and above 18 60.0 60.0 100.0
Total 30 100.0 100.0
Monthly Collection
Cumulative
Frequency Percent Valid Percent Percent
Valid Below 25,000 10 33.3 33.3 33.3
25,001-50,000 8 26.7 26.7 60.0
75,001-100,000 4 13.3 13.3 73.3
Above 100,001 8 26.7 26.7 100.0
Total 30 100.0 100.0
Descriptive Statistics
N Minimum Maximum Mean Std. Deviation
CAA1 30 1.00 4.00 3.4333 .81720
CAA2 30 2.00 4.00 3.6000 .56324
CAA3 30 2.00 4.00 3.5667 .56832
CAA4 30 1.00 4.00 3.3333 .71116

135
CAAAve 30 2.50 4.00 3.4833 .50827
Valid N (listwise) 30
CAB1 30 3.00 4.00 3.6667 .47946
CAB2 30 2.00 4.00 3.3000 .53498
CAB3 30 2.00 4.00 3.6333 .55605
CAB4 30 2.00 4.00 3.0333 .61495
CABAve 30 2.75 3.75 3.4083 .31131
CAC1 30 3.00 4.00 3.6667 .47946
CAC2 30 2.00 4.00 3.6333 .55605
CAC3 30 3.00 4.00 3.5333 .50742
CAC4 30 2.00 4.00 3.4667 .68145
CACAve 30 2.75 4.00 3.5750 .34209
136
CAD1 30 1.00 4.00 3.2667 .82768
CAD2 30 2.00 4.00 3.7333 .58329
CAD3 30 2.00 4.00 3.3333 .60648
CAD4 30 2.00 4.00 3.4667 .81931
CADAve 30 2.25 4.00 3.4500 .54298
CAE1 30 3.00 4.00 3.7000 .46609
CAE2 30 2.00 4.00 3.1667 .69893
CAE3 30 2.00 4.00 3.2667 .69149
CAEAve 30 2.33 4.00 3.3778 .53772
137
CMA1 30 1.00 4.00 3.4333 .67891
CMA2 30 2.00 4.00 3.4667 .57135
CMA3 30 1.00 4.00 3.1333 1.04166
CMA4 30 2.00 4.00 3.3000 .79438
CMAAve 30 2.50 4.00 3.3333 .54272
CMB3 30 1.00 4.00 3.4667 .68145
CMB4 30 1.00 4.00 1.8000 .92476
CMBAve 30 1.00 3.50 2.6333 .55605
CMC1 30 2.00 4.00 3.5333 .57135
CMC2 30 1.00 4.00 3.4333 .93526
CMC3 30 1.00 4.00 3.4000 .81368
CMC4 30 1.00 4.00 3.2000 .99655
CMCAve 30 1.75 4.00 3.3917 .70308
138
One-way
CA Years of Establishment
Descriptives
N Mean Std. Std. 95%

Deviation Error Confidence
Interval for
Mean
Lower Bound
26-50 9 3.6944 .32543 .10848 3.4443
76-100 3 3.0833 .14434 .08333 2.7248

CAAAve
101 and
18 3.4444 .57876 .13642 3.1566
above
Total 30 3.4833 .50827 .09280 3.2935
26-50 9 3.5833 .17678 .05893 3.4475
76-100 3 3.0833 .38188 .22048 2.1347

CABAve 101 and
18 3.3750 .31213 .07357 3.2198
above
Total 30 3.4083 .31131 .05684 3.2921
26-50 9 3.6667 .46771 .15590 3.3072
76-100 3 3.4167 .28868 .16667 2.6996

CACAve 101 and
18 3.5556 .27859 .06567 3.4170
above
Total 30 3.5750 .34209 .06246 3.4473
26-50 9 3.3611 .73006 .24335 2.7999
76-100 3 3.1667 .14434 .08333 2.8081

CADAve
101 and
18 3.5417 .47162 .11116 3.3071
above
139
Total 30 3.4500 .54298 .09913 3.2472
26-50 9 3.4815 .72860 .24287 2.9214
76-100 3 3.2222 .19245 .11111 2.7441

CAEAve 101 and
18 3.3519 .47791 .11264 3.1142
above
Total 30 3.3778 .53772 .09817 3.1770
26-50 9 3.5574 .43222 .14407 3.2252
76-100 3 3.1944 .02546 .01470 3.1312

CAAverag
e 101 and
18 3.4537 .26944 .06351 3.3197
above
Total 30 3.4589 .32311 .05899 3.3382

140
Descriptives
95% Confidence Minimum Maximum

Interval for Mean
Upper Bound
26-50 3.9446 3.25 4.00
76-100 3.4419 3.00 3.25

CAAAve
101 and above 3.7323 2.50 4.00
Total 3.6731 2.50 4.00
26-50 3.7192 3.25 3.75
76-100 4.0320 2.75 3.50

CABAve
101 and above 3.5302 2.75 3.75
Total 3.5246 2.75 3.75
26-50 4.0262 2.75 4.00
76-100 4.1338 3.25 3.75

CACAve
101 and above 3.6941 3.25 4.00
Total 3.7027 2.75 4.00
26-50 3.9223 2.25 4.00
76-100 3.5252 3.00 3.25

CADAve
101 and above 3.7762 2.50 4.00
Total 3.6528 2.25 4.00
26-50 4.0415 2.33 4.00
76-100 3.7003 3.00 3.33

CAEAve
101 and above 3.5895 2.67 4.00
Total 3.5786 2.33 4.00

141
26-50 3.8896 2.92 3.90
76-100 3.2577 3.17 3.22

CAAverage
101 and above 3.5877 3.00 3.95
Total 3.5795 2.92 3.95
ANOVA
Sum of df Mean F Sig.

Squares Square
Between
.908 2 .454 1.863 .175
Groups
CAAAve
Within Groups 6.583 27 .244
Total 7.492 29
Between
.613 2 .306 3.762 .036
Groups
CABAve
Total 2.810 29
Between
.158 2 .079 .658 .526
Groups
CACAve
Total 3.394 29
Between
.463 2 .232 .773 .471
Groups
CADAve
Total 8.550 29
Between
CAEAve .181 2 .091 .299 .744
Groups
142
Total 8.385 29
Between
.298 2 .149 1.472 .247
Groups
CAAverag
e Within Groups 2.730 27 .101
Total 3.028 29
Correlations (Delegation of Authority and Supervision to Cash

Management)
Correlations
CAAAve CMAAve CMBAve CMCAve CAAverage
Pearson Correlation 1 .482** -.236 -.011 .786**
CAAAve Sig. (2-tailed) .007 .210 .953 .000
N 30 30 30 30 30
Pearson Correlation .482** 1 -.038 .301 .603**
CMAAve Sig. (2-tailed) .007 .842 .106 .000
N 30 30 30 30 30
Pearson Correlation -.236 -.038 1 -.017 -.216
CMBAve Sig. (2-tailed) .210 .842 .929 .251
N 30 30 30 30 30
Pearson Correlation -.011 .301 -.017 1 -.059
CMCAve Sig. (2-tailed) .953 .106 .929 .755
N 30 30 30 30 30
Pearson Correlation .786** .603** -.216 -.059 1

CAAverage
Sig. (2-tailed) .000 .000 .251 .755
143
N 30 30 30 30 30
Pearson Correlation .108 .645** .461* .754** .145
CMAverage Sig. (2-tailed) .571 .000 .010 .000 .444
N 30 30 30 30 30
Correlations
CMAverage
Pearson Correlation .108
CAAAve Sig. (2-tailed) .571
N 30
Pearson Correlation .645**
CMAAve Sig. (2-tailed) .000
N 30
CMBAve Sig. (2-tailed) .010
N 30
CMCAve Sig. (2-tailed) .000
N 30
CAAverage Sig. (2-tailed) .444
N 30
Pearson Correlation 1
CMAverage
Sig. (2-tailed)
144
N 30
Correlations (Segregation of Duties to Cash Management)
Correlations
CABAve CMAAve CMBAve CMCAve CAAverage
Pearson Correlation 1 .021 -.400* .150 .371*
CABAve Sig. (2-tailed) .911 .028 .429 .043
N 30 30 30 30 30
Pearson Correlation .021 1 -.038 .301 .603**
N 30 30 30 30 30
Pearson Correlation -.400* -.038 1 -.017 -.216
N 30 30 30 30 30
Pearson Correlation .150 .301 -.017 1 -.059
N 30 30 30 30 30
Pearson Correlation .371* .603** -.216 -.059 1
CAAverage Sig. (2-tailed) .043 .000 .251 .755
N 30 30 30 30 30
Pearson Correlation -.093 .645** .461* .754** .145
N 30 30 30 30 30
145
Correlations
CMAverage
Pearson Correlation -.093
CABAve Sig. (2-tailed) .626
N 30
N 30
Pearson Correlation .461*
N 30
N 30
N 30
CMAverage Sig. (2-tailed)
N 30
146
Correlations (Checking of Transaction Documents and Reports to

Cash Management)
Correlations
CACAve CMAAve CMBAve CMCAve CAAverage
Pearson Correlation 1 .638** -.213 .349 .554**
CACAve Sig. (2-tailed) .000 .258 .059 .001
N 30 30 30 30 30
N 30 30 30 30 30
N 30 30 30 30 30
Pearson Correlation .349 .301 -.017 1 -.059
N 30 30 30 30 30
N 30 30 30 30 30
Pearson Correlation .416* .645** .461* .754** .145
N 30 30 30 30 30
147
Correlations
CMAverage
CACAve Sig. (2-tailed) .022
N 30
N 30
N 30
N 30
N 30
Pearson Correlation 1*
N 30
148
Correlations (Physical Control over Assets and Accounting Records

to Cash Management)
Correlations
CADAve CMAAve CMBAve CMCAve CAAverage
Pearson Correlation 1 .395* -.020 -.297 .790**
CADAve Sig. (2-tailed) .031 .917 .111 .000
N 30 30 30 30 30
Pearson Correlation .395* 1 -.038 .301 .603**
N 30 30 30 30 30
N 30 30 30 30 30
N 30 30 30 30 30
N 30 30 30 30 30
Pearson Correlation -.005 .645** .461* .754** .145
N 30 30 30 30 30
149
Correlations
CMAverage
Pearson Correlation -.005
CADAve Sig. (2-tailed) .980
N 30
N 30
N 30
N 30
N 30
N 30
150
Correlations (Independent Verification of Performance to Cash

Management)
Correlations
CAEAve CMAAve CMBAve CMCAve CAAverage
Pearson Correlation 1 .538** -.040 -.177 .896**
CAEAve Sig. (2-tailed) .002 .835 .350 .000
N 30 30 30 30 30
N 30 30 30 30 30
N 30 30 30 30 30
N 30 30 30 30 30
N 30 30 30 30 30
Pearson Correlation .128 .645** .461* .754** .145
N 30 30 30 30 30
151
Correlations
CMAverage
CAEAve Sig. (2-tailed) .500
N 30
N 30
N 30
N 30
N 30
N 30
152
Correlations (Control Activities to Cash Management)
Correlations
CAAverage CMAAve CMBAve CMCAve CMAverage
Pearson Correlation 1 .603** -.216 -.059 .145
N 30 30 30 30 30
N 30 30 30 30 30
Pearson Correlation -.216 -.038 1 -.017 .461*
N 30 30 30 30 30
Pearson Correlation -.059 .301 -.017 1 .754**
N 30 30 30 30 30
Pearson Correlation .145 .645** .461* .754** 1
CMAverage Sig. (2-tailed) .444 .000 .010 .000
N 30 30 30 30 30
153
Appendix D
Communication Letters
154
155
156
157
158
159
160
161
162
163
164
Appendix E
Certifications
165
166
167
168
169
170
171
Appendix F
Gantt Chart & Line Item Budget

172
LINE ITEM BUDGET
Research Title : CONTROL ACTIVITIES AND CASH MANAGEMENT

PRACTICES OF
SELECTED ROMAN CATHOLIC CHURHCES IN
CAVITE: A BASIS FOR ENHANCEMENT
Researchers : CAMILLE Q. HILARIO

DANIELA TERI R. CO
JAN ALLANA R. ILAGAN
JOHN FRANCE A. MARIANO
MARY LYNN E. STA. PRISCA
Period Covered : November 2016 – March 2017
Items Amount
Transportation Expense
Printing Expenses P 1,689.00
Supplies and Material Expenses
a. Sliding Folders 219.00
b. Bond Paper 35.00
c. Clips 11.00
d. Cartolina 10.00
e. Tokens 150.00
Professional Expenses
a. Food for panel members
 Proposal defense 1,614.00
Token of appreciation 685.00
Total P 4,413.00
173
174
Appendix G
Photographic Documentations
175
The researchers with Mrs. Alicia Bañas, CPA, MBA and Mr. Dionisio G. Magpantay,
CPA, DPA, PhD, DBE, during the validation of their questionnaires. (top: with Mrs.
Bañas, below: with Mr. Magpantay)

176
The researchers with one of the panel member, Dr. Maria Veronica Binuya (first from the
right), and with their research adviser Prof. Amir Auditor (first from the left).
A financial report posted outside the church office
of San Isidro Labrador- Ligtong, Cavite noticed
by the researchers during the visitation of
churches and distribution of questionnaires.
Unfortunately, among all the churches, San Isidro
Labrador is the only church with this evidence
posted for the public.

177
The researchers during the multiple
times of visitation to the farthest
church- Nuestra Señora de Guia Parish
in Magallanes, Cavite (below) and to
the second farthest and has the most
beautiful spot- Our Lady of the
Assumption Parish Church in
Maragondon, Cavite (left).

178
The researchers with previous Statistics High School teacher in their Alma
Mater, Cavite National High School, and now the Mathematics Department
Head VI Fernando N. Estrañero, Ed. D. during the reliability of the
statistical information.
179
Appendix H
Curriculum Vitae
180
Camille Q. Hilario
PERSONAL DETAILS:
Address : 227 Via Ferrea St., Caridad, Cavite City
Age : 19 years old
Date of birth : November 10, 1997
Place of birth : Cavite City
Civil status : Single
Nationality : Filipino
Religion : Roman Catholic
Contact No. : 0917-7951-300
Email : hilario_camille@yahoo.com
EDUCATIONAL BACKGROUND:
Primary : Ladislao Diwa Elementary School
P. Burgos Ave, 20, Cavite City, 4100 Cavite
2004 – 2010
Secondary : Cavite National High School
Chief E. Martin St. Caridad, Cavite City
2010 – 2014
Tertiary : Bachelor of Science in Accountancy
Manila Tytana Colleges
Pres. Diosdado Macapagal Blvd., Metropolitan Park, Pasay City
2014 – present
181
AWARDS/HONORS/ACHIEVEMENTS:
: Chairman’s Circle Awardee
2nd Semester, AY 2016-2017
: President’s Circle Awardee
1st Semester, AY 2015-2016
: Dean’s List Awardee
AFFILIATIONS:
: Junior Philippine Institute of Accountants – MTC Chapter
Member (2014 – present)
Chairperson for Membership (2015-2017)
: National Federation of Junior Philippine Institute of Accountants

INTERESTS:
Academic-related : Trivia, puzzles, analyzation, math problems, spelling bees
Non-academic-related: Likes reading novels, traveling/backpacking, listening to pop-
punk/punk music and OPM, watching (horror, mystery, romantic
comedies, and action) movies, hanging out with friends, playing
Mobile Legends
182
Daniela Teri R. Co
PERSONAL DETAILS:
Address : 538 T. Gomez Street, Caridad, Cavite City
Age : 19 years old
Date of birth : December 20, 1997
Contact No. : 0905-289-5233
Email : danielaco630@gmail.com
Primary : Julian R. Felipe Elementary School
San Antonio, Cavite City
2004 – 2010
2010 – 2014
2014 – present
183
AFFILIATIONS:
: Titan Scholars Guild
: ROTARACT Club
Vice President (2016-2017)
INTERESTS:
Academic-related : Watching documentaries, Writing poems and essays, solving
math problems, and practicing grammatical skills
Non-academic-related : Watching vlogs about lifestyle and skincare, taking pictures,
reading fiction books, watching movies, Kdrama, and
documentaries, travel and bond with friends, and listening to pop
and OPM songs
184
Jan Allana R. Ilagan
PERSONAL DETAILS:
Address : 204 H. Del Trabajo St., San Antonio, Cavite City
Age : 19 years old
Date of birth : March 13, 1998
Contact No. : 0936-260-0397
Email : janallana.ilagan@gmail.com
Primary : Manuel Rojas Elementary School
San Roque, Cavite City
2004 – 2010
2010 – 2014
2014 – present
185
2nd Semester, AY 2014 – 2015
AFFILIATIONS:
: ROTARACT Club
Auditor (2016-2017)
INTERESTS:
Academic-related : Puzzles, analyzation, math problems
Non-academic-related : Taylor Swift, Dancing, watching movies, playing escape games
186
John France A. Mariano

PERSONAL DETAILS:
Address : 264 Bagnas St. Sta. Isabel, Kawit, Cavite
Age : 19 years old
Date of birth : July 26, 1997
Place of birth : San Pedro, Laguna
Religion : Born Again Christian
Contact No. : 0998-4478-180
Email : jfm467@gmail.com
Primary : Manuel Rojas Elementary School
San Roque, Cavite City
2003 – 2009
2009 – 2013
2014 – present
187
: Chairman’s Circle Awardee

1st Semester, AY 2014 – 2015

AFFILIATIONS:
Academic Coordinator (2014-2015)
Auditor (2016 – 2017)
: Manila Tytana Colleges Student Council
Auditor (2017-2018)
: Church of the Chief Shepherd Global Ministry Fire Starters Ministry

Multimedia Coordinator (2017)
INTERESTS:
Academic-related : Accounting, history, literary writing
Non-academic-related: Christian life, Christian songs, videography and photography,
video and photo editing, fiction novels, K-dramas
188
Mary Lynn E. Sta. Prisca

PERSONAL DETAILS:
Address : 141 Salcedo II Noveleta, Cavite
Age : 19 years old
Date of birth : April 1, 1998
Place of birth : Muntinlupa City
Contact No. : 0936-7100-270
Email : mstaprisca@gmail.com
Primary : Salcedo Elementary School
Cuevas Subdivision Noveleta, Cavite
2004 – 2010
2010 – 2014
2014 – present
189
2nd Semester, AY 2014 – 2015
AFFILIATIONS:
Non-Academic Chairperson (2016-2017)
Treasurer (2015 – 2016)
: The Centerpost (School Publication)
Writer (2014-2015, 2016-2017)
INTERESTS:
Academic-related : Trivia, puzzles, analyzation, math problems
Non-academic-related: Ed Sheeran and Darren Espanto , Korean (Goblin) Taiwanese
andChinese Drama, Youtube Volgs, 2Fuse, watching any genre of
movies, Photograohy

Control Activities and Cash Management of Catholic Churches in Cavite Sept 24

Uploaded by

Document Informationclick to expand document information

Copyright:

Available Formats

Control Activities and Cash Management of Catholic Churches in Cavite Sept 24

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Control Activities and Cash Management of Catholic Churches in Cavite Sept 24

Uploaded by

Copyright:

Available Formats

THE CONTROL ACTIVITIES AND CASH MANAGEMENT PRACTICES

OF SELECTED ROMAN CATHOLIC CHURCHES IN CAVITE:

Mr. Amir T. Auditor, CPA

In partial fulfillment of the requirements for the degree BACHELOR OF

SCIENCE IN ACCOUNTANCY, this research paper entitled “THE CONTROL

ACTIVITIES AND CASH MANAGEMENT PRACTICES OF SELECTED

ROMAN CATHOLIC CHURCHES IN CAVITE: A BASIS FOR

ENHANCEMENT” has been prepared and submitted by CAMILLE Q. HILARIO,

DANIELA TERI R. CO, JAN ALLANA R. ILAGAN, JOHN FRANCE A.

Accepted and approved in partial fulfillment of the requirements for the

degree BACHELOR OF SCIENCE IN ACCOUNTANCY.

The researchers would like to express their gratitude to the following

in the preparation and completion of their research paper.

To Professor Amir Auditor, CPA, their research adviser, who diligently

To Dean Maria Veronica M. Binuya, CPA, PhD, head of the

To Dr. Don M. Magpantay, PhD, DPA, SPBE, their professor in business

for the benefit of the users.

To Most Rev. Bishop Reynaldo G. Evangelista, Bishop of Diocese of

interviews in the selected Roman Catholic Churches in Cavite.

To the Parish Priests, secretaries, employees, and volunteers of the

researchers’ inquiries. Their participation made this research a success.

To Abigail G, Leron, Andrea Q. Tayoto, Emmelyn I. Posada, Kryssel G.

Above all, the researchers would like to express their extreme

trust in us while doing this research, for always giving positivity.

To all of you, we are truly blissful.

Thank you very much.

Research Title : THE CONTROL ACTIVITIES AND CASH

Researchers : CAMILLE Q. HILARIO

Degree : BACHELOR OF SCIENCE IN ACCOUNTANCY

School : MANILA TYTANA COLLEGES

Adviser : MR. AMIR T. AUDITOR, CPA

Date : May 2017

cash management practices of selected Roman Catholic Churches in Cavite which

day activities of an organization and is normally observed by stakeholder. In

relation to this, is cash management which is the stewardship or proper use of an

entity’s cash resources. Cash management assists to keep an organization

resources. This research aimed to determine if there is a significant difference in the

assessment of the respondents regarding the practices of selected Roman Catholic

Churches in Cavite on control activities and cash management when grouped

according to profile. The researchers also aimed to determine if there is a

significant relationship between the control activities and cash management

practices of selected Roman Catholic Churches in Cavite.

This study used a quantitative research method, specifically descriptive

used a non-random sampling technique, specifically purposive sampling technique.

The respondents were selected based on two criteria: number of years of

establishment of parish affiliated and monthly collection of parish affiliated. The

Catholic Bishops which was modified by the researchers to formulate questions in

respondents to answer. The data gathered were subjected to different statistical

frequencies and percentages. The assessment of the respondents regarding the

control activities and cash management practices of selected Roman Catholic

Churches in Cavite was determined by mean and standard deviation. One-way

respondents regarding the control activities and cash management practices of

selected Roman Catholic Churches in Cavite when grouped according to number of

years of establishment and monthly collection of parish affiliated. The researchers

between the assessment of the respondents regarding control activities in relation to

cash management practices of selected Roman Catholic Churches in Cavite. The

The researchers had thirty (30) respondents. In terms of the frequency

of the participants regarding the number of years of establishment of parish