Philippine E-Journals

Enhancement of Accounting System of IRRI Employees’ Credit and Development Cooperative

Laarne Jaone G. Navarra | Charvemaine O. Progoso | Anna Rose R. Villa

Discipline: Accountancy

 

Abstract:

This study aimed to evaluate IRRI-ECDC’s current accounting system to enhance its cooperative account transactions and be able to produce reliable and timely reports. To achieve this, the cooperative’s current accounting procedures and control practices were evaluated; the specific problems and accounting loopholes of the existing accounting system of the cooperative were identified; and the findings revealed in the study were analyzed. The study also suggested enhancements to give the company a better, if not the best, accounting system tailored-fit for the cooperative business operations.

 

To gather data necessary in evaluating the cooperative’s existing accounting system, interviews and questionnaires were used. Furthermore, the accounting procedures and controls assumed by IRRI-ECDC were observed to validate the information gathered, and the overall condition of the current accounting system of the cooperative was assessed by evaluating and comparing it to the set criteria tailored-fit by the study for IRRI-ECDC.

 

The study identified accounting loopholes in the system primarily in issues concerning segregation of duties and lack of forms and controls in cash transactions that affect data information and preparation of the financial reports used for decision-making.

 

The study, therefore, recommended the establishment of a written accounting policy manual to promote consistent performance, set up additional forms for payment over the counter, strict enforcement of monitoring functions of the committee, use ATM as part of its technology advancement, and promote convenience to the members in transacting loans with the cooperative.