Enhancement of the Accounting System and Internal Control for Efficient Management of Funds and Revenue of Wellspring Learning Academy of Canlubang Inc.

Jay Mark  G. Salvador,; Alejandro Ii  M. Manoloto,; Jimuel  N. Mazo,

Enhancement of the Accounting System and Internal Control for Efficient Management of Funds and Revenue of Wellspring Learning Academy of Canlubang Inc.

Jay Mark G. Salvador | Alejandro Ii M. Manoloto | Jimuel N. Mazo

Abstract:

The study evaluated and analyzed the current system of Wellspring Learning Academy of Canlubang Incorporated (WLACI) and other related school practices specifically in the areas of cash, receivables, debts, revenues, and expenditures. These were the areas used in the study to come up with recommendations and action plan for its enhancement. Specifically, the study answered the following problems: the current accounting and internal control systems of the organization that affect its funds and revenue management systems; the current system employed by the organization in the areas of management of funds and revenue; the strengths and weaknesses of the institution’s current practices on the management of funds and revenue; and the current related industry practices about funds and revenue management system.

The researchers adopted a comparative, evaluative, and action research methods to enhance the WLCI’s existing practices on management of funds and revenue. It was done by gathering primary data from the staff of WLACI through survey questionnaires. Secondary data were also gathered from the same institutions that used the recommended practices to be adopted by WLCI.

Results revealed that the existing accounting systems for cash receipts and disbursements, receivable, and revenues were all unsatisfactory while the debts and expenditures needed improvement. The internal control system installed on accounting system for cash receipts and disbursement and debt also needed improvement. The internal control for revenue was outstanding and unsatisfactory for expenditure.

The existing system for cash managements on its cash receipts and disbursements both needed improvement while in the receivable, petty cash fund, debts, and expenditure were all unsatisfactory. The existing system for revenue was satisfactory. The internal control system particularly on cash receipts, receivable, debts, revenue, and expenditures needed improvement. The internal control for cash disbursements and petty cash fund were both unsatisfactory.

The existing system for management on its cash receipts, cash disbursements, receivable, debt, revenue and expenditure were assessed to be the strength in the current existing practices on fund and revenue management of WLACI. The internal controls system installed on fund and revenue management system particularly on cash receipts, disbursement, petty cash fund, receivable, debt, revenue, and expenditure were also considered as the strength of the institutions current controls practices on fund and revenue management systems.

In addition, the following were found to be the adoptable practices of related school to enhance the current system of WLACI about Fund and Revenue Management System: imprest system for cash receipts and disbursement; concentration banking to fasten the collection scheme; the credit function of the institution separated from the revenue function; establishment of adequate allowance for probable losses from delinquent accounts; write-off of delinquent accounts thru approval by the Board of Trustees; procedures of probable future collection from written-off accounts; pre-numbered documents used for billing; written procedures regarding the recording and reconciliation of revenue generating transactions; procedures to ensure that fees billed are adequate to recover all direct and indirect costs; the person responsible to the account/notes receivable is independent from the credit manager; preparation of cash budget that begins at least six months before the beginning of the next fiscal/calendar year; preparation of the budget that involved all the individuals affiliated with the institution; paid invoices that are stamped “PAID” to prevent the duplicate payment.