Document Review Before Payment and Its Impact on Financial Disallowances and Accountability in Department of Agrarian Reform – Masbate
DOI:
https://doi.org/10.65339/ijsair.V2.I2.376Keywords:
Accountability, Audit Disallowances, Document Review, Financial Accountability, Internal Controls, Payment Transactions, Public Financial Management, Supporting Documents, Transparency, Verification ProceduresAbstract
This study examined the impact of document review before payment on financial accountability and financial disallowances in the Department of Agrarian Reform (DAR)–Masbate. Anchored on Internal Control Theory, Agency Theory, and Audit Theory, and guided by the Input–Process–Output (IPO) model, the study emphasized the importance of pre-payment document verification in ensuring compliance, transparency, and accountability in government financial transactions. A quantitative descriptive-correlational research design was employed involving forty-two (42) DAR–Masbate employees directly engaged in payment processing and document review. Data were gathered using a validated researcher-made questionnaire and analyzed through frequency count, percentage, weighted mean, ranking, and Pearson Product-Moment Correlation Coefficient (Pearson r). Findings revealed that DAR–Masbate consistently implements document review practices through strict compliance with documentary requirements, verification of document accuracy and validity, and timely review of supporting documents before payment processing. Essential supporting documents such as Disbursement Vouchers (DV) and Obligation Request and Status (ORS) were consistently required in payment transactions. However, incomplete submissions, inconsistent information, noncompliance with documentary requirements, weak internal controls, and coordination gaps remained common causes of financial disallowances. The study further established a statistically significant positive relationship between document review before payment and financial disallowances, indicating that stronger verification procedures improve the detection of deficiencies and audit issues. Operational challenges identified included heavy workload, limited manpower, changing guidelines, and insufficient coordination among offices. The study concluded that strengthening internal controls, standardized procedures, management support, and continuous personnel training enhances financial accountability and reduces audit risks in DAR–Masbate. It recommended stricter enforcement of documentary requirements, improved coordination, regular updating of procedures based on COA guidelines, and the implementation of monitoring tools and standardized verification systems. The study supports Sustainable Development Goal (SDG) 16 on Peace, Justice, and Strong Institutions by promoting transparency, accountability, and effective public financial management. It also aligns with SDG 8 on Decent Work and Economic Growth through improved efficiency and responsible use of government resources. The sustainability impact of the study lies in strengthening institutional governance, improving financial management practices, and promoting long-term accountability and transparency in public sector operations, particularly in agrarian reform service delivery.
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