The Internal Financial Control Practices of the ACDI Multipurpose Cooperative

Abstract

The study aimed to assess the level of effectiveness of internal financial control practices of ACDI Multipurpose Cooperative limited to the variables used extracted from the Cooperative Development Authority (CDA) Regulations. Descriptive-survey method of research was adopted and utilized in the study. The study involved 223 respondents from Accounting, Finance, and Internal Audit Department of the Cooperative who participated and answered the survey questionnaire essential to the research being undertaken. Statistical tools employed in the study were Frequency, Percentage Distribution, Weighted Mean, T-test, Ranking, and One-Way Analysis of Variance. Findings revealed that overall respondents’ assessment on the level of effectiveness of Internal Financial Control Practices of ACDI MPC was rated as “Effective.” In terms of System and Procedures, the Cooperative is compliant with the submission of the required reportorial requirements with CDA. In terms of Financial Accountability, the Cooperative ensures proper implementation of countersigning any alterations or erasures in financial documents. And in terms of Financial Recording & Reporting, the preparation of the financial reports is always in accordance to the Philippine Financial Reporting Frameworks for Cooperatives. However, the study found out that the Cooperative needs to further improve its practice in providing relevant seminars and training sessions specifically to the rank and file employees, reinforcement of proper segregation of duties; an employee who has the task of recording should not be the custodian of funds and other areas of internal financial control practices that need more attention based on the respondents’ assessment.