Chapter I

Introduction and Background of the Study

Introduction

Efficiency in the collection process played a crucial role in the organization.

Management must make effective planning which creates positive results for the

organization. As discussed by Medeiros (2020) determination in demanding collection

must be manifested to make the billing and collections operations’ as effective as

possible.

Similarly, being efficient in collecting revenue is vital to both management and

employees. The impact of which is demonstrated by using less inputs and more positive

outcome. It also means doing assigned tasks without making mistakes, because the

possible mistakes not only destroy the organization’s reputation but also hamper the

organizational development. Furthermore, efficient employees perform duties in a

successful manner that leads the organization to its expected level.

One of the most significant features of the company is the system of the

collection process. Thus, it is essential to enhance organized operations for all main

elements of the process and collection. A well-documented perspective on collections

agrees the personnel be constant with statements and contain touchpoints with clients

during the process of payment (Staff Writer, 2022).

Moreover, an efficient collection process in an organization like the Civil Aviation

Authority of the Philippines particularly in the finance department will increase growth

and profitability. Increasing efficiency will save time and money and the best way to

improve efficiency is to measure and analyze the processes and system enhancement.

An enhancement of the system is one in which new capabilities are added to the
present system. It also involves modifying flaws, adding new reports, and amending

functionality to comply with revised rules or needs (Pearson, 2018). Employees have a

big role in the organization and they are making a meaningful contribution to its

success.

Being efficient in a day to day operation of the Civil Aviation Authority of the

Philippines finance department will help improve the production output, thus; it can

eliminate the time-consuming task of employees. The best way to expand efficiency is

for the management to take time constantly to assess, plan, and focus. This can forge a

kind of employees’ collaboration that develop a sense of responsibility for the best

interest of the clients that are transacting in the company. Exceptional efficiency can

help fulfill clients’ satisfaction and improving this process can create high labor output.

Needless to say, having a system enhancement on the transaction process

means having a greater opportunity to expand the business organization. According to

Panorama Consulting Group (2017), system enhancement is one way of allowing the

organization to further develop without increasing the number of employees. It expands

the organizational processes of data and takes on monotonous, but essential backroom

tasks, even with a heavy workload.

In the Civil Aviation Authority of the Philippines, it is significant that system

enhancement in the finance department must be observed properly to achieve more at

a lower cost, with a higher return and less pressure. Something to be enhanced in the

finance department like a collection process has a useful effect and it should be

functional. This can produce minimize waste of time, expenditure, or unnecessary effort.

The focus is on the resources and speed with which organizational mission and visions
are achieved. According to Amega (2021), inefficient systems decelerate the operation

but also fail to deliver the speed needed to expand the credit to cash results.

Furthermore, manual collection operations and spreadsheet collection supervision are

very incompetent and unproductive, have very low output, and are susceptible to error

(Leib Smyyth, 2019).

Along this premise, the researcher takes this opportunity to analyze the system

enhancement of the Civil Aviation Authority of the Philippines’ collection process.

Background of the Study

Under Republic Act No. 9497, the Civil Aviation Authority of the Philippines

(CAAP) was created and this was approved on March 4, 2008. Chapter 1, Section of

the Republic Act states that "provide safe and efficient air transport and regulatory

services in the Philippines by providing for the creation of a civil aviation authority with

jurisdiction over the restructuring of the civil aviation system, the promotion,

development, and regulation of the technical, operational, safety, and aviation security

functions under the civil aviation authority.”

The government began the rigorous civil aviation reform program in 2008. As

stipulated in Chapter 1, Section 4, CAAP is an independent regulatory body with quasi-

judicial and quasi-legislative powers and possesses corporate attributes attached to the

Department of Transportation and Communication (DOTC) for policy coordination." The

existing Air Transportation Office under the provision of Republic Act No. 776, was

abolished.
 CAAP is empowered to modernize its standard to guarantee the accessibility of

technical and qualified personnel responsible for the system enhancement and

prescribed procedures for civil inspectorate, licensing, and supervising functions to

conform to ICAO and other international aviation standards. Furthermore, CAAP

granted the flexibility to integrate new actions and strategies as they become available

without the course of action needed for the declaration of a legally binding mandate.

CAAP enjoys fiscal autonomy as stated in Chapter II, Section 15. All earnings

from the collection/levy and other income shall be used exclusively to finance the

operations of the organization.

CAAP is divided into different departments. However, this study will specifically

focus on the collection section and this is under the administrative and financial services

which deliver the overall supervisory administrative and financial services perform other

duties required by the Director-General. Furthermore, this is also under the finance

department, which manages the financial tasks in support of CAAP operations, provides

financial reports and updates for decision-making to the Board, and also prepares

organizational comments on COA Audit findings and recommendations and financial

matters, etc.

In the issuance of Billing Statement like the Certificate of Airworthiness,

Approved Maintenance Organization (AMO), Approved Material Distribution Certificate

(AMDC), Type Validation Certificate, and Daily Subsistence Allowance (DSA) the airline

operators and ground handlers will prepare the requirements such as Pro-Forma

Invoice, Travel Order, a Print out of Exchange Rate, UNDP Rate, Conforme Letter, Visa

Reference, and Letter of Request of Operator. The accounting personnel of the finance
department will receive and review the completeness of the documents from

FSIS/AANSOO. Next, the billing statement will be prepared and this will be signed by

the Chief of the Accounting Division and is countersigned by the Chief finance

department. After this, the accounting personnel will record it in the outgoing logbook

and forward it to FSISAANSOO.

In the issuance of the Order of Payment Slip (OPS), the client will proceed to the

accounting division to submit the requirements, and the accounting personnel will check

and review the documents submitted. This will be followed by verification of the mode

of payment by the accounting personnel and this will be encoded with the

corresponding accounting entries. After this, the accounting personnel will prepare and

print out the order of payment slip and the Order of Payment Slip will be signed by the

Chief of Revenue Section. Lastly, the accounting personnel will release the order of

payment slips.

Statement of the Problem

This study aims to analyze the system enhancement of the Civil Aviation Authority of

the Philippines’ collection process.

This study sought answers to the following questions:

1. What is the profile of the participants in terms of:

1.1 Department Assignment;

1.2 Designation/ Position;

1.3 Job Status;

1.4 Length of service?

2. What is the level of efficiency in the collection process in terms of:

1.5 Preparation and Approval of Billing Statement;

1.6 Preparation and Issuance of Order of Payment Slip (per transaction);

1.7 Issuance of Official Receipts (Cash or Check);

1.8 Issuance of Official Receipts (Payments received through Telegraphic

Transfer)

1.9 Issuance of Official Receipts (Payment received through UCPB Collection

Facility); and

1.10 Recording of Transaction?

3. What is the significant difference in participants’ perceptions of the system

enhancement of the Civil Aviation Authority of the Philippines’ collection process

in terms of:

1.11 Preparation and Approval of Billing Statement;

1.12 Preparation and Issuance of Order of Payment Slip (per transaction);

1.13 Issuance of Official Receipts (Cash or Check);

1.14 Issuance of Official Receipts (Payments received through Telegraphic

Transfer)

1.15 Issuance of Official Receipts (Payment received through UCPB Collection

Facility); and

1.16 Recording of Transaction?

4. What are the issues and concerns in the collection process encountered by the

participants of the Civil Aviation Authority of the Philippines?

 5. Based on the findings of this study, what system enhancement may be

proposed?

Hypothesis

Ho1: There is no significant difference in participants’ perceptions of the system

enhancement of the Civil Aviation Authority of the Philippines’ collection process in

terms of preparation and approval of billing statements, preparation and issuance of the

order of payment slip (per transaction), issuance of official receipts (cash or check),

issuance of official receipts (payments received through telegraphic transfer), issuance

of official receipts (payment received through UCPB collection facility); and recording of

the transaction.

Theoretical Framework of the Study

The conceptualization of the system enhancement of the Civil Aviation Authority

of the Philippines’ collection process was based on Bandura’s Social Cognitive Theory.

Bandura described perceived self-efficacy as ‘beliefs in one’s capabilities to organize

and execute the courses of action required to produce given attainments (Bandura,

2011). He postulated that efficiency beliefs are powerful predictors of behavior because

they are ultimately self-referent in nature and directed toward perceived abilities given a

specific task. Such beliefs influence the courses of action people choose to pursue, how

much effort they will use in the given tasks, and how long they will persist in the face of

obstacles and failures.

In his theory, Bandura theorized that behavior is based on two sources: outcome

expectations and self-efficiency expectations. He defined outcome expectancy as a

person’s estimate that a given behavior will lead to certain outcomes whereas an
efficiency expectation is a conviction that one can successfully execute the behavior

required to produce the outcomes. Varying teacher self-efficiency will result in different

internal efficiency. The three-factor model of self-efficiency as introduced by

Tschannen-Moran & Woolfolk-Hoy is expected to predict different internal efficiency and

performances of the participants.

The social-cognitive theory of Bandura also offers the environment as a predictor

of behaviors. In this study, the profile of participants is introduced as possible. Varying

the profile of the participants would result in varying efficiency levels.

Research Paradigm

Profile of the
Participants Assigned Department
Designation/ Position
Job-status
Length of service

Level of Efficiency in
Preparation and Approval of Billing Statement;
the Collection Process
Preparation and Issuance of Order of Payment
Slip (per transaction);
Issuance of Official Receipts (Cash or Check);
Issuance of Official Receipts (Payments
received through Telegraphic Transfer)
Issuance of Official Receipts (Payment received
through UCPB Collection Facility)
Recording of Transaction

Issues and Concerns in

the Collection Process

Proposed System
Enhancement
Scope and Limitation of the Study

This study focused on the analysis of the system enhancement of the Civil

Aviation Authority of the Philippines’ collection process in the Central Office, particularly

in the finance and administration department that are involved in the study.

This study, however, was limited to the level of efficiency in the collection

process and the significant difference in participants’ perceptions in terms of the

preparation and approval of billing statements, preparation and issuance of the order of

payment slip (per transaction), issuance of official receipts (cash or check), issuance of

official receipts (payments received through telegraphic transfer), issuance of official

receipts (payment received through UCPB collection facility); and recording of the

transaction. Likewise, on the issues and concerns in the collection process encountered

by the participants of the Civil Aviation Authority of the Philippines. The results of this

study may not be generalizable to the entire organization of the Civil Aviation Authority

of the Philippines which may have different perspectives on internal system

enhancement.

The methodology of the study was a descriptive type and limited to a four-point

Likert Scale. This study was conducted in the second semester of the school year 2021

– 2022.
Significance of the Study

Many factors may affect the collection process efficiency of the Civil Aviation

Authority of the Philippines’ Central Office.

This study is believed to be important in the field of aviation for it determines how

well the employees size themselves up about their capability. This study will provide

and serve further benefit, specifically to the following:

Employees. Employees’ self-realization of their personal beliefs and

effectiveness towards their job will benefit especially the clients.

CAAP Administration. Awareness of how efficacious they are will provide them

a better stand in the performance of their duties. It is believed that management with

high self-confidence or personal beliefs in managing and administering a particular role

would prepare them with better strategies and innovations in management.

In the field of Public Administration. The result of this study would guide

administrators to conduct training/seminars prioritizing those employees with low self-

efficiency. This could also be a way of understanding and support to employees.

Knowing that subordinates’ internal efficiency would also result in better understanding

and strengthening the task and relationship with the colleagues. This harmonious

relationship could help the organization in attaining goals and objectives.

Promotion of Values. The findings of this study could be used in considering

the three dimensions of self-efficiency and internal efficiency as part of evaluating

employees’ behavior. Adjustment of organizational policy to suit these employees’

behavior could be implemented to promote moral values.

 Nation Building. This study will serve as a guide in designing and reformulating

existing policies that could bring about better performance of employees.

Researchers. The findings of this study will add to the literature of other studies

broadening the view of the research. This could also give graduate students a hint on

research topics. Local studies on the civil aviation industry are lacking so, studies on the

topic of aviation could be pursued.

Definition of Terms

The following terms are defined operationally and lexically to provide a common

frame of reference:

Administrative and Finance Department. A department in CAAP that provides

general administrative management and financial services as entailed or ordered by the

Director-General

Assigned department. A specified department whether in finance or in

administration where the personnel is working.

Bookkeeper. Personnel in the collection division whose duty is to prepare bank

deposits, verify receipts, process payroll, make purchases, prepare invoices, and

monitor overdue accounts.

Chief accountant. The Head of the Accounting Department is responsible for all

accounting tasks of both financial and management accounting.

Chief, collecting division. The Head of the Collection Division is responsible for the

accomplishment of the mission and objectives of the organization.

 Civil Aviation Authority of the Philippines. A government agency is accountable

for executing policies, strategies, rules, and regulations on civil aviation to ensure safe,

economical, and efficient air travel. Civil Aeronautics Board. Retrieved from

https://www.cab.gov.ph/dotc-sectoral-and-attached-agencies/item/civil-aviation-

authority-of-the-philippines

Collecting officer. Personnel of the collection division who is tasked to receive or

collect money on behalf of the organization.

Designation/ Position. The proficiency and qualifications assigned to the personnel

held in the company.

Efficiency assessment. An impartial analysis of the operating processes and

technical capabilities of the organization. IGI Global (2020). https://www.igi-

global.com/dictionary/towards-industry-40/64604

Employment status. The lawful entitlement status of the personnel at work.

Length of service. The span of years personnel has been employed at the

company where he or she works.

Office management. Includes synchronizing and organizing office tasks and

helping to uphold personnel satisfaction. Owlabs (2020). What is office management?

here's everything you need to know. Retrieved from

https://resources.owllabs.com/blog/office-management.

Operational efficiency. The capability of an organization to diminish waste of time,

effort, and materials, while still making excellent services. TechTarget (2020).

Operational efficiency. Retrieved from https://searchbusinessanalytics.

techtarget.com/definition/operational-efficiency
 Preparation and Approval of Billing Statement. This is the first stage of the

collection process and this is being prepared by the accounting department.

System Enhancement. The improvement of procedures more simply and feasibly.

Task efficiency. The ability of collection personnel to perform tasks in the right way.

Chapter II
Review of Related Literature and Studies

This chapter presented the different intellectual masterpieces which are pertinent

to the proceedings of this research. These are presented in reference to their source of

origin.

Foreign-Related Literature

According to WTO (2022), the billing statement enumerates all of the client’s

invoices and payments. It is helpful for a client that orders frequently. When a client

pays, that client will often integrate different invoices and payments in a lump sum.

Statements are invaluable to active clients, and keep the clients updated. Whenever a

client produces billing statements, any order will appear on a list. A billing statement is

in the form of printed or electronic information which is done on monthly basis. The

information within the billing statement encloses the client’s updated transactions, and

monthly payment information together with other vital information.

Revenue collection performance is crucial in encouraging effectiveness in the

delivery of service and economic growth of county governments. However, most of

them face grave issues in the revenue collection performance because the fund
collections are enough to sustain budget expectations (Balunya, 2014 as cited by

Adenya, et al., 2017).

Gideon (2018), mentioned that revenue collection is locally used to attain the

delivery of service in county governments by co-funding for project development,

therefore county government needs to collect much revenue to replenish their financial

expenditures. Automated system enhancement is capable of doing enormous

productivity to a business process that can increase revenue collections. Moreover,

Balunya, et al (2018), the weakening of the performance of revenue collection is due to

the corrupt practices and tax evasion made by some corrupt revenue collection officers.

Revenue collection involves how the government collects revenues in different sectors

through payments from industries, product sales, etc.

Every day the interest in improving revenue collection in some countries is

increasing. Most of these countries are developing from the predicament of their

economic prospects. However, many are still confronted with the need to collect more

revenues from their revenue collections. Hence, improving revenue collections will

ensure an increase in revenue collection performance (Muturi, 2018).

Furthermore, for a government to complement its achievement with the

necessities and expectancy of its people, it should improve its monetary complexity

without acquiring inflated recurring expenditures. (Tetteh, 2018).

Faruna, et al., (2019) highlighted that in local government in Nigeria, revenue

collection is mainly coming from taxes. Tax is a required levy obliged by the government

among the people and industries for the several legal functions of the state. Tax is an

important component of a civilized country.

 As discussed by Weinzweig (2022), organizational systems which are well-

designed, and build by various teams of intelligent, inventive, cooperative, and curious

personnel from different levels of the organization. Personnel enthusiastically embraces

systems in the organization and they supervene them because they trust that it is the

proper thing to do, and comprehend the value that efficient use of systems brings the

quality outcomes and results.

According to Outsourcing Angel (2017), the system and process enhancement

can improve the total performance of the personnel in the organization. This means that

the personnel can expedite the important task that needs to finish on time and this will

empower them to take on more vital roles that can benefit the organization.

Foreign-Related Study

Brazil implements a transitional-based tactic, through revenue collection and

payment of obligations, and taxes are executed on behalf of customers and importers

by some express carriers and the postal operator after the products arrive in Brazil.

These industries are obliged for imposing on consumers and importers the exact

amount of obligations and other expenses (WCO, 2018).

William (2019), emphasized that revenue is the amount of money that a

government collected from its citizen, and the sources of this revenue came from the

taxes on properties. The government regulates the tax collection and distributes the

revenue to be controlled efficiently. Likewise, revenue collection means the utilization of

resources from main sources such as households and industry and secondary sources

such as governments and donor agencies. There are many types of machinery funds
that can be prepared for, like personal payments, insurances taxes, earmarked taxes,

and donations from NGOs (Law Insider, 2022).

Campbell (2019), stresses that revenue collection often refers to a government

activity billing the individual or the public for fines, taxes, or any other fees. However,

revenue collection is also the overall collection of revenue for debts owed or owed

revenue by an individual or company. Revenue collection is chiefly related to

government agencies, it is also important for businesses as a way to collect revenue for

any assets. Anyone or anything incurred needs revenue collection.

Kwaji, et al (2021) carried a research on the empirical analysis of tax revenue

collection by the Federal Government in Nigeria. The study revealed that Capital Gains

Tax, Stamp Duty, Education Tax, and Petroleum Profit Tax are positively significant at

1%, 5%, and 10% respectively while Company Income Tax and Value Added Tax are

not significant. However, Company income tax has more total collected revenue than

all the remaining variables. Therefore, it is recommended that government should

enhance the collection of tax revenue processes and ensure that any deviations from

compliance with the laid down rules and regulations are severally dealt with and

punished accordingly.

Tahiru (2018), mentioned the following conclusions and recommendations which

were undertaken to investigate the challenges in the revenue collection process and the

development of a computerized solution: The case study of AMA property rate

collection. The findings revealed that the revenue trend has no stability in the collection.

It was revealed that the AMA has no inclusive taxable activities in their authority.

Furthermore, there is no existing system to trace payment invoices rather these were
handled manually, thus; these resulted in deception, abuse, and revenue loss. In this

respect, it can be deduced that minimizing the leak of revenue related to property rate

administration by the AMA and proposed database system for property collection rate

with detailed information of a person including their property.

Aizenman (2018), in his study on the collection efficiency of the value-added tax:

theory and international evidence mentioned that collection efficiency is ascertained by

the prospect of review and by the sanction on not paying and execution of delays

suggesting that the present policy maker determines the efficiency of the tax system

next period. The theory implies that the collection efficiency is influenced by political

economy deliberations - greater divergence and political uncertainty would decrease the

efficiency of the tax collection, and collection is affected by structural aspects affecting

the comfort of tax evasions such as urban development, agriculture share, and

openness.

Local Related Literature

The Philippine government with the help of the Asian Development Bank (ADB)

delivers technical assistance to fund a unified structure for modifications to boost

revenue collection, with the prosecution of tax evasion, as part of the obligation of the

Government of the overall effort for financial consolidation. This is considered monetary

consolidation through tax revenue improvement to strengthen the pillars of the

assistance strategy of the country (ADB, 2018).

Moreover, improvement of revenue collection can boost the revenues that can be

attained by raising the amount of taxes that individuals and industries pay to the
government. The government suffered from a shortage of budget, because of the

incapacity to achieve the mandates for services and infrastructure from people. This

means that the Philippine government must continually transform to find ways of the

additional fund to meet the people’s demands. However, the enhancement of the

revenue is not only focused on the public sector but also on the private sector. Private

industries must find ways of improving their revenue if they want to survive in a

competitive market. While cost savings is a usual approach for improving revenue,

though, it is only a temporary solution aside from the long-term practice of increasing

revenues that private industries can use to enhance revenue collection (CFI Education

Inc., 2022).

Monetary policy is the policy of the government on making the resources via

taxation and borrowing by setting the level of distribution of costs. It is the goal of the

government to continue and maintain the best monetary policy. This is possible through

an efficient, equitable, and advanced revenue system. Additionally, the government is

devoted to embracing a spending policy coherent with the macroeconomic growth

targets and sectoral precedence (COA, 2020).

Local Related Study

According to the Bureau of Treasury (2020), the Philippine government revenue

for 2020 was reduced to P2,856.0 billion, 8.97% or P281.5 billion lower than the

P3,137.5 billion raised in 2019, but 13.34% better than the P2,519.8 billion revised

programs for the year. Of the total, 87.69% or P2,504.4 billion was made via tax

collection, outpacing the revised program by 13.57% but lower by 11.44% YoY.
Temporarily, the remaining 12.31% or P351.5 billion obtained from non-tax revenue

improved by 13.52% over the 2019 level and surpassed the revised estimate by

11.74%. December collections of P238.5 billion represent a 1.95% or P4.7 billion drop

from 2019’s revenue performance. The Bureau of Internal Revenue’s (BIR) full-year net

collection stood at P1,951.0 billion2, exceeding its revised goal of P1,685.7 billion by

15.74% or P265.3 billion, but still 10.32% lower compared to the 2019 outturn.

Meanwhile, BIR’s December tax take inched up to P163.4 billion from the P162.6 billion

met in 2019.

Philippine Tax Reform for Attracting Better and Higher Quality Opportunities or

‘TRABAHO’, a TRAIN Law Package 2, assist the Bureau of Internal Revenue (BIR) in

prosecuting tax evaders, and more significantly, innovating the revenue collection

agency. TRABAHO executes provisions that allow electronic record-keeping for receipts

and sales reports, filing via electronic channels, and implementation of electronic sales

reporting. These innovations ensure that taxpayers will find it more convenient to file

and pay their taxes. Merely put, the taxpayers are entails to use a system that is

capable of issuing electronic receipts or invoices, collecting transaction records, and

transmitting these records to the BIR. The premise is that this system will simplify and

speed up not only business transactions but the tax administration procedures of the

government as well. Essentially, in an electronic invoicing and sales reporting system,

both the issuer and the recipient of the invoice can access and review the invoices

generated. On the other hand, tax authorities can collect and analyze electronically

transmitted data in real-time (Alipio, 2020).

Synthesis

All articles and research reviewed in this chapter of the study, add volume and

substance to the subject under this study. Most of them emphasized revenue collection

and the variables of the study.

The local and foreign articles collected emphasized more the issue facing the

different situations and challenges that the collection agencies observed and

experienced.

Campbell (2019), stresses that revenue collection often refers to a government

activity billing the individual or the public for fines, taxes, or any other fees. However,

revenue collection is also the overall collection of revenue for debts owed or owed

revenue by an individual or company. Revenue collection is chiefly related to

government agencies, it is also important for businesses as a way to collect revenue for

any assets. Anyone or anything incurred needs revenue collection.

This was supported by Aizenman (2018), in his study on the collection efficiency of the

value-added tax: theory and international evidence mentioned that collection efficiency

is ascertained by the prospect of review and by the sanction on not paying and

execution of delays suggesting that the present policy maker determines the efficiency

of the tax system next period. The theory implies that the collection efficiency is

influenced by political economy deliberations - greater divergence and political

uncertainty would decrease the efficiency of the tax collection, and collection is affected

by structural aspects affecting the comfort of tax evasions such as urban development,

agriculture share, and openness.

 Chapter III
Methodology

This chapter presents the methods used in collecting data and the statistical

methods used to analyze the data. It also discusses the research design, participants

of the study, data gathering instruments, validation of the instrument, and statistical

treatment of data.

Research Methodology

This study will make use of the descriptive research method which is designed

for the researcher/ investigator to gather information about present existing conditions.

The principle of applying this method aims to describe the nature of a situation as it

exists at the time of the study and to explore the causes of particular phenomena

(Sevilla, et.al 1988). As defined by Gay (1976), descriptive research involves the

collection of data to test hypotheses or to answer questions concerning the current

status of the subject or study.

Participants of the Study

The participants of this study will be composed of fifty (50) participants which

comprise the administrators and collection personnel of the Civil Aviation Authority of

the Philippines’ Central Office.

Table 1 shows the population and sample of the participants of this study.

Participants Frequency Percentage

 F %
Administrators

Collecting Personnel

Total

Data Gathering Instruments

A survey questionnaire will be the main instrument of this study. The researcher

will ask permission from the panel of examiners for the approval of the instrument. A

letter noted by the thesis adviser and the Dean of the Graduate School will be given

personally to the Director of CAAP. Once permission will be obtained, the

questionnaires will be personally administered to the participants. Participants will be

guaranteed confidentiality of information. The researcher will retrieve the questionnaires

as soon as these will be answered by the participants. After collecting the

questionnaires, the answers will be tabulated, analyzed, and interpreted.

Validation of the Instrument

The researcher-made survey questionnaire was used in this study which was

content validated and reliable through the evaluation of three experts. After the

evaluation, the survey questionnaire was undergone pilot testing by administrators and

collecting officers who were not included as participants in this study. After the pilot

testing, the survey questionnaire was administered to the participants. The

questionnaire was composed of two parts: Part One dealt with the profile of the

participants, and Part Two dealt with the efficiency level of the collection process as

viewed by the participants themselves.

Statistical Treatment of Data

 The answers under the study were tabulated and treated by using descriptive

and inferential statistics.

1. Frequency. This will be the actual response to a specific item/question in the

questionnaire where the participants tick their choice.

2. Percentage. This will be used as descriptive statistics or something that describes a

part of the whole.

3. Weighted Mean. This will be used to get the average frequency of the response.

To determine the level of efficiency of the collection process, a weighted mean

will be computed.

The four-point Likert Scale will be used.

Scale Numerical Value Descriptive Value

4 3.50 – 4.49 Highly Efficient (HE)

3 2.50 – 3.49 Moderately Efficient (ME)

2 1.50 – 2.49 Partially Efficient (PE)

1 1.00 – 1.49 Not Efficient (NE)

4. T-Test. This was used to measure the significant difference among participants’

analyses on the efficiency of the collection process.

Formula by (Mclave, Dietrich and Sinrich, 1999)

ΣD
t=

√NΣD2 – (ΣD)2
N–1
 Where: ΣD = summation mean of the difference between
the variables
ΣD2 = summation mean square of the difference
between the variables
N = number of participants
t = the computed value of t

5. F Test or One-Way Analysis of Variance (ANOVA). These test statistics were

employed in determining the significant differences in the perception based on the

profile of the participants. F statistic was calculated by the following formula:

F=MSB /MSW

Where:

F = test statistic value

MSB = mean square between groups

MSW = mean square between within groups

The null hypothesis would be rejected when obtained F equals or exceeds

tabular F at a 5% level of significance.

 SURVEY QUESTIONNAIRE

Part I. Profile of the Participants

A. Personal Data

1. Name: (Optional)_____________________________________

2. Please Select your Department:

_______ Finance
_______ Administrative
_______ Others (please indicate):

3. What is your Designation or Position:

_______ Chief Accountant

_______ Accounting Personnel
_______ Chief, Collecting Division
_______ Collecting Officer
_______ Bookkeeper
_______ Others (please indicate):

4. Job Category

_____ Permanent
_____ Contractual
_____ Probationary
_____ Others (please indicate):

5. How long have you been working in this organization?

_______ Less than 1 year

_______ 1 to 3 years
_______ 4 to 6 years
_______ 7 to 10 years
_______ More than 10 years

6. Have you been working in the same department since you joined the
organization?
 _______ Yes
_______ No

Part II. Level of Collection Process Efficiency

Directions: Below are level of collection process efficiency. Please check the space
which represents your individual feeling regarding the following items which may affect
your work in the organization in which you are currently employed.

4 – Highly efficient
3 – Moderately efficient
2 – Partially efficient
1 - Not efficient

Preparation and Approval of Billing 4 3 2 1

Statement
Accounting Personnel receives and logs the
documents relating to issuance of Billing
Statement.
Accounting Personnel prepares billing statement
once documents received from end-user or
requesting office are validated/reviewed for
completeness.
Accounting Personnel submits the Billing
Statements to the Chief, Accounting Division for
review and approval within the day it was
submitted.
Billing statements are countersigned by the
Chief, Finance Department within the day it was
submitted.
Approved and signed Billing Statements are
forwarded to the client/end-user or requesting
office
Preparation and Issuance of Order of 4 3 2 1
Payment Slip (per transaction)
Accounting Personnel reviews documents
submitted by client/end user for completeness.
Accounting Personnel verifies mode of payment
and encode corresponding details.
Accounting Personnel prepares and prints Order
of Payment Slip (OPS)
Chief, Accounting Division signs OPS
Accounting Personnel release signed OPS to
client/ end-user.
Issuance of Official Receipts (Cash or
Check)
Collecting Officer receives OPS and payment
(cash or check) for issuance of Official Receipts.
Collecting Officer validates OPS that indicates
fees to be paid.
Collecting Officer accomplishes Official Receipt
(OR) Number and date of OR on OPS.
Collecting Officers/Chief, Cashiering Division
prepares and submits Reports Daily Report of
Collections and Deposits (RCD) to Accounting
Division 10 working days every after 15th and
30th reporting period
Issuance of Official Receipts (Payments
received through Telegraphic Transfer)
Revenue Collection Clerk receives credit memo
or Abstract of Collection from client / banks on a
daily or monthly basis and furnish copies to
Revenue Unit
Revenue Collection Clerk requests credit memo
or Abstract of Collection from client / banks on a
daily or monthly basis and furnish copies to
Revenue Unit
Chief, Cashiering Division verify/validate
deposits if credited to CAAP Depository Account
and issue Official Receipts
Collecting Officer accomplishes OR Number
and date of OR on OPS.
Collecting Officers/Chief, Cashiering Division
prepares and submits Reports Daily Report of
Collections and Deposits (RCD) to Accounting
Division 10 working days every after 15th and
30th reporting period
Issuance of Official Receipts (Payment
received through UCPB Collection Facility)
Revenue Collection Clerk requests OPS,
validated payment slips and transmittal from
Accounting Division on a daily basis
Revenue Collection Clerk submits to Cashiering
Division OPS, validated payment slips and
transmittal forms for verification and issuance of
OR on a daily basis
Chief, Cashiering Division/Collecting Officers
verify if payment slips are duly validated by bank
and credited to CAAP depository accounts for
issuance of OR.
Collecting Officers monitors the credits and
debits to CAAP depository accounts for
 verification and issuance of OR on a daily basis
Once verified, Chief, Cashiering Division
/Collecting Officer prints OR and write OR/ AR
Number and date on OPS
Revenue Collection Clerk issues ORs to UCPB
Authorized Representative
Collecting Officers/Chief, Cashiering Division
prepares and submits Reports Daily Report of
Collections and Deposits (RCD) to Accounting
Division 10 working days every after 15th and
30th reporting period
Recording of Transaction
Accounting Personnel closely coordinates with
Collecting Officers and Revenue Collection
Clerks pertaining to movements on all CAAP
depository accounts.
Accounting Personnel reviews the
completeness of the documents submitted for
recording of transactions.
Accounting Personnel prepares Journal Entry
Vouchers (JEVs) and submits to Chief,
Accountant for review and approval.
Chief Accountant reviews and approves JEVs
Accounting Personnel prepares adjustment
journal entries if necessary

Part III. Level of Importance among Participants’ Assessments on Collection

Process Efficiency

Directions: Please check the space which represents your individual feeling regarding
the following items which may affect your work in the organization in which you are
currently employed.

4 – Extremely important
3 – Highly important
2 – Important
1 - Unimportant

Preparation and Approval of Billing 4 3 2 1

Statement
Accounting Personnel receives and logs the
documents relating to issuance of Billing
Statement.
Accounting Personnel prepares billing statement
once documents received from end-user or
requesting office are validated/reviewed for
completeness.
Accounting Personnel submits the Billing
Statements to the Chief, Accounting Division for
review and approval within the day it was
submitted.
Billing statements are countersigned by the
Chief, Finance Department within the day it was
submitted.
Approved and signed Billing Statements are
forwarded to the client/end-user or requesting
office
Preparation and Issuance of Order of 4 3 2 1
Payment Slip (per transaction)
Accounting Personnel reviews documents
submitted by client/end user for completeness.
Accounting Personnel verifies mode of payment
and encode corresponding details.
Accounting Personnel prepares and prints Order
of Payment Slip (OPS)
Chief, Accounting Division signs OPS
Accounting Personnel release signed OPS to
client/ end-user.
Issuance of Official Receipts (Cash or
Check)
Collecting Officer receives OPS and payment
(cash or check) for issuance of Official Receipts.
Collecting Officer validates OPS that indicates
fees to be paid.
Collecting Officer accomplishes Official Receipt
(OR) Number and date of OR on OPS.
Collecting Officers/Chief, Cashiering Division
prepares and submits Reports Daily Report of
Collections and Deposits (RCD) to Accounting
Division 10 working days every after 15th and
30th reporting period
Issuance of Official Receipts (Payments
received through Telegraphic Transfer)
Revenue Collection Clerk receives credit memo
or Abstract of Collection from client / banks on a
daily or monthly basis and furnish copies to
Revenue Unit
Revenue Collection Clerk requests credit memo
or Abstract of Collection from client / banks on a
daily or monthly basis and furnish copies to
Revenue Unit
Chief, Cashiering Division verify/validate
deposits if credited to CAAP Depository Account
and issue Official Receipts
Collecting Officer accomplishes OR Number
and date of OR on OPS.
Collecting Officers/Chief, Cashiering Division
prepares and submits Reports Daily Report of
Collections and Deposits (RCD) to Accounting
Division 10 working days every after 15th and
30th reporting period
Issuance of Official Receipts (Payment
received through UCPB Collection Facility)
Revenue Collection Clerk requests OPS,
validated payment slips and transmittal from
Accounting Division on a daily basis
Revenue Collection Clerk submits to Cashiering
Division OPS, validated payment slips and
transmittal forms for verification and issuance of
OR on a daily basis
Chief, Cashiering Division/Collecting Officers
verify if payment slips are duly validated by bank
and credited to CAAP depository accounts for
issuance of OR.
Collecting Officers monitors the credits and
debits to CAAP depository accounts for
verification and issuance of OR on a daily basis
Once verified, Chief, Cashiering Division
/Collecting Officer prints OR and write OR/ AR
Number and date on OPS
Revenue Collection Clerk issues ORs to UCPB
Authorized Representative
Collecting Officers/Chief, Cashiering Division
prepares and submits Reports Daily Report of
Collections and Deposits (RCD) to Accounting
Division 10 working days every after 15th and
30th reporting period
Recording of Transaction
Accounting Personnel closely coordinates with
Collecting Officers and Revenue Collection
Clerks pertaining to movements on all CAAP
depository accounts.
Accounting Personnel reviews the
completeness of the documents submitted for
recording of transactions.
Accounting Personnel prepares Journal Entry
Vouchers (JEVs) and submits to Chief,
Accountant for review and approval.
 Chief Accountant reviews and approves JEVs
Accounting Personnel prepares adjustment
journal entries if necessary

IV. Key Informative Interview

Directions: Please answer the following questions honestly to improve the result
of this research study.

1. Is there a close coordination within your department and other departments involved
in the collection process of the agency?
2. What are the common problems/challenges you encountered regarding the collection
process?

3. What can you recommend to improve the collection process of the agency?