THE FINANCIAL INFORMATION SYSTEM OF THE NORTH PHILIPPINE UNION MISSION OF THE SEVENTH DAY ADVENTISTS ORGANISATION: AN ASSESSMENT

Abstract

This study established the profile of the respondents, determined the status of the present information system of the Union, assessed the effectiveness of the significance of difference of such assessments, and identified the problems that related to the financial information system of the Union. The descriptive method of research was used which involved a total of 120 respondents comprising 50 officers and 70 members of the rank and file personnel of the Finance, Accounting and Computer Divisions of the Union.

Findings and Conclusions

I. Profile of the Respondents The officers and members of the Union are very cooperative. They are equitably represented by gender, of all age ranges and educational attainment up to the level of the doctoral degree. All positions in the Union, from Missionary and Pastor to the laymen and the ordinary members participated. Therefore, the researcher prides himself with an investigation that is well attended by officers and members of the rank and file of the subject Union. II. Status of the Present Information System The Union is well aware of the need to maintain a sound financial information system; it prepared one and is in place in the attempt to meet the needs of the Union. Existing accounting systems cover all the transactions such as the general ledgers for accounts payable, accounts receivables, payroll and fixed assets, among others that are deemed adequate to cover all transactions that need to be monitored and documented for control and for future reference. The coverage of the treasury is adequate to monitor all the cash transactions, including those that relate to foreign exchange transactions. The necessary databases are processed according to the quality of information the management expect to receive. III. Effectiveness of the Present Information System in Supporting Management Decisions The effectiveness of the financial information system in providing support to management decisions on financial forecasting and trending is debatable given the inconsistencies in the assessments of the officers and members of the rank and file. It is moderately effective only in supporting decisions on financial needs. Likely sources of financing are monitored so that erroneous decisions are minimized. IV. Test on Hypothesis The significant disparity in the assessment of the officers and members of the rank and file is an indicator of some flaws in the financial information system towards supporting management decisions on financial forecasting and trending. While appraisals on the effectiveness of the financial information system in supporting management decisions on financial needs and on sources of financing do not vary significantly, it strengthens the assessment that the system is moderately effective and which could be addressed appropriately by concerned parties. V. Problems Encountered in the Planning and Implementation of the Financial Information System The staff is inadequate and inefficient which is aggravated by some deficiencies in dealing with the development of the staff, both in skill and in personality. The Union is unable to keep up with developing hardware technology and management has not directed more concern in building up its hardware resources. The installed software lacks the flexibility to provide features that generate creativity in the organization. They are slow and are poor in delivering prompt and more meaningful information. Distributed reports reflect information that is in excess of the requirements for many end-users. The design of such reports has become irrelevant to developments in the Union and the generated reports have not been given adequate security such that many of these reports reach the desks of employees who do not even need them.

Recommendations

Given the findings and conclusions, the researcher presents the following recommendations: 1. Causes of the difference in the assessment as regards the impact of existing financial information system in supporting management decisions related to financial forecasting and trending must be investigated by management. 2. A committee or some group of qualified personnel should be informed to look into the low effectiveness of the financial information system in supporting management decisions on financial needs and on sources of financing. 3. Audits on personnel policies and practices, more especially those pertaining to personal development concerns, should be investigated by the human resource unit of the Union. 4. Existing personnel staffing of the units must be reviewed and analyzed to focus on ideal number of employees as well as the level of skills that are required for each job. 5. Seminars on value information and value reformation should be conducted periodically. 6. A move to ascertain the need for more relevant and responsive financial information system must be initiated by management. 7. IT professional /suppliers should be invited to submit proposals or recommendations as regards updated software that are in tune with the current and future needs of the Union. 8. Identified and authorized users should meet to improve the content and format of each financial information report. 9. Generated financial information should be delivered more promptly. 10. There must be a list of users of restricted information that is separate from the list of general information and distribution of generated information should be closely monitored for security reasons.