Budgeting and Financial Reporting Practices in Selected Public Elementary Schools in Parañaque: Inputs to Financial Management Capability Enhancement

Abstract

Financial management is fundamental to ensuring transparency, accountability, and operational efficiency in public educational institutions. Effective budgeting practices facilitate the efficient allocation and utilization of limited financial resources, while sound financial reporting promotes responsible governance and informed decision-making. Despite the implementation of financial management policies in the Philippine basic education system, empirical evidence on budgeting and financial reporting practices in public elementary schools remains limited, particularly at the local level. This study assessed budgeting practices in terms of allocation accuracy, expense monitoring, and compliance with standards, and financial reporting practices in terms of transparency and clarity, flexibility and adaptability, and participation and collaboration among selected public elementary schools in Parañaque City. It also determined differences in respondents' assessments, examined the relationship between budgeting and financial reporting practices, and identified implementation challenges. Using a descriptive-correlational research design, data were collected from 39 respondents, comprising school administrators and administrative personnel, through a validated, researcher-developed questionnaire. Descriptive statistics, an independent-samples t-test, and a Pearson product-moment correlation were employed to analyze the data. The findings revealed that budgeting and financial reporting practices were implemented effectively. No statistically significant differences were found between the assessments of the two respondent groups. However, budgeting practices demonstrated significant positive relationships with financial reporting practices, indicating that effective budgeting contributes to improved transparency, accountability, and reporting efficiency. The study also identified operational challenges associated with documentation, regulatory compliance, and continuous competency development. The findings underscore the importance of sustained professional development and institutional support to strengthen financial governance and accountability in public elementary schools.