Financial Transparency and Its Effect on Income Utilization and Infrastructure Development Towards the Design of a Policy Manual among State Universities and Colleges in Region II

Abstract

This study explored the effect of financial transparency on income utilization and infrastructure development among State Universities and Colleges (SUCs) in Region II with the aim of enhancing financial policy and governance mechanisms. Applying a mixed method design using criterion sampling approach, quantitative data were collected through structured survey administered to 111 respondents while qualitative data were gathered from open-ended survey responses, and documentary analysis of Budget and Financial Accountability Reports (BFARs) further substantiated the findings. Descriptive results reveal that financial transparency was rated very high indicating strong compliance and accountability, and income utilization was perceived as very efficient.  Nonetheless, though infrastructure development was assessed as very developed, documentary verification disclosed limited budget allocation and moderate to low utilization and disbursement rates portraying implementation delays and sustainability concerns. Multiple linear regression results further reveal that financial transparency significantly affected income utilization but did not predict infrastructure development. This implies that infrastructure outcomes rely more on budget prioritization, procurement efficiency, absorptive capacity, and long-term capital investment planning, rather than transparency alone. Moreover, qualitative insights stressed the need for need-based allocation, strengthened monitoring and evaluation, continuous capacity development, and stricter compliance with financial policies. And it further concludes that transparency reinforces income utilization.