RPT and SET Receivables
3. The balances of the Real Property Tax (RPT) Receivable and Special Education Tax
(SET) Receivable accounts as of December 31, 2024, between the records of the
Municipal Accounting Office (MAO) and the Municipal Treasurer’s Office (MTO)
showed a difference of ₱8,907,556.24 due to the non-reconciliation of their records
and the non-recording of the RPT and SET receivables in accordance with Chapter
3, Section 20, Volume I, and Chapter 1, Section 10, Volume II of the Manual on the
New Government Accounting System (NGAS) for Local Government Units (LGUs).
Consequently, the RPT/SET Receivable and Deferred Income accounts, as presented
in the financial statements, are deemed unreliable.
3.1. Chapter 3, Section 20, Volume I of the Manual on the New Government Accounting
System (NGAS) provides that:
“Real Property Tax Receivables/Special Education Tax Receivables
shall be established at the beginning of the year based on Real Property
Tax Account Register/Taxpayer’s index card. At the beginning of the
year, the Treasurer shall furnish the Chief Accountant of a duly certified
list showing the name of taxpayers and the amount due and collectible for
the year. Based on the list, the Chief Accountant shall draw a Journal
Entry Voucher (JEV) to record the debit to Real Property Tax
Receivable/Special Education Tax Receivable and crediting to Deferred
Real Property Tax Income/Deferred Special Education Tax Income.”
(Emphasis ours)
3.2. On the other hand, Chapter 1, Section 10, Volume II of the same Manual for LGUs
provides that:
“The Subsidiary Ledger is a book of final entry containing the details or
breakdown of the balances of the controlling account appearing in the
General ledger. Postings to the subsidiary ledgers generally come from
the source documents. X x x. The totals of the subsidiary ledger balances
shall be reconciled to their respective control account at the end of every
month.”
3.3. Our review of the List of Real Property Tax Delinquencies from the Municipal
Treasurer’s Office (MTO) (Appendix 2) and the RPT and SET Receivable accounts
from the Municipal Accounting Office (MAO) as of December 31, 2024, revealed
the following balances:
Account Per MTO Per MAO Difference
RPT Receivable ₱13,029,358.71 ₱8,575,539.39 ₱4,453,819.32
SET Receivable 13,029,276.31 8,575,539.39 4,453,736.92
Total ₱26,058,635.02 ₱17,151,078.78 ₱8,907,556.24
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