We recommended that Management observe the requisition procedures for materials and
the reporting of their issuance, as prescribed in the NGAS Manual for LGUs, Volume I.
This will help ensure proper monitoring and accounting, as well as establish reliable
inventory account balances in the financial statements at year-end.
4. Penalties from Real Property Tax (RPT) and Special Education Tax (SET)
collections totaling ₱1,934,234.14 in CY 2024 were erroneously recorded in the
books of accounts as Real Property Tax - Basic (4-01-02-040) instead of Tax
Revenue - Fines and Penalties - Property Taxes (4-01-05-020), hence, both income
accounts were overstated and understated, respectively, as of December 31, 2024.
We recommended that the Municipal Accountant:
a. Prepare the necessary adjusting entries to effect the corrections in the financial
statements and ensure accurate financial reporting; and
b. Henceforth, ensure that all penalties collected from RPT and SET are properly
recognized as Tax Revenue - Fines and Penalties - Property Taxes (4-01-05-020) at the
time of collection, in compliance with COA Circular No. 2015-009.
5. The Notes to Financial Statements (FS) of the Municipality for the year ended
December 31, 2024, did not provide sufficient disclosures on several key accounts,
including advances, other receivables, accounts payable, due to officers and
employees, trust liabilities, other deferred credits, and other payables, contrary to
Sections 127 and 129 of IPSAS No. 1, thereby diminishing the transparency and
usefulness of the FS for users and stakeholders.
We recommended that the Municipal Accountant ensure full compliance with the
disclosure requirements of Sections 127 and 129 of PPSAS No. 1 by providing
comprehensive and relevant explanatory notes for all significant account balances in the
financial statements.
6. Delinquent RPT and SET including penalties accruing thereon which accumulated
to ₱23,751,277.85 remained uncollected as of December 31, 2024, depriving the
Municipality of substantial amount of income which could have been utilized to
finance the implementation of various development projects or other major
programs/projects/activities (PPAs).
We recommended that the Municipal Treasurer strengthen efforts to collect delinquent
real property taxes by conducting intensive tax campaigns in each barangay and issuing
updated Notices of Delinquency to all delinquent taxpayers, ensuring that these notices
include the information mandated under Section 254(b) of RA No. 7160.
We also recommended that Management consider applying the remedies for the
collection of real property taxes, in accordance with the pertinent provisions of RA No.
7160.
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