Health vs. CVCAA, et al., emphasized that any contract entered into in the absence
of the aforementioned CAF shall be deemed void.
17.5 Despite the City Treasurer’s certification as to availability of funds on the face of
the disbursement voucher, and the City Budget Officer’s certification as to
existence of available appropriations on the face of the obligation request form, it
is still an essential condition for the City Accountant to issue the CAF, as he/she is
required by law, to ascertain the existence of appropriations therefor and the
availability of funds to cover the proposed expenditure.
17.6 We recommended and Management agreed to, henceforth, secure the
Certificate of Availability of Funds (CAF) from the City Accountant, prior to
entering into any contract and before making any disbursement or obligations
charged to any authorized appropriation, in accordance with Section 86 of PD
No. 1445.
Low collection efficiency rate at 17 per cent
18. The RPT and SET collection efficiency rate averaged only 17 per cent of the target
set by the City Government due to the lack of an effective tax campaign and
enforcement of the remedies for the collection of RPT and SET, resulting in
delinquent taxes totaling ₱69,156,788.90 as of December 31, 2024, contrary to
pertinent provisions of RA No. 7160 and the Manual on Real Property Appraisal
and Assessment Operations, thus depriving the City of potential revenues that
could have been used to finance its various programs, projects, and activities.
18.1 Section 247 of RA No. 7160 provides that the City or Municipal Treasurer's
responsibility is to collect the real property tax with interest thereon and related
expenses, and the enforcement of the statutory remedies.
18.2 Congruent thereto, Sections 254, 256, 258, and 269 of the same RA enumerate the
required activities, actions, and reports relative to the collection of Real Property
Tax (RPT)/Special Education Tax (SET). Under these provisions, when an RPT
becomes delinquent, the City Treasurer is required to cause a notice of delinquency
which shall be posted at a conspicuous place of the LGU, then the said notice shall
be published once a week for two consecutive weeks in a newspaper of general
circulation in the city.
18.3 The LGU may avail of remedies by administrative action through the levy on real
property or by judicial action. When the time required to pay the basic RPT or any
other tax levied under a title expires, the real property subject to such tax may be
levied through the issuance of a warrant on or before, or simultaneously with, the
institution of civil action.
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