Real Property Tax and Special Education Tax Receivables
6. 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 ₱40,038,710.14 because the Municipal Accountant and
Municipal Treasurer did not periodically reconcile their records while the RPT and
SET receivables were not recorded in accordance with Section 20, Volume I, and
Section 10, Volume II of the Manual on the New Government Accounting System
(NGAS) thus, RPT/SET Receivable and Deferred RPT/SET Income accounts as
presented in the financial statements are deemed unreliable.
6.1. 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)
6.2. On the other hand, 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. xxx. The totals of the subsidiary ledger balances shall be
reconciled to their respective control account at the end of every month.”
6.3. Our review of the List of Real Property Tax Delinquencies from the Municipal
Treasurer’s Office (MTO) (Appendix 4) 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 ₱24,282,112.21 ₱5,152,622.93 ₱33,775,744.59
SET Receivable 23,998,249.06 3,089,028.20 35,487,954.32
Total ₱48,280,361.27 ₱8,241,651.13 ₱40,038,710.14
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