6.4. As shown in the table above, there is a significant difference of ₱40,038,710.14
between the RPT Receivable and SET Receivable account balances between the
MTO and MAO records as of December 31, 2024.
6.5. The Municipal Accountant disclosed that the Accounting Office only began
establishing RPT and SET Receivables at the start of CY 2020 when they initiated
the adoption of the iTax system. Before that, only actual collections were recorded
throughout the year.
6.6. Currently, the Municipal Accountant records the RPT and SET Receivables at the
beginning of the year based on the Report on Real Property Assessment from the
Municipal Assessor because the Municipal Treasurer did not furnish the Municipal
Accountant with a duly certified list showing the names of taxpayers and the
amount due and collectible for the year which will be the basis in recording the
RPT/SET receivable. This practice raises concerns about the accuracy and
reliability of the recorded receivables and may be one of the causes of discrepancies
in the RPT/SET receivable account at year-end.
6.7. The Municipal Treasurer on the other hand explained that he could not provide the
required report to the Municipal Accountant because he was awaiting the final
records from the Assessor. He further clarified that the Municipal Assessor is
currently cleansing records, as certain properties are subject to restrictions due to
the inability to locate taxpayers despite multiple notices of tax delinquency.
6.8. Meanwhile, the Municipal Accountant has not yet adjusted the RPT and SET
Receivables from previous years, contributing to the discrepancy. This issue stems
from the absence of a reconciliation process between the records of the Municipal
Accountants Office (MAO) and the Municipal Treasurer’s Office (MTO).
6.9. As a result of the foregoing, the balances of the RPT and SET Receivables
accounts, as presented in the financial statements at the reporting date, are
unreliable.
6.10. This observation was communicated to Management through Audit Observation
Memorandum (AOM) No. 2025-07(2024)-Bindoy dated February 18, 2025.
6.11. We recommended that the Municipal Mayor direct:
6.11.1. The Municipal Accountant and Municipal Treasurer to reconcile the
difference between the RPT and SET Receivables account balances
totaling ₱40,038,710.14 and henceforth, conduct periodic reconciliation,
together with the Municipal Assessor, of the total collectibles from the
Basic and Special Education Tax with the balances of the RPT
Receivables and SET Receivables accounts to avoid accumulation of
unreconciled differences; and
62
