6.11.2. The Municipal Treasurer to furnish the Municipal Accountant a duly
certified list of taxpayers with the amount due and collectible for the
current year as basis for recording the RPT Receivable and SET
Receivable accounts in compliance with Section 20 of the NGAS
Manual for LGUs, Volume I.
6.12. During the exit conference, the Municipal Accountant explained that on the first
year that he recognized RPT/SET Receivables, he did not recognize the whole
amount because it would overstate the assets since he deemed that most of that
figure would not actually be collected. With the advice of the then Audit Team
Leader, he just disclosed the discrepancy in the Notes to the Financial Statements
(FS) and only recorded the current year portion expected to be collected by the
Office of the Municipal Treasurer.
6.13. Additionally, the Municipal Treasurer disclosed that the Office of the Municipal
Assessor was undertaking cleansing of its records to determine the final value of
RPT/SET Receivables.
6.14. The Audit Team likewise instructed the Municipal Accountant to disclose the
discrepancy in the Notes to the FS.
Deposit of Collections
7. The Municipal Treasurer did not deposit intact his collections of ₱339,550.22 to the
authorized depository bank at the end of the year, contrary to Section 69 of
Presidential Decree (P.D.) No. 1445 thereby exposing government funds to the risk
of misappropriation and possible loss.
7.1. Section 69 P.D. 1445 or the State Audit Code of the Philippines on deposit of
moneys in the treasury provides that:
“(1) Public officers authorized to receive and collect moneys arising from
taxes, revenues, or receipts of any kind shall remit or deposit intact the
full amounts so received and collected by them to the treasury of the
agency concerned and credited to the particular accounts to which the
said moneys belong.”
7.2. Furthermore, our verification of the deposit slips and notes to the financial
statements disclosed that the cash on hand balance at the end of the year was only
deposited on the following dates, which is not the first banking day of the new year:
Fund Date of Deposit Amount
General Fund January 3, 2025 ₱ 58,470.20
January 3, 2025 62,605.57
January 3, 2025 52,283.42
63
