2. The Real Property Tax (RPT) Receivable and Special Education Tax (SET) Receivable,
both established at the beginning of CY 2024 at ₱9,822,743.90 each, were based on an
erroneous assessment roll due to an outdated tax system, rendering the balances of both
receivable accounts as of December 31, 2024, unreliable.
3. Penalties from RPT and SET collections, totaling ₱1,048,459.20 in CY 2024, were not
recognized as income but were instead recorded as credits to the RPT Receivable and
SET Receivable accounts, resulting in the understatement of both receivable and income
Accounts.
Significant Findings and Recommendations
The following are the significant observations and recommendations in the audit and/or
evaluation of the operations of the Municipality for CY 2024. These and other audit
observations discussed by the Audit Team with Management during an exit conference on
May 8, 2025, are fully presented in Part II of this Report.
1. The cost of an outdoor LED wall display, amounting to ₱3,997,000.00, was
erroneously recorded in the books of accounts as Office Equipment (1-07-05-020)
instead of Information and Communication Technology Equipment (1-07-05-030),
hence, both asset accounts and the related depreciation expense accounts were
overstated and understated, respectively, as of December 31, 2024.
We recommended that the Municipal Accountant:
a. Prepare the necessary accounting entries to rectify the recording of a P4.8 outdoor
LED wall display costing ₱3,997,000.00, which was recognized as Office Equipment
(1-07-05-020) instead of Information and Communication Technology Equipment
(1-07-05-030), and to adjust the corresponding depreciation expense accounts; and
b. Henceforth, refer to the description of accounts as a guide in recording expenses in
the books of accounts in adherence to COA Circular No. 2015-009 dated December
1, 2015, to avoid making erroneous accounting entries in the books of accounts.
2. Payments for various LDRRM supplies and equipment were incorrectly recorded,
resulting in the overstatement of Other Supplies and Materials Inventory
(₱168,334.00), Other Property, Plant and Equipment (₱99,500.00), and Other
MOOE (₱40,250.00), and the understatement of Semi-Expendable Disaster
Response and Rescue Equipment (₱109,595.00) and Disaster Response and Rescue
Equipment (₱198,489.00), thereby affecting the accuracy of the financial statements
as of December 31, 2024.
We recommended that the Municipal Accountant reclassify the costs of various supplies
and equipment recorded in the accounts Other Supplies & Materials Inventory, Other
MOOE, Other PPE, respectively, to their appropriate accounts by making the following
adjusting entries:
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