2.3 The Municipal Accountant further stated that the assessment roll, which served as her
basis for the computation of the RPT Receivable and SET Receivable, was provided
to her by the Municipal Assessor at the end of the previous year. It was generated
through the iTax System, software for taxation that the Municipality availed of from a
private service provider.
2.4 Telephone inquiries with the Municipal Accountant and Municipal Treasurer revealed
that the total assessed value of real properties reflected in the assessment roll as of
December 31, 2023, which was generated through the iTax System, was overstated
due to the duplication of real properties.
2.5 They explained that some real properties that had already been transferred through
sale were listed in the system under both the previous and the new owners, treating
them as separate properties. As a result, these were counted twice in the assessment
roll.
2.6 In addition, properties that were originally under a mother title but later subdivided
and sold to multiple vendees were still recorded in the iTax System under both the
original mother title and the newly created subdivided lots, again resulting in
duplication.
2.7 The Municipal Treasurer further stated that there is a possibility that real properties
subjected to sale multiple times have been listed in the assessment roll under various
owners. She mentioned that since the implementation of the iTax System in CY 2010,
it has not been updated regarding the duplication of entries for real properties.
2.8 Both the Municipal Accountant and the Municipal Treasurer acknowledged that the
Municipality's outdated iTax System resulted in an overstatement of the total assessed
value of real properties, which served as the basis for calculating the RPT Receivable
and SET Receivable. However, they were unable to readily determine the extent of
the overstatement.
2.9 In view of the foregoing, the balance of RPT Receivable and SET Receivable
accounts amounting to ₱10,401,020.48 and ₱10,889,513.31, respectively, as of
December 31, 2024, is unreliable.
2.10 We recommended and Management agreed to identify all duplicate real
property entries in the assessment roll and require the service provider of the
iTax System to update and cleanse the database accordingly to ensure the
accuracy of the assessed values used for tax receivable recognition.
2.11 We further recommended and the Municipal Accountant agreed to prepare the
necessary adjusting entries to reflect the accurate balances of the RPT and SET
Receivable accounts in the financial statements once the amount of
overstatement of the RPT Receivable and SET Receivable is determined.
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