2.12 The Municipal Assessor stated that the Municipality had arranged for the iTax
System provider to update the system in March 2025. He further mentioned that since
his appointment in CY 2021, he has been actively addressing the issue of duplicated
entries within the system and continues to do so.
Erroneous recording of RPT and SET penalties
3. Penalties from Real Property Tax (RPT) and Special Education Tax (SET)
collections totaling ₱1,048,459.20 in CY 2024 was not recognized as income but
recorded as credits to the RPT Receivable and SET Receivable accounts, contrary
to Section 23, Volume I of the NGAS Manual, resulting in the understatement of
both Receivable and Income Accounts.
3.1 COA Circular No. 2002-003, dated June 20, 2002, prescribes the Manual on the New
Government Accounting System (NGAS) for Local Government Units (LGUs) to
ensure proper accounting of all financial transactions of the LGUs.
3.2 Section 23, Volume I of the Manual provides that “Fines and Penalties, either from
tax revenue or other specific income, shall be recognized as income of the year it
was collected.” (Emphasis ours)
3.3 As of December 31, 2024, the accounts Real Property Tax (RPT) Receivable and
Special Education Tax (SET) Receivable had balances of ₱10,401,020.48 and
₱10,889,513.31, respectively. The General Ledger (GL) for each account showed
monthly credits, which the Municipal Accountant confirmed as entries to recognize
collections for RPT and SET.
3.4 However, further verification of the credit entries revealed that they include
collections for penalties from the RPT and SET. For CY 2024, the penalties collected
amounted to ₱524,229.60 each, totaling ₱1,048,459.20, broken down as follows:
Amount of Penalties Collected
Month RPT SET
January ₱ 116,045.87 ₱ 116,045.87
February 43,938.75 43,938.75
March ₱ 18,216.19 ₱ 18,216.19
April 67,583.70 67,583.70
May 25,467.29 25,467.29
June 28,857.70 28,857.70
July 80,672.82 80,672.82
August 29,155.81 29,155.81
September 32,787.16 32,787.16
October 44,206.82 44,206.82
November 9,115.42 9,115.42
December 28,182.07 28,182.07
Sub-total ₱ 524,229.60 ₱ 524,229.60
Total ₱1,048,459.20
35
