6.7. Management must understand that reconciling the Municipal Accountant and
Treasurer’s records for RPT and SET receivables is crucial for ensuring the
accuracy and integrity of financial records. When these records are not reconciled,
significant discrepancies can lead to, among other issues, financial misstatements,
lack of accountability, and even potential fraud.
6.8. In this particular case, there is a significant difference of ₱20,915,996.80 between
the MAO and MTO records as of December 31, 2024. Therefore, the RPT and SET
receivable account balances, along with their corresponding Deferred RPT and SET
Income accounts shown in the financial statements at the reporting date, are
unreliable.
6.9. This observation was communicated to Management through Audit Observation
Memorandum No. 2025-06(2024)-Manjuyod dated May 6, 2025.
6.10. We recommended that the Municipal Mayor direct:
6.10.1. The Municipal Accountant and Municipal Treasurer to reconcile the
difference between the RPT and SET Receivables account balances
totaling ₱20,915,996.80 and henceforth, conduct periodic reconciliation,
together with the Municipal Assessor, of the total collectibles from the
Basic and Special Education Tax with the RPT and SET Receivables
account balances to prevent the accumulation of unreconciled
differences; and
6.10.2. 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 and SET Receivable
accounts in compliance with Chapter 3, Section 20 of the NGAS Manual
for LGUs, Volume I.
6.11. During the exit conference, the Audit Team recommended and the Municipal
Accountant and Municipal Treasurer agreed to start the reconciliation with the latest
year.
B. OTHER MANDATORY AREAS
Compliance with Mandatory Deductions and Tax Laws
7.1. Taxes withheld during the year from salaries, wages, and other services, including
Value-Added Taxes withheld from suppliers and contractors were remitted to the
Bureau of Internal Revenue pursuant to existing Revenue Regulations. The whole
amount of the current outstanding balance of the Due to BIR account as of December
31, 2024, amounting to ₱862,474.91 was remitted in January 10, 2025, detailed as
follows:
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