12.9 We recommended and the Department Heads of the Municipality agreed to
improve their processes for monitoring financial transactions, ensuring that
documents are submitted promptly to the Municipal Accountant for the
preparation and submission of the Financial Statements.
COMPLIANCE AUDIT
Low collection of delinquent real property taxes
13. The Municipality did not adhere to the procedures outlined in Section 254 of
Republic Act (R.A) No. 7160, resulting in a low collection of delinquent real property
taxes (RPT), which amounted to ₱57,161,601.79 as of December 31, 2024.
Consequently, the Municipality is at risk of losing potential revenue that could be
used to finance development projects, programs, and activities (PPAs).
13.1 Section 254 of R.A No. 7160, also known as the Local Government Code,
provides that when the real property tax or any other tax imposed under this code
becomes delinquent, the provincial, city or municipal treasurer must immediately
ensure that a notice of the delinquency is posted at the main entrance of the
provincial capitol, or city or municipal hall, as well as in a publicly accessible and
conspicuous place in each barangay of the local government unit concerned. The
notice of delinquency must also be published once a week for two consecutive
weeks, in a newspaper of general circulation in the province, city, or municipality.
13.2 It further states that the notice must specify the date on which the tax became
delinquent and indicate that personal property may be distrained to effect
payment. Additionally, it shall state that at any time before the distraint of
personal property, the payment of the tax, along with surcharges, interests, and
penalties, may be made in accordance with the following section. Unless the tax,
surcharges and penalties are paid before the expiration of the year for which the
tax is due, except when the notice of assessment or special levy is contested
administratively or judicially pursuant to the provisions of Chapter 3, Title II,
Book II of this Code, the delinquent real property will be sold at public auction,
and the title to the property will be vested in the purchaser, subject, however, to
the right of the delinquent owner of the property or any person having a legal
interest therein to redeem the property within one (1) year from the date of sale.
13.3 Our review of the Certified List of All Real Property Tax Delinquencies as of
December 31, 2024, disclosed a total amount of ₱57,161,601.79, as shown below:
Particulars Tax Penalty Total
BASIC ₱ 21,685,047.06 ₱ 6,863,229.51 ₱ 28,548,276.57
SEF 21,726,848.36 6,886,476.86 28,613,325.22
Total ₱ 43,411,895.42 ₱ 13,749,706.37 ₱ 57,161,601.79
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