2.2 Furthermore, Section 20 thereof provides that the Real Property Tax
Receivables/Special Education Tax Receivables shall be established at the
beginning of the year based on the Real Property Tax Account
Register/Taxpayer’s index card. At the beginning of the year, the Treasurer shall
furnish the Chief Accountant with a duly certified list showing the name of
taxpayers and the amount due and collectible for the year. Based on the list, the
Chief Accountant shall draw a Journal Entry Voucher (JEV) to record the debit
to Real Property Tax Receivable/Special Education Tax Receivable and credit to
the Deferred Real Property Tax Income/Deferred Special Education Tax Income.
2.3 Our review of the Certified List of Taxpayers and the Corresponding Amount
Due and Demandable for CY 2024 showed a total taxable real property assessed
value of ₱324,235,070.00 for the year. Hence, the total tax collectible for the
current year for both Basic and Special Education Tax amounted to
₱3,242,350.70 each, or a total of ₱6,484,701.40.
2.4 However, an examination of the General Ledger and Schedules of Real Property
Tax (RPT) and Special Education Tax (SET) Receivables, along with an inquiry
with the Municipal Accountant, revealed that the RPT and SET Receivables
totaling ₱6,484,701.40 were not established at the beginning of the year. Instead,
the receivables from previous years were carried over to the current year,
resulting in year-end balances of ₱1,905,196.20 and ₱2,177,964.89 for RPT and
SET Receivables, respectively, totaling ₱4,083,161.09, as shown on the table
below:
Particular Basic SEF Total
Real Property Tax Receivable ₱4,437,554.24 ₱4,724,145.08 ₱9,161,699.32
January 1, 2024
RPT Established at the Beginning - - -
of the Year
Real Property Tax Collected (2,532,358.04) (2,546,180.19) (5,078,538.23)
Real Property Tax Receivable, ₱ 1,905,196.20 ₱2,177,964.89 ₱4,083,161.09
December 31, 2024
2.5 A review of the List of Real Property Tax Delinquencies as of December 31,
2024, from the Municipal Treasurer disclosed a total collectible amount of
₱25,769,661.90. Hence, the RPT and SET Receivables are understated by
₱21,686,500.81.
2.6 Our interview with the Municipal Treasurer disclosed that they were unable to
provide the Municipal Accountant with a copy of the Certified List of Taxpayers
and the Corresponding Amount Due and Demandable for CY 2024. As a result,
the Municipal Accountant did not establish the RPT Receivable at the beginning
of the year.
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