This can be time-consuming, especially if done manually. He further added that
using a manual accounting system can significantly slow down the process.
Manual systems are less efficient than automated ones, leading to delays in data
entry, processing, and report generation.
7.7 The delayed submission of the FS hindered timely audits and reviews, the
outcomes of which are necessary for Management to make informed decisions in
their daily operations. Also, the late submission of the FS affected their usefulness
in providing relevant and timely information vital to decision-making by
Management and higher authorities.
7.8 We recommended and the Municipal Accountant agreed to improve the
processes within the accounting office to streamline the preparation and
timely submission of the required financial reports to the Audit Team.
7.9 Additionally, we recommended and the Municipal Accountant considered
the implementation of the Electronic New Government Accounting System
(eNGAS) to automate manual accounting processes and facilitate the timely
preparation of Financial Statements.
COMPLIANCE AUDIT
Low collection of delinquent real property taxes
8. The Municipality did not follow the procedure prescribed in Section 254 of Republic
Act (R.A) No. 7160, which led to a low collection of delinquent real property taxes
(RPT) amounting to ₱25,770,471.90 as of December 31, 2024. Consequently, the
Municipality risks losing potential revenue that could be used to finance
development projects, programs, and activities (PPAs).
8.1 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 and 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.
8.2 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
47
