FINANCIAL AUDIT
Unreconciled amount due per Certified List of Taxpayers and RPT and SET Receivables -
₱22,098,576.94
1. Due to the delayed submission of the Certified List of Taxpayers and Amounts
Due and Collectible for the Year by the Municipal Treasurer to the Municipal
Accountant, as mandated by Section 20 of the NGAS Manual, Volume I for LGUs,
along with the lack of coordination between the two offices regarding the effects
of the Real Property Valuation and Assessment Reform Act on the delinquencies
of the Certified List, the balances of the RPT and SET receivables are overstated
by ₱22,098,576.94 as of December 31, 2024.
1.1 Sec. 111(2) of PD No. 1445, also known as the “Government Auditing Code of
the Philippines,” mandates that the highest standards of honesty, objectivity, and
consistency shall be observed in the keeping of accounts to safeguard against
inaccurate or misleading information.
1.2 Section 20 of the Manual on the New Government Accounting System (NGAS),
Volume I for Local Government Units (LGUs) requires the RPT and SET
receivables to be established by the Municipal Accountant at the beginning of the
year, based on the Real Property Tax Account Register or the Taxpayer’s index
card. Thus, the Municipal Treasurer must provide the Municipal Accountant with
a duly certified list showing the name of taxpayers and the amount due and
collectible for the period. Based on this list, the Municipal Accountant shall
prepare a JEV to record the debit to RPT Receivable/SET Receivable and credit
the corresponding Deferred RPT Income/SET Income. Upon collection of RPT
from taxpayers, the account Deferred RPT Income/SET Income shall be debited,
while the RPT Income due to the municipality is recognized/credited. The
corresponding share of the province and barangay shall also be credited to Due to
LGUs.
1.3 Pursuant to the above regulation, the Municipal Treasurer prepares, at the
beginning of each year, a list of taxpayers and the amount due and collectible for
the year. This is supposed to have been previously updated to include all new
assessments and reassessments as reported by the Municipal Assessor to the
treasurer on or before December 31 (Sec. 248, R.A. 7160). The certified list of
taxpayers and amounts due is based on the Real Property Tax Account
Register/Taxpayer’s Index Card maintained by the treasurer.
1.4 A review of the General Fund and Special Education Fund trial balances as of
December 31, 2024, showed that RPT and SET Receivables amounted to
₱50,900,424.87:
Real Property Tax Receivable ₱20,881,378.82
Special Education Tax Receivable 30,019,046.05
Total ₱50,900,424.87
1.5 We compared the total above with the Certified List of Real Property Tax
Delinquencies as of December 31, 2024, submitted by the Office of the Municipal
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