1.9 The unreconciled RPT and SET Receivables resulted in misstated receivables,
affecting the fairness of the Municipality’s financial position.
1.10 We recommended and the Municipal Accountant, in coordination with the
Municipal Treasurer and Municipal Assessor, agreed to reconcile the
discrepancies and ensure accurate recording of RPT and SET Receivables,
taking into account the effects of the implementation of the RPVAR Act.
1.11 We further recommended and the Municipal Accountant agreed to make the
necessary adjusting entries to accurately reflect the correct amounts of RPT
and SET receivables as of December 31, 2024.
1.12 Lastly, we recommended and the Municipal Treasurer agreed to, henceforth,
ensure the timely submission of the Certified List of Taxpayers, the
corresponding amount due and collectibles during the year, and the list of
delinquent taxpayers, so the Municipal Accountant can record this
information in the books of the Municipality.
No disclosure in Notes to FS on the Road Networks - ₱391,996,864.45
2. The absence of disclosures in the Notes to Financial Statements on the Road
Networks account balance of ₱391,996,864.45 contravenes the faithful
representation requirement set forth by the International Public Sector
Accounting Standards (IPSAS) and the reporting guidelines under COA Circular
No. 2015-008, dated November 23, 2015, thereby, depriving users of the financial
statements of access to complete financial information that is crucial for informed
decision-making and for the benefit of its constituents.
2.1 One of the attributes that makes information useful in financial reporting, as
outlined in the “Conceptual Framework for General-Purpose Financial Reporting
by Public Sector Entities” of the IPSAS, is a faithful representation of the economic
and other phenomena that it purports to represent. Paragraph 3.10 of this
framework states that faithful representation is attained when the depiction of the
phenomenon is complete, neutral, and free from material error.
2.2 Furthermore, paragraph 29 of IPSAS 1, in substance, states that fair presentation
also requires an entity to provide additional disclosures when compliance with the
specific requirements in IPSASs is insufficient to enable users to understand the
impact of particular transactions, other events, and conditions on the entity’s
financial position and performance, among others.
2.3 Anent thereto, the Commission on Audit issued COA Circular No. 2015-008, dated
November 23, 2015, to provide the “Accounting and Reporting Guidelines on the
Local Roads Asset Management System.” Among the requirements for reporting
Road Networks account (1-07-03-010) is the disclosure of the total road network
system in the Notes to the Financial Statements, following the format provided
below:
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