b. Receipt of Payment
Account Title Debit Credit
Cash in Treasury 100.00
Real Property Tax Receivable 100.00
Cash in Treasury 200,000.00
Special Education Tax Receivable 200,000.00
c. Distribution of Collection
Account Title Debit Credit
Deferred Real Property Tax Income 100.00
Real Property Tax 40.00
Due to LGUs 60.00
Deferred Special Education Tax Income 200,000.00
Special Education Tax 100,000.00
Due to LGUs 100,000.00
2.5 Review of the transactions posted under the General Ledger (GL) of the RPT and
SET Receivables account, however, revealed non-compliance with the prescribed
provisions on the proper setup and maintenance of these accounts as discussed
below:
a. Set-up of RPT and SET receivables was not properly performed.
2.6 While Sections 20 and 84 of the NGAS Manual, as mentioned earlier, state that
the RPT and SET Receivables shall be established at the beginning of the year, the
Municipality’s eNGAS or electronic accounting system’s journal entries showed
that the RPT and SET receivables were set up on April 10, 2024, and approved on
April 12, 2024, through JEV Nos. 2024-01-001637 and 2024-01-000105
amounting to ₱18,428,826.20 each for a total of ₱36,857,652.40.
2.7 Additionally, the amount set-up did not coincide with the Certified List of
Taxpayers and the Corresponding Amount Due and Demandable for CY 2024
provided to the Audit Team by the Office of the Municipal Treasurer, which
showed a total tax collectible of ₱43,640,510.00 or ₱21,820,255.00 each for Real
Property Tax and Special Education Tax.
2.8 There is a difference of ₱6,782,857.60 between the amount in the Certified List of
Taxpayers and the Corresponding Amount Due and Demandable for CY 2024 and
the amount recorded in the journal entries. An inquiry with the Office of the
Municipal Accountant revealed that their basis for the amount set-up as receivable
came from a Certification from the Municipal Treasurer dated March 20, 2024,
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