2. The Notes to the Financial Statements (FS) for CY 2024 did not correctly present
the current appropriation for the Local Disaster Risk Reduction and Management
Fund (LDRRMF), resulting in incomplete disclosure of vital information in the
financial statements.
We recommended that, henceforth, the Municipal Accountant take into account the
budget revisions made during the year to ensure that the current year appropriations for
the LDRRMF are accurately disclosed in the Notes to FS as of December 31.
3. The Municipality inappropriately invested a total of ₱89,492,517.47 in time deposits
without proper compliance with COA Circular No. 92-382, as the funds under the
General Fund (GF) did not qualify as idle and documentary support for Land Bank
of the Philippines (LBP) placements was lacking, thereby rendering its propriety
doubtful.
We recommended that Management:
a. Cease the placement of funds in time deposits unless properly supported by a detailed
computation showing excess funds beyond the Municipality’s normal operating and
financial requirements, in accordance with Sections 21 and 22 of COA Circular No.
92-382; and
b. Instruct the Municipal Treasurer to retrieve and submit complete supporting
documents for all existing time deposit accounts, particularly those under LBP, to
validate the legality and appropriateness of such investments.
4. Delinquent RPT and SET including penalties accruing thereon which accumulated
to ₱18,374,734.90 remained uncollected as of December 31, 2024, depriving the
Municipality of substantial amount of income which could have been utilized to
finance the implementation of various development projects or other major
programs/ projects/activities (PPAs).
We recommended that the Municipal Treasurer strengthen efforts to collect delinquent
real property taxes by conducting intensive tax campaigns in each barangay and issuing
updated Notices of Delinquency to all delinquent taxpayers, ensuring that these notices
include the information mandated under Section 254(b) of RA No. 7160.
We also recommended that Management consider applying the remedies for the
collection of real property taxes, in accordance with the pertinent provisions of RA No.
7160.
iv
