the name of taxpayers and the amount due and collectible for the year. Based
on the list, the Chief Accountant shall draw a Journal Entry Voucher (JEV) to
record the debit to Real Property Tax Receivable/Special Education Tax Receivable
and crediting to Deferred Real Property Tax Income/Deferred Special Education
Tax Income.” (Emphasis supplied.)
3.5. However, records showed that in CY 2024, the Municipality’s RPT and SET
receivables, each amounting to ₱53,232,192.80, were established only in November
2024, covered by JEV Nos. 100-2024-11-6285-Z-18 and 200-2024-11-632-E. The
Municipal Accountant explained that, despite her request at the beginning of the
year, the Municipal Treasurer did not furnish her with a duly certified list showing
the names of the taxpayers and the amounts due and collectible for the year.
3.6. It may be mentioned that collections for CY 2024 RPT and SET Receivables started
in January 2024. Hence, credits to both receivable accounts representing collections
were recorded even though the corresponding receivables have not yet been
established.
3.7. Furthermore, we noted that the assessment roll from the Municipal Assessor was
submitted to the Municipal Treasurer only on November 12, 2024. A personnel
from the Municipal Assessor’s Office explained that they were unaware of the
requirement for the Municipal Assessor to prepare and submit the assessment roll to
the Municipal Treasurer on or before December 31 of each year. They assumed that
submission was unnecessary since the Municipal Treasurer had access to their iTax
System, a taxation software acquired by the Municipality from a private service
provider.
3.8. Although the RPT and SET Receivables were set up on November 12, 2024, these
accounts should have been established at the beginning of the year in accordance
with Section 20 of the NGAS Manual. Establishing them late in the year, after
collections had already been made, would affect the accuracy of the receivable
balances as of December 31, 2024, since collections from January to November
were recorded without corresponding receivables being in place. The year-end
balances may include distortions or mismatches in reported deferred income and
receivable accounts. This timing discrepancy results in unreliable and potentially
misstated receivable figures in the financial statements.
3.9. We recommended that Management coordinate with the iTax System
Technician to determine whether the amounts of RPT and SET Receivables
established in November 2024, based on the assessment roll received by the
Municipal Treasurer on November 12, 2024, would have been the same had
the assessment roll been generated and made on or before December 31, 2023.
3.10. We further recommended that the Municipal Accountant prepare the
necessary adjusting entries, if warranted.
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