We recommended that the Municipal Accountant strictly adhere to the illustrative
accounting entries prescribed under COA Circular Nos. 2012-002 and 2015-009 in
recording the utilization of the unspent LDRRMF to ensure proper accounting and
accurate financial reporting of trust fund transactions.
3. The Notes to 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 the 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.
4. Delinquent Real Property Taxes (RPT) and Special Education Taxes (SET),
including penalties accruing thereon that have accumulated to ₱18,159,182.68,
remained uncollected as of December 31, 2024, thus, depriving the Municipality of a
substantial amount of income that 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 sending
Notices of Delinquency to all delinquent taxpayers regardless of the amount due, to
ensure fair enforcement and maximize revenue collection.
We further recommended that the Municipal Treasurer ensure full compliance with the
posting and publication requirements prescribed under Section 254 of RA No. 7160.
Lastly, we recommended that Management consider applying the remedies for the
collection of real property taxes, in accordance with the pertinent provisions of RA
No. 7160.
5. The Municipality inappropriately invested a total of ₱16,623,828.41 in time deposits
without proper compliance, as the funds under the General Fund (GF) did not
qualify as idle and documentary support 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
iv
