Browse > Home / Commission on Audit, Oroquieta / Findings No.1 COA Annual Audit Report 2005

Findings No.1 COA Annual Audit Report 2005

July 28, 2008

Setting up of Account receivable from real property tax was based on the Assessor’s Report and not on the certified list of the City Treasurer in violation of COA Circular 2002-003.

Section 20 of COA Circular No. 2002-003 requires RPT/SET Receivables to be established at the beginning of the year based on Real Property Tax Account/Taxpayer’s index cards. The Treasurer shall furnish the Chief Accountant of a duly certified list showing the name of taxpayers and the amount of tax due each 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.

Verification of accounting records showed that Real Property Tax Receivables was booked at the beginning of every year. Amounts recorded were based on the Assessor’s Report on Real Property Assessments instead of on Real Property Tax Account Register/Taxpayers’ index cards or the City Treasurer’s list of taxpayers showing taxable amounts due.

The amounts booked in the General and Special Education Funds were 1% of the total assessed values of taxable properties as of December 2004 assessor’s report:

FUNDTotal Assessed ValuesPercent of Tax AppliedRPT/SET ReceivableGeneralP243,949,5401%P2,439,495.40Special Education243,949,5401%2,439,495.40

In the absence of the City Treasurer’s list of taxpayers showing taxable amounts due, the City Accountant informed that it was their agreement long before to use the Assessor’s Report on Real Property Assessments of setting RPT/SET Receivables.

The City’s practice of recording RPT/SET Receivables based on the Assessor’s report violated the provisions of Section 20 of COA Circular No. 2002-003, hence, financial statements could be misstated.

When confronted with this observation the City Treasurer commented they have started the job, however, they could not finish it as of now because of its volume and office constraints.


Recommendation

Require the City Treasurer to complete his list of taxpayers and their tax dues to serve as the City Accountant’s basis of recording amounts of tax receivables due every year. Provide physical and financial support to facilitate the job.

Written by admin · Filed Under Commission on Audit, Oroquieta 

Comments

Got something to say?





Philippine Elections 2010

LIST OF CANDIDATES

Click this link to see all lists of candidates for the entire Philippines