Lack of tax list due to few people

CEBU, Philippines - The Municipality of Minglanilla told the Commission on Audit it was the lack of manpower that led to its failure to prepare the certified list of taxpayers and the amount due and collectible for last year.

In its 2012 audit report, COA found that real property and special education tax receivables set up at the beginning of the year amounting to P11.4 million each were not supported with a certified list of taxpayers showing the amount of tax due and collectible.

It said that subsidiary ledgers were not also maintained, hence the validity and valuation of receivables could not be ascertained, thus the accounts’ balances are unreliable.

Section 20 of the New Government Accounting System Manual Vol. I prescribes that Real Property Tax and Special Education Tax Receivable should be established at the beginning of the year based on a duly certified list showing the name of taxpayers and the amount due and collectible for the year.

State auditors said that the Journal Entry Voucher was only supported with certified List of Real Property Tax Collectible per Barangay for the Calendar Year 2012.

The Real Property Tax Receivable for CY 2012 stated only the total assessed value of the LGU’s taxable real properties of P2.2 billion and its corresponding tax due of P22.8 million of which P11.4 million was for the General Fund and another P11.4 million for the Special Education Fund.

The audit report also stated that the municipal accountant did not prepare subsidiary ledgers for the Real Property Tax/Special Education Tax Receivable because the municipal treasurer failed to prepare and submit the list of taxpayers and their Real Property Tax due.

“Per our interview, the Municipal Treasurer cannot prepare at the beginning of the year a duly certified list showing the name of taxpayers and the amount due and collectible for the year since the agency computed the RPT and SET manually with its limited manpower,” the audit report said.

COA said that this is a reiterated observation since there was no compliance to the prior year’s audit recommendation either.

The municipal treasurer reportedly said that only three employees are under the office, two are in-charge of the RPT collections while the other one is undertaking the manual recording of the daily collections which can average 200 receipts per day.

It was proposed that computerization of their collection system will solve this perennial problem prompting COA to recommend to the municipality to avail of the software of the National Computer Center.

COA also recommended that the municipality require the municipal treasurer to prepare a duly certified list showing the name of taxpayers and the amount due and collectible during the year and submit this to the accountant.  (FREEMAN)