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Sample RPTSET Findings

The Real Property Tax Receivable and Special Education Tax Receivable accounts had incorrect balances as of December 31, 201_ because they were not based on an updated Real Property Tax Account Register, contrary to Section 20 of the Manual on the New Government Accounting System. An interview revealed the receivables were estimates from a computer-generated list that showed duplications, as the assessment roll was not updated. As a result, Real Property Tax and Special Education Tax Receivables were understated by an undetermined amount, in violation of Section 20.

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Glaiza Malto Orteza
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526 views

Sample RPTSET Findings

The Real Property Tax Receivable and Special Education Tax Receivable accounts had incorrect balances as of December 31, 201_ because they were not based on an updated Real Property Tax Account Register, contrary to Section 20 of the Manual on the New Government Accounting System. An interview revealed the receivables were estimates from a computer-generated list that showed duplications, as the assessment roll was not updated. As a result, Real Property Tax and Special Education Tax Receivables were understated by an undetermined amount, in violation of Section 20.

Uploaded by

Glaiza Malto Orteza
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Real Property Tax Receivable and Special Education Tax Receivable accounts had

balances of ________ and P _________ respectively, as of December 31, 201___, an


indication that the setting up of the same at the beginning of the year was not based
on duly updated Real Property Tax Account Register (RPTAR) contrary to Section 20 of
the Manual on the New Government Accounting System (MNGAS).

The Municipality’s trial balances as of December 31, 2011 showed that Real
Property Tax (RPT) Receivable had a balance of P1,000,665.60 under the General Fund
while Special Education Tax (SET) Receivable under the Special Education Fund had a
balance of P1,495,121.75. An interview with the Municipal Accountant revealed that a list
of these receivables which was computer generated at the Treasury Office showed some
duplications which meant that assessment roll at the Assessor’s Office was not yet
updated, despite a system has been already installed in the agency, hence RPT/SET
Receivables computations given by the Treasury Office were just estimates in violation of
Section 20 of the MNGAS. As a result, RPT/SET Receivables were understated by an
undetermined amount.

Section 20 of the Manual on the New Government Accounting System, Basis of


Recording Real Property Tax (RPT)/Special Education Tax (SET) Receivable, provides that
the RPT/SET Receivable shall be established at the beginning of the year based on RPTAR
or the Taxpayers’ Index Cards. At the beginning of the year, the Treasurer shall furnish
the Chief Accountant of a duly certified list showing the names of the 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 RPT Receivable/SET Receivable and
credit to Deferred RPT Income/Deferred SET Income.

We recommended that the Local Chief Executive require the Municipal Assessor
to finalize the updating of the assessment roll, a copy of which is to be furnished to the
Municipal Treasurer for the RPTAR or taxpayers’ index cards. Likewise, the Municipal
Treasurer should furnish the Municipal Accountant a duly certified list showing the
names of the taxpayers and the amount due and collectible for the year as basis of
setting up RPT/SET Receivable in compliance with Section 20 of the MNGAS, Volume I.
We also recommended that the Municipal Accountant make the necessary adjustments
so that the RPT Receivable and the SET Receivable are of the same amount and also
equal to Deferred Real Property Tax Income and Deferred Special Education Tax
Income.

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