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COMMON LOCAL TREASURY OPERATIONS EVALUATION FINDINGS/EXCEPTIONS AND

RECOMMENDATION

Updating/Implementation of Revenue Code


Outdated LRC. Revise LRC in order to avail of the advantage set
forth under Section 191 of RA 7160 or the Local
Government Code of the Philippines on the
adjustment of rates and be attuned with the
present economic condition of the locality.
The LRC only exempts business engaged in the Incorporate the following in the LRC as exempted
production, manufacture, refining, distribution or in paying the local business tax: 1. Business
sale of oil, gasoline and other petroleum products enterprises certified by the BOI as pioneer and
in paying the local business tax. non-pioneer for a period of six (6) and four (4)
years, respectively, from the date of registration; 2.
Cooperatives duly registered with the CDA (RA
6938); 3. PEZA-registered enterprises and other
Special Economic Zones; 4. Local water districts;
5. Non-stock non-profit hospitals and educational
institutions; 6. Business entity, association or
cooperatives registered under R.A. No. 6810; and,
Printer and/or publisher of books and other reading
materials prescribed by DECS. (DepEd).
Assesses and collects taxes on newly started Amend and omit this provision in the LRC as it is
business. contrary to BLGF MC No. 01-001-2017 dated 5
January 2017.

Immediately stop the assessment and collection of


local business taxes on newly started business.
Discrepancies were noted in the assessment and Observe proper assessment of business tax and
collection of Business Tax Due (excessive, no Fees and Charges that it should be within the
basis and contrary to LRC). bounds of the duly enacted LRC.

Amount of assessment and collection on Fees and


Charges are inconsistent with the LRC.

It has also been noted that there were instances


wherein there was no assessment of business tax
upon renewal of application for business permit.

Improper classification of essential commodities in


assessing tax dues.
The LRC levies Amusement Tax at 30%. Amend the LRC to conform with RA9640 pegging
amusement tax rate of not more than 10% of the
gross receipts of admission.
Discrepancies were noted in the computation of Practice manual counter-checking of the system
tax due on RPT especially on giving discounts and generated computation of RPTax due to avoid
penalty. error.
Fails to practice the provision of Section 171 of Exhaust the provision of Section 171 in order to
RA7160 on the examination of accounts and ascertain, assess, and collect the correct amount
COMMON LOCAL TREASURY OPERATIONS EVALUATION FINDINGS/EXCEPTIONS AND
RECOMMENDATION

pertinent records of businessmen by the Local of the tax, fee, and charge.
Treasurer.
The Province has just implemented the 2017 Update RPTAR immediately to avoid delay in
General Revision of property assessment. It was assessing tax due.
noted that the RPTAR were still not updated with
the revised assessed value.
It was also noted that the Treasury has no copy of Request a copy of the Assessment Roll from the
the revised Assessment Roll. RPTaxpayers upon Assessment Office as mandated by RA7160.
payment of 2018 tax due were required to visit the
Assessment Office for the new assessed value.
The provision of the LRC as far as taxes on mining Amend LRC on mining taxes to conform with LFC
is not in conformance to LFC 2-09. 2-09.
Fails to practice Administrative and Judicial Immediately practice Administrative and Judicial
remedies in the collection of Real Property Taxes. remedies in the collection of delinquent Real
Property Taxes.

Ease of Doing Business/Existence of Computerized System


Uses automated system in in the assessment, Closely coordinate with the systems provider in
collection and other treasury operations, however, order to harmonize the system with the needs of
discrepancies were noted in the computation of the office.
taxes due between system-generated versus
manual computation.
Treasury Operations are partially automated. RPT It is commendable that the MTO is investing in
and Business Taxation are still needing fine-tuning automated Treasury Operations. It may be
in order to conform with the Provincial Ordinance recommended to closely coordinate with the
(RPT) and the Local Revenue Code. systems provider in order to harmonize the system
to conform with the LRC of the Province and the
RPTAR and BTAR are stored electronically. It also Municipality.
maintains a manual recording for counter-checking
(parallel-run).

Designated DO (actual duty as collector) of the


MTO also acts as BPLO.

Updated Maintenance of Cash books


DO has no cashbook. Some cashbooks of the The cashbook shall be maintained by the
accountable officers are not updated. Treasurer and other Accountable Officers by fund
and shall be updated and balanced daily. The
Accountable Officer shall, at the end of the month
or when required to do so by proper competent
COMMON LOCAL TREASURY OPERATIONS EVALUATION FINDINGS/EXCEPTIONS AND
RECOMMENDATION

authority, rule and foot the cashbook. He shall


likewise accomplish the a certification on the
correct and complete record of the cash
transactions.
Collections were not remitted daily and intact. Remit and deposit collections daily and intact.
Field collectors where collections are minimal and
daily turn-over thereof becomes costly and
impractical, turn-over of collections shall be at least
once a week or as soon as collections reach
Php5,000
Designate Special DO to offices which need cash
advances.
An Accountable Officer signs check and voucher Stop and refrain from signing checks and vouchers
even without proper designation from the BLGF. without proper authority from the BLGF.

(This observation was recently cured due to


issuance of appropriate designation to the said
Accountable Officer from BLGF.)
Due to lack of system support, the system was Practice parallel-run (manual recording) of RAAF
unable to generate the CRAAF. in order to properly monitor the AFs.
Failure to prepare and submit RAAF and CRAAF. Submit monthly CRAAF and RAAF. The CRAAF
The permanent record book used in recording should not only take up the AF in stock but to also
receipts and issuances of AF does not contain include the inventory of AFF requisitioned by the
complete information as to whereabouts of the collectors thereby, verifying the accuracy of the
accountable forms. submitted RAAF. The permanent record book
should contain information that shall monitor the
whereabouts of AF.

Prompt Remittances of National and Local Obligation


No pending vouchers for statutory remittances
including loan payments with CTO. Remittances
were all remitted timely.
Delayed remittance of Barangay Share of RPT. Section 271 of RA7160 states that ‘The share of
each Barangay shall be released, without need of
any further action, directly to the Barangay
treasurer on a quarterly basis within five (5) days
after the end of each quarter and shall not be
subject to any lien or holdback for whatever
purpose.’
Erroneous disposition of sharing of RPT to Check accurately the disposition of proceeds to
Barangays. Barangays to conform with Section 271 of
COMMON LOCAL TREASURY OPERATIONS EVALUATION FINDINGS/EXCEPTIONS AND
RECOMMENDATION

RA7160.

Liquidation of Cash Advances of treasurers


It is observed that a number CTO personnel have Liquidate the said cash advances immediately.
an unliquidated cash advances aging from 30 to
270 days.