MELTO Case Studies for Provincial Evaluators

MELTO Case Study Exercise 1:

Baliuag, Bulacan1

A regular evaluation was conducted for the Municipality of Baliuag by the Province of Bulacan
during the period May 18 – 22, 2015 with report submitted to the Local Chief Executive on May
29, 2015.

During the evaluation the following findings were made:

1. The tax rates were found to be above the rates prescribed in the Local Government Code.

2. The rates of fee and charges set in the Local Revenue Code are higher than those used in
actual collection.

3. The Discount on the Prompt Payment of the Real Property Tax exceeded 10% of the regular
payment.

4. The charging of the Mayor’s Permit Fee is not embodied in the Local Revenue Code.

5. Average Actual Revenues from Local Sources over the last three (3) years have been below
their estimated average revenue targets.

6. Not all Accountable Officers have been found to be fully bonded.

7. Some of the Accountable Forms have been stored in an unsecured location.

8. The Local Treasurer has not yet issued an official receipt acknowledging the return of the
unused amount of the petty cash fund at the end of the year.

Prior to the submission of the report to the Local Chief Executive, the Local Treasurer took the
following actions:

1. Fully bonded all Accountable Officers.

2. Moved all the Accountable Forms to a secured stockroom.

3. Issued an official receipt acknowledging the return of the unused amount of the petty cash
fund at the end of the year.

1
The information for this case study with the exception of the name of the LGU is completely fictional and
is not based on any finding in the LGU or any LGU in the Philippines. This has been developed purely for
instructional purposes and should not be quoted.
 MELTO Case Study Exercise 2:

Bustos, Bulacan2

A regular evaluation was conducted for the Municipality of Bustos by the Province of Bulacan
during the period May 18 – 22, 2015 with report submitted to the Local Chief Executive on May
29, 2015.

During the evaluation the following findings were made:

1. The effectivity date of the Local Revenue Code is six (6) years old and not
recommendations have been forwarded to the Local Chief Executive to revise the rates.

2. The rates of taxes used in actual collection are higher than those in the Local Revenue
Code.

3. Computation of the Tax Due for all Real Property Tax Payments is higher than the
Assessed Value from the Assessment Roll multiplied by the Tax Rate as specified in the
Local Revenue Code.

4. The charging of the Mayor’s Permit is higher than what is prescribed in the Local Revenue
Code.

5. Average annual revenues from Local Source for the last three (3) preceding years are
lower than their estimated average revenue targets.

6. Not all accountable officers of the LGU are secured with approved bonds.

7. Some of the duly approved disbursement vouchers on which some check are drawn are
missing.

8. Some of the Treasurer’s Cashbooks were found not to be stored in the vault.

2
The information for this case study with the exception of the name of the LGU is completely fictional and
is not based on any finding in the LGU or any LGU in the Philippines. This has been developed purely for
instructional purposes and should not be quoted.
 MELTO Case Study Exercise 3:

Malolos, Bulacan3

A regular evaluation was conducted for the City of Malolos by the Province of Bulacan during
the period May 25 – 29, 2015 with report submitted to the Local Chief Executive on June 5,
2015.

During the evaluation the following findings were made:

1. The Notice of Tax Payment informing tax payers about the schedule of Tax Payments has
not yet been completed at the time of the evaluation.

2. The Tax Payer’s Index Card have not been updated during the evaluation.

3. Some of the Accountable Forms have been found outside of the stockroom.

Prior to the submission of the report to the Local Chief Executive, the Local Treasurer has
performed the following actions:

1. The Notice of Tax Payment has been completed and posted in a conspicuous place.

2. The Tax Payer’s Index Card has been updated and verified by the Provincial Treasurer.

3. All the Accountable Forms have been verified by the Provincial Treasurer to now be stored
securely in the stockroom.

3
The information for this case study with the exception of the name of the LGU is completely fictional and
is not based on any finding in the LGU or any LGU in the Philippines. This has been developed purely for
instructional purposes and should not be quoted.
 MELTO Case Study Exercise 4:

Meycauyan, Bulacan4

A regular evaluation was conducted for the City of Meycauyan by the Province of Bulacan
during the period May 25 – 29, 2015 with report submitted to the Local Chief Executive on June
5, 2015.

The Provincial Evaluation Team has determined that no infractions or violations of the Local
Treasury Operations Manual have been committed by the Local Treasury Office.

4
The information for this case study with the exception of the name of the LGU is completely fictional and
is not based on any finding in the LGU or any LGU in the Philippines. This has been developed purely for
instructional purposes and should not be quoted.