The 2017 COA Reports: Poor revenue collection efficiency noted in Baras
Baras, Catanduanes  ·  
posted 6-Aug-2018  ·  
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Treasury officials in Baras town were recently advised to further intensify revenue collection efforts after the Commission on Audit noted that that total revenue collections in 2017 registered an increase of only 1.5 percent compared to the previous year’s collection.

The auditors also recommended that the local chief executive be sensitive on issues involving personnel in the assessment and collection of taxes “as to whether they are performing their mandated functions on public accountability and seeing to it that revenues/income are correctly imposed, assessed, collected and remitted to the coffers of the government.”

A comparative review of the revenue realized by the municipality for the past two years showed that it collected P2,124,555.86 last year, or a measly increase of P32,649.86 compared to the 2016 revenue haul of P2,091,906.00. The audit team noted that the 2016 revenue take was higher by 29 percent over the previous year’s.

Among the accounts that suffered huge decreases in 2017 were Real Property Tax, which fell by 45 percent from P948,178.09 in 2016 to just P523,020.72 last year, and Inspection Fees, which decreased by 54 percent.

The auditors pointed out that in 2016, the RPT collection was higher by 79 percent over the 2015 collection, while the Inspection Fees registered a 62 percent increase in 2016 compared to the 2015 take.

“The collection efficiency could have further improved had there been close monitoring of the revenue accounts that reported decreased amounting to P454,012 and enhanced collection from the 9 other revenue sources that recorded an increase totaling P486,662,” the report stated.

In its exit conference, the treasurer informed that in 2016, the LGU recorded a considerably large increase in collection because of the tax amnesty offered to real property tax payers while the two telecommunications companies paid a one-time RP Tax for their communication towers.

The other significant findings of the audit are the following: failure of the treasurer to deposit intact the collections from January to December 2017, exposing the funds to risk of loss, misuse or misappropriation; unliquidated cash advances of P113,156; use of the Special Education Funds to purchase office supplies in violation of a joint circular; failure to follow proper accounting procedures in the procurement of materials and equipment amounting to P336,151;  failure to allocate 1% of the IRA as budget for the protection of children and youth; failure to train solid waste management staff and absence of designated representatives in the solid waste management board; lack of Daily Time Records in the payment of salaries of LGU officials and employees; allowing employees to receive a net take-home pay of less than P4,000 per month; hiring and appointment of its Senior Administrative Assistant III on a job-order status despite his having reached compulsory retirement age of 65 years; and,failure to completely implement projects under its 20% Economic Development Fund.

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