COA Discovers City Hall’s P23.8-Million Tax Receivables as Unreliable

Tagbilaran City, Bohol – A recent audit by the Commission on Audit (COA) has revealed that a staggering P23.8 million in Real Property Tax (RPT) and Special Education Tax (SET) receivables under the administration of Mayor Jane Yap were found to be unreliable due to non-compliance with government accounting standards.

In its financial audit, COA criticized the City Government’s failure to properly account for year-end balances of RPT and SET receivables amounting to P16,040,751.81 and P7,802,724.94 respectively. The report cited that the receivables were based merely on target collections set by the Bureau of Local Government Finance (BLGF) and not on actual certified lists of taxpayers as required under Section 20, Chapter 3 of the Manual on the New Government Accounting System (MNGAS) for LGUs.

COA auditors found that the City Treasurer’s Office used outdated data and failed to coordinate with the City Assessor in preparing a certified list of taxpayers, resulting in erroneous receivables. The audit pointed out that even canceled tax declarations were included, grossly inflating the receivable amounts.

“The erroneous basis of setting up the receivable at the beginning of the year and the unequal receivable and deferred income accounts of the RPT and the SET rendered these accounts inaccurate and unreliable,” the report stated.

Further discrepancies were noted in the journal entries, with a P380.31 difference in the RPT receivable and its corresponding deferred income, raising red flags on the integrity of financial entries under the current administration.

COA discovered that under the modified accrual method, RPT and SET receivables must be supported by actual certified lists showing taxpayers and collectible amounts. Failure to comply with this led to overstated assets and income, potentially misleading financial reports.

The audit findings place the spotlight on the leadership of Mayor Jane Yap and her predecessor husband, Baba Yap.

Critics have pointed to the lack of transparency and accountability as a pattern within the Yap administration, which has long been accused of operating with minimal checks and balances.

COA recommended immediate corrective actions, including proper coordination between the City Treasurer, City Accountant, and City Assessor, as well as the tracing and adjustment of erroneous entries to ensure the accuracy of financial statements.

As Boholanos call for deeper investigations, questions loom over whether the Yap tandem has allowed administrative negligence or willful financial mismanagement to flourish in Tagbilaran’s local government.