COA Uncovers ₱16.1-M Anomaly in Kawit, Cavite Tax Records

KAWIT, Cavite — The Commission on Audit (COA) has uncovered corruption over a ₱16,121,891.58 anomaly in the Real Property Tax (RPT) and Special Education Tax (SET) receivables between the municipal accounting and treasury records of Kawit LGU under Mayor Angelo Aguinaldo.

According to a COA report, the Municipal Treasurer’s certified list of RPT delinquencies showed a total of ₱21,671,332.47, which includes penalties amounting to ₱9,904,850.83.

However, the accounting records reflected a significantly lower balance of ₱5,549,440.89 for both RPT and SET receivables, creating a substantial variance.

COA flagged this discrepancy as casting doubt on the accuracy and reliability of the municipality’s reported balances for these receivable accounts.

COA cited Section 20 of the Manual on the New Government Accounting System (NGAS) for Local Government Units, which mandates the establishment of accurate RPT and SET receivable balances at the beginning of the year.

Under this provision, the Municipal Treasurer is required to furnish the Chief Accountant with a certified list of taxpayers and their outstanding dues. This serves as the basis for recording RPT/SET receivables and deferred income.

The report also referenced Section 255 of Republic Act No. 7160, or the Local Government Code of 1991, which imposes a 2% monthly interest on unpaid real property taxes.

A detailed comparison of year-end balances revealed that the treasury’s records showed higher amounts of basic tax and penalties for both RPT and SET.

For example, the treasury recorded a total of ₱10,835,666.23 in RPT and SET basic taxes and penalties, while the accounting office reported only ₱5,549,440.89, resulting in a total variance of ₱16,121,891.58.

Further scrutiny revealed that RPT and SET receivable accounts amounting to ₱2,996,388.99 and ₱2,553,051.90, respectively, were not reconciled with a deferred RPT/SET income discrepancy of ₱443,337.09.

COA recommended immediate reconciliation between the accounting and treasury records to validate the reported balances and ensure compliance with government accounting standards.

Failure to address the discrepancy, the COA warned, undermines the credibility of the municipality’s financial reports.

Officials from Kawit’s local government have yet to issue a statement regarding the anomalous findings.