Deficiency in the implementation of projects funded out of the twenty-percent development fund, the non-submission of sworn statement of gross receipts by the taxpayers and the failure to transfer land titles to Danao City are among the various violations discovered by the Commission on Audit when they examined the records of Danao City.
In the annual COA report, state auditors said that land amounting to P14,941,590 was not yet transferred to the name of the city government, which is in violation of Section 148 of COA No. 92-386.
The section states that “every local chief executive shall be immediately responsible for the proper and effective use and management of real estate owned or titled in the name of the local government units.”
It further states in the circular that the local chief executive must ensure that all real estate under his responsibility are registered, under Torrens Title System and safeguarded from squatters and unlawful occupants.
Because of this, the city government cannot yet ascertain the ownership. Accordingly, the General Services Office revealed to COA that lots acquired were still in the process of titling and that some documents cannot be secured immediately due to “voluminous requirements” for titling.
COA reminded GSO to make extra efforts to facilitate the titling of the lots.
The state auditors also reminded the city treasurer’s office to require business operators to submit their sworn statement of gross receipts or sales when applying for business permits.
The city treasurer issued an office order creating an inspection team to examine account books, but COA said with the absence of the sworn statement of gross receipts and sales, the team cannot easily validate tax assessments.
In the verification of assessment records at the license and fees division, they observed that the application for business permit did not indicate any information on the total gross sales receipts from taxpayers.
The computerized assessment sheet prepared was also allegedly unsigned.
COA also reported Danao City was deficient in the implementation of the 20 percent City Development Fund as various projects of the city amounting to P12,715,943 was not implemented.
The city planning and development office and other departments said that certain projects were proposed for realignment and other projects were held in abeyance.
They also said several projects of the waterworks division were not implemented due to the lack of drilling machines and some projects are still scheduled for bidding while others are still having their program of works and estimates prepared.
“The delay and non-implementation of the programmed projects have affected the achievement of desired development objective, depriving the constituents of the intended benefits from the projects,” COA said. — Garry B. Lao/BRP