COA: Taguig LGU's 2021 overall revenues exceed target 'but it could perform better'

The Taguig City government exceeded its revenue target in 2021 despite the pandemic but the Commission on Audit (COA) said it could have done better.

Based on COA’s annual audit report for Taguig, the city government collected a total of P10.8 billion in revenues in 2021, an increase of P4.41 billion or 169 percent of its target of P6.39 billion.

“The City exceeded the overall revenue projections for the year by P4.410 billion, despite the dropped projections due to the pandemic,” the COA report noted.

It added, “The income from Business Taxes still surpassed the projections for CY 2021 in performance efficiency but it could perform better had there been a periodic review of financial performance as required in Section 316 of RA No. 7160 and Local Budget Circular (LBC) No. 112 dated June 10, 2016. Thus, the inability of the City to fully maximize its revenue collection which would redound to the benefit of its constituents.”

The COA noted that in 2021, “the City’s target revenue collection, net of IRA shares, dropped by P3,610,560,758.00 from CY 2020 projection of P10,001,808,458.00, compared with the CY 2021 revenue projections of P6,391,247,700.00.”

“Despite the dropped projections due to pandemic, still the City exceeded the overall revenue projections for the year by P4,410,374,775.93. The income from Business Taxes still surpassed the projections for CY 2021 in performance efficiency amidst the pandemic,” it added.

However, COA said, “our analysis showed that it could have performed better had there been a periodic review of its performance. There were 19 accounts that realized P4,518,326,700.59 more than the target, seven accounts missed the projected income by P58,133,204.10, and two accounts registered P10,181,279.44 collections without projections.”

The seven accounts that missed the target were professional tax, amusement tax, franchise tax, fines and penalties-goods and services, fines and penalties-other taxes, inspection fees, and share-PCSO.

These accounts, according to COA, projected to collect a total of P244.14 million in 2021 but actual collections totaled P126 million, or 51.61 percent of the target.

COA noted that the Taguig “management was not able to undertake a periodic review of revenue performance during the year, as required in Section 316 of RA No. 7160 and LBC No. 112 dated June 10, 2016, or the Budget Operations Manual for 2016, which necessitated a Quarterly Report of Income, a budget document (LBAC Form No. 1) to be prepared by the City Treasurer, certified correct by the City Accountant for submission to the Local Finance Committee (LFC), thru the City Budget Officer on or before the 10th day of the month following the ending quarter. This document provides information to the members of the LFC on the variances and at the same time alerts them on remedial action for revenue accounts that missed the projections.”

“The realization of the targets provides assurance in the funding of plans and programs which are spelled out in the budget. On the other hand, the inability to attain the projected income could result in the non-implementation of certain projects which are essential in the delivery of public service or addressing the never-ending demand of public service,” COA noted.

According to COA, in response, the Taguig City government “took pride in exceeding its revenue projections despite the presence of the COVID-19 pandemic. It took note of the recommendations and assured that thru the LFC, the conduct of periodic review of its collection efficiency shall be undertaken to further improve and intensify collections.”