REGIONAL OFFICE NO. VII
M.J. Cuenco Avenue, Corner V. Sotto Street, Cebu City
INDEPENDENT AUDITOR’S REPORT
HONORABLE DENNIS N. AMANCIO
Municipal Mayor
Municipality of Ayungon
Province of Negros Oriental
Qualified Opinion
We have audited the financial statements of the Municipality of Ayungon, Province of Negros
Oriental, which comprise the statement of financial position as at December 31, 2024, and the
statement of financial performance, statement of changes in net assets/equity, statement of cash
flows and statement of comparison of budget and actual amounts for the year then ended, and
notes to the financial statements, including a summary of significant accounting policies.
In our opinion, except for the effects of the matter described in the Bases of Qualified Opinion
section of our report, the accompanying financial statements present fairly in all material
respects, the financial position of the Municipality of Ayungon, as at December 31, 2024, and
its financial performance, its cash flows, and its statement of comparison of budget and actual
amounts for the year then ended in accordance with International Public Sector Accounting
Standards (IPSAS).
Bases for Qualified Opinion
As discussed in Part II of this report, the Inventory Committee was not able to conduct a
complete physical inventory count for the one-time cleansing of the Property, Plant, and
Equipment (PPE) accounts thereby raising concerns about the existence and fairness of the
presentation of the PPE balances of ₱377,956,496.66 in the financial statements, including
movable properties totaling ₱82,252,926.83 as of December 31, 2024.
Moreover, the accuracy of the Accountable Forms, Plates and Stickers inventory account in
the total amount of ₱1,074,559.30 is unreliable because the Municipal Treasurer did not
conduct a physical count of inventory items every semester and did not prepare the Summary
of Supplies and Materials Issued (SSMI), which is the basis for recording the utilization of
inventory items, thereby overstating the Inventory account by ₱889,767.22 and understating
the Expense account of the same amount, affecting the fair presentation of the accounts in the
financial statements.
