REGIONAL OFFICE NO. VII
M.J. Cuenco Avenue, Corner V. Sotto Street, 6000 Cebu City
INDEPENDENT AUDITOR’S REPORT
HONORABLE LENIN P. ALVIOLA
Municipal Mayor
Municipality of Bacong
Province of Negros Oriental
Qualified Opinion
We have audited the financial statements of the Municipality of Bacong, Province of Negros
Oriental, which comprise the statement of financial position as of 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 for Qualified
Opinion section of our report, the accompanying financial statements present fairly in all
material respects, the financial position of the Municipality of Bacong as of 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:
1. At least 186 completed infrastructure projects, comprising 33 projects under the Trust
Fund (₱207,195,565.98) and 153 under the General Fund (₱42,292,425.04), were not
properly reclassified from Construction in Progress (CIP) to the appropriate Property,
Plant, and Equipment (PPE) accounts upon completion, resulting in significant
overstatements in CIP balances and understatements in PPE and depreciation expense
accounts in the financial statements.
2. Entries for the Special Education Tax (SET) totaling ₱9,589,520.80 were recorded in the
General Fund’s books instead of the Special Education Fund’s books, thus affecting the
fair presentation of the SET Receivable and Deferred SET Income accounts in the
financial statements at year-end.
