3.10 Financial liabilities
The LGU’s financial liabilities include payables and borrowings which the
Municipality is committed to pay for goods or services received. It also
includes amounts entrusted/withheld from outside sources/offices and
personnel for which the Municipality is acting as a trustee or administrator.
Payables are recognized and recorded in the books of accounts only upon
acceptance of goods and rendition of services to the Municipality.
Loans contracted by the Municipality are recognized upon receipt of the
proceeds from creditors.
3.11 Equity
Equity represents the difference between assets and liabilities. The amount
available for operations is computed by deducting the following from the
ending balance of Government Equity:
a. equity set aside to finance capital projects with appropriations provided in
the previous years (continuing appropriations)
b. portion pertaining to receivables, inventories, prepayments and other
current assets
c. portion pertaining to property, plant and equipment including public
infrastructures in process
d. amount reserved for Local Disaster Risk Reduction and Management
Fund
Note 4 – Cash and Cash Equivalents
This account consists of the following:
2024 2023
Cash – Local Treasury ₱ 1,167,922.53 ₱ 1,104,415.04
Petty Cash 40,000.00 40,000.00
Cash in Bank – Local Currency, Current
Account 1,706,386,574.56 319,021,384.28
Cash in Bank – Local Currency, Time
Deposits 0.00 290,347.94
Total Cash and Cash Equivalents ₱ 1,707,594,497.09 ₱ 320,456,147.26
The balance of the Cash – Local Treasury account is composed of cash with the
Provincial Treasury in the amount of ₱72,542.63 and undeposited collections as of December
31, 2024, amounting to ₱939,478.27, which were deposited on January 2, 3, and 7, 2025. The
Cash - Local Treasury has an unreconciled balance in the amount of ₱155,901.63 from
previous years subject to verification.
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