REGIONAL OFFICE NO. VII
M.J. Cuenco Avenue, Corner V. Sotto Street, Barangay Tinago, 6000 Cebu City
INDEPENDENT AUDITOR’S REPORT
HONORABLE LUIGI MARCEL T. GOÑI
City Mayor
City of Bais
Province of Negros Oriental
Qualified Opinion
We have audited the financial statements of the City of Bais, 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 matters 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 City of Bais as at December 31, 2024, and its
financial performance, its cash flows, and its comparison of budget and actual amounts for the
year then ended in accordance with International Public Sector Accounting Standards (IPSAS).
Bases for Qualified Opinion
1. The accuracy and reliability of the Local Road Network (LRN) account balance totaling
₱286,016,299.73 could not be ascertained due to the: (a) non-submission of a complete
Report on the Physical Count of LRN and Report on LRN; (b) non-maintenance of the
LRN Ledger Card and LRN Property Card showing a complete description and cost
segregation of LRN components; and (c) lack of full disclosure of the total road networks
in the Notes to the Financial Statements, thereby affecting the fair presentation of the
account in the financial statements.
2. The validity, existence, and accuracy of the Property, Plant and Equipment (PPE) accounts
totaling ₱488,780,849.81 could not be ascertained due to the unreconciled difference of
₱57,969,559.01 between the PPE balances in the Report on the Physical Count of PPE and
the books of accounts, thus affecting the fair presentation thereof in the Financial
Statements. These unreconciled differences could have been properly and adequately
addressed had Management implemented the one-time cleansing of PPE.
3. Discrepancies were noted between the physical count and the book balances of inventory
accounts, totaling ₱41,852,147.26, ₱9,526,853.75, and ₱5,171,298.46 under the General
Fund, Special Education Fund, and Trust Fund, respectively, due to delays in recording
