Amount (₱)
Account/Particulars
2024 2023 Increase/(Decrease)
Net Other Non-Operating (176,256,296.49) (561,088.15) 175,695,208.34
Income (Losses)
Surplus/(Deficit) 198,744,130.67 365,489,481.95 (166,745,351.28)
Independent Auditor’s Report on the Financial Statements
The Auditor rendered a qualified opinion on the financial statements of the City of Bais for the
year ended December 31, 2024, due to the effects of the following exceptions :
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
inventories consumed and issued, along with lack of priority in reconciling the two records
and the use of a deficient report format, which substantially overstated the inventory
account balances by ₱56,550,299.47 as of December 31, 2024.
4. Fifty-seven projects totaling ₱53,057,138.75, financed through trust receipts from NGAs,
remained recorded as a liability under the Due to NGAs account despite their completion
and liquidation, thus, overstating the Due to NGAs account and understating the
Government Equity account as of December 31, 2024.
Significant Audit Observations and Recommendations
In addition to the above-noted deficiencies, below are the significant observations and
recommendations in the audit and/or evaluation of the operations of the City of Bais for the
year 2024.
1. Substantial cash advances amounting to ₱41,572,481.30 remained unliquidated and
had been outstanding for as long as 13 years. The amount includes the cash advance
for confidential and intelligence fund withdrawn by the former and incumbent local
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