EXECUTIVE SUMMARY
Introduction
Basay is a 4th class Municipality in the Province of Negros Oriental. It is located in the
southern portion of the province and based on the 2020 census, it had a population of
28,531. It was formerly called Busay, which means Spring because of the abundance of
springs in the area. Pursuant to Republic Act No. 7160, otherwise known as the Local
Government Code of 1991, the Municipality, like all other government units, enjoys total
independence in managing and planning its own administrative, fiscal, and development
affairs in conformity with the national government’s thrust for sustainable social and
economic growth. As of December 31, 2024, it had a personnel complement of:
Nature of Appointment to Office Quantity
Elective Officials 12
Coterminous 2
Permanent 69
Casuals 53
Job Orders/Contract of Service 249
Total 385
Audit Objective
The objective of the audit is to (a) ascertain the fairness of presentation of the financial
statements; (b) ascertain the propriety of financial transactions and compliance with
prescribed rules and regulations; (c) recommend agency improvement opportunities; and
(d) determine the extent of implementation of prior years’ audit recommendations.
Performance audit was likewise conducted with the objective of informing management
where improvement can be instituted in the field of revenues, expenditures and
management of resources.
Audit Methodology
The Commission has been implementing risk-based audit in the conduct of its audit
services. However, to meet the evolving developments in public governance and fund
management, the results-based approach in audit was incorporated, and audit procedures
were applied to less than 100 percent of items within a population of audit relevance, in
accordance with ISA 530.
i
