REGIONAL OFFICE NO. VII
M.J. Cuenco Avenue, Corner V. Sotto Street, Brgy. Tinago 6000 Cebu City
INDEPENDENT AUDITOR’S REPORT
HONORABLE JOHN T. RAYMOND, JR.
City Mayor
City Government of Bayawan
Province of Negros Oriental
Qualified Opinion
We have audited the financial statements of the City of Bayawan, 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 Bayawan as of December 31, 2024,
and its financial performance, cash flows, changes in net assets/equity, and comparison of
budget and actual amounts for the year then ended in accordance with International Public
Sector Accounting Standards (IPSASs).
Bases for Qualified Opinion
As discussed in the Audit Observations and Recommendations under Part II of this Report,
the incorrect treatment in the reclassification of semi-expendable properties led to an
overstatement of the Other Supplies and Materials Inventory, Other Supplies Inventory, and
Other Property Equipment amounting to ₱25,654,129.33, ₱20,014,411.95, and
₱1,113,365.39, respectively, and thus an overstatement in Equity totaling ₱46,781,906.67.
Furthermore, supplies totaling ₱736,835.00 were recognized as expenses for the audited
year rather than being retained in inventory. Additionally, prior year expenditures
amounting to ₱133,160.00 were erroneously recorded as current year expenses, thereby
overstating expenses by an aggregate amount of ₱869,995.00.
In addition to the financial information mentioned above, the accuracy of the cash balance
reported for the 20 percent development fund cannot be determined due to a substantial
discrepancy of ₱149,539,738.49 between the balance stated in the financial statements and
