REGIONAL OFFICE NO. VII
M.J. Cuenco Avenue, Corner V. Sotto Street, Cebu City
INDEPENDENT AUDITOR’S REPORT
HONORABLE ENIEGO C. JABAGAT
Municipal Mayor
Municipality of Bindoy
Province of Negros Oriental
Qualified Opinion
We have audited the financial statements of the Municipality of Bindoy, 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 matter described in the Bases of Qualified
Opinion section of our report, the accompanying financial statements present fairly in all
material respects, the financial position of the Municipality of Bindoy, Negros Oriental as at
December 31, 2024, and its financial performance, its cash flows, and its statement of
comparison of budget and actual amounts for the year then ended in accordance with
International Public Sector Accounting Standards (IPSAS).
Bases for Qualified Opinion
As discussed in Part II of this report, the one-time cleansing of the Property, Plant, and
Equipment (PPE) account amounting to ₱449,640,288.56 as of December 31, 2024, was not
yet implemented by the Municipality due to their failure to complete the physical count and
to reconcile the count with the books, thereby the existence of movable properties amounting
to ₱52,486,842.32, net of accumulated depreciation and the accuracy of the PPE balances
cannot be ascertained, affecting the fair presentation of these accounts in the financial
statements.
Moreover, PPE under the Trust fund totaling ₱17,379,465.70 were not transferred to the
General Fund nor provided with depreciation allowances, thus resulting in the
understatement of the PPE accounts and depreciation expenses in the General Fund.
Furthermore, biological assets with a book balance of ₱11,741,439.97 as of December 31,
2024 is not fairly presented in the financial statements because no inventory report of the
breeding stocks and trees with their corresponding prevailing market prices as at reporting
date was submitted by the OIC – Municipal Agriculturist to the Municipal Accountant,
thereby the existence and condition of these assets as well as the reliability of the balance of
