REGIONAL OFFICE NO. VII
M.J. Cuenco Avenue, Corner V. Sotto Street, Barangay Tinago, 6000 Cebu City
June 27, 2025
HONORABLE JOSE CHUBASCO B. CARDENAS
City Mayor
City of Canlaon
Province of Negros Oriental
Dear Mayor Cardenas:
Management Letter (ML) on the Audit of the
City Government of Canlaon, Negros Oriental
For the period January 1 to December 31, 2024
1. Pursuant to Section 2, Article IX-D of the Constitution of the Philippines and Section 43
of Presidential Decree No. 1445, otherwise known as the Government Auditing Code of
the Philippines, we conducted an audit on the accounts and operations of the City
Government of Canlaon for the calendar year (CY) ending December 31, 2024.
2. We conducted our audit in accordance with the International Standards of Supreme Audit
Institutions. Those standards require that we plan and perform the audit to obtain a
reasonable basis for our conclusion.
3. The audit was conducted to (a) ascertain the propriety of financial transactions and the
Local Government Unit’s (LGU’s) compliance with prescribed rules and regulations; (b)
recommend measures to improve the efficiency and effectiveness of the agency’s
operations; and (c) determine the extent of implementation of prior years’ audit
recommendations.
4. The audit included examining, on a test basis, evidence supporting the amounts in the
financial statements, assessing compliance of disbursements to prescribed rules and
regulations, and evaluating conformity to the periodic submission of accounts and
preparation of the financial statements.
5. Deficiencies observed in the course of the audit were communicated to Management
through Audit Observation Memoranda and were discussed with concerned Management
officials during the exit conference conducted on May 27, 2025. Their comments were
incorporated in this Letter, where appropriate.
