REGIONAL OFFICE NO. VII
M.J. Cuenco Avenue, Corner V. Sotto Street, 6000 Cebu City
INDEPENDENT AUDITOR’S REPORT
HONORABLE GALICANO A. TRUITA
Municipal Mayor
Municipality of Dauin
Province of Negros Oriental
Qualified Opinion
We have audited the financial statements of the Municipality of Dauin, 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 for Qualified
Opinion section of our report, the accompanying financial statements present fairly in all
material respects, the financial position of the Municipality of Dauin 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:
1. At least six completed projects under the General Fund, totaling ₱15,620,256.97, were
incorrectly recorded in the Construction in Progress account instead of being transferred
to the appropriate asset account, due to insufficient monitoring and improper
documentation, resulting in an overstatement of the Construction in Progress account and
an understatement of related PPE and depreciation expense accounts.
2. The Real Property Tax (RPT) Receivable and Special Education Tax (SET) Receivable,
both established at the beginning of CY 2024 at ₱9,822,743.90 each, were based on an
erroneous assessment roll due to an outdated tax system, rendering the balances of both
receivable accounts as of December 31, 2024, unreliable.
3. Penalties from RPT and SET collections totaling ₱1,048,459.20 in CY 2024 were not
recognized as income but were instead recorded as credits to the RPT Receivable and
SET Receivable accounts, resulting in the understatement of both Receivable and Income
Accounts.
