3.10 Financial liabilities
The LGU’s financial liabilities include payables and borrowings which the
Municipality is committed to pay for goods or services received. These also include
amounts entrusted to/withheld by outside sources/offices and personnel for which the
Municipality is acting as a trustee or administrator.
Payables are recognized and recorded in the book of accounts only upon acceptance
of goods and rendering of service to the Municipality.
Loans contracted by the Municipality are recognized upon receipt of the proceeds
from creditors. Interest payable is normally settled quarterly throughout the financial
year.
3.11 Equity
Equity represents the difference between the assets and liabilities. The amount
available for operations is computed by deducting the following from the ending
balance of Government Equity:
a. Equity set aside to finance capital projects with appropriations provided in
previous years (continuing appropriations)
b. Portion pertaining to receivables, inventories, prepayments and other current
assets
c. Portion pertaining to property, plant and equipment including public infrastructure
in process
d. Amount reserved for Local Disaster Risk Reduction and Management Fund
Note 4 – Cash and Cash Equivalents
Cash and Cash Equivalents amounting to ₱145,901,872.07 represent 77.12% of the total
current assets. These are composed of the following accounts:
2024 2023
Cash – Local Treasury ₱ 1,110,822.32 ₱ 413,211.62
Petty Cash 0.00 0.00
Cash in Bank – Local Currency – Current
Account 144,791,049.75 127,826,966.36
Total ₱ 145,901,872.07 ₱ 128,240,177.98
The account Cash – Local Treasury consists of collections from taxpayers that were
deposited with DBP and Landbank on January 2 and 3, 2025. At the end of CY 2024, there
were still unreconciled items per Bank Reconciliation Statement totaling ₱1,411,362.71 in
the General Fund; ₱8,294.24 in the Special Education Fund; and ₱509,378.21 in the Trust
Fund or a total of ₱1,929,035.16, all representing deductions from the bank balances.
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