REGIONAL OFFICE NO. VII
M.J. Cuenco Avenue, Corner V. Sotto Street,
Barangay Tinago, 6000 Cebu City
INDEPENDENT AUDITOR’S REPORT
HON. FILOMENO L. REYES
City Mayor
City of Guihulngan
Province of Negros Oriental
Qualified Opinion
We have audited the financial statements of the City of Guihulngan, Province of Negros
Oriental, which comprise the statement of financial position as of 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 Basis for Qualified Opinion
section of our Report, the accompanying financial statements present fairly, in all material
respects, the financial position of the City of Guihulngan as at December 31, 2024, and its
financial performance, its cash flows, and its comparison of budget and actual amounts for the
year then ended in accordance with International Public Sector Accounting Standards
(IPSASs).
Basis for Qualified Opinion
As contained in Part II of this Report, the accuracy of the Property, Plant and Equipment (PPE)
account totaling ₱2,460,632,084.90 were unreliable due to the non-reconciliation of PPE
resulting to a net difference of ₱40,304,574.47 between the General Ledger balance and the
Inventory Count Forms while PPE totaling ₱19,531,243.91 could not be located, thus casted
doubt on the validity and reliability of PPE account.
We conducted our audit in accordance with the International Standards of Supreme Audit
Institutions (ISSAIs). Our responsibilities under those standards are further described in
Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We
are independent of the agency in accordance with the ethical requirements that are relevant to
our audit of the financial statements, and we have fulfilled our other ethical responsibilities in
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