3.2 Combination/Consolidation
The consolidated financial statements reflect all the assets, liabilities, revenues,
and expenses of the City covering all funds. These funds include the General
Fund, Special Education Fund (SEF) and Trust Fund (TF). The General Fund
is composed of the following:
General Fund Proper
20% Economic Development Fund
Market Operations
Slaughterhouse
Operation of Waterworks System
Other Special Account - Loans
3.3 Presentation of Financial Statements
In accordance with the PPSAS transitional provisions, comparative financial
statements for CY 2024 and 2023 were presented.
3.4 Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and cash in bank; on-call
deposits and highly liquid investments with an original maturity of three months
or less, which are readily convertible to cash and present insignificant risk of
changes in value because of changes in interest rates.
Petty Cash Fund (PCF) is maintained on an imprest system wherein
replenishment is charged to the expense account. The PCF is not used to
purchase regular inventory items for stock.
3.5 Investments
The LGU limits its exposure to risk by investing only in government-issued
securities through Authorized Government Depository Banks.
3.6 Receivables
Receivables represent amounts collectible from various constituents, taxpayers,
other local government units, national government agencies, city officials and
employees arising from claims for money lent, real property taxes due the local
government unit and cash advances granted for travel and for payment of
salaries, wages, allowances, honoraria and other operating expenses.
3.7 Inventories
Inventories were recognized and measured at cost upon initial recognition.
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