REPUBLIC OF THE PHILIPPINES
COMMISSION ON AUDIT
REGIONAL OFFICE NO. VII
M.J. Cuenco Avenue, Corner V. Sotto Street, Barangay Tinago, 6000 Cebu City
INDEPENDENT AUDITOR’S REPORT
HONORABLE HAZEL C. TUANDA
Municipal Mayor
Municipality of Jimalalud
Province of Negros Oriental
Qualified Opinion
We have audited the financial statements of the Municipality of Jimalalud, 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 Jimalalud 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).
Bases for Qualified Opinion
As contained in Part II of this Report:
1. The Municipality of Jimalalud did not conduct the physical count of Property, Plant, and
Equipment (PPE) as provided under the guidelines and procedures on the one-time
cleansing of PPE, thus affecting the fairness of presentation of the PPE accounts amounting
to ₱401,762,927.72 in the financial statements (FS) at year-end;
2. The existence, validity, and correctness of the Inventory accounts totalling ₱6,709,224.00
as of December 31, 2024, have not been established due to the non-conduct of the year-
end physical count, thereby, affecting the fairness of the presentation of these accounts in
the FS; and
3. Biological Assets valued at ₱1,715,503.00 that have been in the books for more than five
years, were not stated at fair value as of the reporting date due to the non-submission of a
complete Inventory Report of Breeding Stocks and the prevailing market price for each
item by the Municipal Agriculturist to the Municipal Accountant, thus, rendering the
existence and valuation of the account presented in the FS doubtful and unreliable.
