2. The existence, validity, and correctness of the Inventory accounts totalling ₱3,013,247.40
as of December 31, 2024, have not been established due to (a) non-conduct of the year-end
physical count, (b) non-compliance with the Perpetual Inventory Method, and (c) non-
maintenance of supplies ledger cards and stock cards by the Offices of the Municipal
Accountant and Municipal Treasurer, respectively, thereby, affecting the fairness of the
presentation of these accounts in the FS; and
3. Biological Assets valued at ₱457,500.00 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 the
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.
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
accordance with these requirements. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our qualified opinion.
Key Audit Matters
Except for the matters described in the Bases for Qualified Opinion section, we have
determined that there are no other key audit matters to communicate in our report.
Responsibilities of Management and Those Charged with Governance for the Financial
Statements
Management is responsible for the preparation and fair presentation of the financial statements
in accordance with IPSASs, and for such internal control as management determines is
necessary to enable the preparation of financial statements that are free from material
misstatement, whether due to fraud or error.
Those charged with governance are responsible for overseeing the LGU’s financial reporting
process.
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