Amortization (56 Equal
Date of Start of
Description Loan Balance Quarterly Amortization)
Maturity Amortization
Current Non-Current
Government
₱66,075,250.97 10/19/2038 01/20/2025 ₱4,719,660.78 ₱61,355,590.19
Center
Plaza
5,999,729.91 10/19/2038 01/20/2025 428,552.14 5,571,177.77
Development
Construction
of Jetty Port 20,324,536.60 10/19/2038 01/20/2025 1,451,752.61 18,872,783.99
and Terminal
Construction
and
2,999,617.02 10/19/2038 01/20/2025 214,258.36 2,785,358.66
Renovation
of Cottages
Acquisition
of Lot for
570,180.00 10/19/2039 01/02/2026 0.00 570,180.00
Jetty Ports
and Road
Prior Year’s
3,795.67 unknown unknown 0.00 3,795.67
Account
TOTAL ₱95,973,110.17 ₱6,814,223.89 ₱89,158,886.28
2.6. Based on the amortization schedule, only ₱6,814,223.89 of the loan is due within
twelve months from year-end, while ₱89,158,886.28 should be classified as non-
current.
2.7. The Municipal Accountant acknowledged that the misclassification of the loans
payable in the financial statements was unintentional. She assured the audit team
that the appropriate classification between current and non-current portions will be
duly reflected and corrected in the preparation of the financial statements for
Calendar Year 2025.
2.8. Proper classification of liabilities is fundamental to the fair presentation of an
entity’s financial position. Section 80 of IPSAS 1 clearly distinguishes between
current and non-current liabilities based on whether they are due to be settled within
twelve months after the reporting period. Misclassifying long-term obligations as
current distorts key financial indicators such as working capital, liquidity ratios, and
overall financial health.
2.9. This may also affect budget planning, risk assessment, and the entity’s perceived
ability to meet short-term obligations, thereby misleading stakeholders on the
LGU’s liquidity position, and potentially influencing creditworthiness and decision-
making of management.
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