REGIONAL OFFICE NO. VII
M.J. Cuenco Avenue, Corner V. Sotto Street, 6000 Cebu City
INDEPENDENT AUDITOR’S REPORT
HONORABLE JANICE V. DEGAMO
Municipal Mayor
Municipality of Pamplona
Province of Negros Oriental
Qualified Opinion
We have audited the financial statements of the Municipality of Pamplona, 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 of Qualified Opinion
section of our report, the accompanying financial statements present fairly, in all material
respects, the financial position of the Municipality of Pamplona as of December 31, 2024, and its
financial performance, cash flows, changes in net assets/equity, and comparison of budget and
actual amounts for the year then ended in accordance with International Public Sector Accounting
Standards (IPSASs).
Bases for Qualified Opinion
1. The Local Government Unit (LGU) did not take advantage of the guidelines and
procedures on the one-time cleansing of Property, Plant and Equipment (PPE), thus
affecting the fairness of presentation of the financial position in the financial statements
and depriving the government of reliable and useful information in decision-making and
accountability for these assets.
2. Items of PPE with a total cost of ₱106,188,435.86 were not provided with depreciation,
hence, the municipality’s asset and equity accounts were overstated by the amount of
depreciation that should have been applied to these assets.
3. Cash receipts for fund transfers from the National Government, amounting to
₱65,332,120.00, were not reported in the Statement of Cash Flows. Instead, these
amounts were deducted from the payments to suppliers, leading to inaccurate and
unreliable representations of cash inflows and outflows under the Municipality’s
operating activities.
4. Subsidies from the National Government, in the form of fund transfers totaling
₱50,286,760.00, along with associated expenses, were not recorded in the books of
accounts, resulting in an understatement of both the net financial subsidy and current
operating expenses by the same amount.
