5. Transfer of cash for the unexpended balances of the LDRRMF- Quick Response Fund
(QRF) and the Maintenance and Other Operating Expenses (MOOE) of the Mitigation
Fund (MF) from CYs 2020 to 2024 totaling ₱17,559,915.03 had not been completed as
of December 31, 2024, resulting in a negative balance of ₱1,163,479.09 in the Cash in
Bank account in the Subsidiary Ledger (SL) of the Trust Fund (TF) books.
6. Completed infrastructure projects totaling ₱12,111,182.21 were not reclassified from the
Construction in Progress (CIP) account to the appropriate PPE accounts upon
completion, thereby omitting the recognition of depreciation and misstating the balances
of affected accounts in the financial statements.
We have 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 Revised Code of Conduct and Ethical
Standards for Commission on Audit Officials and Employees (Code of Ethics) together 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 and the Code of
Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to
provide the basis for our qualified opinion.
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 necessary
to enable the preparation of the 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.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a
whole are free from material misstatement, whether due to fraud or error and to issue an auditor’s
report that includes our opinion. Reasonable assurance is a high level of assurance but is not a
guarantee that an audit conducted in accordance with ISSAIs will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably be expected to influence the
economic decisions of users taken on the basis of these financial statements.
COMMISSION ON AUDIT
By:
REGIE R. BAOY
State Auditor II
OIC-Audit Team Leader
June 13, 2025
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