7.12 We further recommended and it was agreed that, henceforth, the Municipal
Treasurer provide the Municipal Accountant at the beginning of each year
with a certified list of taxpayers with their amounts due and collectible for
the current year, to serve as her basis for recording the RPT and SET
Receivables in compliance with Sections 19(b), 20, and 84 of the NGAS
Manual for LGUs, Volume 1.
Biological Assets’ year end balances were not reported at fair value less costs to sell -
₱2,196,314.50
8. Biological Assets totaling ₱2,196,314.50 as of December 31, 2024, were not reported
at fair value less costs to sell, which is inconsistent with Paragraph 17 of
International Public Sector Accounting Standards (IPSAS) 27, rendering the
reported amount in the financial statements unreliable.
8.1 Paragraph 16 of IPSAS 27 requires that a biological asset be measured at its fair
value less costs to sell upon initial recognition and at each reporting date.
Furthermore, paragraph 30 of the same IPSAS states that a gain or loss arising on
initial recognition of a biological asset at fair value less costs to sell as well as
from a change in fair value less costs to sell of a biological asset shall be included
in surplus or deficit for the period in which it arises.
8.2 In relation to this, COA Circular No. 2016-004 dated September 30, 2016,
provides guidelines for the preparation of financial statements in line with the
adoption of the International Public Sector Accounting Standards (IPSAS) by
Local Government Units (LGUs). Section 4.5 of the circular specifies that the
Municipal Agriculturist is responsible for providing the Municipal Accountant
with an inventory of breeding stocks and other biological assets, along with the
prevailing market price for each item as of the reporting date and information on
the prevailing costs to sell these biological assets.
8.3 However, our examination of the General Ledger and the Schedule of Biological
Assets as of December 31, 2024, revealed that the following Biological Assets
purchased by the Municipality on various dates were still recorded at acquisition
cost:
Biological Assets Acquisition Date Acquisition Cost
Work Animals Prior years ₱ 46,200.00
Rabbit Prior years 498,967.00
Fingerlings Prior years 2017.50
Cattle Heifers 2006 54,490.00
Female Cattle- 20 Heads 2019 499,400.00
Female Goat- 8 Heads Prior years 10,000.00
Female Cattle- 15 Heads Prior years 197,000.00
Swine- 8 Heads Prior years 10,000.00
Female Carabao- 15 Heads Prior years 142,500.00
Boer Goat (Male) 2005 35,000.00
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