Page 9 of 124

              GAI/SAI Focus Area                                  Remarks
      monitoring, transparency, and accountability
      in the allocation and utilization of Special
      Education Fund (SEF)

We rendered a qualified opinion on the fairness of presentation of the FS for the year then
ended.

We conducted the audit in accordance with applicable International Standards of Supreme
Audit Institutions and we believe that it provides a reasonable basis for our opinion.

Very truly yours,




REGIE R. BAOY
State Auditor II
OIC-Audit Team Leader