Independent Auditor’s Report on the Financial Statements
We rendered a qualified opinion on the fairness of the presentation of the financial
statements for the year then ended, taking exceptions to the effects of the following:
1. The non-reconciliation of a net difference amounting to ₱72,894,810.00 between
the General Ledger balance and the Report on the Physical Count of Property,
Plant and Equipment (PPE) rendered the PPE account balance, with a gross
amount of ₱113,077,252.99 as of December 31, 2024, unreliable and inaccurate.
2. The Real Property Tax (RPT) and Special Education Tax (SET) Receivables were
not established at the beginning of the year, thus, understating the RPT and SET
Receivables by ₱21,686,500.81.
3. Biological Assets totaling ₱3,311,219.14 as of December 31, 2024, were not
reported at fair value less costs to sell, rendering the reported account in the
financial statements unreliable.
4. The Municipal Accountant did not prepare Journal Entry Vouchers (JEV) for
book reconciling items in the Bank Reconciliation Statements (BRS) totaling
₱1,314,220.44, resulting in an understatement of both the Cash in Bank and
Liability accounts by the same amount.
Significant Observations and Recommendations
The following are the significant audit observations and recommendations in the audit
and/or evaluation of the operations of the Municipal Government for CY 2024. These,
and other audit observations discussed by the Audit Team with Management in an exit
conference on May 26, 2025, are fully presented in Part II of this Report.
1. Stale checks amounting to ₱198,161.51 were still recorded as reconciling
items in the Bank Reconciliation Statements (BRS), resulting in an
understatement of the Cash in Bank - Local Currency, Current Account
balance by the same amount.
We recommended that the Municipal Accountant make the necessary adjusting
entries to account for the stale checks.
We also recommended that the Municipal Accountant conduct a thorough review
and analysis of the list of outstanding checks, and regularly prepare JEVs for the
cancellation of stale checks to reflect the correct monthly balances of the Cash in
Bank accounts.
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