REGIONAL OFFICE NO. VII
M.J. Cuenco Avenue, Corner V. Sotto Street, 6000 Cebu City
INDEPENDENT AUDITOR’S REPORT
HONORABLE MEL NICK S. LOGRONIO
Municipal Mayor
Municipality of San Jose
Province of Negros Oriental
Qualified Opinion
We have audited the financial statements of the Municipality of San Jose, 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 San Jose as of
December 31, 2024, and its financial performance, its cash flows, and its 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 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.
