REGIONAL OFFICE NO. VII
M.J. Cuenco Avenue, Corner V. Sotto Street, 6000 Cebu City
INDEPENDENT AUDITOR’S REPORT
HONORABLE PEVE OBANIANA-LIGAN
Municipal Mayor
Municipal Government of Sta. Catalina
Province of Negros Oriental
Qualified Opinion
We have audited the financial statements of the Municipality of Santa Catalina, 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 for Qualified
Opinion section of our report, the accompanying financial statements present fairly, in all
material respects, the financial position of the Municipality of Santa Catalina as of
December 31, 2024, and its financial performance, cash flows, changes in net assets/equity,
and comparison of budget and actual amounts for the year then ended in accordance with
International Public Sector Accounting Standards (IPSASs).
Bases for Qualified Opinion
As discussed in the Audit Observations and Recommendations under Part II of this Report,
the accuracy of the balance of the Property, Plant and Equipment accounts valued at
₱1,128,712,417.76 is unreliable due to unreconciled discrepancies between the actual count
and the figures reported in the financial statements, including movable properties valued at
₱2,666,049.75. The unreconciled balances of the Certified List of Taxpayers and Amounts
Due and Collectible for the year and the Real Property and Special Education Tax
Receivables led to the overstatement thereof by ₱22,098,576.94.
Further, inventories totaling ₱7,173,567.76 were recognized as expenses for the audited
year, instead of remaining in inventory, and prior year expenditures amounting to
₱2,305,292.13 were erroneously recorded as current year expenses, therefore overstating
the expenses by an aggregated amount of ₱9,478,859.89.
In addition to the above financial information, the accuracy of the cash balance reported
for the 20 percent development fund cannot be determined, because there is a substantial
