REGIONAL OFFICE NO. VII
M.J. Cuenco Avenue, Corner V. Sotto Street, 6000 Cebu City
INDEPENDENT AUDITOR’S REPORT
HONORABLE JOSE A. ABIERA
Municipal Mayor
Municipality of Sibulan
Province of Negros Oriental
Qualified Opinion
We have audited the financial statements of the Municipality of Sibulan, 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 Sibulan 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
As discussed in Part II of this Report:
1. The Local Government Unit did not take advantage of the guidelines and procedures on
the one-time cleansing of Property, Plant and Equipment (PPE), thus affecting the fairness
of presentation of the financial position in the financial statements and depriving the
government of reliable and useful information in decision-making and accountability for
these assets;
2. The Real Property Tax (RPT) and Special Education Tax (SET) receivables were not
properly set up and maintained, thus, showing nil balances instead of ₱34,098,709.48,
thereby understating the RPT and SET receivables by the same amount; and
3. The transfer of the unexpended balance of the LDRRMF- Quick Response Fund (QRF)
and the Maintenance and Other Operating Expenses (MOOE) of the Mitigation Fund (MF)
was not recorded in the Trust Fund books during the year, contrary to Items 5.1.10 and
5.1.12 of COA Circular No. 2012-02 dated September 12, 2012, resulting in the
understatement of the receivable and trust liability accounts by ₱5,512,645.49.
