REGIONAL OFFICE NO. VII
M.J. Cuenco Avenue, Corner V. Sotto Street, Barangay Tinago, 6000 Cebu City
INDEPENDENT AUDITOR’S REPORT
HONORABLE JOSE T. ORLINO
City Mayor
City of Tanjay
Province of Negros Oriental
Qualified Opinion
We have audited the financial statements of the City of Tanjay, 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 matters 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 City of Tanjay as at December 31, 2024, and its
financial performance, its cash flows, and its statement of comparison of budget and actual
amounts for the year then ended in accordance with International Public Sector Accounting
Standards (IPSAS).
Bases for Qualified Opinion
1. The validity, existence, and accuracy of the Property, Plant and Equipment (PPE) accounts
totaling ₱753,170,785.01 could not be ascertained due to the unreconciled difference of
₱9,530,828.25 between the PPE balances in the Report on the Physical Count of PPE
(RPCPPE) and the books of accounts, thus affecting the fair presentation thereof in the
Financial Statements. These unreconciled differences could have been properly and
adequately addressed had Management implemented the one-time cleansing of PPE.
2. The accuracy and reliability of the Local Road Network (LRN) account balance totaling
₱545,659,882.49 could not be ascertained due to the: (a) non-conduct of inventory of local
roads and non-preparation of a separate Report on the Physical Count of LRN; (b) non-
maintenance of the LRN Ledger Card and LRN Property Card showing a complete
description and cost segregation of LRN components; (c) non-provision of depreciation for
LRN items; and (d) lack of full disclosure of the total road networks in the Notes to the
Financial Statements, thereby affecting the fair presentation of the account in the financial
statements.
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