3. Various inventory accounts totaling ₱151,601,129.37 were still recorded in the books
despite their non-existence because the Summary of Supplies and Materials Issued was not
completely prepared or recorded in the books, thereby affecting the fair presentation of the
inventory accounts in the financial statements.
4. Fourteen completed projects under the Trust Fund (TF) totaling ₱87,392,781.11 were not
transferred to the General Fund (GF) due to insufficient monitoring and improper
recording, thus, overstating the Construction in Progress account in the TF while
understating the related PPE accounts in the GF by the same amount, as well as the
depreciation expense by ₱29,358,125.96, which affected the fair presentation of these
accounts in the financial statements.
5. The presence of accounts totaling ₱32,174,051.07 that have remained outstanding for more
than two years and which may no longer represent valid claims but were not reverted to
the unappropriated surplus casts doubt on the reliability and validity of the Accounts
Payable balance of ₱141,031,284.69 in the Financial Statements and precludes any
beneficial use of said funds. Moreover, payables totaling ₱798,241.42 were merely
estimated obligations which overstated both the liability and related expense accounts and
understated the City’s actual results of operations.
6. The Fuel, Oil, and Lubricants Inventory balance of ₱25,390,434.14 was overstated while
the related expense account was understated because the utilization thereof was not
appropriately recognized in the books, thereby affecting the fair presentation of the account
in the financial statements.
7. Inventory procedures for the procurement of supplies and materials totaling
₱20,835,818.81 were not in accordance with Sections 114, 120, 121, and 122, Chapter 7
of the Manual on New Government Accounting System for LGUs, Volume I, resulting in
an understatement of the inventory and an overstatement of the expense accounts, a
breakdown of internal controls in property and supply management, and an increased risk
of exposing unissued supplies to loss or misuse.
8. Communication expenses were erroneously charged against the appropriation for Office
Supplies Expenses instead of Telephone Expenses, thus, affecting the fair presentation of
the aforementioned accounts in the financial statements as at December 31, 2024.
We conducted our audit in accordance with the International Standards of Supreme Audit
Institutions (ISSAIs). Our responsibilities under those standards are further described in the
Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We
are independent of the agency in accordance with the ethical requirements that are relevant to
our audit of the financial statements, and we have fulfilled our other ethical responsibilities in
accordance with these requirements. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our qualified opinion.
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