REGIONAL OFFICE NO. VII
M.J. Cuenco Avenue, Corner V. Sotto Street, 6000 Cebu City
INDEPENDENT AUDITOR’S REPORT
HONORABLE EDGAR Z. TEVES, JR.
Municipal Mayor
Municipality of Valencia
Province of Negros Oriental
Qualified Opinion
We have audited the financial statements of the Municipality of Valencia, 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 Valencia as of 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
As discussed in Part II of this Report:
1. At least 38 completed projects in CY 2024 under the General Fund and Special Education
Fund, totaling ₱58,898,662.36, were erroneously retained under the Construction in
Progress (CIP) account instead of being transferred to the appropriate Property, Plant and
Equipment (PPE) accounts, due to insufficient monitoring and improper documentation,
resulting in an overstatement of the CIP account and an understatement of related PPE
and depreciation expense accounts.
2. The Accounts Payable balance of ₱25,680,544.86 was not fairly presented due to the
inclusion of undocumented unpaid obligations amounting to ₱2,084,423.19, of which
₱1,761,964.63 remained outstanding for more than two years and were neither reverted to
the unappropriated surplus, thus, may no longer represent valid claims.
