3.2 Combination/Consolidation
The consolidated financial statements reflect all the assets, liabilities, revenue,
and expenses of the Municipality covering all funds. These funds include the
General Fund, Special Education Fund and Trust Fund. The General Fund is
composed of the following Special Accounts:
� General Fund Proper
� Market
� Slaughterhouse
� Bayanihan Grant to Cities & Municipalities
� Waterworks System
� Cemetery
� 20% Development Fund
� 80% Share from National Wealth
� LGSEF
3.3 Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and cash in bank, deposits
on call and highly liquid investments with an original maturity of three
months or less, which are readily convertible to cash and they present
insignificant risk of changes in value because of changes in interest rates.
Petty Cash Fund (PCF) is maintained under an imprest system wherein
replenishment is charged to the expense account. The PCF is not used to
purchase regular inventory items for stock.
3.4 Investments
The LGU limits its exposure to risk by investing in authorized depository
banks.
3.5 Receivables
Receivables represent amounts collectible from various constituents,
taxpayers, other local government units, national government agencies,
municipal officials and employees arising from claims for money lent, real
property taxes due the local government unit and cash advances granted or
travel and for payment of salaries, wages, allowances, honoraria and petty
operating expenses.
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