3.10 Financial liabilities
The LGU’s financial liabilities include payables and borrowings which the
Municipality is committed to pay for goods or services received. It also
includes amounts entrusted/withheld from outside sources/offices and
personnel for which the Municipality is acting as a trustee or administrator.
Payables are recognized and recorded in the books of accounts only upon
acceptance of goods and rendition of service to the Municipality.
Loans contracted by the Municipality are recognized upon receipt of the
proceeds from the creditors.
3.11 Equity
Equity represents the difference between the assets and liabilities. The amount
available for operations is computed by deducting the following from the
ending balance of Government Equity:
a. equity set aside to finance capital projects with appropriations provided in
the previous years (continuing appropriations)
b. portion pertaining to receivables, inventories, prepayments and other
current assets
c. portion pertaining to property, plant and equipment including public
infrastructure in process
d. amount reserved for Local Disaster Risk Reduction & Management Fund
Note 4 – Cash and Cash Equivalents
2024 2023
Cash on Hand
Cash – Local Treasury ₱ 1,220,234.79 ₱ 1,797,452.30
Cash in Bank-Local Currency
Cash in Bank – LCCA 636,073,396.84 556,542,434.08
Investments in Time Deposits
Cash in Bank – LC Time Deposits 129,492,517.47 129,492,517.47
Total Cash and Cash Equivalent ₱ 766,786,149.10 ₱687,832,403.85
The total Cash–Local Treasury of ₱1,220,234.79 is composed of a cash deposit with
the Provincial Treasurer’s Office of Negros Oriental in the amount of ₱11,004.20, and
collections received during the later part of December, 2024, which were deposited on
January 2, 6, and 13 in 2025. Cash in Bank earns interest based on the prevailing bank
deposit rates.
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