REPUBLIC OF THE PHILIPPINES
COMMISSION ON AUDIT
REGIONAL OFFICE NO. VII
M.J. Cuenco Avenue, Corner V. Sotto Street, 6000 Cebu City
INDEPENDENT AUDITOR’S REPORT
HONORABLE MARIANNE S. GUSTILO
Municipal Mayor
Municipality of Vallehermoso
Province of Negros Oriental
Qualified Opinion
We have audited the financial statements of the Municipality of Vallehermoso, 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 of Qualified Opinion
section of our report, the accompanying financial statements present fairly, in all material
respects, the financial position of the Municipality of Vallehermoso as at December 31, 2024,
and its financial performance, its cash flows, and its comparison of budget and actual amounts
for the year then ended in accordance with International Public Sector Accounting Standards
(IPSASs).
Bases for Qualified Opinion
As contained in Part II of this Report:
1. The Municipality did not effectively follow the guidelines and procedures on the one-time
cleansing of Property, Plant, and Equipment (PPE) due to the incomplete physical count of
all its PPEs, thus affecting the fairness of presentation of the PPE accounts amounting to
₱375,535,879.35 in the financial statements at year-end and depriving the government’s
access to reliable and useful information for decision-making and accountability for these
assets; and
2. Biological Assets valued at ₱2,223,949.64 that have been in the books for more than five
years, were not stated at fair value as of the reporting date due to the non-submission of the
Inventory Report of Breeding Stocks and Other Biological Assets and the prevailing
market price for each item by the Municipal Agriculturist and OIC-MENRO to the
Municipal Accountant, thus, rendering the existence and valuation of the account presented
in the financial statements doubtful and unreliable.
