Province of Negros Oriental
Municipality of Vallehermoso
Notes to Financial Statements
(All amounts in Philippine Peso unless otherwise stated)
Note 1 - Profile
The Municipality of Vallehermoso was established under Executive Order No. 84
by Gilbert Newton, through Governor Felipe Tayko, on January 1, 1913. The
Municipality is comprised of fifteen (15) Barangays with a total land area of
10,218.8672 hectares. It is classified as third (3rd) class Municipality as per
Department Order No. 23-08, dated July 29, 2011. The Municipality’s major
sources of income are agriculture and economic enterprise (water).
The Municipality formulated plans and programs to socially and economically
improve the lives of the constituents. Funds were allocated for the promotion of
basic services and qualities to include social welfare services, agriculture,
infrastructure facilities, public market, tourism facilities and other attractions.
Note 2 - The Local Government Unit’s (LGU’s) consolidated financial statements have
been prepared in accordance with and comply with the International Public Sector
Accounting Standards (IPSAS). The consolidated financial statements are
presented in pesos, the LGU’s functional and reporting currency. The accounting
policies have been applied starting the year 2015.
Note 3 -Summary of significant accounting policies
3.1 Basis of accounting
The consolidated financial statements are prepared on an accrual basis in
accordance with the IPSAS.
3.2 Consolidation
The controlled entities (funds) are all those over which the controlling entity has
the power to govern the financial and operating policies. The LGU maintains
special accounts under the General Fund for the following economic enterprises it
operates:
• Operation of Markets
• Operation of Waterworks
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