2.5. Examination of the FS showed that the biological assets balance of ₱2,223,949.64
remains the same for the six years ending December 31, 2024. This information was
also disclosed by Management in its Notes to FS for CY 2024. The biological assets
of the Municipality are composed of the following:
Account Title Account Amount
Code
Breeding Stocks 10801010 ₱ 298,000.00
Plants and Trees 10801020 755,685.93
Upland Reforestation Project (CY 2010) 292,160.00
Upland Reforestation Project (CY 2011) 169,874.85
Upland Reforestation Project (CY 2014) 97,022.30
Upland Reforestation Project (CY 2015) 139,700.00
Purchase of seeds (CY 2015) 56,928.78
Aquaculture 10801030 1,170,263.71
Mangroves Representation Projects (CY 2010) 267,200.00
Bagawines Representation Projects (CY 2011) 330,125.15
Mangroves Representation Projects (CY 2014) 297,938.56
Mangroves Representation Projects (CY 2015) 275,000.00
Total ₱ 2,223,949.64
2.6. Being dormant for six years is unusual for these accounts since the fair value of the
animals should be regularly monitored based on physical and price changes.
2.7. Furthermore, review of the Schedule of Biological Assets as of December 31, 2024,
showed that the inventories of biological assets of the Municipality lacked necessary
data such as but not limited to – a) type of breeding stock, b) description, c) quantity,
d) unit cost, and e) purchase, birth, death, transfers, and sale of the animals.
2.8. Inquiry with the Municipal Accountant disclosed that he could not provide the data
for the biological assets since they could no longer locate the documents related to
the recorded balances. His office was also unable to reflect each biological asset
owned by the Municipality at fair value less costs to sell at the end of every reporting
period because the Municipal Agricultural Office (MAO) and Municipal
Environment and Natural Resources Office (MENRO) did not submit the necessary
reports as the basis for them to adjust the recorded biological assets in the books of
accounts of the Municipality.
2.9. In another inquiry made by the Audit Team to the MAO and MENRO, the respective
department heads of the said offices confirmed on its inability to prepare and submit
the Updated Schedule of Biological Assets at the end of every reporting period to the
Municipal Accounting Office due to non-conduct of inventory and unavailability of
records as these transactions transpired prior to their appointment as heads of the
departments. Therefore, changes in market values, additions through birth, and
reductions through deaths and distributions, especially for breeding stocks, were not
recorded in the books of accounts.
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