Audit Methodology
The Commission has been implementing a risk-based audit in the conduct of its audit services.
However, to meet the evolving developments in public governance and fund management, the
results-based approach in the audit was incorporated.
Scope of Audit
An audit was conducted on the accounts and operations of the Municipal Government of
Vallehermoso for 2024. The audit consisted of a review of operating procedures, evaluation of
the LGU’s programs and projects, interview of concerned government officials and employees,
verification, reconciliation, confirmation, inspection, and analysis of accounts, and such other
procedures considered necessary.
Financial Highlights
A comparative analysis of the Statement of Financial Position, as illustrated below, showed
increases in assets, liabilities, and equity:
2024 2023 Increase
Accounts
(in ₱) (in ₱) (Decrease)
Statement of Financial Position
Assets 513,479,676.76 471,980,147.81 41,499,528.95
Liabilities 88,347,505.74 64,738,222.32 23,609,283.42
Government Equity 425,132,171.02 407,241,925.49 17,890,245.53
On the other hand, the Statement of Financial Performance reflects decreases in revenue and
surplus, as well as increases in expenses, as shown below:
Results of Operations
Revenue 236,103,630.69 194,877,561.88 41,226,068.81
Personnel Services 60,993,266.35 59,643,348.91 1,349,917.44
Maintenance and Other
112,865,113.99 71,256,599.94 41,608,514.05
Operating Expenses
Non-cash Expenses 35,509,342.87 30,145,066.65 5,364,276.22
Net Financial Assistance/
(111,936.90) (3,460,923.33) 3,348,986.43
Subsidy
Non-operating Income 190,584.00 146,186.62 44,397.38
Net Surplus (Deficit) 26,814,554.58 30,517,809.67 (3,703,255.09)
The following table illustrates increases in the final budget or appropriations and actual
amounts or obligations during the year:
Final Budget 238,302,521.08 220,104,514.93 18,198,006.15
Actual Amounts 179,032,277.21 166,202,083.58 12,830,193.63
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