Independent Auditor’s Report on The Financial Statements
We rendered a qualified opinion on the fairness of the presentation of the financial statements
for the year ended, taking exceptions to the effects of the following:
1. The Municipality did not effectively follow the guidelines and procedures on the one-time
cleansing of PPE, 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
of access to reliable and useful information for decision-making and accountability for
these assets.
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.
Significant Findings and Recommendations
In addition to the above-noted deficiencies, below are the significant audit observations and
recommendations noted in the course of the audit:
1. Collections amounting to ₱296,697.38 as of December 31, 2024, were not deposited
with the authorized government depository bank (AGDB) daily or not later than the
next banking day due to late remittance of Collecting Officers to the Municipal
Treasurer, thereby posing a substantial risk to the municipality’s financial integrity
and exposing government funds to potential misappropriation or possible loss.
We recommended that the Municipal Mayor direct the Municipal Treasurer to:
a. Strictly comply with Items 1 and 4 of Section 69 of Presidential Decree (P.D.) No. 1445
and Section 32 of the NGAS Manual for LGUs by ensuring that all collections are
deposited intact with the authorized depository bank at the end of each day or within
the prescribed period;
b. Regularly notify the Collecting Officers to remit their collections at the end of each
working day or at least once a week if they are stationed in far-flung areas and to
establish cut-off dates for collections and deposits, especially at year-end; and
c. Designate a responsible accountable officer, in accordance with existing regulations,
to deposit collections to the municipality’s AGDB within the prescribed period during
her absence or when she is not personally available to do so.
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