REGIONAL OFFICE NO. VII
M.J. Cuenco Avenue, Corner V. Sotto Street, 6000 Cebu City
INDEPENDENT AUDITOR’S REPORT
HONORABLE JONAH PAT L. AVILES
Municipal Mayor
Municipality of Zamboanguita
Province of Negros Oriental
Qualified Opinion
We have audited the financial statements of the Municipality of Zamboanguita, 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 for Qualified
Opinion section of our report, the accompanying financial statements present fairly in all
material respects, the financial position of the Municipality of Zamboanguita as at December
31, 2024, and its financial performance, its cash flows, and its statement of comparison of
budget and actual amounts for the year then ended in accordance with International Public
Sector Accounting Standards (IPSAS).
Bases for Qualified Opinion
As discussed in Part II of this Report:
1. Semi-expendable properties acquired and issued prior to CY 2024, with a total carrying
amount of ₱3,199,594.81, were not reclassified in accordance with the provisions of
COA Circular No. 2024-006 dated March 14, 2024, thereby overstating the PPE accounts
and the Equity account by the same amount, and compromising the accuracy and
reliability of the financial statements as of December 31, 2024.
2. The Accounts Payable balance of ₱4,479,781.22 was not fairly presented due to the
inclusion of ₱428,893.60 which remained outstanding for more than two years and was
not reverted to the unappropriated surplus, thus, may no longer represent valid claims.
3. PPE acquired in CY 2024 totaling ₱408,532.00 was erroneously recognized in the books
of accounts as Other Supplies and Materials Inventory instead of the appropriate PPE
accounts, hence, both the asset accounts and the related depreciation expense accounts
were overstated and understated, respectively, as of December 31, 2024.
