LDRRMF Notes in FS
6. Inconsistent with Section 127 of Philippine Public Sector Accounting Standards
(PPSAS) No. 1, the Notes to Financial Statements (FS) for CY 2024 did not correctly
present the current appropriation for the Local Disaster Risk Reduction and
Management Fund (LDRRMF), resulting in the incomplete disclosure of vital
information in the financial statements.
6.1 Paragraph 127 of PPSAS No. 1- Presentation of Financial Statements states that the
notes shall:
“(a) Present information about the basis of preparation of the
financial statements and the specific accounting policies used.
(b) Disclose the information required by IPSASs (International
Public Sector Accounting Standards) that is not presented on the
face of the financial position, statement of financial
performance, statement of changes in net asset and equity, or
cash flow statement; and
(c) Provide additional information that is not presented on the face
of the financial position, statement of financial performance,
statement of changes in net asset and equity, or cash flow
statement that is relevant to an understanding of any of them.”
6.2 Below is a sample disclosure from Annex D of COA Circular No. 2012-002 dated
September 12, 2012, which requires that the Notes to FS include a discussion of the
amount and details of the unexpended balance of the LDRRMF:
“Note___. Local Disaster Risk Reduction Management Fund
(LDRRMF)
The LDRRMF represents the amount set aside by the LGU
to support its disaster risk management activities pursuant
to R.A. No. 10121 otherwise known as the “Philippine
Disaster Reduction and Management Act of 2010.” The
amount available and utilized during the year totaled
₱______ and ₱ ______, respectively, broken down as
follows
Amount
Particulars
Available Utilized Balance
Current Year Appropriation:
Quick Response Fund (QRF) ₱ ₱ ₱
Mitigation Fund (MF)
MOOE
Capital Outlay
Total
48
