REGIONAL OFFICE NO. VII
M.J. Cuenco Avenue, Corner V. Sotto Street, Barangay Tinago, 6000 Cebu City
June 18, 2025
HONORABLE MANUEL L. SAGARBARRIA
Governor
Provincial Government of Negros Oriental
Dumaguete City
Dear Governor Sagarbarria:
We are pleased to transmit the Annual Audit Report (AAR) on the accounts and operations of
the Provincial Government of Negros Oriental for the calendar year (CY) 2024 pursuant to
Section 2, Article IX-D of the Philippine Constitution, and Section 43 of Presidential Decree
(PD) No. 1445, otherwise known as the Government Auditing Code of the Philippines.
The audit was conducted to (a) ascertain the fairness of the presentation of the financial
statements; (b) ascertain the propriety of financial transactions and compliance with prescribed
rules and regulations; (c) recommend agency improvement opportunities; and (d) determine
the extent of implementation of prior years’ audit recommendations.
We conducted the audit in accordance with applicable International Standards of Supreme
Audit Institutions (ISSAIs) and we believe that it provides a reasonable basis for our opinion.
We rendered a qualified opinion on the fairness of the presentation of the financial statements
(FS) for the year then ended.
The audit observations, together with the recommended courses of action, which were
discussed by the Audit Team with you and your staff in an exit conference on March 18, 2025,
are discussed in detail in Part II of the report. Likewise, Management’s comments are also
incorporated in Part II, where appropriate. The Status of Implementation of Prior Years’ Audit
Recommendations are discussed in Part III of this report.
We request that the recommendations be immediately implemented, and we will appreciate
being informed of the action(s) taken thereon by submitting the attached duly accomplished
Agency Action Plan and Status of Implementation (AAPSI) within sixty (60) days from receipt
of this report.
