The municipality incorrectly treated some unpaid expenses as if they had been used, which reduced the reported amount of its disaster response trust fund liabilities and made the financial statements unreliable.

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Original Audit Finding Excerpt

"understatement of the Trust Liabilities (TL) – DRRMF by ₱3,480,000.00 due to erroneously recorded some of unpaid expenses as utilization and transferred the erroneous amount to the unexpended balance of LDRRMF under the trust fund, thus the reported balances of the Trust Liabilities-DRRMF and other affected accounts were unreliable and not fairly stated."

Source Document