The municipality misreported how much disaster risk reduction money was actually spent and left over. It recorded some unpaid bills as paid and then incorrectly moved the wrong amounts into a trust fund, causing the financial statements to be wrong.

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Original Audit Finding Excerpt

"Management 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