The municipality had to correct mistakes in its previous financial reports, such as stale and cancelled checks and incorrect account payable entries. This shows that past financial statements were not accurate and the municipality's internal controls need improvement.

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Original Audit Finding Excerpt

"Prior Period Errors Cancelled Checks ₱ 115,014.61 ₱ 0.00 Liquidation of Prior Year’s advances 0.00 (4,700,323.25) Duplicate record of Accounts Payable 0.00 254,955.82 Correction of taxes from Accounts Payable (60,871.85) 16,299.91 Correction of account used in recording business permit fees 0.00 (119,500.00) Recording of expenses from the prior year 0.00 (3,984,274.23) Recording of stale checks 793,445.93 1,100,728.54 Correction of Philhealth Account per 2023 AOM (397.67) 0.00 Correction of GSIS Account per 2023 and 2022 AOM 10,869.51 8,699.99 Correction Accounts Payable 1,715,434.39 100.00 Recording of Credit Memo (Check No. 185458) 0.00 15,000.00 Correction of transfers from Linkbiz Account 0.00 (18,866.44) Correction of inventories recorded as expense in prior year 0.00 165,300.00 Correction of depreciation for assets recorded as payable but was written-off 99,793.65 0.00 Prior year adjustments in Depreciation (19,551.46) 11,030.67 Total Prior Period Errors ₱ 2,653,737.11 (₱7,250,848.99)"

Source Document