The municipality's reported bank balance was about ₱14.16 million lower than it should have been. The problem happened because old or cancelled checks were not properly returned to the bank account and certain bank notices and reconciling items were not recorded in the books. This made the financial statements inaccurate and did not follow required government accounting rules.

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Original Audit Finding Excerpt

"(1) understatement of the reported balance of the Cash-in-Bank, Local Currency, Current Account (CIB-LCCA) as of December 31, 2021 amounting to ₱324,474,509.39 by ₱14,164,727.46 attributed to the: (a) non-reversion of stale/cancelled/ unreleased checks to the CIB-LCCA; and (b) unrecognized bank credit and debit memos and other reconciling items contrary to Section 59 of the Manual on the New Government Accounting System (NGAS) for Local Government Units (LGUs), Volume I and COA Circular No. 96-11 dated October 2, 1996"

Source Document