(LETTERHEAD OF THE AUDITED AGENCY)

Date (near but never after the date of the Auditor’s Report)

Management Representation Letter

Subject: Municipality of Kabacan

This representation letter is provided in connection with your audit of the financial statements of the
Municipal Government of XXXXXX for the year ended December 31, 201X for the purpose of expressing
opinions as to whether the financial statements are presented fairly, in all material respects, in
accordance with Philippine Public Sector Accounting Standards (PPSAS) and as to other terms required,
if any.

Statement of Management's Responsibility for the Financial Statements

We affirm that the financial statements for the Municipal Government of XXXXXX are management's
responsibility; that these were prepared in accordance with the PPSAS, that all relevant information was
provided the Commission on Audit Team, that access to relevant information and records were made
available and that all transactions were recorded and reflected in the financial statements; and that all
instances of non-compliance of which we are aware of are disclosed to the COA audit team.

Specific Affirmations pertaining to the Financial Statements Provided to the Commission on Audit

We affirm that to the best of our knowledge and belief, having made such inquiries as we considered
necessary for the purpose of appropriately informing ourselves:

A. Financial Statements

We have fulfilled our responsibilities, as set out in the terms of the audit engagement dated
(indicate date), for the preparation of the financial statements in accordance with the PPSAS:

1. In particular, the financial statements are free from material misstatements including
omissions and errors, and are fairly presented.
2. Significant assumptions used in making accounting estimates, including those measured at
fair value, are reasonable.
3. Related party relationships and transactions, if any, have been appropriately accounted for
and disclosed in accordance with the requirements of the PPSAS.
4. All events subsequent to the date of the financial statements and for which PPSAS require
adjustment or disclosure have been adjusted or disclosed.
5. All matters related to claims, litigations, assessments and dispute have been disclosed to
COA by our Legal Office and external legal counsel.
6. The effects of uncorrected misstatements are immaterial, both individually and in the
aggregate, to the financial statements as a whole. A list of the uncorrected misstatements is
attached to the representation letter.
7. The selection and application of accounting policies are appropriate.

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8. The following have been recognized, measured, presented or disclosed in accordance with
the PPSAS:
a. Plans or intentions that may affect the carrying value or classification of assets and
liabilities;
b. Liabilities, both actual and contingent;
c. Title to, or control over, assets, the liens or encumbrances on assets, and assets pledged
as collateral; and
d. Aspects of laws, regulations and contractual agreements that may affect the financial
statements, including non-compliance.

In preparing the financial statements, management is also responsible for assessing the Municipal
Government’s ability to continue as a going concern, disclosing, as applicable, matters related to
going concern and using the going concern basis of accounting unless management either intends to
liquidate the Municipality or to cease operations, or has no realistic alternative but to do so.

B. Internal Control

1. We have assessed the effectiveness of the Municipal Government’s internal control in

2. We have disclosed to you all significant deficiencies in the design or operation of internal
control that could adversely affect the entity's ability to meet the internal control objectives
and identified those we believe to be material weaknesses.

3. There have been no changes to internal control subsequent to (date of latest audited
financial statements), or other factors that might significantly affect it. (If there were
changes, describe them, including any corrective actions taken with regard to any significant
deficiencies or material weaknesses.)

C. Compliance

1. The activities and financial transactions are in compliance with the relevant government
rules and regulations.
2. We have provided you with interpretation of compliance requirements that may have
varying interpretations.
3. All contracts, agreements and other correspondence have been made available.
4. We have disclosed all contracts and agreements with service organizations, including any
communications with those organizations related to instances of non-compliance.
5. The Municipality has been operated effectively, throughout the period covered by the audit.

D. Information Required

1. We have provided you with:

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a. Access to all information deemed relevant to the preparation of the financial statements
such as records, documentation and other matters;
b. Additional information requested for the purpose of the audit; and
c. Unrestricted access to persons within the entity determined necessary to obtain audit
evidence.

2. All transactions have been recorded in the accounting records and are reflected in the
financial statements.

3. We have disclosed to you the specific results of our assessment of the risk indicating that
the financial statements may be materially misstated as a result of fraud.

4. We have disclosed to you all information in relation to fraud or suspected fraud that we are
aware of and that affects the entity and involves: management; employees who have
significant roles in internal control; or others where the fraud could have a material effect
on the financial statements.

5. We have disclosed to you all known instances of non-compliance or suspected non-

6. We have disclosed to you the identity of related parties and all the related party
relationships and transactions of which we are aware.

Signed:

_____Signature over Printed Name____ _____Signature over Printed Name_____

Date Date

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