05-MMDA2022 Part1-Auditor's Report

REPUBLIC OF THE PHILIPPINES
COMMISSION ON AUDIT
COMMONWEALTH AVENUE, QUEZON CITY
INDEPENDENT AUDITOR’S REPORT
The Acting Chairman

Metropolitan Manila Development Authority
Julia Vargas Avenue, cor. Molave Street
Brgy. Ugong, Pasig City
Report on the Audit of the Financial Statements
Opinion
We have audited the accompanying financial statements of the Metropolitan Manila

Development Authority (MMDA) which comprise the Statement of Financial Position as
at December 31, 2022, and the Statement of Financial Performance, Statement of Changes
in Net Assets/Equity, Statement of Cash Flows, Statement of Comparison of Budget and
Actual Amounts for the year then ended, and Notes to the Financial Statements, including
a summary of significant accounting policies.
In our opinion, the accompanying financial statements present fairly, in all material
respects, the financial position of the MMDA as at December 31, 2022, and its financial
performance, changes in net assets/equity, cash flows, and the comparison of budget and
actual amounts for the year then ended in accordance with International Public Sector
Accounting Standards (IPSASs).
Basis for Opinion
We conducted our audit in accordance with International Standards of Supreme Audit

Institutions (ISSAI). Our responsibilities under those standards are further described in the
Auditor’s Responsibilities for the Audit of the Financial Statements section of our report.
We are independent of the Agency in accordance with the Revised Code of Conduct and
Ethical Standards for Commission on Audit Officials and Employees (Code of Ethics) with
the ethical requirements that are relevant to our audit of the financial statements in the
Philippines, and we have fulfilled our other ethical responsibilities in accordance with these
requirements and the Code of Ethics. We believe that the audit evidence we have obtained
is sufficient and appropriate to provide a basis for our opinion.
1
Emphasis of Matter
We draw attention to Note 11.2 which disclosed a dormant loan from the Development
Bank of the Philippines (DBP) amounting to P53,116,318.73 as at December 31, 2022. The
redemption and payment for this loan has yet to be finalized depending on the results of
the on-going loan negotiation with DBP and subject to the approval of the Secretary of the
Department of Finance. Hence, the balance of Loans Payable appearing in the books at
year-end may be affected by the recognition of interests, surcharges and penalties thereon
when such shall become due and demandable.
Our opinion is not modified in respect of this matter.
Responsibilities of Management and Those Charged with Governance for the

Financial Statements
Management is responsible for the preparation of the financial statements in accordance

with International Public Sector Accounting Standards and for such internal control as
management determines is necessary to enable the preparation of financial statements that
are free from material misstatement, whether due to fraud or error.
Those charged with governance are responsible for overseeing MMDA’s financial
reporting process.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements
as a whole are free from material misstatement, whether due to fraud or error, and to issue
an auditor’s report that includes our opinion. Reasonable assurance is a high level of
assurance but is not a guarantee that an audit conducted in accordance with ISSAIs will
always detect a material misstatement when it exists. Misstatements can arise from fraud
or error and are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of
these financial statements.
As part of an audit in accordance with ISSAIs, we exercise professional judgment and

maintain professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatements of the financial statements,
whether due to fraud or error, design and perform audit procedures responsive to
those risks, and obtain audit evidence that is sufficient and appropriate to provide a
basis of our opinion. The risk of not detecting a material misstatement resulting
from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control.
2
• Obtain an understanding of internal control relevant to the audit in order to design
audit procedures that are appropriate in the circumstances, but not for the purpose
of expressing an opinion on the effectiveness of the MMDA’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of

accounting estimates and related disclosures made by management.
• Evaluate the overall presentation, structure and content of the financial statements,
including the disclosures, and whether the financial statements present the
underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and significant audit findings, including any
significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied
with relevant ethical requirements regarding independence, and to communicate with them
all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
COMMISSION ON AUDIT
ATTY. REYNALDO C. DARANG

Supervising Auditor
June 23, 2023

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REPUBLIC OF THE PHILIPPINES

INDEPENDENT AUDITOR’S REPORT

The Acting Chairman

Report on the Audit of the Financial Statements

We have audited the accompanying financial statements of the Metropolitan Manila

Basis for Opinion

We conducted our audit in accordance with International Standards of Supreme Audit

Our opinion is not modified in respect of this matter.

Responsibilities of Management and Those Charged with Governance for the

Management is responsible for the preparation of the financial statements in accordance

Auditor’s Responsibilities for the Audit of the Financial Statements

As part of an audit in accordance with ISSAIs, we exercise professional judgment and

• Evaluate the appropriateness of accounting policies used and the reasonableness of

ATTY. REYNALDO C. DARANG

June 23, 2023

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