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Executive Summary A. Introduction The Municipality of Midsalip, Province of Zamboanga del Sur was created thru Republic Act No. 4871 dated May 8, 1967. It has a total land area of 29,873.4557 Has. The date of fiesta is on March 19 in honour of the Patron Saint Sr. San Jose. Its foundation anniversary is on September 9. It is a 4th class municipality with 33 barangays. Midsalip prior to its creation was a flourishing settlement under the municipality of Pagadian. It was later passed on to the municipality of Aurora then to become a part of the jurisdiction of the municipality of Molave. Prior to its becoming a municipality it was a Barangay of the municipality of Liargao, now Ramon Magsaysay. Midsalip is one of the progressive towns in the province of Zamboanga del Sur. Its brandishing riches and fertile land dazed by the gleaming treasures stimulate the people to inhabit the place. It comprises 33 barangays enveloping the heart of the town. These barangays are eventually feeders of treasure being endowed with gems being enjoyed and cherished by the people for their existence. MIDSALIP. ITS LEGENDARY BACKGROUND. Long before the Japanese occupation and the installation of the Puppet Republic (Second Philippines Republic) in the years between 1942-1945, Midsalip has been given the birth by early settlers who migrated into the place. The early settlers were Subanen tribes under the political leadership of Datu Lumbos Guilingan who settled himself at a certain barrio under the municipality of Labangan. Datu Lumbos Guilingan was revered by the Subanens and Muslims alike that they would always pay homage to him being the Datu and fearless leader. These early settlers who were scattered in the different places of Midsalip found the name of their place where they lived in, and Midsalip is one of those places given its name as “Migsalip”. Midsalip by its origin was a name given by the Subanens to a river separating lebilop (Bibilop) and Bakahan (Bacahan). It is this river which accumulates all the waters coming from different small rivers and creeks, such as Talipunan River, Guma, Susu-an, Cumarom and Bacahan rivers. Several numbers of creeks eventually become feeders of the water of all these constituent rivers. Migsalip River collects this water and empties it thru Ecuan river, which is seemingly big because it also collects water from big rivers of Migsalip, Canipay, Bakulan and other big rivers. This Migsalip River was subsequently known by almost all settlers who were dwelling therein and also gained its popularity by those people who were visioning to come into this place and share the richness of the place. Datu Guilingan who was then a visiting Datu over his political dominion confirmed it to be the name of the river, but become the founded name Migsalip River and adopted it to be the name of the place as a barangay. Midsalip then was not only the name of the river, but become the name of the place. Migsalip or Magsalip got its name from the river Migsalip. The word Migsalip is a Subanen term, which literally means, “Collect” or “Accumulate”. Others pronounce it as Magsalip or Mocsalip. This is so, because Subanen people deliver it with the hard stress and with glottal difficulty. It is noted above that early settlers customarily gave the name of the place where they are settling. It follows then that all names given to all the barangays in Midsalip at present were not i original names one who come in the later years nor insisted changes of them, but rather they are original names given by the early Subanen settlers and subsequently confirmed and adopted by Datu Lumbos Guilingan. EARLY SETTLERS. Years before the Second World War, several groups of Christians and Subanens migrated into the place. They ventured to come after hearing that Midsalip was a flourishing place for livelihood. These early first settlers were known as the group of Apolonio (Aboan) Lagarnia who arrived in Midsalip in the year 1943, when Midsalip was yet a virgin forest. He was born on May 5,1874 at Sindangan, Zamboanga del Norte. Apolonio Lagarnia and his group traveled from Sindangan to Midsalip crossing several mountains, rivers, and hills. His group was met by another travelers who found their way from eastern part of the municipality of Tambulig. They were the group of Cano Calling and Canuto (Canut) Tosing. They settled themselves at barrio Buloron which accordingly was yet a vast tract of forest that only wild pigs and monkeys were dominating. Subsequently, the groups of Kandong, Antipas, Abelon, Galisandan and Sacandao found their place at Bacahan, Bibilop and Canipay. They inhabited therein peacefully and lived in abundance. In the year 1948, a group of settlers from Tangub, Misamis Occidental journeyed from Molave passing Liargao and reaching Midsalip. This group guided by the advancement of education was composed of Candido Aljas, Valeriano Balayong, Isidro Macalolo-oy, Alejandro Albor and then they settled themselves in a temporary vinta while overseeing the wonders and treasures of Migsalip. The group started to cultivate the area along with the Subanens. In order to fulfill their desire of owning the vast tract of land, Candido Aljas who was the most educated among the Christian group petitioned the government to release the land to the rightful individual cultivators. Fortunately, the petition was granted by the government and as a result. Engineer Fabian of the Bureau of Lands Stationed at Molave, this province, was sent to the place to conduct the survey and then worked out for the release of the surveyed land to the individual cultivator. MIGSALIP TO MIDSLIP. In view of the glottal difficulty experienced by the educated group in pronouncing the word Migsalip, they found it with the great ease to pronounce Midsalip than Migsalip.This advancement was brought along with a political steps forward. Reasons for changing was reflected, such that Midsalip is found in a remote place, and it become the rendezvous for travelers who journeyed from Dipolog, Misamis Occidental, Pagadian then a town to Molave. Midsalip then took to its own substantive meaning, “Mid” means Middle or Center and “Salip” is a rendezvous. The word has its Spanish derivations so that Midsalip partakes the associated meaning of a place for “center of rendezvous” or “center of meeting”. B. Financial Highlight The financial condition, results of operation and sources and application of funds of the Municipality of Midsalip, Province of Zamboanga del Sur, for calendars years 2013 and 2012 were as follows: ii Increase CY2013 CY2012 (Decrease) Financial Condition Assets Php 191,812,289.06 Php 181,110,559.56 Php 10,701,729.50 Liabilities 27,517,171.54 24,492,544.19 3,024,627.35 Government Equity 158,386,859.30 146,826,006.19 11,560,853.11 Result of Operations Total Operating Income 69,405,083.23 65,306,053.66 4,099,029.57 Total Operating Expenses 47,717,567.57 43,711,479.23 4,006,088.34 Net Income (Loss) 11,607,632.11 12,232,345.52 (624,713.41) Current Year Appropriation, Allotments,& Obligation Appropriations Allotments Obligations Balance PS Php 46,248,431.56 Php 46,248,431.56 41,076,906.23 5,171,525.33 MOOE 28,756,534.43 28,756,534.43 22,974,996.38 5,781,538.05 CO 979,347.63 979,347.63 810,695.85 168,651.78 Total Php 75,984,313.62 Php 75,984,313.62 Php 64,862,598.46 Php 11,121,715.16 Continuing Appropriation, Allotments,& Obligation Appropriations Allotments Obligations Balance PS Php Php - MOOE 2,392,000.00 2,392,000.00 1,372,914.00 1,019,086.00 CO 858,000.00 858,000.00 568,397.00 289,603.00 Total Php 3,250,000.00 Php 3,250,000.00 Php 1,941,311.00 Php 1,308,689.00 Increase CY2013 CY 2012 (Decrease) Local Taxes Php 5,986,062.36 Php 2,096,915.08 Php 3,889,147.28 Permits & Licenses 73,430.86 174,036.40 (100,605.54) Service Income 84,003.04 128,545.54 (44,542.50) Business Income 3,076,423.84 2,444,816.05 631,607.79 Other General Income 157,038.26 297,171.03 (140,132.77) Internal Revenue Allotment 60,028,124.87 60,164,569.56 (136,444.69) C. Scope of Audit The report covered the audit of the financial accounts and operations of the Municipality of Midsalip. The audit is made to ascertained the fairness of presentation of the Municipality of Midsalip’s financial condition as of December 31, 2013 and the results of its operation for the year then ended. iii The audit included review of operating procedures, verification, reconciliation and analysis of accounts, interview with concerned officials and such other procedures which were considered necessary under the circumstances. D. Auditor’s Opinion on the Financial Statement The Audit Team rendered a qualified opinion on the financial statements for calendar year 2013. The reason for the exception is discussed in the audit certificate. E. Significant Observation and Recommendations 1. Cash in vault amounting to P629,357.02 at year end for the three funds were not deposited intact to the depository bank in violation to Section 32 of the Manual on New Government Accounting System, thus exposing it for possible misuse and depriving the LGU of the use of said funds. Recommendation: The Municipal Treasurer should follow strictly the provisions cited in Section 32 of the Manual on New Government Accounting System, Volume I which provides that collections should be deposited intact to the depository bank to avoid misuse or losses thru theft and robbery.

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