THE Commission on Audit (CoA) flagged the Technical Education and Skills Development Authority (TESDA) due to more than P8 billion worth of financial misstatements, unsupported expenses and unremitted funds.
In its 2025 annual audit report, the state auditor said TESDA had P3.63 billion in financial misstatements, P3.66 billion in expenditures with unsubmitted supporting documents, and P1.11 billion in funds that had yet to be remitted to the National Treasury.
CoA attributed the financial misstatements to uncorrected accounting errors and omissions that affected the fair presentation of the agency’s financial statements.
“Various accounting errors and omissions were not corrected or adjusted resulting in material misstatements of P3,626,431,345.94, affecting the fair presentation of the Financial Statements (FSs) of TESDA,” the auditors said.
The audit also identified P4.50 billion in unsupported account balances, P1.79 billion in unreconciled accounts, P50.53 million in dormant funds, and P34.24 million in abnormal or negative account balances.
TESDA also failed to submit disbursement vouchers and supporting documents for expenditures totaling P3.66 billion, preventing auditors from promptly verifying the transactions.
“Disbursement Vouchers (DVs) and their corresponding supporting documents for expenditures totaling P3,663,716,676.49 were not timely submitted or remained unsubmitted, in violation of PD 1445 and related CoA issuances,” the report said.
CoA further found that P1.11 billion in funds had yet to be remitted or reverted to the National Treasury. These included collections retained without authority, unused funds whose authority for use had lapsed, and idle or dormant funds.
“Funds totaling P1,111,930,630.42, representing collections retained without authority, unexpended/unutilized funds in which validity and authority to use had already lapsed, and idle/dormant funds were not yet remitted or reverted to the National Treasury,” CoA said.
The report also cited delays in scholarship and training programs, including P523.81 million in delayed or unimplemented training programs, P197.44 million in delayed scholar allowance payouts, and P105.40 million in delayed payments to technical-vocational institutions.
CoA also questioned P94.36 million in payments under the TESDA-CybersCool partnership, citing missing program registrations, unverified cost breakdowns, and the absence of certifications on fund availability.
Procurement deficiencies involving P82.59 million in infrastructure, goods, and services were likewise flagged for noncompliance with Republic Act No. 9184, or the Government Procurement Reform Act.
Meanwhile, unsettled audit suspensions, disallowances, and charges against the agency reached P270.89 million at the end of 2025.
To address delays in submitting financial records, CoA recommended the immediate suspension of the salaries of accountable officers and employees responsible for failing to submit disbursement vouchers and supporting documents until they comply with the requirements.
For 2025, TESDA received P24.81 billion in allotments to finance its programs, projects, and activities, according to the audit report.
Given the accounting deficiencies and other findings, CoA issued a disclaimer of opinion on TESDA’s 2025 financial statements. — Pexcel John Bacon