THE Commission on Audit (CoA) flagged the Office of the Vice-President (OVP) for the delayed liquidation of millions of pesos in livelihood aid and documentation gaps in grants to civil society organizations.
In its 2025 Annual Audit Report, CoA said P2.055 million in the OVP’s Mag Negosyo Ta ’Day livelihood assistance granted to 137 beneficiaries remained unliquidated as of Dec. 31, 2025. The submission of liquidation documents was delayed by nine to 156 days beyond the prescribed period.
“This indicated weakness in monitoring and follow-up mechanisms and reduced assurance that the grants were utilized for their intended purposes,” CoA said.
State auditors also found documentation deficiencies in P3.3 million worth of grants, under the same program, awarded to 22 civil society organizations. Project proposals lacked required feasibility study details, notarized affidavits were missing, and technical or financial evaluations were not properly documented.
“These gaps reduced assurance that appropriate evaluation procedures and documentary controls were consistently implemented,” CoA said.
The audit also identified weaknesses in the OVP’s monitoring of social service programs, including the distribution of PagbaBAGo bags and Relief for Indigents and Individuals in Crises and Emergencies food bags.
CoA found incomplete or missing master files and acknowledgment receipts, including documents without the required signatures. The transmittal of Request and Issue Slips between satellite offices and consolidating divisions was also delayed by one to 446 days.
“These deficiencies reduced assurance on the completeness, reliability, and verifiability of relief distribution records and weakened controls over Relief Operations,” the audit report said.
Auditors also noted discrepancies between OVP situational reports and data from local government units during disaster relief operations, as well as the issuance of mission orders without specified limits, and beneficiary distribution lists that had not been verified.
The OVP concurred with the audit findings and agreed to implement the recommended corrective measures, including sending demand letters to beneficiaries who had not complied with liquidation requirements, revising proposal templates, and enforcing stricter reporting deadlines across its satellite offices.
Despite the findings, CoA issued an unmodified opinion on the fairness of the OVP’s financial statements for calendar year 2025.
In a separate report, CoA commended the Office of the President (OP) for using its Special Purpose Contingency Fund to support the Philippine Health Facility Development Plan 2020-2040, while calling for improvements in project monitoring and financial reporting.
However, CoA said the agency needed to strengthen its mechanisms for projects implemented through fund transfers and improve the corresponding financial reporting.
CoA recommended closer coordination between the OP’s Engineering Office and Finance Office to ensure timely project completion and accurate financial records.
Auditors also called for the reclassification of P35 million worth of completed structures that remained recorded under construction accounts. The OP’s management agreed to make the necessary adjusting entries, according to the report.
CoA also reported that the OP achieved a 100% accomplishment rate across its primary performance indicators, covering oversight, advisory, legal, legislative and presidential executive staff service programs.
CoA further noted that the OP had resolved seven of the nine audit recommendations carried over from the previous fiscal year. The agency also committed to submitting its Gender and Development plan earlier to allow sufficient time for review and endorsement by the Philippine Commission on Women.
The commission also rendered an unmodified opinion on the OP’s 2025 financial statements, indicating that they were fairly presented, in all material respects, under the applicable financial reporting framework. — Pexcel John Bacon