THE Commission on Audit (CoA) flagged the Department of Environment and Natural Resources (DENR) over P1.93 billion in unliquidated fund transfers, P521.26 million in uncollected revenues and the buyout of government-funded reforestation projects worth P5.61 million in 2025.
State auditors said 79% of the P2.43 billion transferred to implementing agencies remained unliquidated at yearend because liquidation reports were missing or had not been submitted despite follow-ups.
“Fund transfers to implementing agencies totaling P1.93 billion, or 79.22% of the P2.43 billion transferred, remained unliquidated at yearend [at the DENR Central Office], one regional office and six provincial environment and natural resources offices because liquidation reports were missing or had not been submitted despite follow-ups,” CoA said in its 2025 audit report.
CoA recommended regular demand letters to implementing agencies, closer monitoring and the return of unused project funds.
Auditors also identified P521.26 million in uncollected revenues at Regional Office IV-A and 13 provincial environment offices, citing unclear collection procedures, weak enforcement and inadequate monitoring.
“The absence of clearly defined collection procedures, coupled with weak enforcement and inadequate monitoring mechanisms in Regional Office IV-A and 13 provincial environment and natural resources offices” led to the continued noncollection of fees and charges related to foreshore properties, forestlands and protected areas, CoA said.
The unpaid amounts included foreshore land rentals, occupational fees, resource user fees, performance bonds, forest charges and surcharges.
CoA also questioned the buyout of National Greening Program (NGP) reforestation projects involving P5.61 million in government investments.
“Reforestation projects implemented under the NGP with a total government investment of P5.61 million were subsequently bought out by a private company through Community Environment and Natural Resources Office Bangui and Urdaneta for use in an energy project,” auditors said.
The DENR Central Office authorized the arrangement through a directive. CoA said it appeared inconsistent with environmental laws and undermined the program’s goal of rehabilitating degraded areas.
Auditors also found that the DENR had yet to establish a national river basin master plan to guide flood control and water resource management. They cited missed project targets, discrepancies between accomplishment and financial reports, and delays in consultant-led projects.
Outstanding audit suspensions reached P50.72 million, disallowances stood at P260.16 million and charges hit P32.5 million as of Dec. 31, 2025.
Despite these findings, the DENR received an unmodified audit opinion on its 2025 financial statements. — Pexcel John Bacon