Philippines audit flags OVP delays in liquidating livelihood aid

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Highlights

P2.055 million from the OVP's Mag Negosyo Ta 'Day program to 137 beneficiaries remained unliquidated as of Dec. 31, 2025, with delays of nine to 156 days in document submissions.
CoA identified P3.3 million in grants to 22 civil society organizations with missing feasibility study details, notarized affidavits, and undocumented technical or financial evaluations under the same OVP program.
Despite operational compliance findings, CoA gave unmodified opinions on both the OVP's and Office of the President's 2025 financial statements, highlighting control rather than financial reporting issues.

Audit findings on livelihood and relief controls

As reported by BusinessWorld, citing the Commission on Audit in its 2025 Annual Audit Report, P2.055 million under the OVP's Mag Negosyo Ta 'Day livelihood assistance program granted to 137 beneficiaries remains unliquidated as of Dec. 31, 2025. Liquidation documents were submitted nine to 156 days beyond the prescribed period, which auditors said points to weak monitoring and follow-up mechanisms and lowers assurance that the grants were used for their intended purposes.

State auditors also flagged documentation deficiencies in P3.3 million of grants under the same program awarded to 22 civil society organizations. The report said project proposals lacked required feasibility study details, notarized affidavits were missing, and technical or financial evaluations were not properly documented.

The audit further identifies 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 says master files and acknowledgment receipts were incomplete or missing in some cases, some documents lacked required signatures, and the transmittal of Request and Issue Slips between satellite offices and consolidating divisions was delayed by one to 446 days.

Auditors also note discrepancies between OVP situational reports and local government unit data during disaster relief operations, as well as mission orders issued without specified limits and beneficiary distribution lists that had not been verified. The OVP concurs with the findings and agrees to send demand letters to non-compliant beneficiaries, revise proposal templates and enforce stricter reporting deadlines across satellite offices.

Implications for oversight and related findings

Despite the control issues, CoA issues an unmodified opinion on the fairness of the OVP's financial statements for calendar year 2025. That means the audit findings focus on operational controls, compliance and documentation rather than a qualified assessment of the agency's overall financial statement presentation.

In a separate report, CoA commends the Office of the President for using its Special Purpose Contingency Fund to support the Philippine Health Facility Development Plan 2020-2040, while still calling for stronger project monitoring and financial reporting. Auditors recommend closer coordination between the OP's Engineering Office and Finance Office, and call for the reclassification of P35 million in completed structures still recorded under construction accounts.

The OP agrees to make the needed adjusting entries, according to the report. CoA also says the Office of the President achieves a 100% accomplishment rate across its primary performance indicators, resolves seven of nine audit recommendations carried over from the previous fiscal year, and also receives an unmodified opinion on its 2025 financial statements.

Our earlier article on Menara Asia’s Menarabena platform looked at how Malaysia’s construction sector is using digital tools to strengthen compliance, certification, and documentation in building-material procurement. We noted that the platform aims to make supply chains more efficient while ensuring products are backed by required technical records and approvals, alongside regulator coordination to uphold standards for contractors and suppliers.

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