TESDA audit findings expose P8 billion in questioned balances and expenses

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TESDA audit findings P8B

Highlights

TESDA's 2025 audit reveals P3.63 billion in financial misstatements, P3.66 billion in undocumented expenditures, and P1.11 billion in unremitted funds, prompting a disclaimer of opinion.
Delayed or unimplemented programs total P523.81 million, with additional delays of P197.44 million for scholar allowances and P105.40 million for payments to technical-vocational institutions impacting service delivery.
CoA flags P94.36 million in unsupported TESDA-CybersCool payments and P82.59 million in procurement deficiencies, with unsettled audit suspensions and disallowances at P270.89 million by end-2025.

Audit findings and documentation gaps

As reported by BusinessWorld, citing the Commission on Audit in its 2025 annual audit report, TESDA carries P3.63 billion in financial misstatements, P3.66 billion in expenditures without timely submitted supporting documents, and P1.11 billion in funds not yet remitted or reverted to the National Treasury. The state auditor says the misstatements stem from uncorrected accounting errors and omissions that affect the fair presentation of the agency's financial statements.

CoA also identifies 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. Auditors say disbursement vouchers and related records covering P3.66 billion in expenditures were either submitted late or remained unsubmitted, preventing prompt verification of the transactions.

The P1.11 billion flagged for remittance includes collections retained without authority, unexpended or unutilized funds whose authority for use has lapsed, and idle or dormant funds. Given the accounting deficiencies and other findings, CoA issues a disclaimer of opinion on TESDA's 2025 financial statements.

Program delays and compliance risks

The audit report also points to delays in program execution, 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. These findings widen the impact of the accounting issues beyond financial reporting and into the delivery of TESDA-funded services.

CoA also questions P94.36 million in payments under the TESDA-CybersCool partnership, citing missing program registrations, unverified cost breakdowns, and the lack of certifications on fund availability. Procurement deficiencies involving P82.59 million in infrastructure, goods, and services are likewise flagged for noncompliance with the Government Procurement Reform Act.

At the end of 2025, unsettled audit suspensions, disallowances, and charges against the agency stand at P270.89 million. To address delays in record submission, CoA recommends the immediate suspension of salaries of accountable officers and employees who fail to submit disbursement vouchers and supporting documents until they comply; TESDA received P24.81 billion in allotments for 2025 to finance its programs, projects, and activities.

Our earlier article examined the Philippines’ planned sovereign bond reforms ahead of a new pricing convention and potential index inclusion, noting these steps could boost liquidity and broaden the investor base. It also stressed that lasting gains still hinge on fiscal credibility, transparent use of public resources, and stronger governance—because market modernization alone does not guarantee better investment outcomes.

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