Philippine Statistics Authority faces audit flags over procurement budgets, missing equipment

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PSA audit flags and budget issues

Highlights

Commission on Audit flagged the Philippine Statistics Authority for P341 million in procurement budgets lacking market validation and documentation, and P13 million in unaccounted PhilSys and IT equipment.
Auditors identified P42.74 million in overstated supply allotments, irregular procurement approval timelines, and P25.49 million in slow-moving or underused equipment by year-end 2025.
As of Dec. 31, 2025, PSA faced P596.409 million in unsettled audit issues and P446.62 million in disallowances from prior years still under appeal.

Audit findings on procurement and assets

As reported by BusinessWorld Online, the Commission on Audit said the Philippine Statistics Authority failed to provide adequate supporting documents for P341 million in approved procurement budgets and cited nearly P13 million in unaccounted PhilSys and information technology equipment.

Auditors said the agency did not sufficiently validate market prices or support budget estimates for the contracts. The missing documents included historical contract prices, market research, canvass sheets and supplier quotations, while the unaccounted assets exposed the agency to risks of loss, misuse, misappropriation and inaccurate property records.

The missing equipment was reported by regional statistical service offices in the National Capital Region, Central Luzon and Western Visayas. CoA also found P42.74 million in overstated supply allotments and irregularities in small-value procurement transactions, including notices of award, purchase orders and contracts with inconsistent approval dates.

Auditors added that some purchase orders were signed after goods or services had already been delivered or were already due for delivery. The report also cited procurement and inventory management weaknesses that left equipment unused or underused and resulted in slow-moving, expired and nearly expired supplies.

Financial reporting and operational impact

State auditors identified P25.49 million worth of slow-moving, nonmoving and underused supplies and equipment, including printer consumables, fingerprint scanners, iris scanners, web cameras and monitors. They also flagged P828,000 in unnecessary spending by the PSA Central Office and several regional offices, including unsupported flight rebooking and cancellation expenses, travel reimbursements above allowable daily travel costs and utility surcharges caused by delayed bill payments.

The audit report also cited accounting errors affecting cash in bank, receivables from National Government agencies, inventories, property and equipment and accounts payable. CoA said various errors and omissions in record-keeping affected the completeness and accuracy of account balances reported in the financial statements.

The commission found the PSA's accounting or financial reporting issues significant enough to prevent a completely clean audit opinion, but not severe enough to render the full financial statements unreliable. As of Dec. 31, 2025, the agency has P596.409 million in unsettled notices of suspension, disallowance and charge, while P446.62 million of the P585.45 million in prior-year disallowances remains under appeal before the commission proper.

Our earlier article on planned Philippine government bond market reforms explained how a new pricing convention and prospective index inclusion could improve liquidity and broaden the investor base. It also stressed that the payoff depends on fiscal credibility, stronger governance, and reliable disclosure and rule enforcement to build investor trust. Without these foundations, market modernization alone may not translate into cheaper funding or more productive investment in the real economy.

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