Philippine police audit flags project recording gaps and unrecovered advances

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Highlights

Commission on Audit found 250 completed TIKAS-PNP projects worth P5.74 billion unrecorded in 2025 PNP books due to missing transfer and turnover documents.
CoA flagged P87.81 million in unrecovered mobilization advances after project terminations and highlighted 66 unfinished TIKAS-PNP projects valued at P2.16 billion as at risk for deterioration.
Audit revealed 394 untitled land parcels valued at least P829.32 million and a dormant P145.78-million PNP deposit, despite CoA issuing an unmodified opinion on 2025 financial statements.

Audit findings on project accounting

As reported by BusinessWorld Online, the Commission on Audit says 250 completed TIKAS-PNP projects costing P5.74 billion were not recorded in the Philippine National Police's books of account in 2025 because property transfer reports, journal entry vouchers from the Department of Public Works and Highways, certificates of acceptance and final turnover documents were missing.

State auditors also say 15 completed TIKAS-PNP projects worth P1.02 billion were recorded without supporting documents, creating a risk that the same assets could be recognized by both the PNP and DPWH. Another 66 TIKAS-PNP projects worth P2.16 billion remain unfinished, which CoA says exposes the facilities to deterioration from prolonged exposure to the elements.

CoA also flags P87.81 million in mobilization advances that remain unrecovered after project terminations. The auditors say the unpaid advances run contrary to Section 71.2.5 of the implementing rules and regulations of Republic Act No. 12009 and may result in the loss of government funds.

Asset control and balance sheet impact

Beyond the infrastructure projects, the audit says 394 land parcels occupied or acquired by the PNP headquarters and seven regional offices remain untitled under the agency's name. The properties carry an aggregate value of at least P829.32 million, adding to concerns over asset control and documentation.

CoA also finds that a P145.78-million PNP deposit with the Philippine International Trading Corp. has remained dormant for more than nine years, while the balance is overstated by P801,548 because service fees and interest income are not recorded. In addition, the PNP's due from National Government agencies account carries an outstanding balance of P155.3 million as of Dec. 31, 2025, including an unresolved P140.28-million amount tied to the National Crime Information System project with the Department of Information and Communications Technology.

Despite these findings, CoA issues an unmodified opinion on the PNP's 2025 financial statements, meaning the accounts are fairly presented in all material respects. The findings nonetheless point to persistent weaknesses in documentation, asset transfer processing and recovery of public funds within the police force's financial management system.

In our earlier article on planned Philippine sovereign bond reforms and the country’s targeted inclusion in J.P. Morgan’s Government Bond Index-Emerging Markets, we explained that modernization could broaden the investor base and improve liquidity. We also noted that market benefits ultimately hinge on fiscal credibility and the quality of public spending—since poorly selected, delayed, or overpriced projects and weak governance can undermine the gains. The piece added that deeper, more functional capital markets and stronger disclosure are needed so cheaper funding translates into real investment and productivity growth.

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