THE COMMISSION on Higher Education (CHED) failed to use P6.61 billion in available funds in 2025, delaying scholarship assistance and other education programs, according to the Commission on Audit (CoA).
In its 2025 audit report, CoA said CHED committed P44.97 billion, or 87.18% of its P51.59-billion budget allotments, but released only P28.54 billion in payments.
The agency ended the year with P16.43 billion in unpaid obligations and P6.61 billion in funds that had not been committed to programs or projects.
“CHED’s inefficient fund utilization marked by low disbursement performance in CHED-National Capital Region, lapse of continuing appropriations in CHED-Central Office, and an unobligated balance of P6.61 billion at yearend resulted in delays in program implementation and reversion of substantial public funds to the National Treasury,” state auditors said.
The unused funds included P3.68 billion from 2025 appropriations and P2.93 billion carried over from previous years.
Auditors also flagged deficiencies in the implementation of the Tertiary Education Subsidy program under Republic Act No. 10931, involving P30.01 billion in transactions.
CoA said weaknesses in program administration across regional offices contributed to delays in financial assistance, unsettled fund transfers and inadequate accountability.
It urged CHED’s central and regional offices to settle outstanding fund transfers, enforce documentation requirements and improve monitoring.
The audit also found that deficiencies in the Free Higher Education (FHE) program resulted in a P17.22-million overpayment to Kolehiyo ng Lungsod ng Lipa.
“Lapses in the implementation of the Free Higher Education program were noted, thereby resulting in an overpayment of P17.22 million to Kolehiyo ng Lungsod ng Lipa and undermining the integrity and reliability of the FHE disbursements,” state auditors said.
The Tulong Dunong Program, involving P1.28 billion in transactions, was also flagged for delayed assistance, inaccurate beneficiary records and weak financial controls.
CHED’s National Capital Region office had P211.34 million in unpaid obligations under the program.
Other programs flagged included the CHED Merit Scholarship Program, involving P716.19 million; Agricultural Competitiveness Enhancement Fund Grants-In-Aid for Higher Education Program, P451.74 million; and Scholarships for Staff and Instructors’ Knowledge Advancement Program, P134.97 million.
Auditors also identified deficiencies involving P90.71 million under the Coconut Scholarship Program, P19.1 million under the Student Monetary Assistance for Recovery and Transition Program and P5.88 million in unsettled transfers under the K to 12 Graduate Scholarship Program.
Separately, unresolved audit suspensions, disallowances and charges against CHED totaled P3.77 billion as of Dec. 31, 2025.
These included P3.03 billion in suspended transactions requiring further documentation, P735.11 million in disallowed expenditures and P31,301 in audit charges.
CoA said 115 of its 290 previous audit recommendations remained unimplemented.
Despite the deficiencies, state auditors issued an unmodified opinion on CHED’s 2025 consolidated financial statements, indicating that the accounts fairly presented the agency’s financial position.
CHED management agreed with the recommendations and committed to improving budget planning, strengthening internal controls and recovering unsettled funds. — Pexcel John Bacon