THE Commission on Audit (CoA) flagged P567.12 million in accounting deficiencies at the Department of the Interior and Local Government (DILG), citing unreconciled records, property account discrepancies and long-outstanding receivables that affected the reliability of the agency’s reported balances.
“The agency’s reported financial balances are unreliable due to P567.12 million in accounting deficiencies,” state auditors said in their 2025 annual audit report.
CoA also flagged delays in the construction of the three-storey 911 National Office and Command Center (NOCC) building, which remained unfinished more than three years after its target completion date.
“This prolonged delay leaves public funds tied up in an unfinished asset, hinders project accountability among the involved parties and defers the delivery of vital emergency services intended for public benefit,” auditors said.
They cited discrepancies among accounting records, implementing agencies and property accounts, as well as dormant receivables, as the main sources of the deficiencies.
CoA also found procurement lapses involving goods, infrastructure and consultancy services, saying certain provisions of Republic Act (RA) No. 12009 or the New Government Procurement Act were not observed.
“Certain provisions of the implementing rules and regulations of RA No. 12009… were not observed or complied with in the procurement of goods, infrastructure, and consultancy services,” it said.
State auditors said the deficiencies undermined transparency, completeness and economy in the procurement process.
The DILG used P7.66 billion or 80.89% of its P9.47-billion budget allocation, leaving P1.81 billion unspent at the end of 2025.
Eight major programs posted fund-use rates ranging from 2.45% to 64.9%, while P20.21 million in taxes and mandatory contributions to the Government Service Insurance System, Home Development Mutual Fund and Philippine Health Insurance Corp. remained unremitted pending validation.
CoA also reported P103.71 million in unsettled audit disallowances and P2.55 million in unsettled audit suspensions as of Dec. 31, 2025, citing management’s failure to enforce collection from accountable personnel.
Despite the findings, CoA issued an unmodified opinion on the DILG’s 2025 financial statements, indicating that the accounts were fairly presented in all material respects.
The DILG said it would implement the audit recommendations, including reconciling accounting discrepancies, expediting the completion and turnover of the NOCC building and settling outstanding accounts. — Pexcel John Bacon