Philippines audit agency flags lapses in CHEd scholarship programs

The Commission on Audit (CoA) has flagged deficiencies in the implementation and financial management of the Commission on Higher Education’s (CHEd) scholarship programs in the Philippines, including P716.19 million in questioned transactions under the CHEd Merit Scholarship Program (CMSP) in 2025.

In its annual audit, the state auditing agency identified problems involving the CMSP, the Staff and Instructors’ Knowledge Advancement Program (SIKAP) and the Coconut Scholarship Program.

The findings covered irregular fund disbursements, payments without adequate supporting documents, unliquidated fund transfers, beneficiary eligibility and gaps in program policies.

For the CMSP, auditors reported irregular disbursements, unsupported payments and unliquidated fund transfers totaling P716.19 million in 2025.

The program is intended to provide merit-based financial assistance to academically qualified incoming college students and first-year students.

However, the audit found delays in issuing calls for applicants, problems involving beneficiaries' compliance with program requirements, missing disbursement vouchers and scholarship assistance provided to students enrolled in non-priority academic programs.

These deficiencies raised concerns about the processes used to verify applicants' eligibility, document payments and monitor the distribution of scholarship funds.

Auditors also questioned whether the existing controls were adequate to ensure that assistance was provided to eligible students in accordance with the program's requirements.

CoA identifies weaknesses in financial controls

The Commission on Audit said the findings pointed to gaps in the internal controls governing eligibility verification, documentation, monitoring and fund accountability.

The state auditors said the findings “indicate weaknesses in internal controls over eligibility validation, documentation, monitoring, and fund accountability, resulting in increased exposure to errors and inefficiencies in program implementation.”

CoA also emphasized that the identified deficiencies created risks concerning the “regularity, propriety, and validity” of transactions carried out under the program.

The issues identified in the CMSP included both administrative shortcomings and financial management concerns.

Delays in the application process and problems with beneficiary requirements affected implementation, while missing vouchers and unsupported payments raised questions about the documentation available to substantiate disbursements.

The distribution of assistance to students enrolled in non-priority programs was another concern, as the scholarship is intended to support academically qualified students in accordance with its eligibility and program requirements.

SIKAP transactions worth P134.97 million questioned

The audit agency also identified deficiencies in transactions worth P134.97 million under the Staff and Instructors’ Knowledge Advancement Program (SIKAP).

According to the report, the concerns stemmed from gaps in program policies and the absence of clearly defined timelines requiring teachers who received assistance to return to service.

The audit found inconsistencies in the implementation of SIKAP at CHEd's regional offices in Region III and Region X. The report linked the deficiencies to policy gaps and the lack of established deadlines for teachers to fulfill their return-to-service obligations.

The absence of clear timelines was among the issues raised in the audit, as return-to-service requirements form part of the conditions associated with the program.

The findings pointed to the need for clearly defined policy provisions and timelines to support the administration and monitoring of these requirements.

The annual audit also covered the Coconut Scholarship Program, which was among the CHEd initiatives reviewed by the state auditors. However, the available audit details did not specify separate findings or financial amounts for that program.

The findings across the scholarship initiatives highlighted concerns about financial controls, beneficiary verification, supporting documentation and the implementation of program policies.

For the CMSP, the audit identified P716.19 million in irregular disbursements, unsupported payments and unliquidated fund transfers in 2025.

For SIKAP, it questioned transactions worth P134.97 million because of policy deficiencies and the absence of defined return-to-service timelines.

The audit findings focused on the administration and accountability of public funds allocated to scholarship programs intended to support students and teachers in the Philippines.