Malacañang on Friday stressed that the “unmodified opinion” given by the Commission on Audit (COA) on the Office of the Vice President’s (OVP) financial statements does not necessarily mean there were no irregularities in the use of public funds.

In a press briefing, Presidential Communications Undersecretary and Palace Press Officer Atty. Claire Castro pointed out that the COA’s unmodified opinion solely reflects the accuracy of the OVP’s financial statement presentation, not the propriety or legality of its fund usage.

“Liwanagin po natin ang unmodified opinion na ibinibigay po ng COA para po hindi masyadong maguluhan ang ordinaryong Pilipino. Kapag sinabi po kasing unmodified opinion (Let us clarify the unmodified opinion issued by the COA so that ordinary Filipinos won’t be too confused. When we say unmodified opinion), it pertains only to the financial statement presentation,” Castro said.

“So, ibig sabihin, sumunod lang po sa financial reporting framework, kumbaga iyong format, kung ano iyong laman, nagbalanse. Pero hindi po ito nagpapatunay na walang anomalya. Iba po iyong tama ang pag-report at iba iyong tama ang paggamit ng pondo (this means they simply followed the financial reporting framework, in other words, the format, the contents, everything balanced. But this does not prove that there were no anomalies. Proper reporting is different from the proper use of funds),” she added.

According to Castro, the COA’s opinion simply affirms that the financial statements comply with the reporting framework, “but this does not prove that there were no anomalies.”

She further emphasized that “proper financial reporting is different from the proper use of funds.”

Castro also addressed statements suggesting that the unmodified opinion indicates a strong commitment to transparency and good governance.

She added that COA’s audit opinion is separate from compliance and performance audits, which assess whether funds were used according to laws and whether programs were implemented effectively and efficiently.

“Hindi po siya ang covered ng unmodified opinion ng COA (this does not cover by the COA’s unmodified opinion),” she said.

Castro then cited ongoing issues flagged by COA in its latest reports.

She pointed to the P73 million in confidential funds that received a notice of disallowance; the ₱164 million confidential funds flagged in 2023; and additional findings related to the OVP’s PagbaBAGo Campaign and Negosyo Ta ‘Day program.

“At sa ating pagkakaalam, nabanggit din naman po ng OVP na mayroon pa pong flag for 2024 dito sa report ng COA para sa OVP (And to our knowledge, the OVP also mentioned that there is still a flag for 2024 in the COA report for the OVP),” she said.

Castro pointed out that this does not mean there were no irregularities in the use of the agency's budget.

Under COA’s definition, the unmodified opinion, also known as an unqualified opinion, is issued when an auditor determines that the financial statements are fairly presented, in all material respects, in accordance with the applicable financial reporting standards.

However, COA clarified that such opinions apply only to the financial audit section of the Annual Audit Report (AAR) for government agencies, including the Office of the Vice President (OVP).

COA also noted that its audit opinions “should not be viewed as a rating, score, or grade ranked from lowest to highest,” emphasizing that these opinions are limited in scope and pertain solely to the accuracy of financial reporting.