DENR earns first Unmodified Opinion from COA for CY 2024
The Commission on Audit (COA) has granted the Department of Environment and Natural Resources (DENR) an unmodified opinion—the highest audit rating — for its 2024 financial statements, citing strengthened governance and fiscal discipline.
“The Unmodified Opinion underscores the DENR’s strong commitment to transparency, accountability and sound financial management,” Environment Secretary Raphael P.M. Lotilla said, crediting officials and employees for their unwavering dedication and valuable contribution to the achievement.
“Let us continue to build on this achievement and remain steadfast in upholding the highest standards of good governance,” he added.
The Independent Auditor’s Report (IAR) in COA’s Consolidated Annual Audit Report on the DENR for CY 2024 states that“an unmodified opinion was rendered on the fairness of presentation of the financial statements of DENR as at December 31, 2024.”
It further reads: “In our opinion, the accompanying financial statements present fairly, in all material respects the financial position of the DENR as at December 31, 2024, and its financial performance, cash flows, changes in net assets/equity, comparison of budget and actual amounts for the year then ended, in accordance with International Public Sector Accounting Standard (IPSAS).”
According to COA, an unmodified (unqualified) opinion is issued when the auditor concludes that the financial statements are prepared, in all material respects, in accordance with applicable financial reporting frameworks, which are the Philippine Financial Reporting Standards (PFRS) and IPSAS.
The audit covered the accounts and financial transactions of the DENR Central Office, 15 regional offices, four staff bureaus, one foreign-assisted project, and 64 Provincial Environment and Natural Resources Offices for CY 2024.
Since 2015, COA has issued qualified opinions on the DENR, except in 2021 when the agency received an adverse opinion, and in 2020 when it was given a disclaimer of opinion. A qualified opinion means the financial statements are generally accurate but have issues such as incomplete disclosures. An adverse opinion is issued when statements do not fairly present the agency’s financial position. A disclaimer is given when auditors cannot form an opinion due to insufficient information.
Under the 1987 Constitution, COA conducts financial, compliance, and performance audits of national government agencies, local government units, and government-owned or -controlled corporations.
