CoA queries P1.19-B unliquidated aid transfers of PSC

An audit of the financial accounts of the Philippine Sports Commission (PSC) revealed that the agency had P1.19 billion in unliquidated amounts from financial assistance granted to National Sports Associations (NSAs) as of 2025.

The Commission on Audit (CoA) identified in its annual audit report that the aforementioned amounts were absent of supporting documents from Non-Government Organizations and People’s Organizations that were granted the aid.

State auditors noted that there was a significant increase in the PSC’s unliquidated balances, going from P273.99 million in the previous year to the stated P1.19 billion amount.

“Account analysis revealed that this significant increase was driven mainly by newer accounts with less than 30-days past due accounts and more than 30-days past due accounts surging substantially in CY 2025,” the report read.

Of the balance, a major portion was allocated to the Philippine National Volleyball Federation (PNVF) amounting to P690 million.

Substantial amounts provided to the Gymnastic Association of the Philippines and Philippine Olympic Committee at P195.99 million and P86.37 million, respectively, were likewise unliquidated.

“The existence of the long-outstanding advances is not in accordance with Section 5.4 of COA Circular No. 2007-001 requiring the NGO/PO representatives to submit complete liquidation and utilization reports within the prescribed period,” the audit agency stated.

CoA further noted that the unliquidated balances exposed government funds to the risk of misuse or unauthorized expenditures given the fact that the implementing entities were unable to confirm that the funds were used for their intended purpose.

State auditors would also question the approach that PSC had when it came to legacy unliquidated accounts, stating how the matter was “ineffective and necessitates other mechanisms” to grant the release of funds and the initiation of legal action or suspension of funding.

From the P1.19 billion amount, the agency noted that there were unliquidated balances from inactive NSAs and NGOs that dated back to between 1998 to 2005.

“Based on records, passive collection efforts such as demand letters were only sent to those NSAs/NGOs with no escalation and appears to be futile,” the report noted.

In lieu of the findings, the agency recommended the PSC to implement improved protocols and ensure that the agency followed the policies required for the complete liquidation of previous grants.