CoA flags P941.87M in CHED scholarship transactions

The Commission on Audit (CoA) has flagged ₱941.87 million in transactions involving three scholarship programs of the Commission on Higher Education (CHED), citing irregular disbursements, inadequate documentation and deficiencies in fund management.

In its 2025 annual audit report, CoA identified lapses in the implementation of the CHED Merit Scholarship Program (CMSP), Staff and Instructors' Knowledge Advancement Program (SIKAP) and Coconut Scholarship Program (CoScho).

State auditors flagged ₱716.19 million in transactions under the CMSP involving irregular disbursements, unsupported payments and unliquidated fund transfers.

The program provides financial assistance to academically qualified incoming and first-year college students based on academic merit.

However, auditors found delays in opening applications, deficiencies in verifying beneficiaries' eligibility, missing disbursement vouchers and grants awarded to students enrolled in non-priority courses.

CoA 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.”

The agency warned that these deficiencies raised concerns over the “regularity, propriety, and validity” of transactions under the program.

Meanwhile, CoA questioned ₱134.97 million in SIKAP transactions due to policy gaps, inadequate monitoring and the absence of clear timelines for scholars to fulfill their return-service obligations.

The deficiencies were identified in CHED regional offices in Central Luzon and Northern Mindanao.

SIKAP provides grants to teachers and other educational personnel pursuing advanced studies to improve their academic qualifications and teaching competencies.

According to the audit, the regional offices failed to adequately monitor scholars' compliance with program requirements and maintain proper controls over the documentation, verification and approval of disbursement vouchers.

“These deficiencies resulted in delayed enforcement of return service obligations, unvalidated scholar compliance, prolonged unresolved termination cases, and unsupported disbursement funds,” the report read.

“Consequently, the efficiency, accountability, and effectiveness of the SIKAP Grant program were adversely affected,” it added.

Coconut scholarship funds flagged

CoA also flagged ₱90.71 million in transactions under the Coconut Scholarship Program, citing inadequate monitoring and questionable expenditures in CHED offices in the Bicol Region, Northern Mindanao and Soccsksargen.

Auditors identified difficulties recovering funds from scholars whose grants were terminated after they failed to maintain the required general weighted average of 80 percent.

The report also found that some scholarship funds were used for expenses not authorized under the Coconut Farmers and Industry Development Plan.

According to CoA, these deficiencies exposed the funds to risks of non-recovery and “misuse, misclassification, and over-utilization.”

The audit findings highlighted weaknesses in CHED's scholarship administration, particularly in verifying beneficiaries, monitoring compliance and ensuring that government funds are spent according to program requirements.