Doubling the COA budget for accountability

The Commission on Audit (COA) stands as a constitutional defense against the misuse of public funds, tasked with the monumental duty of examining the financial operations of the entire Philippine government. Its mandate is clear: to ensure that every tax money is spent legally, efficiently, effectively, and economically. However, the scale and sophistication of potential fraud and the persistent presence of wasteful spending often beat the commission’s current capacities. Therefore, a strategic and significant doubling of the COA’s budget is not merely an administrative expense but a critical investment in national integrity and fiscal health, directly enabling the reorganization and operational improvements necessary to detect and eliminate fraudulent transactions and reduce waste in government operations.

A primary constraint hindering COA’s effectiveness is its persistent underfunding, which manifests in two critical areas: human resources and technological capability. For example, the current fiscal year’s COA appropriation approved by Congress and signed into law by the President is P12.7 billion, down from FY 2024 of P13.7 billion.

The government’s financial landscape is massive and complex, encompassing thousands of agencies, local government units, and government-owned corporations. Yet, COA often lacks enough auditors to conduct timely and in-depth examinations. This leads to a reliance on postaudit, a reactive approach that identifies problems long after the funds are spent and the damage is done.

Furthermore, auditors are burdened with obsolete tools. In an age where financial malfeasance can be hidden within complex digital systems and sophisticated schemes, COA auditors need access to state-of-the-art data analytics software, artificial intelligence, and forensic auditing tools. A doubled budget would directly fund the recruitment, training, and retention of a larger, more specialized corps of auditors, including experts in IT, forensic accounting, and complex procurement, transforming COA from a reactive reviewer into an initiative-taking guardian.

With improved resources, a reorganized and modernized COA could implement an effective strategy to eradicate fraud. First, it could shift its focus from traditional compliance auditing to robust risk-based auditing. By leveraging advanced data analytics, COA could proactively identify high-risk agencies, anomalous transaction patterns, and red flags indicative of corruption, such as overpricing, ghost projects, ghost deliveries, or fictitious beneficiaries. This allows for the strategic deployment of audit resources where they are most needed.

Second, a sizable portion of the increased budget should be allocated to establishing and expanding a dedicated forensic audit and special investigation unit. This unit would be equipped with the legal support, technology, and workforce to not just identify irregularities but to build airtight cases for prosecution, creating a credible deterrent against would-be perpetrators of fraud.

Beyond fraud detection, a revitalized COA is essential for its broader mission of promoting efficiency and eliminating waste. For instance, according to COA’s report, the last three years average government losses identified is well over P28.42 billion yearly.

Critics may argue that doubling any government agency’s budget is fiscally imprudent. However, this perspective fails to recognize the fundamental return on investment that a strengthened COA represents. The potential savings from preventing a single large-scale fraudulent scheme such as flood control misuse of funds or eliminating a persistently wasteful program would dwarf the proposed budget increase.

COA itself has consistently identified billions of pesos in unliquidated cash advances, disallowed expenditures, and unnecessary costs. Empowering COA to prevent these losses before they occur is one of the most fiscally responsible actions the government can take. It is an investment that pays for itself many times over by sealing the leaks in the national treasury.

The current total government budget of P4.6 trillion excluding financial expenditures, represents 18.7 percent of gross domestic product. The call to double the budget of COA is a call to fortify the foundations of public trust and fiscal responsibility in the Philippines. It is a strategic requirement to equip our constitutional auditors with the 21st-century tools, specialized personnel, and operational capacity they need to stay ahead of corruption and inefficiency.

By enabling an initiative-taking, technology-driven, and performance-oriented COA, we are not just spending money—we are safeguarding it. We are ensuring that the people’s taxes are used into genuine public services, infrastructure, and opportunities, thereby building a more accountable, efficient, and trustworthy government for all Filipinos.

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Manny Ilao is a former chief financial officer, draws on his experience in finance and familiarity with Philippine banking laws to share informed opinions on good governance.