The agency paid over P213 million in incentives without the required approval from the Department of Budget and Management and the President. The basis for calculating the incentive limit was also incorrect.

Why It Matters

Recommended Actions

• Submit proof and justification that the grant of various monetary PRAISE incentives is based on the results of a superior accomplishments and other personal efforts by individuals or groups that have resulted in monetary savings and that it did not exceed 20 per cent of the monetary savings generated therefrom;

Original Audit Finding Excerpt

"Page 83 of 90 AGENCY ACTION PLAN and STATUS OF IMPLEMENTATION AS AT AUGUST 31, 2025 RESULTS OF COA VALIDATION Ref. (No. in the AAR) Audit Observations Audit Recommendations Agency Action Plan Status of Implementation Reason for Partial/Delay/ Non- Implementation, if applicable Action Taken/Action to be Taken Date of Follow-up Status of Implementation Actual Implementation Date Remarks Action Plan Person/ Department Responsible Target Implementation Date From To From To No. 8, page 118 Inadequacy of systematic reporting, coordination and evaluation of the unapplied collections for 484 project accounts amounting to P579.355 million lodged in Other Deferred Credits - Deposit Liabilities, a temporary account, from CYs 1994 to 2021 resulted in the overstatement of the Other Deferred Credits-Deposit Liabilities by P579.345 million and overstatement of Receivables and understatement of Revenue accounts by the s"

Source Document