COA flags CHED’s P20 billion unliquidated education subsidy grants

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January 6, 2026 | 12:00am

MANILA, Philippines — The Commission on Audit (COA) has called out the Commission on Higher Education (CHED) over P20.171 billion in Tertiary Education Subsidy (TES) grants that remained unliquidated by various higher education institutions (HEIs) for several years.

“Audit disclosed that funds transferred to various HEIs aggregating P20,171,397,328.50 under TES for calendar year (CY) 2024 and prior years remained unliquidated as of Dec. 31, 2024,” the COA said in its 2024 annual audit report on CHED.

The audit breakdown showed that CHED regional office (RO) XII was responsible for the bulk of the unliquidated TES grants, amounting to P14.137 billion.

COA said the grants remained unliquidated despite having been released to HEIs as early as Academic Year 2019-2020 up to 2023-2024.

CHED RO V, meanwhile, was found responsible for P4.667 billion in TES grants, which the audit body said remained unliquidated by HEIs for more than four years.

Also flagged was CHED RO IV-B for P646.201 million in TES grants transferred to private HEIs, as well as state universities and colleges (SUCs) and local universities and colleges (LUCs), in 2024 and prior years.

CHED RO IX, meanwhile, transferred P438.053 million in TES grants to HEIs, which remained unliquidated for periods ranging from 91 days to more than two years.

ROs VIII and III were likewise cited for unliquidated TES grants amounting to P162.287 million and P120.576 million, respectively.

The TES Program was created pursuant to Republic Act 10931, or the Universal Access to Quality Tertiary Education Act, to provide scholarship assistance to indigent but deserving students. It is implemented under CHED’s Unified Student Financial Assistance System for Tertiary Education (UniFAST).

COA pointed out that under Section 12 of UniFAST Memorandum Circular 02, series of 2024, or the Revised Guidelines on the Implementation of the TES, liquidation documents must be submitted by private and public HEIs, including SUCs and LUCs, to the concerned CHED ROs within 90 calendar days from receipt of funds.

“The non-liquidation and delays in the submission of liquidation reports undermine financial accountability, as it becomes harder to ensure that funds are used appropriately and for their intended purpose,” COA said.

“Moreover, the non-liquidation of TES fund transfers to HEIs not only prevents the determination of the propriety of payments to student-grantees and the timely accounting and recording thereof, but also exposes the said funds to the risk of misuse, especially those that remained outstanding for a significant period,” it added.

COA said the concerned CHED ROs have agreed to its audit recommendation to strictly require HEIs to immediately submit liquidation reports, along with original copies of supporting documents, which will serve as the basis for evaluating the authenticity and propriety of their claims.

Meanwhile, in the same audit report, COA also flagged P647.4 million in fund transfers to HEIs for the implementation of CHED Merit Scholarship Programs (CMSP) for AY 2019-2020 to 2023-2024 that remained unliquidated as of end-2024.