The Commission on Higher Education (CHED) is facing renewed scrutiny after the Commission on Audit (COA) revealed that P647 million worth of scholarship funds under the CHED Merit Scholarship Programs (CMSPs) remained unliquidated as of the end of 2024.
According to CHED’s 2024 Annual Audit Report, the unliquidated amount involves disbursements made by CHED Regional Office 4B (Mimaropa) and CHED Regional Office 12 (Soccsksargen). These funds were transferred to various higher education institutions (HEIs) but have not been properly accounted for through required liquidation reports and supporting documents.
COA stated:
“Funds transferred to various higher education institutions (HEIs) of CHEDROs 4B and 12, aggregating P647,407,500 under the CMSPs for 2024 and prior years, remained unliquidated as of December 31, 2024.”
The unliquidated funds span multiple academic years, covering 2019–2020 up to 2023–2024, raising concerns over accountability and potential misuse of public funds.
Breakdown of Unliquidated Funds
Of the total amount, P12.05 million was attributed to CHED Region 4B, which covers Marinduque, Occidental Mindoro, Oriental Mindoro, Palawan, and Romblon. Of this, P7.46 million went to private HEIs, while P4.6 million was allocated to state and local universities and colleges (SUCs/LUCs).
The much larger share, P635.3 million, was recorded under CHED Region 12, which includes Cotabato, South Cotabato, Sarangani, and Sultan Kudarat.
COA noted that the lack of liquidation makes it difficult to determine whether the scholarship funds were used properly and increases the risk of misuse, especially when the funds remain unaccounted for over long periods.
CHED’s Response and Challenges
CHED Region 4B said it has been reminding recipient institutions to submit liquidation documents and plans to send formal demand letters. Regional coordinators are also assisting HEIs in completing and submitting the required reports.
CHED Region 12 admitted that limited manpower and the volume of transactions led them to prioritize releasing scholarship grants over monitoring liquidation, citing the urgent needs of student grantees.
Despite the setbacks, COA said CHED has committed to intensifying efforts to resolve the issue and ensure compliance.
COA’s Key Recommendations
CHED agreed to implement the following actions:
- Issue demand letters requiring immediate liquidation and refund of any unreleased subsidy
- Require HEIs to submit liquidation reports with original supporting documents
- Strengthen monitoring mechanisms through regional coordinators
- Withhold future fund releases until proper liquidation is completed
The findings highlight the growing need for stricter financial oversight to protect government scholarship funds and ensure they benefit the students they are intended to serve.