The Commission on Audit (COA) is seeking an estimated ₱2.2 billion in additional funding and more personnel to revive its pre-audit system for government projects, as lawmakers push for stronger safeguards against alleged irregularities, including the discovery of purported “ghost” infrastructure projects.
COA Chairperson Gamaliel Cordoba said during the House Committee on Appropriations’ deliberations on the agency’s proposed 2027 budget that the commission currently does not have enough personnel to fully conduct pre-audits. Instead, auditors have increasingly relied on fraud and post-audit procedures after projects have already been implemented.
“We would need additional 146 pre-audit teams,” Cordoba told lawmakers, estimating that restoring the system would cost around ₱2.2 billion.
Why COA wants pre-audit back
Pre-audit is designed to examine supporting documents and the legality and propriety of a transaction before government funds are released or a transaction proceeds. It is different from post-audit, which examines transactions after they have taken place.
The nationwide pre-audit of government transactions was largely lifted under COA Circular No. 2011-002, with the policy intended at the time to speed up government transactions and reduce delays in project implementation. Transactions were instead generally subjected to post-audit, except those covered by existing laws.
Now, amid renewed concerns over government infrastructure spending, lawmakers are questioning whether stronger checks should take place before public money is fully disbursed.
Baguio City Rep. Mauricio Domogan said that combining pre-audit with geotagging or mapping technology could help verify whether a government-funded project actually exists before payment is completed.
“If we are truly serious about tackling corruption,” Domogan argued, such measures could help prevent situations in which a supposed project is only discovered to be nonexistent after it has already been fully paid.
COA says it needs 146 additional teams
Cordoba explained that the shortage of auditors has prevented COA from restoring a comprehensive pre-audit system.
He said the commission had already submitted a proposal for the additional resources last year and intended to resubmit it during the current budget cycle.
COA Commissioner Douglas Michael Mallillin also said the agency is coordinating with the Department of Public Works and Highways (DPWH) on geotagging and other requirements.
Rather than immediately imposing a system that could slow down legitimate government projects, COA is also exploring ways to conduct continuous auditing without necessarily returning to a traditional pre-audit arrangement.
COA also faces funding and technology concerns
The proposed pre-audit funding comes as COA faces broader budget pressures.
During the same 2027 budget discussions, lawmakers raised concerns after the Department of Budget and Management recommended zero capital outlay for COA in the 2027 National Expenditure Program. COA had initially sought about ₱1.18 billion for capital outlay, including technology upgrades, infrastructure improvements and other requirements.
COA has also said that additional capital funding would help it move away from heavily paper-based auditing toward more analytical and technology-driven methods.
The commission has further appealed for updated rules allowing greater use of digital document storage, saying it is running out of physical storage space because government records are required to be retained for long periods.
Why the issue matters
The renewed discussion comes against the backdrop of continuing investigations into alleged irregularities involving government infrastructure projects.
COA previously reported irregularities in several DPWH flood-control projects in Bulacan, including discrepancies between reported project accomplishments and actual site conditions, possible double-counting and missing documentation. Those findings became part of broader scrutiny of flood-control spending.
The push for stronger auditing does not, by itself, establish that a particular government project is fraudulent or that an official committed wrongdoing. Rather, COA’s proposed pre-audit system is intended to strengthen preventive controls so potential problems can be identified earlier.
A House resolution filed by Domogan in September 2025 has also urged the inclusion of a mandatory pre-audit requirement for government-funded programs, activities and projects, with the stated goal of preventing corruption and strengthening transparency and accountability. The resolution remains pending with the House Committee on Public Accounts.
For COA, the central question now is whether the government will provide enough money, manpower and technology to strengthen oversight before billions in public funds are released—not only after problems emerge.
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