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The Commission on Audit (COA) clarified that an acknowledgment receipt alone cannot justify reward payments made from confidential funds, stressing that agencies must provide evidence showing that information from informants resulted in a successful intelligence or confidential operation.
During the Senate Committee on Finance hearing on COA’s 2027 budget, COA Commissioner Douglas Mallillin said payment for information is different from a reward, which requires approval from the agency head and supporting documents establishing that the information produced a positive outcome.
“Pag sinabi po natin reward, may kaakibat na success. At mas mahigpit po ang pag-audit ng reward (When we say reward, it comes with success. And the auditing of rewards is stricter),”
Mallillin said agencies that submit only acknowledgment receipts for reward payments risk having the expenses disallowed.
“So, kung acknowledgement receipt lang po ang binigay natin for reward, it will not comply po with this. So, ang mangyayari po diyan, disallowed po kaagad dahil hindi po napatunayan yung success (So, if only an acknowledgment receipt is submitted for a reward, it will not comply with this. It will be immediately disallowed because the success was not proven),”
He said supporting evidence may include police affidavits, detention records, photographs and other documents linking the informant’s information to a concrete result.
Mallillin clarified that success does not necessarily mean an arrest or conviction, but agencies must document a positive outcome directly connected to an authorized confidential activity.
COA is also reviewing the 2015 Joint Circular governing confidential and intelligence funds, including requirements on supporting documents, the use of aliases or codenames, protection of informants, storage of records, credit notices and notices of disallowance.
“The present joint memorandum circular does not exactly prohibit nor does it really straightforwardly allow the use of aliases,” Mallillin said.
He said a possible mechanism could allow an authorized person to know the real identities of informants operating under aliases, while ensuring that access by COA remains controlled and subject to appropriate clearances.
Senator Joel Villanueva called for a review of the existing rules.
“I strongly believe that it should be revisited,” he said, with Mallillin agreeing.
The 2015 joint circular was issued by COA, the Department of Budget and Management, Department of National Defense, Department of the Interior and Local Government, and the Governance Commission for Government-Owned or Controlled Corporations.
For 2027, COA proposed a total budget of ₱16.047 billion, about ₱1.252 billion lower than its original ₱17.299 billion allocation. Of the proposed amount, ₱14.774 billion is for agency-specific requirements, while ₱1.272 billion is allocated for retirement and life insurance benefits.
The Senate Committee on Finance approved COA’s proposed 2027 budget at the committee level.