COA reports persistent connectivity delays and accounting variances in DICT’s 2024 operations
The Commission on Audit (COA) has identified several operational and financial gaps in the Department of Information and Communications Technology (DICT) based on its 2024 annual audit report released on December 1, 2025. While noting improvements in the Philippines’ performance in international digital indices, COA highlighted shortfalls in the implementation of major connectivity programs, discrepancies in financial reporting, and delayed compliance with previous audit recommendations.
According to the report, the Philippines improved its ranking in the United Nations E-Government Development Index, climbing from 89th in 2022 to 73rd in 2024. The country also moved up to 53rd place in the Global Cybersecurity Index, placing it in Tier 2 status. The DICT likewise completed and submitted the National ICT Development Agenda for approval in late 2024, alongside progress in several other national digital planning efforts. COA acknowledged these developments as indicators of ongoing work to strengthen the country’s digital governance framework.
Despite these advancements, COA recorded notable gaps in the rollout of the DICT’s connectivity initiatives. Out of a target of 50,000 additional broadband-connected sites across 82 provinces, only 15,717 were completed, leaving a shortfall of 34,283 sites. The Free Wi-Fi for All Program also did not meet its target of 18,397 access points, with 15,717 deployed as of the reporting period. Public location coverage registered similar variances, reaching 8,258 out of the planned 10,496 sites.
Financial reporting was also an area of concern. COA issued a qualified audit opinion after identifying accounting errors and omissions amounting to ₱107.91 million. These discrepancies exceeded the materiality threshold and resulted in the misstatement of several balances, including assets, liabilities, and equity. The report stated that while the DICT’s overall financial position improved with total assets rising to ₱12.03 billion and its deficit reduced compared to 2023, the identified errors underscore the need for stronger accounting controls and more accurate financial documentation.
The audit also noted a significant variance in the DICT’s reporting on ICT and IT-BPM industry revenues. The agency projected USD 39.33 billion in sector revenue for 2024, while actual reported figures reached only USD 103 million. COA indicated that the gap may reflect ongoing challenges in data consolidation and reporting accuracy. The lack of updated employment data for key ICT subsectors, including Next Wave Cities and the broader IT-BPM workforce, was also cited as a concern.
COA further identified lapses in rental income management, including the non-accrual and non-collection of rental fees from lessees occupying DICT-managed properties. The agency recommended improvements in billing procedures, contract review, and monitoring practices to ensure timely collection and proper recording of rental income. The DICT committed to addressing these issues and enhancing its internal control mechanisms.
Another area highlighted in the report was the status of previous audit recommendations. Of the 464 recommendations issued for 2023, only 167 were fully implemented by the end of 2024, while 297 remained pending. COA noted that the number of unimplemented recommendations reflects the need for more consistent follow-through on audit findings to prevent repeated issues.
By the close of 2024, the DICT recorded a total of ₱814.85 million in unsettled audit suspensions, disallowances, and charges. This includes ₱16.02 million in Notices of Suspension, ₱790.01 million in Notices of Disallowance, and ₱8.83 million in Notices of Charge. COA stated that while some progress was made in resolving earlier notices, a substantial amount remains outstanding and requires continued attention.
The audit report concludes that while the DICT has achieved progress in improving the country’s digital standing and implementing strategic ICT plans, the agency faces persistent challenges in program execution, financial reporting, and compliance with audit recommendations. COA said these areas will require closer oversight and coordinated corrective measures moving forward.
