COA flags DOST-SEI over scholarship fund delays, P1.75B still unreported
MANILA, Philippines — Up to a year-long wait for vital funding has plagued graduate science scholars due to delays at the Department of Science and Technology-Science Education Institute (DOST-SEI), with state auditors finding P1.748 billion in scholarship funds still unreported.
According to the 2023 Commission on Audit (COA) report, financial assistance to scholars of the Accelerated Science and Technology Human Resource Development Program (ASTHRDP) was delayed by one to twelve months.
State auditors believe that the crux of the fund release delays lies in the lack of documented disbursements to scholars, pointing to the failure to establish a mechanism for effectively implementing the scholarship program.
“The SEI did not formulate policy and mechanism to ensure the efficient implementation of the ASTHRDP scholarship program, thereby the timely submission of reports by the member universities of the consortium was not observed, causing delay in the release of financial assistance to beneficiaries of the scholarship program,” COA said.
This scholarship program aims to produce highly skilled science and technology researchers to boost the country's global competitiveness and innovation in the field.
Scholars' fund receipt uncertain
While COA acknowledged that the scholarship funds for the program's 1,884 scholars from 2021 to 2023 were largely utilized, it also flagged a strikingly low liquidation rate for transferred funds.
In 2021, the entire P1.728 billion allocation was utilized, and in 2022, 97.75% of the P1.390 billion allocation was spent. By 2023, the utilization rate dropped to 79.71% — or nearly four-fifths of the P1.306 billion allocation — though this was still deemed high.
However, COA found a significant discrepancy in 2023. Of the P642.109 million released funds to universities, responsible for disbursing funds to scholars, only 16.40% was liquidated.
Meanwhile, the liquidation rate for previous years was 44.41% of the P2.179 billion in transferred funds.
This leaves the scholarship program with P1.748 billion in transferred funds, considered unspent or not yet received by scholars.
This high utilization, coupled with low liquidation, indicates that a significant portion of the released funds lacked proper documentation, raising concerns about whether the funds reached the scholars' pockets.
COA clarified the key distinction: transferring funds to universities does not count as disbursement.
Citing National Budget Circular 590, auditors explained that disbursement occurs only when payment is made for rendered, inspected, and accepted goods or services.
What ASTHRDP scholars are entitled to. Scholars pursuing Master's or Doctoral degrees in science and technology would receive the following support:
- Full coverage of tuition fees each semester
- A monthly stipend of P30,000 (Master's) or P38,000 (Doctorate)
- An allowance of P10,000 for learning materials and/or connectivity per semester
- An allowance for thesis or dissertation expenses: P60,000 (Master's) or P100,000 (Doctorate)
- Reimbursement for transportation costs incurred during the academic year
- A premium insurance coverage
However, to be eligible for these benefits, scholars must maintain full-time enrollment in their graduate program. They are also prohibited from being employed or practicing their profession.
The funds allocated for the DOST-SEI program are intended to support students in financial need, helping them pursue their education and contribute to the country’s development.
Due to COA's finding of low disbursement, the unexpended or undisbursed funds are expected to be returned to the National Treasury after a specified period.
No funds, no choice but to work
The responsibility for disbursing and liquidating scholarship funds largely rests with member universities, as they are tasked with verifying student eligibility and ensuring compliance with the scholarship agreement.
COA pointed out that the issue stems from the lack of standardized guidelines for fund disbursement. Some universities release funds monthly, while others do so on a quarterly or semestral basis.
“Having no policy or guidelines on the frequency of the release of financial assistance to scholars affects the efficient implementation of the scholarship program,” state auditors said.
Due to the flexibility universities have in releasing financial assistance, scholars have reportedly been forced to take part-time jobs while pursuing postgraduate studies, which breaches their scholarship agreements.
“It is important to ensure the timely release of financial assistance to scholars to allow them to focus on their studies and comply with the terms of the scholarship agreement, as delays forced some scholars to seek part-time jobs/employment to sustain their daily needs,” COA said.
The report also noted complaints from scholars about the SEI or coordinators failing to inform them of issues related to their scholarship status and allowances, and, at times, not responding to email inquiries.
How DOST-SEI plans to address these issues
The SEI explained that they release funds to universities only upon receiving status or financial reports on the scholarship program. However, since some universities fail to submit these reports on time, the agency said it is forced to withhold funds, resulting in delayed payments.
A solution the agency came up with is to centralize fund distribution through Land Bank of the Philippines’ weAccess platform, directly releasing financial aid to scholars instead of transferring funds to universities.
It will also hold a "reorientation meeting" with staff involved in the graduate scholarship program to refresh and update the requirements for issuing scholarship funds, along with other relevant policies.
The agency agreed to comply with COA’s recommendations, which include formulating a policy and mechanism for the timely release of funds by universities and effective monitoring of report submissions.
The SEI also committed to centralizing fund distribution, regularly updating scholars on delays or concerns, and providing clear instructions on how scholars can seek help with scholarship issues.
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