OpenAudit Philippines

Strengthening Governance Through AI-Processed Audit Data

OpenAudit is an academe-civil society initiative that transforms the Philippines' extensive collection of Commission on Audit (COA) reports—over 30,000 documents since 1998—into searchable, analyzable evidence for governance research and accountability advocacy. By processing these previously inaccessible audit reports using advanced computational methods, we reveal patterns of fiscal management across all Philippine Local Government Units through normalized disallowance ratios.

This platform calculates disallowance ratios—the percentage of questioned expenditures relative to total operating income—providing citizens, researchers, journalists, and policymakers with a clear, comparable metric for understanding how public funds are managed across LGUs of vastly different sizes and budgets.

The Disallowance Ratio: A Normalized Metric

Raw disallowance amounts fail to capture the true scale of fiscal irregularities. A ₱10 million disallowance represents vastly different levels of concern for a small municipality versus a highly urbanized city. Our solution normalizes these values to enable meaningful comparisons.

The Calculation:
Disallowance Ratio = (Total Disallowances ÷ Total Operating Income) × 100

This ratio expresses disallowances as a percentage of an LGU's total operating income, revealing the proportion of public resources subject to audit exceptions.

Data Sources and Methodology

We combine two authoritative government datasets:

Total Current Operating Income Definition:

As defined in the SRE reports, Total Current Operating Income represents the sum of all revenues available to an LGU for its operations during a fiscal year. This includes:

  • Tax revenues (real property tax, business taxes)
  • Non-tax revenues (regulatory fees, service income)
  • Internal Revenue Allotment (IRA) from national government
  • Other shares from national tax collections
  • Grants and donations

This comprehensive income measure provides the most accurate denominator for calculating disallowance ratios, as it represents the full fiscal capacity of each LGU.

For each LGU, we calculate the average operating income across available years (2016-2022) and compare it against total disallowances for the same period. This multi-year approach accounts for annual variations and provides a stable baseline for comparison across LGUs of vastly different sizes and fiscal capacities.

Complete Coverage: Our enhanced dataset now includes Total Operating Income for 1,176 municipalities and cities, enabling true ratio calculations for 822 LGUs with recorded disallowances—a significant improvement from previous estimates.

Understanding the Heat Map

The color gradient from light yellow to dark red immediately reveals which areas have concerning levels of disallowances relative to their fiscal capacity. This visual approach transforms thousands of audit reports into actionable intelligence.

Critical
≥ 5% of operating income
Very High
2-5% of operating income
High
1-2% of operating income
Elevated
0.5-1% of operating income
Moderate
0.1-0.5% of operating income
Low
< 0.1% of operating income
Clean/No Data
No disallowances or data unavailable

Each category represents a different level of fiscal concern. LGUs with ratios above 2% warrant particular attention, as this suggests systemic issues with financial management or compliance.

Transparency and Accountability

What Disallowances Reveal

Disallowances occur when government expenditures violate laws, rules, or regulations. Patterns of high disallowance ratios often indicate:

Empowering Citizens Through Data

OpenAudit democratizes access to public financial data by:

Informed Citizenship: By making this data accessible, we enable citizens to ask informed questions about public spending, hold officials accountable for fiscal management, and make evidence-based decisions during elections.

Coverage and Impact

87
Provinces Mapped
1,700+
Cities & Municipalities
7
Years of Data (2016-2022)

Our comprehensive dataset represents the most complete public accountability platform for the Philippines, covering virtually all LGUs with available audit data. The platform updates as new COA reports are released, ensuring citizens have access to the latest information.

Beyond Individual LGUs

The aggregated data reveals broader patterns that merit investigation:

Technical Implementation

Open Source and Transparent

OpenAudit is built on principles of transparency and reproducibility:

Data Quality and Limitations

We acknowledge several limitations in the current dataset:

Despite these limitations, the disallowance ratio provides a valuable starting point for understanding fiscal management patterns and identifying areas that warrant closer examination.

Research Initiative and Impact

OpenAudit builds on a foundation of academic research that recently earned the MIT Open Data Prize in recognition of its contribution to making public sector information usable for research and government accountability. This initiative represents a collaboration between academic institutions and civil society organizations working to strengthen fiscal transparency and accountability in the Philippines.

Transforming Audit Reports into Evidence

The Commission on Audit has published over 30,000 annual audit reports since 1998—possibly the longest and most comprehensive series of audit reports in the developing world. Despite their immense value for understanding governance, corruption, and state capacity, these reports have remained largely inaccessible to researchers and citizens due to their unstructured, text-heavy format.

OpenAudit addresses this gap by using advanced natural language processing and computational methods to extract, structure, and aggregate data from these reports. The disallowance ratio metric we present here represents just one dimension of this broader effort to transform audit documents into actionable evidence for improving governance.

Beyond Individual Metrics

While this visualization focuses on disallowance ratios, the broader OpenAudit initiative aims to capture multiple dimensions of fiscal governance, including:

By making this data accessible and analyzable, OpenAudit enables a new generation of research on corruption, accountability, and state capacity, while supporting reformers and advocates in translating this research into actionable initiatives for improving governance.