SSS scores ‘unmodified’ opinion from COA for 2021

The Social Security System (SSS) has scored an “unmodified” opinion from the Commission on Audit (COA) for the second straight year in 2021, based on the annual report of state auditors.

According to the 2021 audit report of COA, the SSS utilized P234.444 billion out of its P240.837-billion budget for the calendar year 2021.

“We rendered an unmodified opinion on the fairness of presentation of the financial statements of SSS as at and for the years ended December 31, 2021 and 2020,” the COA report read.

The SSS reported a 7.4% growth in its income for 2021, up to P276.33 billion from P257.24 billion in the previous year. Its benefits payments rose 14.9% to P223.98 billion, and operating expenses stood at P10.19 billion.

The agency is mandated to provide social justice and provide protection to members and their families against the hazards of disability, sickness, maternity, old age, death, and other contingencies resulting in loss of income or financial burden.

“We are honored to receive back-to-back unmodified opinions from the COA. This serves as a testament to our continuous pursuit of good governance and transparent and prudent management of the SSS Fund,” SSS president and chief executive officer Michael Regino said in an emailed statement.

The agency said it started to use the Philippine Financial Reporting Standards (PFRS) 4 in 2020, where Social Benefit Liabilities (SBLs) are required to be presented in the balance sheets.

The SSS in May clarified that the P843.9-billion net loss it recorded in 2021 was due mainly to the change in accounting standards during the period, in line with the shift to the PFRS 4.

It recorded an P872.36-billion net change in policy reserves under its expenses representing securities-based lending (SBLs), including a Margin for Adverse Deviation (MfAD).

Excluding policy reserves, the SSS said it recognized a net profit of P28.45 billion for 2021, and its fund life is projected to last until 2054 based on its last published actuarial valuation.

“We remain dedicated to improving the lives of our members and their beneficiaries by providing them with meaningful social security protection through a culture of excellence in financial and operational management,” Regino said.—AOL, GMA News