The Social Security System (SSS) said on Wednesday, July 13, that it has received an "unmodified" opinion from the Commission on Audit (COA) for 2021.
“In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the SSS as of December 31, 2021, and 2020, and its financial performance and its cash flows for the years then ended in accordance with Philippine Financial Reporting Standards (PFRSs),” COA’s report stated.
The unmodified opinion is issued when the auditor concludes that the financial statements are prepared in accordance with the applicable financial reporting framework.
SSS also received the same rating in 2020.
“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 G. Regino said.
Under SSS' financial statements, the income for 2021 increased by 7.4 percent to P276.33 billion from P257.24 billion in 2020.
Its benefit payments also grew by 14.9 percent to P223.98 billion in 2021 from P194.87 billion in 2020.
SSS has been using the PFRS 4 since the fiscal year 2020 to present its financial statements where Social Benefit Liabilities (SBLs) need to be included in the balance sheets.
It has recorded an P872.36 billion net change in policy reserves under its expenses representing SBLs, including a Margin for Adverse Deviation that serves as a buffer for conservatism.
"These, however, are not actual cash that went out of the SSS Fund in 2021 but estimates of the required reserves to fund future benefit claims," SSS clarified.
The agency said that it has a net profit of P28.45 billion for 2021 and its fund life is projected to last until 2054.
“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 added.