The Social Security System (SSS) received an “unmodified” opinion from the Commission on Audit (COA) for its financial statements for calendar year 2020, the highest audit rating that may be given to government agencies by state auditors.
“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, 2020 and 2019, with emphasis on the recognition of Insurance Contract Liability in the SSS’ financial statements in compliance with the policy directive of the National Government requiring government insurance institutions to adopt the PFRS [Philippine Financial Reporting Standard] 4 – Insurance Contracts effective CY 2020,” the Auditor's Opinion in the Executive Summary of COA's Annual Audit Report on SSS stated.
An unmodified opinion means that the auditor was satisfied with the submitted financial statements as these have met the requirements demanded by regulations and were prepared in accordance with accounting principles, criteria, and standards.
SSS President and CEO Aurora C. Ignacio gratefully accepted the COA audit opinion on the 2020 financial report. She said, despite the COVID-19 pandemic, the SSS continued to pursue its mandate of providing meaningful social security protection to its members and their beneficiaries through a culture of excellence in management grounded upon sound and efficient policies and best practices.
“For CY 2020, SSS' total cash inflow from the collection of members’ contribution and proceeds from investments and other income reached P231.51 billion, which surpassed its total cash outflow of P205.52 billion from payments to members and beneficiaries and payments for operations, resulting in a net cash generated from operating activities of P25.99 billion,” Ignacio said.
SSS assets in 2020, on the other hand, grew by P38.61 billion or 6.4 percent to P639.99 billion from P601.38 billion in 2019.
With the change in its financial reporting standard starting with its 2020 financial statements, SSS' Social Benefit Liabilities (SBLs) are now presented in its liabilities. In previous years, SSS' SBLs were presented in the Notes, which forms an integral part of its financial statements.
The SSS also reported that based on its 2019 Actuarial Valuation, its fund life is projected to last until 2054.