This study evaluated the effectiveness of Flexible Work Arrangements (FWAs) at the Commission on Audit (COA) as a basis for developing a work performance policy. Specifically, it analyzed respondents’ socio-demographic profiles, examined the perceived effectiveness of FWAs and the challenges associated with them based on the assessments of COA employees and clienteles, and formulated a proposed work performance policy. A total of 111 respondents participated, comprising 42 COA employees and 69 clienteles, selected through total enumeration and random sampling. A quantitative research design was employed, utilizing a t-test for independent samples and analyzed using SPSS. Findings revealed that FWAs were generally perceived as very effective in improving employee efficiency, clientele satisfaction, quality of work output, and policy development. Challenges associated with FWAs were rated as slightly serious. Statistical analysis indicated a significant difference in the assessments of employees and clienteles regarding both the effectiveness of FWAs and the severity of the challenges encountered, leading to the rejection of the null hypothesis. This suggests that differences in job roles, work environments, or experiences influence their perspectives. The findings highlight the need for continuous evaluation, structured policy implementation, and capacity-building initiatives or training programs to maximize the benefits of FWAs. However, as the study is limited to COA employees and clienteles in the Province of Aklan, future research should explore broader institutional and sectoral perspectives. Ultimately, these insights contribute to policy development that balances productivity, efficiency, and work-life integration.