THE Civil Aviation Authority of the Philippines (CAAP) failed to reconcile P3.779 billion in discrepancies between its property records and physical inventory, while leaving four parcels of land and 12 buildings and facilities used in its operations unrecorded, the Commission on Audit (CoA) said.
In its 2025 annual audit report, CoA flagged CAAP’s Property and Equipment account, which had a carrying amount of P69.549 billion, after finding a P3.779-billion discrepancy between its general ledger and physical inventory records. Auditors also found a separate P89.512-million variance between the general and subsidiary ledgers.
The agency also failed to recognize four parcels of land, spanning 526,770.61 square meters in Pasay City and Taguig City, as well as 12 buildings and facilities in Pasay City and Tagaytay City. It likewise retained P41.919 million worth of unserviceable or demolished properties in its books.
CoA directed CAAP’s Inventory and Reconciliation Committee, together with its Supply and Accounting divisions, to address the discrepancies and make the necessary adjustments.
The committee must identify and resolve the remaining causes of variances between the books of account and balances in its Report on the Physical Count of Property, Plant, and Equipment, and to make the necessary adjustments, the state auditor said.
CoA also flagged a P1.479-billion discrepancy between the general and subsidiary ledgers covering CAAP’s P3.852-billion Accounts Receivable and P290.596-million Operating Lease Receivable accounts.
Past due receivables reached P4.132 billion, including P1.723 billion in dormant accounts and an uncollected P1.323-billion claim against an airline operator.
“The existence of substantial past due receivable accounts totaling P4.132 billion, including dormant accounts amounting to P1.723 billion reduced the funds available for CAAP’s operations,” CoA said.
The agency also understated its tax liabilities to the Bureau of Internal Revenue by at least P33.764 million after failing to withhold 25% final taxes amounting to P22.814 million and 12% value-added tax totaling P10.950 million on payments to non-resident foreign service providers.
CoA likewise found a P76.599-million unreconciled variance in CAAP’s P180.214-million inventory account and the non-recognition of impairment losses required under Philippine Accounting Standard 2.
Meanwhile, CoA also found P166.437 million in unused funds from completed and terminated projects still unremitted to the Department of Transportation as of Dec. 31, 2025.
It noted P31.373 million in audit suspensions, P871.672 million in disallowances and P30,913 in audit charges. Of the 169 audit recommendations from previous years, 81 remained unimplemented by CAAP management.
These findings prompted CoA to render a qualified opinion on CAAP’s financial statements for 2025 and 2024, saying it could not ascertain whether the agency’s accounts faithfully represented its financial position under applicable accounting standards. — Pexcel John Bacon