Aeronautics Board has P1M uncollected charges from firms

The Civil Aeronautics Board has over P1 million in uncollected fees from airline and freight service companies.

In its 2005 report, the Commission on Audit found out that CAB has accounts receivable amounting to P1,411,300 from airline and freight service companies operating in the country's various airports, including the Mactan Cebu International Airport.

According to the COA report, as of December 31, 2005, the Air Carrier Accounts System and Field Audit Division (ACASFAD) reported that there were uncollected fees and charges costing P1.4 million.

These uncollected fees include P660,900 from International Scheduled Airlines, P178,400 from Domestic Non-Scheduled Operators and P572,000.00 from Airfreight Forwarders.

A review of the data provided by the ACASFAD showed that some of these fees and charges dated back to previous years, as in the case of International Scheduled Airlines.

In 2005, penalties costing P4,500 and P48,00 under the Annual Review Fee were uncollected. In 2004, penalties amounting to P467,000 and P141,400.00 under the Annual Review Fee also remained uncollected.

COA said that these uncollected fees and charges were income of CAB that are not yet recognized in its books of accounts because of its usage of the Cash Basis Accounting System, under which income is only recognized when payments are received.

But CAB informed COA that the Accounts Receivable was reduced significantly when companies made payments after December 31, 2005.

COA also found out that CAB has no written policies and procedures on billing and collection, which is contrary to the Government Auditing Code of the Philippines.

Being a regulatory and licensing agency of domestic and international airlines, COA also said CAB should have installed a sound internal control system to ensure efficient and effective collection of revenues.

CAB also has no Internal Audit Service to monitor and implement the sound internal control system. - Ferliza C. Contratista