Republic of the Philippines COMMISSION ON AUDIT National Government Sector Cluster 7 — Public Works, Transport and Energy Commonwealth Avenue, Quezon City August 20, 2020 95. 2619 ‘Ady. CARMELO L. ARCILLA CAB 24NYE20 PH1=42:46 Civil Aeronauties Board Ext{p | Nacubuan Old MIA Road Pasay City Dear Director Arcilla: We are pleased to transmit the Annual Audit Report (AAR) on the Civil Aeronautics Board for the Calendar Year 2019 in compliance with Section 2, Article IX-D of the Philippine Constitution and Section 43 of Presidential Decree No. 1445, otherwise known as the Government Auditing Code of the Philippines. ‘The audit was conducted in accordance with International Standards of Supreme Audit Institutions (ISSAIs) to (a) verify the level of assurance that may be placed on management’s assertions on the financial statements; (b) determine the propriety of transactions as well as the extent of compliance with applicable Jaws, rules and regulations; (¢) recommend agency improvement opportunities; and (d) determine the extent of implementation of prior years’ audit recommendations. The attached Report consists of the Executive Summary, the Independent Auditor's Report, the audited Financial Statements, the Obscrvations and Recommendations, and the Status of Implementation of Prior Years” Audit Recommendations which were discussed with the concerned Management officials and staff. Pursuant to Section 99 of the General Provisions of the General Appropriations Act of FY 2019 (RA No. 11260), we request for the status report on the actions taken on the audit recommendations to be submitted within 60 days from receipt hereof, using the attached Agency Action Plan and Status of Implementation (AAPSI) as required under COA Memorandum No. 2014-002 dated March 18, 2014. ‘We express our appreciation for the valuable support and cooperation extended to the audit team by the officials and staff of the Agency. Very truly yours, Director II Officer-in-Charge