OIG reports the FAA made improper payments in the AIP Program

Daniel Baxter with AvStop.com reports that the U.S. Department of Transportation Office of Inspector General (OIG) issued their report on improper payments in the Federal Aviation Administration’s (FAA) Airport Improvement Program (AIP). 
The OIG reported that in fiscal year 2008, the FAA provided over $4 billion dollars to more than 1,500 grantees in the Airport Improvement Program (AIP) for airports considered significant to national air transportation. 
The OIG has determined that AIP is susceptible to improper payments. Accordingly, their audit objectives were to determine the extent to which improper payments were made during the period reviewed and assess the FAA’s oversight approach to preventing and detecting improper payments. 
It was found that the FAA’s risk-based approach to AIP grant oversight is inadequate and does not effectively prevent or detect improper payments. AIP payments totaling over $13 million (more than 5 percent) made to 17 of the 26 grantees we reviewed were improper.
The OIG has made seven recommendations to improve the FAA’s oversight of its AIP payments. The FAA has fully concurred with four recommendations and provided acceptable actions and timeframes for these four. The OIG has requested the FAA re-evaluate its positions on the remaining three recommendations, and provide a written response within 30 days of the issuance of this report.


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