A DOT watchdog audit found that the FAA needs to better verify that jurisdictions are appropriately using revenues from aviation fuel taxes.
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A Department of Transportation watchdog is recommending that the FAA improve its oversight of airport revenue use and ensure that several states that have not complied with aviation fuel tax revenue limitations take steps to meet the requirements. The DOT Office of Inspector General (OIG) said the agency has agreed to follow through on the recommendations.
In 2014, the FAA strengthened its policies of what is permitted and prohibited uses of revenues stemming from aviation fuel taxes. The OIG conducted an audit to ensure “effective stewardship of taxpayer dollars used to support the nation’s airports” and assessed whether the FAA’s oversight was sufficient to prevent or detect revenue diversion.
Since the FAA updated its revenue policy, the FAA has made progress in confirming whether states and local governments are complying with the requirements, the OIG found. But, it added, the FAA has not validated if jurisdictions are using processing from aviation fuel taxes in accordance with their approved plans. “Without testing the jurisdictions’ approved action plan for using aviation fuel taxes, FAA cannot ensure that revenue is used for aviation‑related purposes as required by federal regulations,” the OIG maintained.
Further, the FAA has yet to take enforcement actions against five jurisdictions that are not in compliance with revenue limitations, the OIG said, naming California, Kentucky, Nevada, Tennessee, and Guam. The OIG noted that the FAA officials indicated that “the lack of testing, validation, and enforcement action is due to congressional guidance that encouraged the agency to postpone enforcement.”
The OIG further stated: “By potentially diverting aviation fuel tax revenue from airports for non‑aviation-related purposes, these jurisdictions increase the risk of hindering the airports’ ability to remain self‑sufficient and improve their infrastructure.”
DOT Watchdog Calls for Better Airport Revenue Oversight
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A Department of Transportation watchdog is recommending that the FAA improve its oversight of airport revenue use and ensure that several states that have not complied with aviation fuel tax revenue limitations take steps to meet the requirements. The DOT Office of Inspector General (OIG) said the agency has agreed to follow through on the recommendations.
In 2014, the FAA strengthened its policies of what is permitted and prohibited uses of revenues stemming from aviation fuel taxes. The OIG conducted an audit to ensure “effective stewardship of taxpayer dollars used to support the nation’s airports” and assessed whether the FAA’s oversight was sufficient to prevent or detect revenue diversion.
Since the FAA updated its revenue policy, the FAA has made progress in confirming whether states and local governments are complying with the requirements, the OIG found. But, it added, the FAA has not validated if jurisdictions are using processing from aviation fuel taxes according to their approved plans. “Without testing the jurisdictions’ approved action plan for using aviation fuel taxes, FAA cannot ensure that revenue is used for aviation‑related purposes as required by federal regulations."
Further, the FAA has yet to take enforcement actions against five jurisdictions that are not in compliance with revenue limitations, the OIG said, naming California, Kentucky, Nevada, Tennessee, and Guam.