Story ID: 
IG Criticizes FAA's Airport Improvement Funding
By: Mark Huber
Caption: FAA did not follow proper procedures when allocating $106 million in airport improvement funding
Word Count: 212
The FAA’s Inspector General (IG) has criticized how the agency administered $525 million in airport development expenses under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. In a report published on February 21, the IG released the findings of its audit of funds distributed through the FAA’s Airport Improvement Program showing that the FAA did not review grant applications more than 20 percent of the time.
According to the IG, the FAA also did not always require sponsors to submit timely annual financial reports or effectively communicate improved oversight leading to oversight gaps, making it difficult to gauge whether the funds were spent responsibly. More than 55 percent of contracts reviewed revealed that sponsors did not meet requirements for completing cost or price analyses or that Buy American waivers met all requirements before approval. Therefore, the agency could not be certain that project costs were reasonable or met the Buy American requirements.
The IG estimated the deficiencies led to $106 million in funds that could have been better spent and recommended that the FAA improve its grant and contract oversight. The FAA agreed with the findings and said it would implement measures needed to meet the IG’s recommendations no later than Jan. 31, 2025.