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Office of Inspector General, US Department of Transportation: Audit Reports

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Oversight of Airport Revenue

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To determine whether FAA’s oversight methods prevent or detect diversions of airport revenue, we sampled five airport sponsors. We found approximately $40.9 million in potential revenue diversions that were not detected by FAA’s primary oversight methods. Independent auditors of the airport sponsors were not sufficiently aware of relevant OMB guidance on auditing airport revenue, and airport sponsors were not adhering to FAA requirements for airport financial reports. The American Institute of Certified Public Accountants and FAA have since taken steps to better inform independent auditors about requirements for reviewing airport revenue. We in addition recommended that FAA: (1) seek recoveries of the potential revenue diversions; and (2) determine if practices have been corrected that may have led to diversions, and if not, recover any additional funds diverted since completion of our work.