ACTION: FAA Fulfilled Most ARRA Requirements in Awarding Airport Grants Federal Aviation Administration Report Number AV-2011-053
From: JeffreyB.Guzzetti Assistant Inspector General
for Aviation and Special Program Audits
February 17, 2011
JA-10
Memorandum
On February 17, 2009, the President signed into law the American Recovery and Reinvestment Act (ARRA),1 designating $1.1 billion for the Federal Aviation Administration (FAA) to invest in Airport Improvement Program (AIP) projects. These funds were intended for airport projects that could achieve several key goals, including investing in transportation infrastructure to provide long-term economic benefits, create jobs, and promote economic recovery. ARRA established tight timeframes for distributing and expending funds and emphasized preference for projects that could be completed in 2 years.
In August 2009, we issued an advisory to the Office of the Secretary outlining our concerns with FAA’s process for awarding ARRA grants.2 We questioned the economic merit of some lower scoring projects and highlighted several ARRA recipients with grant management problems identified in prior single audit reports.3 Based on these preliminary findings, we initiated this audit to determine the extent to which FAA’s process for awarding ARRA grants complied with ARRA requirements and other associated guidance.4 We conducted this audit from September 2009 through December 2010 in accordance with government
American Recovery and Reinvestment Act of 2009, Pub. L. No. 111–5 (2009). OIG Advisory Number AA-2009-003, “FAA’s Process for Awarding ARRA Airport Improvement Program Grants,” August 6, 2009. OIG reports are available on our website: www.oig.dot.gov. Single audit is a mechanism relied upon by Executive Branch agencies to oversee financial compliance and grant 4 assurances. For the purpose of this report, we define “requirements” as a collective term to refer to ARRA statutory requirements, Presidential direction, and Office of Management and Budget (OMB) and FAA guidance related to ARRA implementation.
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