Estimates About 12.5 Percent Of AIP Payments In 2015 And 2016 Were Non-Compliant

In 2012, the Department of Transportation (DOT) implemented electronic invoicing (eInvoicing) for grant invoice processing across the Department. While DOT developed standardized eInvoicing training at the department level, individual Operating Administrations developed their own eInvoicing guidance and processes for grantees submitting payment requests.

In a recent audit, the DOT Office of Inspector General (OIG) assessed the FAA's policies, procedures, and oversight for eInvoicing in the Airport Improvement Program (AIP). The AIP is one of DOT’s largest grant programs, providing approximately $3 billion a year to sponsors (grantees) including commercial and general aviation airports to support projects that improve safety and efficiency. We tested AIP payments to grantees to determine if they met FAA’s eInvoicing requirements. Our objectives were to (1) evaluate FAA’s implementation of eInvoicing in AIP and (2) assess whether AIP grant payments were supported and valid.

The guidance and internal control procedures which FAA developed for eInvoicing were not always followed. The FAA developed a risk-based approach to oversight of AIP grantees and their payments, yet FAA staff responsible for oversight did not always adhere to the control procedures. Additionally, AIP grantees requested and were paid millions of dollars without complying with FAA’s eInvoicing documentation requirements to support payment requests.

Using statistical sampling, the OIG estimates that about $751 million (12.5 percent) of the $6 billion in AIP payments during fiscal years 2015 and 2016 were non-compliant with FAA eInvoicing supporting documentation requirements. Finally, the OIG found that AIP grant payments were not always fully supported and valid. Questioned costs totaling about $1 million were identified because grantees did not always maintain complete and valid support, funds were paid in excess of the allowable Federal share, and a grant agreement was not amended when applicable.

Of our eight recommendations to improve implementation of eInvoicing and communicate policies to grantees and FAA Regional and Airport District Office staff, FAA concurred with seven and partially concurred with one.

(Source: DOT OIG)

FMI: Report