Presentation on theme: "Stewardship and Oversight of the Airport Improvement Program (AIP)"— Presentation transcript:
1 Stewardship and Oversight of the Airport Improvement Program (AIP) Federal AviationAdministrationStewardship and Oversight of the Airport Improvement Program (AIP)Prepared for: Biennial Fraud Awareness ConferenceArlington, Virginia Presented by: Elliott BlackDeputy Director Office of Airport Planning and Programming Federal Aviation AdministrationDate: Wednesday, July 28, 2010
2 Track Title“Implication of Fraud on theSafety of Infrastructure Projects”
3 OverviewOverview of the FAA Office of AirportsFocus on the Airport Improvement Program (AIP)Relationship between AIP and other FAA programs and functionsHow the FAA leverages limited Federal resources to protect the traveling publicBest practices in stewardship and oversight
4 FAA Office of Airports—key program areas Planning supportEnvironmental reviewFinancial assistance programsPlanning, engineering and construction standardsAirport certification program (CFR Part 139)Compliance with grant assurances(work from slide)
5 National planning standards and guidance Planning SupportNational planning standards and guidanceNational Plan of Integrated Airport Systems (NPIAS)Ensure sponsors are eligibleIdentify eligible and justified projectsWork with state aeronautical agencies on state system plansSupport metropolitan system plansWork with individual airport sponsors to review activity forecasts, draft airport master plans and Airport Layout Plans (ALPs)(work from slide)
6 Environmental ReviewReview proposed development (regardless of funding source) in accordance with the National Environmental Policy Act (NEPA)Ensure proper coordination including public consultation and interagency reviewEvaluate ability of proposed actions to secure other environmental permits(work from slide)
7 Financial Assistance Programs Airport Improvement Program (AIP)Passenger Facility Charge (PFC) program(work from slide)
9 Airport Improvement Program (AIP) Ticket taxes flow into the Airport & Airway Trust Fund.Congress appropriates funds for the FAA to award grants to eligible airport sponsors.Requires local match (varies based on airport size).Strict eligibility rules based on different AIP funding categories, facility types, airport sizes and functions and other criteria. (continued)
10 Airport Improvement Program (AIP) (cont’d) Strict implementation rules.Federal procurement regulations.Grant assurances and obligations.Use of electronic clearinghouse to maximize electronic funds transfer.
11 Structure of Airport Improvement Program (AIP) FY-2009 ($3 Structure of Airport Improvement Program (AIP) FY-2009 ($3.4 billion in new grants) (excludes ARRA funds)Capacity-Safety-Security-Noise (CSSN)7.9%Noise6.1%Reliever0.1%MAP0.7%Remaining Discretionary10.6%Primary Entitlements25.1%State Apportionment7.9%Protected Entitlements18.4%Cargo Entitlements3.5%Nonprimary Entitlements12.1%Alaska Supplemental0.6%Small Airport Fund14.9%The point of including this slide is to highlight the fact that there are different eligibility rules for different categories within AIP – and that often a single grant contains more than one category of funds.Data Source: Internal FAA data (pending publication of FY-2009 Annual Report to Congress).
12 Program Structure and Administration of the AIP More than 2,000 annual grants awarded nationwide.Broad variety of grants and grant recipients:Size and type of airport organizations.Variety of relationships with state and local governments.Range of capabilities and resources of the state aeronautical agencies.Variability of internal staff resources and expertise.Variety of project sizes, types and implementation timeframes.Variability of consultant support.Tremendous geographic distribution.Different state laws affecting capital planning and grant administration.
13 Complex system of diverse airports Airport TypeNumber of Airports% of U.S. EnplanementsExamplesLarge Hub (>1.0% of all enplanements)2968.0%JFK, Chicago O’Hare, LAX, DFW, Atlanta, etc.Medium Hub ( % of all enplanements)3720.0%Anchorage, Kansas City, Cleveland, Reno, etc.Small Hub ( % of all enplanements)728.0%Richmond, Des Moines, Akron-Canton, Fresno, etc.Non-Hub (>10,000 enplanements, but less than 0.05% of all enplanements)2443.0%Nantucket, Charleston, Duluth, Phoenix Mesa, etc.Non-Primary Commercial Service (>2,500 enplanements and scheduled service)1210.1%Cold Bay (AK), Saranac Lake (NY), Cedar City (UT)Relievers (>100 based aircraft or 25,000 annual itinerant operations—other criteria apply as well)2690.0%Teterboro, Oakland-Pontiac Van Nuys, etc.General Aviation2,560Akiachak (AK), Allentown Queen City (PA), etc.NPIAS airports= 3,33299.1%+ Low Activity Landing Areas16,4020.9%= Grand Total16,732Key points here will be:Lots of different types of airportsDifferent roles in the systemDifferent infrastructure needsAcknowledge that we are initiating a review and potential better ways to delineate roles within the GA category.
15 Relationships with State and Local Governments Airports may be owned and operated by:StatesCountiesMunicipalitiesIndependent authoritiesJoint government agencies (e.g., multiple towns or cities)Channeling Act provisionsBlock-grant provisions(work from slide)
16 State Block Grant Program Core element is to give states greater control over where to apply AIP State Apportionment funds, in return for taking on greater responsibility for the associated capital planning, grant administration and related legal and administrative requirements.Limited to ten (10) states.Nature of partnership between FAA and block-grant states:Block-grant state takes on Federal responsibilities, including all legal responsibilities.Careful balance to be achieved in other relationships (i.e., with individual airports and other state agencies).Federal funds are still Federal funds, even in a block grant.Additional point to be made orally under the last bullet point:Can be difficult for state agencies that want to function as agent, and at the same time advocate for the local airports, to objectively and effectively enforce Federal obligations.For reference, current list of SBGs includes:WisconsinIllinoisMichiganMissouriPennsylvaniaTexasTennesseeNorth CarolinaNew Hampshire (relatively new)Georgia (relatively new)
18 Stewardship and Oversight Education, publication and guidanceInternal FAA staffState aeronautical agenciesAirport sponsorsPlanning and engineering consultant communitiesPre-application processApplication and review processGrant approval processRisk-based approach to grant administrationGrant closeout
19 Education, Publication and Guidance Internal FAA staffState aeronautical agenciesAirport sponsorsConsultant communitiesAirport planningAirport engineeringConstruction managementFinancial planning and advisory firmsAccounting firms
20 Recent Points of Additional Emphasis to Airports “Re-familiarize yourself and your staff with all Federal grant requirements.”“Ensure airport staff and consultant personnel understand the importance of complete, clear and timely documentation.”“If you are not prepared to be held accountable in every regard, then consider carefully before requesting and accepting Federal funds.”“AIP certification requires grantees to certify that they will not be giving grants to debarred or suspended parties.”
21 Pre-Application Process Ensure projects proposed for grants are consistent with established national criteria.Ensure amounts and types of entitlement funding are accurate for each sponsor.Ensure budgetary sub-allotments are duly authorized and entered correctly in the agency’s accounting system of record.
23 Application and Review Process FAA reviews grant applications for completeness and consistency with the established Airports Capital Improvement Plan (ACIP) process.Ensure FAA does not offer grants to sponsors that have been determined to be noncompliant with grant assurances.Ensure sponsor risk level is properly established and/or updated before recommendation for funding is initiated.
25 Grant Approval Process Ensure that grants programmed (for either new or amended grants) do not exceed available funds.Ensure Grant Offer letter (and any amendments) meet all AIP grant requirements.Ensure sponsor certifies that it has the legal authority to accept the grant and all associated conditions.Ensure that only authorized obligations are entered into Delphi.
26 Risk-Based Approach to Grant Administration Ensure that only sponsors in good standing get access to ECHO, and only after specific authorization.For non-ECHO payments, ensure that only approved payments are made.For ECHO payments, ensure that sponsors with repeated drawdown irregularities lose ECHO access.Ensure any sponsor that is suspended cannot access the ECHO system.Ensure sponsors submit quarterly performance reports.Standardized nationwide documentation requirements.
28 Grant Closeout and Documentation Ensure final project documentation requirements are fulfilled.Ensure FAA notifies sponsors of grant closeout.Ensure grant closeout is entered in both accounting system of record and grant planning system.Ensure sponsor cannot draw or reimburse funds through ECHO once grant is closed.Ensure that funds recovery procedures (if applicable) are followed.
29 Audit RequirementsEnsure that sponsors who receive more than $300,000 in Federal funds in a given year satisfy all OMB Circular A-133 audit requirements.Ensure FAA follows up on any discrepancies found in an audit report.
30 Tools and Metrics for Monitoring Grant Drawdown
31 Tools and Metrics for Monitoring Grant Drawdown
32 Airport Design Standards Establish and promulgate standards and policiesFAA Advisory Circulars mandatory for all Federally obligated airports:Planning—e.g., runway length, runway/taxiway separation, Runway Safety Areas (RSAs), Runway Protection Zones (RPZs), Object-Free Areas (OFAs), airspace review process, signage and marking requirements, etc.Engineering—e.g., pavement design standards, drainage, electrical and lighting requirements, surface treatment (grooving), etc.Construction—quality control for construction, operational safety during construction, NOTAM process, obstruction lighting, etc.Maintenance and operations—e.g., snow and ice control, runway surface condition monitoring, rubber removal, preservation of pavement markings, ARFF communications, etc.
33 14 CFR Part 139 Airport Certification Periodic inspection of airports (both scheduled and unscheduled surveillance)Assist airport operator in meeting regulatory requirementsContinuous educational outreach to disseminate best practices in airport managementInspect certificated airports to:Ensure compliance with the regulation, including self-inspection and documentation requirementsEnsure FAA design standards are being followedCheck for operational and construction safetyVerify airport emergency response capability
34 Airport Safety Data Program (non-certificated airports) State aeronautical agencies inspect non-certificated airports—approximately one-third of the public use, non-Part 139 airports annually.Inspectors document and notify airport owners/ operators of any:Safety deficienciesUnsafe conditionsPotential problem areasFAA trains inspectors through GCR (initial and recurrent training).GCR also maintains the publicly accessible 5010 database containing all airport master records.
35 Compliance with AIP Grant Assurances Acceptance of Federal funding obligates airports to comply with an extensive list of grant assurances:General Federal RequirementsResponsibility and Authority of the SponsorSponsor Fund AvailabilityGood TitlePreserving Rights and PowersConsistency with Local PlansConsideration of Local InterestConsultation with UsersPublic HearingsAir and Water Quality StandardsPavement Preventive MaintenanceTerminal Development PrerequisitesAccounting System, Audit, and Record Keeping RequirementsMinimum Wage RatesVeteran's PreferenceConformity to Plans and SpecificationsConstruction Inspection and ApprovalPlanning ProjectsOperation and MaintenanceHazard Removal and MitigationCompatible Land UseEconomic NondiscriminationExclusive RightsFee and Rental StructureAirport RevenuesReports and InspectionsUse by Government AircraftLand for Federal FacilitiesAirport Layout PlanCivil RightsDisposal of LandEngineering and Design ServicesForeign Market RestrictionsPolicies, Standards, and SpecificationsRelocation and Real Property AcquisitionAccess By Intercity BusesDisadvantaged Business EnterprisesHangar ConstructionCompetitive AccessFor complete text of all assurances, see
36 SummaryComplex program requiring unique measures to protect Federal resources.Extensive education, publication and guidanceOversight and stewardship measures before, during and after grant awardRisk-based approach to grant managementCorollary means of monitoring performance, efficiency and effectivenessProgram administered in conjunction with other programs to ensure safety of the traveling public
37 Thank you! Questions? Federal Aviation Administration Federal Aviation Elliott BlackDeputy DirectorOffice of Airport Planning and Programming(202)