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Federal Aviation Administration 1 Biennial Fraud Awareness Conference July 2010 1 Stewardship and Oversight of the Airport Improvement Program (AIP) Federal.

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Presentation on theme: "Federal Aviation Administration 1 Biennial Fraud Awareness Conference July 2010 1 Stewardship and Oversight of the Airport Improvement Program (AIP) Federal."— Presentation transcript:

1 Federal Aviation Administration 1 Biennial Fraud Awareness Conference July Stewardship and Oversight of the Airport Improvement Program (AIP) Federal Aviation Administration Prepared for:Biennial Fraud Awareness Conference Arlington, Virginia Presented by:Elliott Black Deputy Director Office of Airport Planning and Programming Federal Aviation Administration Date: Wednesday, July 28, 2010

2 Federal Aviation Administration 2 Biennial Fraud Awareness Conference July Track Title Implication of Fraud on the Safety of Infrastructure Projects

3 Federal Aviation Administration 3 Biennial Fraud Awareness Conference July Overview Overview of the FAA Office of Airports Focus on the Airport Improvement Program (AIP) Relationship between AIP and other FAA programs and functions How the FAA leverages limited Federal resources to protect the traveling public Best practices in stewardship and oversight

4 Federal Aviation Administration 4 Biennial Fraud Awareness Conference July FAA Office of Airportskey program areas Planning support Environmental review Financial assistance programs Planning, engineering and construction standards Airport certification program (CFR Part 139) Compliance with grant assurances

5 Federal Aviation Administration 5 Biennial Fraud Awareness Conference July Planning Support National planning standards and guidance National Plan of Integrated Airport Systems (NPIAS) Ensure sponsors are eligible Identify eligible and justified projects Work with state aeronautical agencies on state system plans Support metropolitan system plans Work with individual airport sponsors to review activity forecasts, draft airport master plans and Airport Layout Plans (ALPs)

6 Federal Aviation Administration 6 Biennial Fraud Awareness Conference July Environmental Review Review proposed development (regardless of funding source) in accordance with the National Environmental Policy Act (NEPA) Ensure proper coordination including public consultation and interagency review Evaluate ability of proposed actions to secure other environmental permits

7 Federal Aviation Administration 7 Biennial Fraud Awareness Conference July Financial Assistance Programs Airport Improvement Program (AIP) Passenger Facility Charge (PFC) program

8 Federal Aviation Administration 8 Biennial Fraud Awareness Conference July Airport Improvement Program (AIP)

9 Federal Aviation Administration 9 Biennial Fraud Awareness Conference July 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 Federal Aviation Administration 10 Biennial Fraud Awareness Conference July Airport Improvement Program (AIP) (contd) Strict implementation rules. Federal procurement regulations. Grant assurances and obligations. Use of electronic clearinghouse to maximize electronic funds transfer.

11 Federal Aviation Administration 11 Biennial Fraud Awareness Conference July Capacity-Safety-Security- Noise (CSSN) 7.9% Noise 6.1% Reliever 0.1% MAP 0.7% Remaining Discretionary 10.6% Primary Entitlements 25.1% State Apportionment 7.9% Protected Entitlements 18.4% Cargo Entitlements 3.5% Nonprimary Entitlements 12.1% Alaska Supplemental 0.6% Small Airport Fund 14.9% Structure of Airport Improvement Program (AIP) FY-2009 ($3.4 billion in new grants) (excludes ARRA funds) Data Source: Internal FAA data (pending publication of FY-2009 Annual Report to Congress).

12 Federal Aviation Administration 12 Biennial Fraud Awareness Conference July 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 Federal Aviation Administration 13 Biennial Fraud Awareness Conference July Complex system of diverse airports Airport Type Number of Airports % of U.S. EnplanementsExamples Large Hub (>1.0% of all enplanements) % JFK, Chicago OHare, LAX, DFW, Atlanta, etc. Medium Hub ( % of all enplanements) % 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) % Nantucket, Charleston, Duluth, Phoenix Mesa, etc. Non-Primary Commercial Service (>2,500 enplanements and scheduled service) % Cold Bay (AK), Saranac Lake (NY), Cedar City (UT) Relievers (>100 based aircraft or 25,000 annual itinerant operationsother criteria apply as well) % Teterboro, Oakland-Pontiac Van Nuys, etc. General Aviation2,5600.0% Akiachak (AK), Allentown Queen City (PA), etc. NPIAS airports= 3, % + Low Activity Landing Areas16,4020.9% = Grand Total 16,732

14 Federal Aviation Administration 14 Biennial Fraud Awareness Conference July

15 Federal Aviation Administration 15 Biennial Fraud Awareness Conference July Relationships with State and Local Governments Airports may be owned and operated by: States Counties Municipalities Independent authorities Joint government agencies (e.g., multiple towns or cities) Channeling Act provisions Block-grant provisions

16 Federal Aviation Administration 16 Biennial Fraud Awareness Conference July 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.

17 Federal Aviation Administration 17 Biennial Fraud Awareness Conference July State Block Grant Program (contd)

18 Federal Aviation Administration 18 Biennial Fraud Awareness Conference July Stewardship and Oversight Education, publication and guidance Internal FAA staff State aeronautical agencies Airport sponsors Planning and engineering consultant communities Pre-application process Application and review process Grant approval process Risk-based approach to grant administration Grant closeout

19 Federal Aviation Administration 19 Biennial Fraud Awareness Conference July Education, Publication and Guidance Internal FAA staff State aeronautical agencies Airport sponsors Consultant communities Airport planning Airport engineering Construction management Financial planning and advisory firms Accounting firms

20 Federal Aviation Administration 20 Biennial Fraud Awareness Conference July 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 Federal Aviation Administration 21 Biennial Fraud Awareness Conference July 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 agencys accounting system of record.

22 Federal Aviation Administration 22 Biennial Fraud Awareness Conference July

23 Federal Aviation Administration 23 Biennial Fraud Awareness Conference July 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.

24 Federal Aviation Administration 24 Biennial Fraud Awareness Conference July Risk Level Assignment

25 Federal Aviation Administration 25 Biennial Fraud Awareness Conference July 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 Federal Aviation Administration 26 Biennial Fraud Awareness Conference July 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.

27 Federal Aviation Administration 27 Biennial Fraud Awareness Conference July Internal Reviews and Evaluations

28 Federal Aviation Administration 28 Biennial Fraud Awareness Conference July 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 Federal Aviation Administration 29 Biennial Fraud Awareness Conference July Audit Requirements Ensure 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 Federal Aviation Administration 30 Biennial Fraud Awareness Conference July Tools and Metrics for Monitoring Grant Drawdown

31 Federal Aviation Administration 31 Biennial Fraud Awareness Conference July Tools and Metrics for Monitoring Grant Drawdown

32 Federal Aviation Administration 32 Biennial Fraud Awareness Conference July Airport Design Standards Establish and promulgate standards and policies FAA Advisory Circulars mandatory for all Federally obligated airports: Planninge.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. Engineeringe.g., pavement design standards, drainage, electrical and lighting requirements, surface treatment (grooving), etc. Constructionquality control for construction, operational safety during construction, NOTAM process, obstruction lighting, etc. Maintenance and operationse.g., snow and ice control, runway surface condition monitoring, rubber removal, preservation of pavement markings, ARFF communications, etc.

33 Federal Aviation Administration 33 Biennial Fraud Awareness Conference July CFR Part 139 Airport Certification Periodic inspection of airports (both scheduled and unscheduled surveillance) Assist airport operator in meeting regulatory requirements Continuous educational outreach to disseminate best practices in airport management Inspect certificated airports to: Ensure compliance with the regulation, including self-inspection and documentation requirements Ensure FAA design standards are being followed Check for operational and construction safety Verify airport emergency response capability

34 Federal Aviation Administration 34 Biennial Fraud Awareness Conference July Airport Safety Data Program (non-certificated airports) State aeronautical agencies inspect non-certificated airportsapproximately one-third of the public use, non-Part 139 airports annually. Inspectors document and notify airport owners/ operators of any: Safety deficiencies Unsafe conditions Potential problem areas FAA trains inspectors through GCR (initial and recurrent training). GCR also maintains the publicly accessible 5010 database containing all airport master records.

35 Federal Aviation Administration 35 Biennial Fraud Awareness Conference July Compliance with AIP Grant Assurances 1.General Federal Requirements 2.Responsibility and Authority of the Sponsor 3.Sponsor Fund Availability 4.Good Title 5.Preserving Rights and Powers 6.Consistency with Local Plans 7.Consideration of Local Interest 8.Consultation with Users 9.Public Hearings 10.Air and Water Quality Standards 11.Pavement Preventive Maintenance 12.Terminal Development Prerequisites 13.Accounting System, Audit, and Record Keeping Requirements 14.Minimum Wage Rates 15.Veteran's Preference 16.Conformity to Plans and Specifications 17.Construction Inspection and Approval 18.Planning Projects 19.Operation and Maintenance 20.Hazard Removal and Mitigation 21.Compatible Land Use 22.Economic Nondiscrimination 23.Exclusive Rights 24.Fee and Rental Structure 25.Airport Revenues 26.Reports and Inspections 27.Use by Government Aircraft 28.Land for Federal Facilities 29.Airport Layout Plan 30.Civil Rights 31.Disposal of Land 32.Engineering and Design Services 33.Foreign Market Restrictions 34.Policies, Standards, and Specifications 35.Relocation and Real Property Acquisition 36.Access By Intercity Buses 37.Disadvantaged Business Enterprises 38.Hangar Construction 39.Competitive Access Acceptance of Federal funding obligates airports to comply with an extensive list of grant assurances: For complete text of all assurances, see

36 Federal Aviation Administration 36 Biennial Fraud Awareness Conference July Summary Complex program requiring unique measures to protect Federal resources. Extensive education, publication and guidance Oversight and stewardship measures before, during and after grant award Risk-based approach to grant management Corollary means of monitoring performance, efficiency and effectiveness Program administered in conjunction with other programs to ensure safety of the traveling public

37 Challenges of a Growing Aviation System Presentation to: Name: Date: Federal Aviation Administration Federal Aviation Administration Federal Aviation Administration Thank you! Questions? Elliott Black Deputy Director Office of Airport Planning and Programming (202)


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