Letter Responding to Allegations of Revenue Diversion Concerning Los Angeles Police Department Personnel at Los Angeles World Airports
The Federal Aviation Administration (FAA) is responsible for providing oversight to ensure that airports meet Federal obligations regarding using airport revenue for airport-only purposes. OIG’s Office of Investigations, Complaint Center Operations, asked FAA to conduct an inquiry into allegations of revenue diversion at Los Angeles International Airport (LAX), which is operated by the Los Angeles World Airports (LAWA). In its memorandum of findings, FAA concluded that LAWA’s payment of overtime to Los Angeles Police Department (LAPD) officers, length of assignments for LAPD officers, and decision to deploy higher paid LAPD officers did not constitute revenue diversion. We concur that LAWA possesses the authority to determine how it deploys security personnel and may use LAPD officers to meet its security needs, even if those officers work overtime or cost more than their LAWA counterparts. LAPD officers deployed to LAX, however, may not charge LAWA for duties unrelated to the airport. In its memorandum, FAA found instances of such revenue diversion. According to the memorandum, however, the lack of adequate detail contained in the records FAA received from LAWA prevented FAA from quantifying the full extent of the LAPD’s off-airport duties. Given OIG’s concern about potential revenue diversion, OIG’s Office of Aviation Audits conducted its own inquiry into the use of airport revenues at LAX and issued a separate report with its findings.