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San Francisco Airport Reimburses FAA for Improper Grant Costs

On January 9, 2015, the San Francisco International Airport repaid FAA $809,554 for costs it improperly billed to airport improvement grants. The improper costs were identified during an investigation into allegations that the airport had billed items that were outside the scope of the grants. Items improperly billed included lab materials, airport electrical maintenance, survey equipment and flight services.

A prior OIG audit of traditional and ARRA-funded airport improvement grants identified $2.1 million of costs improperly billed to the grants. However, auditors reviewing airport billings developed concerns about survey equipment, purchased when the airport runway rehabilitation projects were  nearly completed. The investigation determined the equipment costs along with  several other costs were improperly billed to the grants. After the  questioned costs were brought to their attention, the airport agreed to repay FAA.

We conducted this investigation with assistance from FAA.