New Audit Announcements
Audit Initiated of FAA’s Franchise Fund
The Federal Aviation Administration’s (FAA) Administrative Services Franchise Fund (Franchise Fund) offers a variety of services ranging from accounting and travel to aircraft maintenance to training. The Franchise Fund charges customers—both Department of Transportation (DOT) and non-DOT entities—on a fee-for-service basis.
The FAA Reauthorization Act of 2018 requires the Office of Inspector General, no later than 30 days after enactment, to (1) review the history, purpose, and objectives of the Franchise Fund; (2) describe and assess each program, service, or activity that uses the Franchise Fund; (3) assess FAA’s governance and oversight of the Franchise Fund, including the use of internal and publicly available performance metrics; (4) evaluate the current and historical unobligated and unexpended balances; and (5) assess the degree to which policies and controls conform with generally accepted accounting principles, Federal policies, best practices, or other guidance relating to revolving funds.
Accordingly, we are initiating this audit with the following objective: to assess FAA’s management and oversight of the Franchise Fund’s operations and activities.