New Audit Announcements

Recent reports from the Office of Inspector General (OIG) and an independent public accountant have found weaknesses in the Federal Aviation Administration’s (FAA) internal controls for tracking inventory. In December 2019, OIG reported that the Agency’s Logistics Center does not have a detailed aging report for tracking its inventory supporting the National Airspace System (NAS), which might include items that are 30 or more years old. As such, OIG could not determine if FAA had overstated the inventory value, reported as $656 million in 2018. In addition, in a review of FAA’s financial statements for fiscal years 2018 and 2017, KPMG LLP found that the Agency’s controls were not designed and implemented to ensure the accuracy of inventory data.

 

Accordingly, we are initiating an audit of FAA’s oversight of its NAS inventory. Our audit objective will be to determine if FAA has effective oversight controls for managing the NAS inventory, including controls to appropriately account for excess, obsolete, or unserviceable items.