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February 28, 2023

FAA Can Strengthen Its Oversight of the AIP Acquired Noise Compatibility Land Program

Self-Initiated
Project ID: 
FS2023020
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What We Looked At
The Federal Aviation Administration’s (FAA) Airport Improvement Program (AIP) provides grants to airport sponsors for land acquisition. Airport sponsors that choose to reduce the impact of airport noise on nearby communities may acquire land, known as noise land, with these grants. Given FAA’s large investment in these acquisitions and ongoing concerns over aviation noise, we initiated this audit. Our audit objectives were to assess FAA’s (1) oversight of land that airport sponsors acquire with AIP grants for noise compatibility, (2) processes for determining whether airport sponsors identify land they no longer need for noise compatibility, and (3) oversight of airport sponsors’ disposal of noise land.

What We Found
FAA did not always comply with Federal standards for internal control which direct agencies to design measures to support accurate and timely recording of transactions. FAA’s record on grants awarded for noise compatibility between 2005 and 2020 was incomplete and grants for noise land valued at approximately $32 million were erroneously omitted. FAA also did not follow policy when it reimbursed two of five sample airports’ noise land purchases, totaling approximately $2.1 million, prior to receipt of evidence of the sponsors’ good land title. Furthermore, FAA’s processes for monitoring noise land status are insufficient and processes for overseeing sponsors’ disposal of noise land are inadequate. FAA policy requires sponsors to promptly dispose of noise land they no longer need but does not establish a time standard for FAA follow-up on disposal status. Two sample airports retained noise land parcels for over 10 years and 15 years, without FAA-approved plans for final disposition.

Recommendations
We are making nine recommendations to help FAA strengthen its oversight of AIP grants for noise compatibility and sponsors’ disposal of noise land. FAA concurred with recommendations 1, 3, 5, 6, 7, 8 and 9. FAA partially concurred with recommendations 2 and 4. We consider recommendations 1, 2, 3, 5, 6, 7, 8, and 9 resolved but open pending completion of planned actions. We consider recommendation 4 open and unresolved and request that FAA reconsider its position.

 

Recommendations

Open

Closed

$2,077,796
No. 1 to FAA

Develop and implement procedures to verify that airport sponsors have provided evidence satisfactory to FAA that the airport sponsor has or will obtain good title to land, prior to requesting reimbursement for costs associated with noise compatibility land acquisition. Implementing this recommendation could put up to $2,077,796 in funds to better use by requiring that only costs associated with completed noise land acquisitions are reimbursed.

No. 2 to FAA

Develop and implement a process to require airport sponsors to certify that noise exposure maps are a reasonable representation of current and/or future conditions at the airport at the time of grant award.

No. 3 to FAA

Update the Noise Land Management and Requirements for Disposal of Noise Land or Development Land Funded with AIP policy to establish a reasonable schedule for FAA Airport District Offices and Regional Offices to review Noise Land Inventory and Reuse Plans for accuracy and consistency with FAA policy.

No. 4 to FAA

Update and implement procedures to require airport sponsors to maintain Noise Land Inventory and Reuse Plans in electronic format available for FAA review, upon request.

$38,530,768
No. 5 to FAA

Require all airport sponsors that have acquired noise land to identify noise land eligible for disposal via sale and verify that noise land sales revenues are used in accordance with Federal law. Based on our review of five airports, implementing this recommendation could put up to $38,530,768 in funds to better use by generating revenue that could be reinvested in the program.

No. 6 to FAA

Update guidance to clarify for airport sponsors when noise land should be considered no longer needed for eligible current or planned airport purposes and disposed of in accordance with FAA policy.

No. 7 to FAA

Update guidance for Noise Land Inventory and Reuse Plans to require that the Noise Land Inventory include original acquisition dates, estimated or final completion dates for proposed or completed methods of disposal, and the date of FAA approval.

$66,160
No. 8 to FAA

Update guidance for Noise Land Inventory and Reuse Plans to require that the Noise Land Inventory include the Federal share of the sale price at the time of sale and how sales proceeds were used. Implementing this recommendation could put up to $66,160 in funds to better use by properly accounting for noise land disposal proceeds in accordance with Federal law.

No. 9 to FAA

Require the Rhode Island T.F. Green International Airport, Phoenix Sky Harbor International Airport, and Harry Reid International Airport to develop and submit for FAA’s approval current Noise Land Inventory and Reuse Plans after implementation of recommendations 4, 7, and 8.