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Federal Aviation Administration: Financial Management Issues

  Premium   Download PDF Now (14 pages)
Report Type Reports and Testimonies
Report Date March 18, 1999
Report No. T-AIMD-99-122
Subject
Summary:

GAO has included the Federal Aviation Administration's (FAA) financial management on its list of government operations that are particularly vulnerable to waste, fraud, abuse, and mismanagement. (See GAO/HR-99-1, Jan. 1999.) The Department of Transportation's Office of the Inspector General (OIG) has been auditing FAA's financial statements since fiscal year 1994 and has consistently been unable to determine whether the financial information is reliable. In its most recent financial audit report, on FAA's fiscal year 1998 financial statements, the OIG was unable to substantiate billions of dollars in major assets or determine the accuracy of the reported $9 billion of costs for FAA's programs. This testimony (1) provides a brief history of FAA's financial management weaknesses, (2) discusses the identified fundamental problems that FAA must resolve to achieve financial accountability, and (3) highlights the corrective measures that the agency has under way.

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