In one example, MWAA used $16,000 in grant money to pay for lobbying services – even though such an expense is not allowed under federal rules. The lobbying services were provided by former MWAA board members.
In another instance highlighted in the report, the airports authority used grant money to pay for $54,000 in expenses related to the second phase of the rail project, even though the dollars were specifically earmarked for Phase 1.
Auditors found that MWAA does not have a reliable system for tracking costs and determining which expenses were eligible for federal dollars. Authority officials also could not provide supporting documentation for millions in expenses, auditors found. And while some of the money may have been spent properly, MWAA officials lacked the records to prove that was the case the report said.
With an estimated $289 million in federal funding still unspent, auditors said it was critical for safeguards to be put into place to protect taxpayers’ investment in the project.
The Federal Transit Administration, which is overseeing MWAA’s management of the project agreed.
“FTA continues to work diligently with MWAA to ensure that internal controls are developed and implemented and we share the OIG’s concerns that MWAA must develop corrective actions for the deficiencies found in this and prior audits,” wrote FTA Adminstrator Peter Rogoff in his response to the IG’s findings. “We recognize that while some progress toward greater accountability has been made, more work remains to be done in the area of internal controls.”
MWAA officials said the agency was working to improve its record-keeping and address the other recommendations.
