Audits

Our audit stemmed from a Hotline complaint alleging FAA had improperly deobligated FY 2001 funds for the Integrated Computing Environment Mainframe and Network (ICE-MAN) contracts to avoid detection of an Antideficiency Act violation. The complaint also alleged FAA used FY 2001 funds from its Facilities and Equipment appropriation rather than the Operations appropriation to pay bills on deobligated contracts. We found: (1) the deobligations were inappropriate; (2) FAA should not have used other funds to pay bills on the deobligated contracts; and (3) FAA inappropriately used about $800,000 of FY 1999 ICE-MAN funds belonging to other DOT Operating Administrations.

We recommended that FAA record all valid FY 2001 ICE-MAN obligations against ICE-MAN contracts, return funds to the proper appropriation accounts, establish who should be held accountable, and set up proper procedures to account for ICE-MAN funds. We also recommended that after FAA assures the proper accounts were charged, the agency should work with the DOT General Counsel and Assistant Secretary for Budget and Administration to determine if an Antideficiency Act violation occurred, document the decision, and report any violations of the act. FAA concurred with our recommendations.