Airport Obligations: Audit Requirements
Central Regional Airports Division
As the recipient of an AIP grant, a sponsor agrees to maintain all pertinent project accounts and records that fully disclose the disposition of all grant proceeds. Sponsors must maintain accounts and records in accordance with an accounting system that will facilitate an effective audit by a third party.
Grant assurance #13 and Federal Regulation 49 CFR Part 18.26 establish the requirement for the non-Federal audit. Sponsors that expend $500,000 of Federal funds in a fiscal year must conduct a single or program-specific audit that year that conforms with the Single Audit Act of 1984 (as amended) and the standards of OMB Circular A-133 "Audits of States, Local Governments and Nonprofit Organization". The $500,000 threshold represents all Federal funding sources, not just AIP funds.
For Sponsors that expend less than $500,000 of Federal funds in a year, the audit requirements shall be those as prescribed by local and State regulation.
The Sponsor's independent audit must conduct the audit in accordance with generally accepted government auditing standards and OMB Circular A-133. The Sponsor must keep a copy of the audit report on file for three years from date of issuance.
Sponsors that desire to verify AIP payment history should refer to the U.S. Department of Treasury's Invoice Payment Platform (IPP) system. Sponsors should instruct their independent auditor tasked with conducting the OMB-133 audit to use this system in lieu of contacting the FAA project manager.
Sponsors do not need to mail a hard copy of the audit reports to our office. Sponsors shall submit their completed audit report online to the Federal Audit Clearinghouse