"Federal report suggests Detroit Metro money was diverted"

Tuesday, March 25, 2003

Federal report suggests money was diverted
BY ALEJANDRO BODIPO-MEMBA
The Detroit (MI) Free Press


Federal auditors have raised questions about whether officials overseeing
Detroit Metro Airport possibly diverted more than $1 million in revenue for
nonairport use.

The Federal Aviation Administration's Office of Inspector General, which
audits the FAA's programs, released a report Monday that said Metro Airport
is one of five nationwide that diverted a total of $40.9 million in
potential revenue from August 2001 through September 2002.

The report found that the money was missed by independent auditors or not
disclosed by Wayne County in financial records.

According to the report, investigators found $37.4 million in potential
revenue diversions at four of the five locations resulting from
"unsupported, ineligible and duplicated payments" to airports.

The report said Wayne County allocated $967,000 in indirect costs to the
airport and billed the airport directly for the same services. The report
also alleged that the county erroneously allocated $285,000 in miscellaneous
equipment charges to the airport.

Wayne County and airport officials could not be reached for comment Monday.

"We have brought the issue of the diversion of funds to the Federal Aviation
Administration's attention," said David Barnes, a spokesman for the
inspector general's office. "Now the FAA has to conduct an investigation. My
guess would be that they would move fairly quickly."

The other airports reviewed were in Cleveland, Allegheny County
(Pittsburgh), Miami-Dade County and San Antonio.

"We are very aware of the issues and concerns that have surfaced in this
report," said Elizabeth Isham Cory, a spokeswoman for the FAA.

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