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On December 1, 2010, we issued our report on improper payments in the Federal Aviation Administration's (FAA) Airport Improvement Program (AIP). In fiscal year 2008, FAA provided over $4 billion dollars to more than 1,500 grantees in the Airport Improvement Program (AIP) for airports considered significant to national air transportation. The Department of Transportation (DOT) has determined that AIP is susceptible to improper payments. Accordingly, our audit objectives were to: (1) determine the extent to which improper payments were made during the period reviewed; and, (2) assess FAA's oversight approach to preventing and detecting improper payments.