FAA Flight Service Stations Cost Accounting Practices
December 11, 2001
Project ID: FI-2002-065
We found that the cost-accounting practices FAA is implemented for flight service stations would not assign $71 million to the stations as required. The improper assignments occurred because cost-accounting and related automated systems were not designed to apportion a fair share of total costs to each flight service station. Federal accounting standards require that costs for services be accurately assigned to the responsible organization. We recommended that FAA program its cost-accounting system to distribute costs among each of its flight service stations and improve data accuracy. FAA agreed to take corrective action on all of our recommendations.