2003 Status Assessment of Federal Aviation Administration Cost Accounting System and Practices
As required by law, we audited the status of FAA’s its cost-accounting and labor-distribution systems as of December 31, 2003. During 2003 significant changes occurred at FAA, such as implementing the new Delphi financial management system and creating the new Air Traffic Organization. These changes should strengthen financial operations and efficiency of air traffic services, but temporarily slowed implementation of the cost accounting system. FAA needs to complete its cost accounting system, including modifying the system to reflect the new Air Traffic Organization; implement a labor distribution system for controllers’ that assigns labor costs to activities; implement data collection process and cost assignment methods to assign substantially all costs to individual facilities and activities; document the system; and implement financial and performance goals and measures, using the cost accounting data to improve efficiency of operations.