Assessment of Cost Accounting System and Practices

摘要

In accordance with the Wendell H. Ford Aviation Investment and Reform Act for the 21st Century ((AIR-21), Public Law 106-181), we assessed the Federal Aviation Administration's (FAA) progress in implementing a cost accounting system. AIR-21 required five assessments of eight specific areas covering FAA's methods for calculating and assigning costs to specific users, including whether these methods are appropriate, reasonable, and understandable. This is our final assessment report as required by AIR-21. FAA began developing its cost accounting system in 1996, as directed by the Federal Aviation Reauthorization Act of 1996. The Act required FAA to develop a cost accounting system that adequately and accurately reflected the investments, operating and overhead costs, revenue, and other financial measurements and reporting aspects of its operations. In 1997, the National Civil Aviation Review Commission also recommended that FAA establish a cost accounting system to manage its resources in a businesslike manner.