Audits

As required by AIR-21, we reported to Congress on our second annual assessment of the status of FAA’s cost accounting system. While FAA continues to progress in developing an effective cost-accounting system, we recommended that the agency (1) revise the date for fully functional cost-accounting and labor distribution systems to allow for their integration with “Delphi,” the Department’s new financial management system; (2) establish financial and performance measures, using benchmarks to determine progress and performing analyses to highlight areas for increased efficiency and cost savings; (3) modify the cost-accounting system to distribute headquarters administrative overhead costs using a total cost base; and (4) prepare a comprehensive handbook of its cost-accounting procedures and internal controls. FAA agreed with our recommendations.