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Summary

Our report was issued on June 3, 2003, as required by the Wendell H. Ford Aviation Investment and Reform Act for the 21st Century. The act required an assessment of the adequacy and accuracy of FAA’s cost-accounting system and practices as of December 31, 2002. We recommended that FAA: (1) establish an agency performance goal to implement cost-accounting and labor distribution systems that are compliant with Federal standards by October 1, 2004, and make successful implementation of the system a precondition for awarding executive bonuses; (2) specify and implement the internal controls to be added in the Cru-X labor distribution system; and (3) make FAA-wide cost and performance management practices an agency priority and commit appropriate funding to fully establish these practices by October 1, 2004. FAA concurred with all recommendations.