Office of Inspector General Audit Report: Assessment of FAA's Cost Accounting System and Practices: Project ID: FI-2008-045

On March 21, 2008, we issued our final report on the Assessment of FAA's Cost Accounting System and Practices. During FY 2006, FAA completed the implementation of the cost accounting system and, in FY 2007, finalized implementation of a labor distribution system. Overall, we found that the cost accounting system is properly designed to assign costs directly to responsible service organizations, however, management needs to stay vigilant in order to maintain the integrity of the underlying financial data, continue enhancing controls over labor cost distribution, identify the full cost of facilities and use these cost data to manage operations, and ensure the cost accounting processes are properly documented. FAA concurred with four of the five OIG recommendations and is taking reasonable action to resolve the remaining recommendation.