FAA

PAR

Federal Aviation 

Administration

Performance and 

Accountability 

Report

The FAA. Advancing Aviation.

Fiscal Year 2021
Our Mission

To provide the safest, most efficient 

aerospace system in the world.

Our Vision

We strive to reach the next level of safety 

and efficiency and to demonstrate global 

leadership in how we safely integrate new 

users and technologies into our aviation 

system. We are accountable to the American 

public and our aviation stakeholders.

Our Values

Safety Is Our Passion

We work so that all air and space travelers 

arrive safely at their destinations.

Excellence Is Our Promise 

We seek results that embody 

professionalism, transparency, 

and accountability.

Integrity Is Our Touchstone 

We perform our duties honestly, 

with moral soundness, and with 

the highest level of ethics.

People Are Our Strength

Our success depends on the 

respect, diversity, collaboration, and 

commitment of our workforce.

Innovation Is Our Signature 

We foster creativity and vision to provide 

solutions beyond today’s boundaries.

MISSION

VISION&

VALUES

Cover: Installation of exterior metal panels on the new Portland 

International Airport and P80 Terminal Radar Approach Control 

Administrative Support Building in Oregon. This project is expected 

to be completed in late 2021. Photo by James Ryan Smith, FAA Civil 

Engineer.

2017

2021

2018 2019 2020

THIS REPORT AND REPORTS FROM PRIOR YEARS 

ARE AVAILABLE ON THE FAA WEBSITE

www.faa.gov/about/plans_reports/#performance

This page: Photo by Natali Quijano/Unsplashed.com.
1

TABLEof

CONTENTS

2 In a Day’s Work

3 Foreword

4 A Message from the Administrator

8 Management’s Discussion and Analysis

9 History of Modern Aviation and the Creation 

of the FAA

10 FAA Organization

12 FAA in Action: COVID-19 Pandemic

14 Major Accomplishments, Challenges, and 

Tomorrow's Drivers of Change

18 Performance Highlights

22 Performance at a Glance

25 Alignment of FAA Costs and Strategic Goals

26 Financial Highlights

32 Budgetary Integrity: FAA Resources and How 

They Are Used

38 Analysis of Systems, Controls, and Legal 

Compliance

42 Performance Results

43 Performance Measures Overview

76 Quality Assurance

78 Quality Financial Management

84 Financial Results

85 A Message from the Chief Financial Officer

87 Office of the Inspector General (OIG) Quality 

Control Review

92 Independent Auditors’ Report

97 Management’s Response to the FY 2021 

Independent Auditors’ Report

98 Financial Statements

102 Notes to the Financial Statements

134 Required Supplementary Information

138 Other Information

139 Summary of Financial Statement Audit and 

Management Assurances

140 Payment Integrity

141 Civil Monetary Penalty Inflation Adjustments

143 Grants Programs

144 Administrative Services Franchise Fund

149 Summary of Inspector General’s Top 

Management and Performance Challenges

163 List of Acronyms and Abbreviations

The FAA Centers

20 The FAA William J. Hughes Technical Center

36 Mike Monroney Aeronautical Center

Crosscheck Your Knowledge

35 Keeping it ‘CLEEN’

37 Enterprise Services Center

53 Using Unmanned Aircraft Systems for 

COVID-19 Response and Recovery

83 Ensuring Diversity and Inclusivity for a More 

Effective FAA Workforce

We Welcome Your Comments

 (inside back cover)

All sections of this document are unaudited, with the exception of 

the Financial Statements and the Notes to the Financial Statements 

(pages 98–133).
2 Fiscal Year 2021 | FAA Performance and Accountability Report

KEY: = 1,000 people 

44,586

TOTAL EMPLOYEES

As of September 30, 2021

36,073

REGIONAL AND 

FIELD OFFICES*

3,079

MIKE MONRONEY 

AERONAUTICAL 

CENTER (MMAC)

Oklahoma City, OK

HEADQUARTERS

Washington, DC

* Regional and field offices include 1,797 FAA employees outside the continental U.S. as follows: 

1,123 in Alaska, 363 in Hawaii, 285 in U.S. territories, and 26 in foreign countries.

4,031 1,403

WILLIAM J. HUGHES

TECHNICAL CENTER

Atlantic City, NJ

IN ADAY’S WORK

$27.97

BILLION

TOTAL BUDGET

Enacted for 

Fiscal Year 2021*

RESEARCH, 

ENGINEERING, & 

DEVELOPMENT

FACILITIES &

EQUIPMENT

GRANTS-IN-AID

FOR AIRPORTS OPERATIONS RELIEF FOR AIRPORTS

$11.0 BILLION $8.0 BILLION $5.75 BILLION $3.02 BILLION $0.2 BILLION

$2 BILLION

for COVID-19-

related

supplemental

funding

$3.75 BILLION

for airport 

capital grants

* This total includes $9 million provided for the Emergency Leave Fund account.

Refer to pages 32–34

for more information.
Fiscal Year 2021 | FAA Performance and Accountability Report 3

FOREWORD

The Federal Aviation Administration (FAA) is part of the U.S. Department of Transportation (DOT). By 

directives, the Office of Management and Budget, with statutory authority from the Chief Financial Officers Act of 1990, 

requires the FAA to prepare financial statements separate from those of the DOT. The FAA consolidates its key data and 

information and provides it to the DOT to incorporate into their corresponding reports. Although the FAA is not required 

to prepare a separate Agency Financial Report or Performance and Accountability Report (PAR), it does so to better 

demonstrate the agency’s accountability by presenting performance, management, and financial information using the 

same statutory and guidance framework as that used by the DOT. For this reason, the FAA has produced its own PAR since 

fiscal year (FY) 2002.

The FAA is committed to providing the safest, most efficient aerospace 

system in the world, and fulfilling its mission in a fiscally responsible and 

transparent manner. This commitment is ongoing and the FAA is proud of 

the recognition we have received over the years for transparent reporting 

of our performance and accountability. The Certificate of Excellence in 

Accountability Reporting (CEAR) award program was established by the 

Association of Government Accountants in collaboration with the Chief 

Financial Officers Council and the Office of Management and Budget to 

improve government accountability by streamlining reporting and improving 

the effectiveness of reports. Receiving the CEAR award is a significant accomplishment for a federal agency and the FAA 

is proud to have received the prestigious CEAR award 17 of the last 18 years. We are also extremely honored to have been 

recognized seven times in the past with special “best in class” awards for elements of our PAR that were considered to be 

the best across all of government. For the FY 2020 PAR, the FAA received another “best in class” award, for “A Report That 

Tells A Story”. This award recognized the FAA’s PAR as one that told a compelling story, highlighted agency relevance on 

key public interest matters, featured agency day-to-day operations, 

and integrated photographs and graphics 

to explain the agency’s performance to 

capture — and retain — reader interest. FAA 

is extremely proud to have been recognized 

with this special award.

The success of our financial stewardship 

is due to the diligent efforts of our 

employees who practice sound fiscal 

policies in supporting our mission, 

programs, and systems. We thank 

our people for their dedication and 

commitment to our mission and their 

transparent reporting of the important work 

of the agency.

Visit us 

from your 

mobile device

m.faa.gov
4 Fiscal Year 2021 | FAA Performance and Accountability Report

A MESSAGE

from the

ADMINISTRATOR

STEVE DICKSON

Fiscal Year 2021 was a year like no 

other. The COVID-19 global pandemic continued to 

cause disruption to air travel and the aerospace industry 

throughout the year. New risks and challenges appeared, 

from unruly passengers to logistical difficulties caused by 

a speedy return to near-normal air traffic levels. Despite 

these hurdles, I’m proud to report that the nation’s airspace 

continues to be the safest in the world. Our workforce 

rose to the challenge, and we emerged a stronger and more 

resilient agency.

As part of this new environment, we continued to develop 

tools and ways of accomplishing our work remotely. Our 

aviation safety inspectors are leveraging remote technologies 

to help us continue our oversight duties even amidst the 

pandemic. Our Office of Airports issued billions of dollars 

in grants that ensured the viability of our nation’s airport 

network, even amidst the largest sustained drop in air traffic 

in modern times. Even now, our Office of Airports employees 

are busily moving COVID-relief funding to airports across the 

nation to help them manage the economic downturn.

Our workforce was particularly resilient this past year. To 

combat the threats related to the COVID-19 pandemic, about 

60 percent of FAA employees quickly pivoted to an expanded 

telework posture to adhere to safety protocols. Of course, 

many did not have that option. In particular, I would like to 

recognize our inspectors, air traffic controllers, technicians, 

and the many others who continued to report to work on-site 

over the past year. You can find more details about our 

COVID-19 response efforts on pages 12–13.

Yes, we experienced significant challenges in FY 2021, but 

we also made tremendous progress in key areas, including 

commercial space and unmanned aircraft. This has been 

an incredibly exciting time for the U.S. in space. The 

world recently watched National Aeronautics and Space 

Administration's (NASA) Perseverance rover land on Mars, 

and the Ingenuity helicopter succeed in its Wright-brothersmoment on the red planet, as well as a dozen more flights and 

counting. Last year, we saw American astronauts launch into 

orbit aboard an American-built rocket — the first since the 

end of the Space Shuttle program in 2011. This year saw the 

addition of two new commercial human spaceflight missions, 

both in the same two-week period, and even an all-civilian 

flight that orbited the Earth for three days. We also published 

a final rule that fundamentally changes and streamlines how 

the agency regulates and licenses commercial space launch 

and reentry operations while always preserving public safety. 

This will allow us to evolve alongside industry as the pace of 

space travel continues to accelerate.

The FAA completed another step toward integrating 

unmanned aircraft systems — drones — into the nation’s 

airspace. We published two new rules: Operation of Small 

Unmanned Aircraft Systems (UAS) over People and the 

Remote Identification rule. The first rule modifies the existing 

Small UAS rule to enable even more kinds of operations 

without needing operators to request a waiver. The Remote 

Identification rule addresses aviation safety and security 

issues and is an essential building block toward safely 

allowing complex operations. Together, these two rules bring 

unmanned aircraft that much closer to full integration into 

the nation’s airspace. 

Another significant achievement this year was the return to 

service of the 737 MAX airplane. Over a period of 20 months, 

the FAA engaged in a rigorous and transparent review of the 

aircraft and ultimately found that Boeing’s design changes 

met FAA safety standards. Therefore, on November 18, 

“I’m proud to report that the nation’s airspace 

continues to be the safest in the world. ”
Fiscal Year 2021 | FAA Performance and Accountability Report 5

2020, I signed a rescission of the FAA order that grounded 

the aircraft. This was possible only because of the thorough 

and deliberate safety processes the FAA completed to 

ensure that all of the unsafe conditions were corrected. We 

then posted an Airworthiness Directive that specified the 

steps U.S. operators must accomplish before returning their 

existing fleet of 737 MAX airplanes to service. We committed 

from the start to boost global aviation safety through the 

hard lessons learned from the tragic Lion Air and Ethiopian 

Airlines accidents. We are keeping that commitment and 

focus by incorporating these lessons learned throughout the 

safety lifecycle. 

We also made progress in our workforce and environmental 

responsibilities. We’ve established a five-year Diversity, 

Equity, and Inclusion Strategic Plan for the FAA that will 

deliver the most diverse organization in our history. The 

foundation of the FAA is our people — and we are stronger, 

more innovative, and more successful when all talents and 

experiences are recognized.

This year we selected the next round of award recipients as 

part of FAA’s Continuous Lower Energy, Emissions, and Noise 

(CLEEN) Program, which is the FAA’s principal environmental 

effort to accelerate the development of new aircraft and 

engine technologies. CLEEN projects develop technologies 

that will reduce noise, emissions, and fuel burn and enable 

the aviation industry to expedite integration of these 

technologies into current and future aircraft.

FAA Reauthorization & 

Aircraft Certification, Safety, 

and Accountability Act

The FAA Reauthorization Act of 2018, Public Law 115-254, 

was signed into law on October 5, 2018. The Act is wideranging and provides the FAA with a host of critical new 

authorities and responsibilities on a broad range of aviation 

issues, including enhancing safety, improving infrastructure, 

and enabling innovation. Over the past year, the agency 

has continued to make significant progress on fulfilling the 

Congressional mandates in the Act, even while dealing with 

“ The foundation of the FAA is our people — and 

we are stronger, more innovative, and more 

successful when all talents and experiences 

are recognized. ”

The FAA's cooperation with the Able Flight program has enabled scores of persons with disabilities to explore their love of flying. Above, Curtis 

Stanley, who went through the Able Flight program in 2014, stands in front of his light sport aircraft.
6 Fiscal Year 2021 | FAA Performance and Accountability Report

challenges associated with the COVID-19 pandemic. For 

example, we created an Aviation Workforce Development 

Grant Program to help develop a pipeline of skilled aviation 

professionals by providing grants to educational programs for 

aircraft pilots and aviation maintenance technicians. We also 

selected five airports at which we will test UAS detection 

and mitigation technologies to assess impacts on safe airport 

operations, navigation, air traffic services, and the safe and 

efficient operation of the nation’s airspace. We are in the 

process of choosing detection and mitigation systems and 

expect to initiate testing in the coming months.

On December 27, 2019 the U.S. Congress passed the 

Aircraft Certification, Safety, and Accountability Act. This 

legislation included over 100 provisions aimed at reforming 

how the FAA conducts aircraft certification. The FAA is 

committed to a comprehensive approach to implementing 

all the requirements of, as well as the recommendations 

from, investigations and independent reviews related to 

the 737 MAX. For more information on our efforts, see 

pages 14–15.

Performance Highlights

The FAA strategic plan, which aligns with the DOT’s 

strategic plan, has four priority areas: Safety, People, Global 

Leadership, and Operational Excellence. In FY 2021, we 

achieved all of the agency’s 20 performance measures. 

A summary of results for all 20 performance measures

is provided on pages 22–24 in the Management’s 

Discussion and Analysis section. Detailed information 

appears in the Performance Results section, which begins on 

page 42.

Financial Accountability

The FAA remains committed to ensuring transparency and 

accountability to the public while achieving our mission. 

This report’s performance and financial data are complete 

and accurate, providing a comprehensive representation of 

agency results. Furthermore, for the fifteenth consecutive 

year, independent auditors gave our agency an unmodified 

audit opinion on our financial statements. The independent 

auditors' report appears on page 92, while my statement of 

assurance appears on page 41. The FY 2021 Performance 

and Accountability Report, as well as a summary document, 

can be accessed online at: https://www.faa.gov/about/

plans_reports/#performance.

Conclusion

The FAA continues to demonstrate its resiliency and 

commitment to meeting the nation’s aerospace challenges. 

Our workforce has demonstrated the flexibility and ingenuity 

to adapt to challenging circumstances and a myriad of 

obstacles. Collaborating with aviation industry professionals, 

this agency will continue to move forward in aviation safety, 

aerospace system performance, and innovation to deliver a 

world-class national airspace system. Whatever the future 

holds, the FAA will be ready!

STEVE DICKSON

Administrator

November 9, 2021

“ This agency will continue to move forward in 

aviation safety, aerospace system performance, 

and innovation to deliver a world-class national 

airspace system. ”
Fiscal Year 2021 | FAA Performance and Accountability Report 7

Photo of concrete wall formations at the glide slope shelter and antenna location, part of the Runway Extension Project at 

Chicago O'Hare International Airport. A glide slope helps navigate the descent of equipped aircraft. Photo by Steven J. Mueller.
8 Fiscal Year Fiscal Year 2021 | FAA Performance and Accountability Report Performance and Accountability Report 

AUGUST 1

Harriet Quimby became 

the first U.S. woman to 

earn an Aero Club of 

America aviator’s certificate. 

In 1912, she became the 

first woman to fly across 

the English Channel.

1911

MAY 15

The Post Office began 

scheduled air mail 

service, using Army 

pilots and, on

AUGUST 12

began flying the mail 

with its own pilots.

1918

SEPTEMBER 16

Bessica Raiche 

made the first 

accredited solo 

flight by a woman 

in the U.S.

1910

DECEMBER 17

Orville and 

Wilbur Wright 

made the first 

successful flight 

in a self-propelled 

airplane.

1903

Milestones in Aviation History

Passengers traveling through Charlotte Douglas International Airport in North 

Carolina in January 2021. Photo by Joel Carillet/iStock Images. 

MANAGEMENT’S 

DISCUSSION&

ANALYSIS
Fiscal Year 2021 | FAA Performance and Accountability Report 9

Management’s Discussion and Analysis

JUNE 15

Bessie Coleman became 

the first African American 

in the world to earn a pilot’s 

license. Since the U.S. was 

not yet issuing such licenses, 

she earned her license in 

France from the Federation 

Aeronautique Internationale.

1921 1926

MAY 20

President Calvin 

Coolidge signed 

the Air Commerce 

Act, establishing 

federal control 

over civil aviation. 

MARCH 16

Robert H. 

Goddard made 

the first free flight 

of a liquid-fueled 

rocket in Auburn, 

Massachusetts.

1927

MAY 20-21

Charles 

Lindbergh 

made the first 

nonstop solo 

flight across 

the Atlantic.

APRIL 6

William P. MacCracken, 

Jr., Assistant Secretary 

of Commerce for 

Aeronautics, received 

Pilot License No. 1, 

the first such license 

issued by the federal 

government.

History continued

History of Modern Aviation 

and the Creation of the 

FAA

Without regulation, early aviation remained in the realm 

of daredevils. Early pilots, male and female, pushed one 

another to set, and then break a host of aviation records 

for speed, flight duration, and aerobatics. Without 

navigation aids, pilots flew 200 to 500 feet above the 

ground so they could navigate by roads and railways. Fatal 

accidents were routine.

The Airmail Act of 1925 facilitated the growth of the 

commercial airline business. The legislation required the 

Post Office Department to contract with airlines to carry 

the mail. As a result, a number of airlines began mail 

delivery service. These airline operators found they could 

be more profitable if they also carried passengers. The high 

number of accidents, however, made many potential passengers 

afraid to fly.

Aviation industry leaders sought federal action to improve 

and maintain safety standards so the aviation industry could 

reach its full commercial potential. At their urging, the U.S. 

Congress passed the Air Commerce Act of 1926. This landmark 

legislation established the first federal regulation of aviation by 

directing the Secretary of Commerce to foster air commerce, 

license pilots, certify aircraft, establish airways, and operate 

and maintain aids to air navigation. With safety regulations in 

place and public confidence growing, aviation quickly became a 

vital national resource providing opportunities for travel, new 

business ventures, and jobs.

As the aviation industry grew, so too did federal responsibilities. 

Over time, new federal oversight areas included air traffic 

control, airport safety, licensing pilots, and certifying aircraft. 

The Federal Aviation Act of 1958 created the FAA largely as we 

know it today. Since that time, with the continued evolution of 

aeronautics, the agency has addressed a wide variety of issues, 

including aircraft noise, security, international cooperation, and 

commercial space.

Aviation today remains as challenging as ever. Innovation in 

aeronautics and astronautics continues even amidst a global 

pandemic. New commercial space activities are taking civilians 

into space, unmanned aircraft are taking flight in ever-increasing 

numbers, the aviation industry continues to expand, and our list 

of partners is growing. As it always has, the FAA stands ready 

to tackle both current and future challenges with the same 

energy that it has for the last 63 years. 

Starting on page 8 and continuing to page 19, we have 

compiled a timeline of some major accomplishments in the 

context of aerospace history.

Washington National Airport in the 1940s, since renamed Ronald Reagan 

Washington National Airport. The Civil Aeronautics Authority, which later became 

the FAA, owned and operated the airport at the time this photo was taken. FAA 

photo. 
10 Fiscal Year 2021 

| FAA Performance and Accountability Report

Management’s Discussion and Analysis

MAY 21-22

Amelia Earhart 

became the 

first woman to 

make a solo 

crossing of 

the Atlantic by 

airplane.

1932

APRIL 2

British scientist 

Sir Robert 

Watson-Watt 

patented the first 

practical radar 

(radio detection 

and ranging) 

system.

1935

History continued

1938

JUNE 22

Willa Brown received her 

private pilot’s license. She 

later became one of the first 

African-American women 

to earn a commercial pilot’s 

license and the first AfricanAmerican woman officer in 

the Civil Air Patrol.

JULY 6

Federal en route air 

traffic control began 

as the Bureau of Air 

Commerce took over 

operation of the three 

airway traffic control 

stations at Newark, 

Chicago, and Cleveland.

1936

FAA Organization

The FAA fulfills its mission through five lines of business that 

work collaboratively with the aviation and aerospace industry, 

as well as other key stakeholders, to develop, operate, and 

maintain the national air transportation system.

 Air Traffic Organization (ATO). ATO is responsible for 

providing safe and efficient air navigation services for 

29.4 million square miles of airspace. This represents 

more than 17 percent of the world’s airspace and includes 

all of the U.S. and large portions of the Atlantic and 

Pacific Oceans and the Gulf of Mexico. ATO employees 

are the service providers — the controllers, technicians, 

engineers, environmental specialists, and other support 

personnel — whose daily efforts keep aircraft moving safely 

and efficiently through the sky.

 Airports (ARP). ARP provides leadership in planning and 

developing a safe and efficient national airport system. The 

office is responsible for all programs related to airport safety 

and certification inspections, and for standards of airport 

design, construction, and operation, including international 

harmonization of airport standards. ARP also awards Airport 

Improvement Program grants, including COVID-Relief 

grants, and authorizes Passenger Facility Charge collections. 

Additionally, ARP is responsible for national airport planning 

and environmental and social requirements, as well as 

establishing policies related to airport rates and charges, 

compliance with grant assurances, and airport privatization.

 Aviation Safety (AVS). AVS is responsible for the 

certification, production approval, and continued 

airworthiness of aircraft, as well as the certification of 

pilots, mechanics, and others in safety-related positions. 

AVS is also responsible for certifying operators and 

maintenance organizations, certifying and overseeing 

approximately 7,300 U.S. commercial airlines and air 

operators, developing regulations, and conducting 

aerospace medical and human factors research.

 Security and Hazardous Materials Safety (ASH). ASH 

protects critical FAA assets, personnel, and the flying 

public from security risks, including criminal, terrorist, and 

insider threat actions. This is done through 24/7 emergency 

preparedness and response; global aviation situational 

awareness; intelligence threat identification, warning, and 

analysis; robust regulatory investigations; and providing 

support and education to law enforcement organizations 

investigating FAA certificated entities, personnel, and 

facility security programs. ASH collaborates within FAA and 

with interagency, industry, and foreign partners to provide 

national security support and to ensure the safety of the 

transportation of hazardous materials (HAZMAT) in air 

commerce. ASH helps prevent HAZMAT-related accidents 

or incidents aboard aircraft using targeted, risk-based 

oversight, as well as education, outreach, and stakeholder 

engagement both domestically and internationally.

 Commercial Space Transportation (AST). AST ensures 

protection of the public, property, and the national 

security and foreign policy interests of the U.S. during 

commercial space launch and reentry activities. AST does 

this through authorizing launches and reentry operations 

and by licensing launch and reentry sites. AST also 

encourages, facilitates, and promotes the U.S. commercial 

space transportation industry, with due consideration of 

environmental issues.

The FAA has nine staff offices that support these lines of 

business and enable the accomplishment of the agency’s 

mission. Key among these staff offices are:

 Finance and Management (AFN). AFN functions as 

the FAA’s shared services organization, responsible 

WATCH OUR VIDEO: 

WHO WE ARE 

AND WHAT WE DO – “FAA 101”

https://www.youtube.com/watch?v=9KguBoIHI4I 
Fiscal Year 2021 11 | 

 FAA Performance and Accountability Report 

Management’s Discussion and Analysis

History continued

JUNE 23

President Franklin Roosevelt 

signed the Civil Aeronautics 

Act of 1938 into law, which 

transferred federal responsibilities 

for civil aviation from the Bureau 

of Air Commerce to a new, 

independent agency, the Civil 

Aeronautics Authority. 

Oscar Holmes, the 

first known AfricanAmerican to become 

a federal air traffic 

controller, joined the 

Civil Aeronautics 

Authority.

NOVEMBER 1

The Civil Aeronautics 

Authority began 

operating airport 

traffic control towers 

and later that year 

began hiring and 

training women to be 

air traffic controllers.

1941

OCTOBER 14

Maj. Charles E. Yeager, 

U.S. Air Force, piloting 

the Bell X-l rocketpropelled research 

aircraft at Muroc, CA, 

became the first pilot 

to break the sound 

barrier.

1947

1938

for providing common business services through a 

consolidated, integrated approach. AFN delivers highquality, efficient, and reliable finance, acquisitions, 

contracting, information technology, property, logistics, 

and technical training services across the agency. AFN 

helps streamline functions to ensure they are delivered as 

effectively and efficiently as possible.

 The Mike Monroney Aeronautical Center (MMAC). 

The MMAC, part of AFN, provides unique functions 

in support of the FAA’s mission. Services include: 

technical training for air traffic controllers, technicians, 

and engineers; providing financial, information systems 

security, technology, and business services solutions 

for customers across the DOT and federal government; 

and facility management services to all tenants. Several 

non-AFN FAA lines of business have operations located 

at the MMAC, as well. Additional information on the 

MMAC can be found on page 36.

 NextGen (ANG). ANG provides leadership in planning 

and developing the Next Generation Air Transportation 

System (NextGen). This office coordinates NextGen 

initiatives, programs, and policy development across 

the FAA. ANG also works with other federal and state 

government agencies, the FAA’s international counterparts, 

and members of the aviation community to ensure 

harmonization of NextGen policies and procedures.

 The William J. Hughes Technical Center (Technical 

Center). The Technical Center, part of ANG, is the 

nation’s premier air transportation laboratory. Technical 

Center employees conduct research, development, test 

and evaluation, and sustainment of the full spectrum 

of aviation systems, including communications, 

surveillance, navigation, traffic flow management, and 

weather systems. The Technical Center laboratories 

provide a platform to identify integrated solutions for 

the modernization and sustainment of the national 

airspace system, and for delivering NextGen operational 

capabilities. Additional information on the Technical 

Center can be found on page 20.

As shown in the FAA Organizational Chart above, the FAA 

also has the following seven additional Staff Offices: Civil 

Rights, Chief Counsel, Human Resource Management, 

Communications, Government & Industry Affairs, Policy, 

International Affairs & Environment, and Audit & Evaluation.

For more information about FAA lines of business and staff 

offices, please visit www.faa.gov/about/office_org.

AVS

Aviation Safety

ASH

Security & Hazardous

Materials Safety

ARP

Airports

MMAC

Mike Monroney

Aeronautical Center

WJHTC

William J. Hughes

Technical Center

ACR Civil Rights

AGC Chief Counsel

AHR Human Resource Management

AOC Communications

AFN Finance & Management

AGI Government & Industry Affairs

ANG NextGen

APL Policy, International Affairs & Environment

AAE Audit & Evaluation

ATO

Air Traffic

Organization

AST

Commercial Space 

Transportation

LINES OF

BUSINESS

STAFF 

OFFICES

FAA ORGANIZATIONAL CHART ADMINISTRATOR
12 Fiscal Year 2021 | FAA Performance and Accountability Report 

Management’s Discussion and Analysis

The COVID-19 global pandemic 

continues to challenge the FAA 

in unprecedented ways. Almost 

two years into this pandemic, the 

FAA continues to face and resolve 

challenges that would have been 

unimaginable just two years ago. 

Last year FAA was in emergency 

mode — responding to the crisis, 

doing everything in its power to 

protect its people and carry out 

its mission. This year the FAA has 

adapted to ensure we continue 

to provide the safest aerospace 

system in the world. 

FAA IN ACTION:

COVID-19

PANDEMIC

Protecting our People

The initial phases of the pandemic saw the FAA quickly 

pivot to protect our workforce while still supporting 

the aviation sector. We took steps to protect our 

employees, shifting to a maximum telework posture for 

colleagues whose work allowed it, and socially distanced 

the rest to reduce their potential exposure. Working within 

our regulatory structure, we granted exemptions to allow passenger planes to 

deliver much needed cargo. Finally, we worked with industry to shift toward 

an environment with a very low volume of air traffic. 

During FY 2021, our environment continued to change, but our priorities did 

not. We continued to consult with federal health officials to ensure we were 

taking every step available to us to ensure the safety of our workforce. Early 

in the pandemic, when air traffic dropped substantially, the FAA adjusted the 

number of personnel on shifts to match the reduced demand and cut back 

on in-person training, allowing us to reduce crews’ potential exposure to one 

another. As air traffic began to return, we increased staffing to match demand 

and used new federal protocols based on more data to protect our team. 

We used personal protective equipment, implemented thorough and more 

frequent cleanings, and tracked COVID-19 cases. 

In response to the continuing pandemic, the FAA instituted a new

cleaning protocol. Since the beginning of the pandemic, the FAA 

has conducted intensive cleanings in response to cases of COVID-19. 

Today, our busiest facilities undergo thorough, scheduled COVID-19 

cleanings every day, regardless of whether they experience a positive 

COVID-19 case. This cleaning regimen is now in place in 120 high-priority 

facilities, including the busiest airport control towers. Facilities are able 

to schedule the proactive daily cleanings for the slowest traffic periods. 

The crews that perform the daily cleanings in the operational areas 

use non-toxic, EPA-approved chemicals, following Centers for 

Disease Control and Prevention guidelines, so controllers 

and technicians are able to continue working while cleaning 

takes place around them. At the beginning of the pandemic, 

the agency closed affected facilities for several days after a 

positive case of COVID-19 while cleaning was planned and 

executed. With experience, cleaning can now be completed 

in a few hours, generally on an overnight shift. So far, this 

protocol allowed facilities to remain open and operational in 

more than 478 instances where they would have closed for 

cleaning under the previous cleaning regimen. 

Whenever a facility did have to shut down due to exposure 

to COVID-19, prior investments in telecommunications 

infrastructure paid off. Protocols were set up in order to 

transfer control of flights to neighboring facilities, or to 

move controllers to contingency sites. The FAA went to 

great strides to ensure the flying public could continue to 

safely traverse the skies.
Fiscal Year 2021 | FAA Performance and Accountability Report 13

Management’s Discussion and Analysis

Leading Internationally

The FAA also worked to share our best COVID-19 practices 

with the world. The FAA has been closely involved in the 

work of the International Civil Aviation Organization's (ICAO) 

Council Aviation Recovery Task Force (CART) 

to develop global pandemic risk mitigation 

measures. The FAA supported U.S. 

leadership in ICAO at a time when it was 

drastically needed. The FAA led the 

time-critical development of guidance 

that ICAO Member States and global 

aviation partners needed, and are still 

using, to facilitate a safe, coordinated 

approach to a global aviation system 

recovery from the COVID-19 pandemic. This

approach took into account industry perspectives 

so as to minimize unnecessary operational impacts to the 

airline and cargo industry. For more on CART and the FAA’s 

involvement, look to pages 61–62.

Delivering Vaccines 

With the creation of the COVID-19 vaccines, the FAA 

took action to ensure they were swiftly delivered to their 

intended destinations. Several vaccines need continued cold 

temperatures during transport, which may require dry ice (a 

hazardous material) to maintain very low temperature. The 

FAA provided guidance on implementing current regulatory 

requirements for safely transporting large 

quantities of dry ice in air cargo. FAA then 

worked with stakeholders to determine 

any additional needs for air navigation 

services support. These include 

prioritizing flights carrying 

COVID-19 vaccines, as 

well as offering aroundthe-clock air traffic 

services to keep 

air cargo moving 

seamlessly and 

providing personnel 

critical to the 

nation’s response 

to and recovery from 

COVID-19. 

Keeping the Nation’s Airspace 

Operating

This year saw a continuation of the U.S. government’s 

commitment to preserve the network of airports that 

serve both commercial airlines as well as general 

aviation. The U.S. Congress passed two distinct 

laws aimed at preserving this critical network: the 

Coronavirus Response and Relief Supplemental 

Appropriations Act, 2021 (CRRSA) and American 

Rescue Plan Act of 2021 (ARPA). CRRSA 

provided the FAA an additional $2 billion and 

ARPA provided another $8 billion to help the 

nation’s airports contend with the financial impacts 

of COVID-19. These critical grant programs build on 

grants provided last year in the Coronavirus Aid, Relief, and 

Economic Security (CARES) Act to support airports during 

these unprecedented times. 

The FAA has also continued to accomplish its work despite 

COVID-19 related mitigations in the workplace. Our Air 

Traffic Organization employed remote capabilities for 

everything from system testing to conducting safety panels 

and site surveys. FAA has developed and tested both 

software and hardware systems that are awaiting availability 

of facilities in order to begin operational tests. Our Office of 

Aviation Safety is leveraging modern technology to continue 

remotely conducting certification activities. The FAA is 

continuously developing new ways to achieve its mission in 

this new environment. 

While facility access remains limited, the FAA has still been 

able to complete some major air traffic control projects. For 

instance, we implemented the final two metroplex projects, 

in Las Vegas in February 2021 and in South-Central Florida 

in August 2021. These projects use integrated NextGen 

capabilities to improve airspace usage at a regional level 

encompassing multiple airports.

Our national airspace system continues to change due to the 

COVID-19 pandemic. While FAA has successfully continued 

to respond to these events, they are still unfolding. As 

long as restrictions on facility access continue, delays in 

the deployment of new systems will increase. The impacts 

to FAA’s people and finances continue to compound, but 

the FAA’s resilience and agility has proven itself up to the 

task and we will prevail in our mission to provide the safest 

aerospace system in the world. 

Dry ice testng at the FAA’s William J. Hughes Technical Center. FAA photo.
14 Fiscal Year 2021 | FAA Performance and Accountability Report 

Management’s Discussion and Analysis

History continued

1956

JUNE 30

A Trans World Airlines Super 

Constellation and a United Air 

Lines DC-7 collided over the 

Grand Canyon in AZ, killing 

all 128 occupants of the two 

airplanes. The accident led 

directly to legislation creating 

the Federal Aviation Agency.

1953

MAY 18

Pilot Jacqueline Cochran 

became the first female pilot 

to break the sound barrier. 

Previously, she served as the 

head of the Women Airforce 

Service Pilots and was a 

sponsor of the Mercury 13 

women astronaut program.

1958

AUGUST 23

President Eisenhower 

signed the Federal 

Aviation Act of 1958, 

creating the independent 

Federal Aviation Agency. 

The agency began 

operations on 

December 31.

DECEMBER 20

The jet age began in the U.S. 

with the first flight of the 

Boeing 707.

1957

Major Accomplishments, 

Challenges, and Tomorrow's 

Drivers of Change

This year the FAA made significant progress at tackling several 

of its major challenges. However, much work remains to be 

done in order to both overcome our biggest challenges, as 

well as to maximize the opportunities new technologies can 

offer the flying public. The following sections highlight areas 

where the FAA is taking significant steps to ensure our national 

airspace remains the safest in the world.

Aircraft Certification Reform

Three years ago, 346 lives were tragically lost in Indonesia 

and Ethiopia with the crashes of two 737 MAX airplanes. The 

FAA is committed to ensuring that accidents like these never 

occur again. Immediately after grounding the 737 MAX in 

2019, the FAA began a contentious, rigorous, and transparent 

review of design changes to the 737 MAX flight control system 

and pilot training requirements. After a thorough 20-month 

review, FAA approved Boeing’s design and pilot training 

requirement changes, finding they met FAA safety standards 

and supported a return to service of the Boeing 737 MAX. On 

November 18, 2020, the FAA Administrator signed a rescission 

of the FAA order that grounded the 737 MAX. The FAA 

also published an Airworthiness Directive that specified the 

steps U.S. operators must accomplish before returning their 

existing fleet of 737 MAX airplanes to service. The decision to 

un-ground the airplane was based on the FAA’s thorough and 

deliberate safety processes. The design and certification of 

this aircraft included an unprecedented level of concurrent and 

independent reviews by aviation authorities around the world. 

Those regulators have indicated that Boeing’s design changes, 

together with the changes to crew procedures and training 

enhancements, give them the confidence to validate the aircraft 

as safe to fly in their respective regions.

Looking forward to the challenges ahead, FAA is committed 

to a comprehensive approach to implementing the 

recommendations from investigations and independent reviews 

related to the 737 MAX, as well as all the requirements of 

the Aircraft Certification, Safety, and Accountability Act. 

To accomplish this, the FAA is driving greater transparency, 

collaboration, and accountability across the regulating and 

regulated communities. We identified the following general 

themes, which we are addressing across all of our work:

 Treat aircraft as complex systems, with full consideration of 

how all the elements in the operating system interact. 

 Integrate human factors considerations more effectively 

throughout all aspects of the design and certification 

process. 

 Improve the agency’s oversight process by ensuring 

coordinated and flexible flow of data and information. 

 Focus on the workforce of the future and develop 

expertise to evaluate technological advances. 

The FAA has already made progress on some of these 

requirements. For example, the FAA has implemented a 

voluntary safety reporting program, which provides all Aviation 

FAA Administrator, Steve Dickson, inspecting the 737 MAX. FAA photo. Safety Organization employees with a system to report 
Fiscal Year 2021 | FAA Performance and Accountability Report 15

Management’s Discussion and Analysis

History continued

FEBRUARY 26

Aviation weather 

services were 

expanded to 

include pilot 

weather briefings 

and handling airto-ground weather 

requests.

1961

OCTOBER 1

The National 

Aeronautics and 

Space Act of 1958 

created the National 

Aeronautics and Space 

Administration (NASA).

1967

APRIL 1

The Department 

of Transportation 

and the National 

Transportation 

Safety Board 

began 

operations.

1958

FEBRUARY 20 

John H. Glenn, 

Jr., piloted 

the first U.S. 

manned orbital 

flight.

1962

APRIL 17 

Geraldine 

Mock 

completed 

the first solo 

flight around 

the world by a 

woman.

1964

aviation-safety-related issues and concerns anonymously and 

without fear or concern for retaliation for making a safety 

disclosure. 

Unmanned Aircraft Systems

It’s hard to understand just how big a leap unmanned 

aircraft systems (UAS), or drones as they are commonly 

known, integration has taken in the last five years. The first 

FAA regulations regarding UAS came out in 2015 with the 

Registration and Marking Requirements for Small Unmanned 

Aircraft interim final rule. Shortly thereafter, in 2016, the FAA 

enabled limited operations for small UAS with a new set of 

regulations that are commonly called the "small UAS rule."

This last year has seen the FAA take significant steps towards 

integrating this new entrant into the nation’s airspace. The 

recently finalized rules for Operation of Small Unmanned 

Aircraft Systems (sUAS) Over People (amendment to 14 Code 

of Federal Regulations part 107) and UAS Remote Identification 

(14 Code of Federal Regulations part 89) will further UAS 

integration. 

The original part 107 regulations only authorized certain types 

of operations. Flying under part 107 meant staying in Class G 

airspace (airspace not managed by the air traffic control) unless 

authorized by the FAA, flying during the day, and keeping 

the UAS within your line of sight. If an operator wanted to fly 

over people, at night, or beyond their visual line of sight, they 

needed to request a waiver or an exemption from the FAA. 

The recent amendment to part 107 allows UAS operators to fly 

in more situations, increasing the economic and recreational 

potential of drones. Now allowed under this new rulemaking 

activity, routine night operations began in spring 2021, while 

operations over people are expected to begin within the next 

6-18 months, depending on the UAS being flown. 

Publishing the Remote Identification (ID) of Unmanned Aircraft 

Final Rule this past year was the next incremental step towards 

further integration of unmanned aircraft in the national 

airspace. Remote ID is similar to a “digital license plate” for an 

unmanned aircraft. From a security perspective, Remote ID will 

enable the FAA to connect a drone to its operator and is the 

cornerstone for threat discrimination by law enforcement. With 

Remote ID, law enforcement and national security partners 

will be in a better position to locate the operator, determine if 

a drone is being operated in an unauthorized or inappropriate 

manner, and take appropriate action if necessary. The 

operator’s UAS serial number and location information will be 

available to anyone within range who has Remote ID broadcast 

receiver technology on their personal wireless device, such as 

a smart phone. However, only authorized government agencies 

and law enforcement can request the more detailed registration 

information from the FAA. Full Remote ID compliance will 

become mandatory in fall 2023.

Looking ahead, the FAA is working to expand drone operations 

beyond what is currently allowed under part 107 regulations. 

In the past few years the focus was on using the existing 

regulatory regime to enable operations. The FAA gained 

valuable knowledge and data by approving special use 

operations through waivers. Operators who received waivers 

were able to build their safety cases and fly thousands of 

missions. The lessons learned through these initial operations 

led to the Operation of sUAS over People amendment. This 

amendment expanded UAS operations based on years of data 

of safe flying applications. FAA has learned, however, that 

because the waiver process is labor-intensive it is not scalable 

for certain UAS operations envisioned for the future, such as 

package delivery. The FAA expects to craft rules, policy, and 

guidance that would enable future safe, routine operations 

without the need for waivers. 

One of the next steps in UAS integration involves Beyond 

Visual Line-of-Sight Operations (BVLOS) operations, which 
16 Fiscal Year 2021 | FAA Performance and Accountability Report 

Management’s Discussion and Analysis

History continued

Eleanor Williams 

began controller 

training; she earned 

her controller 

certification, 

becoming the first 

African-American 

female air traffic 

controller, in 1971.

1968

JULY 20 

Astronauts Neil A. Armstrong 

and Edwin E. Aldrin, Jr., became 

the first people to land on the 

moon, while Michael Collins 

remained in lunar orbit. Later 

in the day, Armstrong and then 

Aldrin became the first to walk 

on the lunar surface.

1969

Wally Funk became the 

first woman to complete 

the FAA’s General Aviation 

Operations Inspector 

Academy course. 

See more here: 

https://www.youtube.

com/watch?v=LiETX56CYA&feature=youtu.be

1971

At the age of 

24, Bonnie 

Tiburzi was the 

first woman 

hired by a major 

airline as a 

member of the 

cockpit crew.

1973

are only permitted with a waiver under part 107. The FAA 

announced on June 8, 2021, the UAS Beyond Visual Lineof-Sight Operations Aviation Rulemaking Committee (UAS 

BVLOS ARC). The UAS BVLOS ARC is co-chaired by the FAA 

and industry partners and includes over 80 members of the 

aviation community, including several international observers 

from various regulatory authorities and Air Navigation Service 

Providers. The objective of the UAS BVLOS ARC is to provide 

recommendations to the FAA for performance-based regulatory 

requirements to normalize safe, scalable, economically viable, 

and environmentally-sound BVLOS operations that are not 

actively managed by air traffic control.

The UAS BVLOS ARC is an opportunity to bring together 

stakeholders in the aviation industry, the U.S. Government, and 

the communities impacted by drone technology to determine 

the best regulatory path forward for BVLOS UAS operations. 

The FAA will consider the ARC’s recommendations into its 

rulemaking effort(s).

Finally, an exciting area that will continue to pose challenges 

to the FAA for years to come is Advanced Air Mobility (AAM). 

AAM is a new concept of air transportation using innovative 

technologies, such as vertical takeoff and landing aircraft, 

to move people and cargo between places not served by 

existing surface or air transportation methods. AAM is a 

rapidly-emerging, new sector of the aerospace industry which 

aims to safely and efficiently integrate highly automated 

aircraft into the nation’s airspace. Integrating AAM into our 

aviation system is a challenge because of the many different 

aspects in this groundbreaking arena. There are multiple 

unknowns — everything from what vehicles will look like to 

how they’ll fit in with the current airspace system to how the 

emerging industry will function. As with any new initiative, the 

FAA must carry out and sustain robust community engagement 

before AAM can be successfully integrated into the national 

airspace. 

The FAA is up for the challenge. AAM operations still have 

many similarities to traditional aviation. The FAA has spent 

decades identifying risks and creating regulations and 

procedures to ensure that all aircraft transporting people 

and goods are safe and secure. This means that initially AAM 

operations can take advantage of existing air traffic control 

infrastructure and low altitude visual flight rules, procedures, 

and routes. These first AAM operations can build widespread 

community awareness, which is a crucial first step toward 

realizing AAM’s potential. 

Commercial Space

On July 11th, 2021, the VSS Unity, a spaceplane piloted by 

Dave Mackay and Michael Masucci, carried four passengers to 

space. A week and a half later, on July 20th, the autonomous 

and reusable rocket, New Shepard, launched the RSS First Step

capsule. Its four passengers reached a height just above the 

Kármán line (100 km), which is often used to define the edge 

Sharing the Skies Safely, An Overview of Unmanned Traffic Management, 

discusses the kind of situational awareness that will be needed in the near 

future to keep UAS safely apart from each other and from manned traffic.
Fiscal Year 2021 | FAA Performance and Accountability Report 17

Management’s Discussion and Analysis

History continued

JUNE 18 

Sally Ride 

became the 

first U.S. 

woman in 

space.

1983

APRIL 12

NASA’s 

space shuttle 

Columbia 

made its first 

orbital flight.

1981

JANUARY

Olga Custodio graduated 

from the U.S. Air Force 

officer training school and 

became the first female 

Hispanic Air Force pilot. 

She subsequently became 

one of the first Hispanic 

commercial airline pilots.

1980

FEBRUARY 25

Prohibition of 

smoking went 

into effect on 

virtually all 

scheduled U.S. 

domestic airline 

flights. 

1976 1990

JANUARY 21 

The Concorde supersonic 

transport made its first 

commercial passenger flight.

of the Earth’s atmosphere and the beginning of outer space. 

These voyages, the first to be licensed to carry space flight 

participants by the FAA, are just two examples of the flurry of 

commercial space activity that took place in FY 2021. 

In total, there were 59 FAA licensed rocket launches for the 

fiscal year, or about one every six days. This is nearly double 

the licensed launches of fiscal year 2020. In addition to the 

two licensed commercial human spaceflights, in May 2021 

four astronauts — one from the European Union, one from 

Japan, and two from the U.S. — reached the International Space 

Station aboard a SpaceX Falcon 9 rocket as part of the Crew-2 

mission. This was the first FAA-licensed U.S. commercial 

space mission to fly an astronaut from the European Space 

Agency. Additionally, there are more than 20 other companies 

developing launch vehicles of different sizes and types seeking 

launch licenses in the near future. 

To meet the growing rate in launch demand and complexity, 

the FAA developed a new regulation, part 450, that aims to 

increase flexibility of launch licensing. Published in March of 

2021, FAA’s streamlined launch and reentry licensing rule 

combines four separate regulations (parts 415, 417, 431, and 

435) into a single performance-based part 450 rule. This new 

rule will better accommodate the evolving commercial space 

transportation industry, while preserving the FAA's safety 

record and environmental responsibilities. For more information 

on FAA's record of ensuring no harm on the uninvolved public, 

see page 51. Part 450 provides more flexibility in meeting 

regulatory approval because it encompasses more types of 

launch and reentry operations. It allows an applicant to propose 

unique means of compliance that meet the safety standards 

of the regulation. The FAA also published ten supporting 

advisory circulars that provide technically accurate compliance 

information to assist the space industry in meeting regulatory 

requirements.

As more rocket launch operators seek to share the nation’s 

airspace, the FAA has deployed the space data integrator (SDI). 

This software delivers real-time telemetry data from the vehicle 

operator to the FAA Air Traffic Control System Command 

Center. The Command Center is in charge of overseeing and 

coordinating all of the air traffic throughout the entire national 

airspace system. Delivered data includes vehicle position, 

altitude, and speed, as well as indicators if the vehicle deviates 

from its expected flight path. This information allows the FAA 

to follow the progress of the vehicle along its planned path and 

monitor whether the vehicle is performing as planned. Launch 

and reentry vehicle operators delivered telemetry data via SDI 

on a voluntary basis, and in fiscal year 2021, the FAA partnered 

with SpaceX, Blue Origin, Astra, and the Alaska Aerospace 

Corporation to deliver their data for integration into SDI. This 

tool can be used to inform the use of Time Based Launch/

Reentry Procedures (TBLP), as well as the Dynamic Launch/

Reentry Windows (DLRW) that the FAA used at launch sites 

in Boca Chica, Texas and Van Horn, Texas. TBLP and DLRW 

are ways that the FAA uses data about launch and reentry 

operations in order to minimize the amount of time that 

airspace is closed to other commercial users. For more info on 

TBLP and DLRW, see page 75.

FAA sees the current cadence of rocket launch increases 

continuing. More complex and more frequent launches will 

continue to challenge the FAA. However, we are confident that 

we have the tools and safety measures in place to meet this 

challenge.

On November 15, 2020, FAA worked with 

NASA and SpaceX on the launch, reentry, 

and management of the airspace to ensure 

a safe and efficient launch of the first 

FAA-licensed orbital human space flight. 

Watch more about this historic launch, here: 

https://www.youtube.com/

watch?v=nJzGeYFxoAY&feature=youtu.be.
18 Fiscal Year 2021 | FAA Performance and Accountability Report 

Management’s Discussion and Analysis

History continued

SEPTEMBER 12 

Mae Jemison 

became the first 

African-American 

female in space.

FEBRUARY 3

Eileen Collins 

became the 

first female 

NASA shuttle 

pilot.

1992 1995

SEPTEMBER 19 

FAA issued a license 

to Spaceport Systems 

International, allowing 

it to open the world’s 

first privately-operated 

space launch facility, 

California Spaceport.

1996 2001

NOVEMBER 19

Transportation 

Security 

Administration 

was founded.

2005

SEPTEMBER 28

FAA issued the first 

airworthiness certificate for a 

civil unmanned aerial vehicle, 

the General Atomics Altair.

Performance Highlights

The FAA is charged with promoting the safety and efficiency 

of the nation’s aerospace system. We maintain the system’s 

integrity and reliability through our broad authority to enforce 

safety regulations and conduct oversight of the civil aviation 

industry. Our strategic plan, annual business plans, human 

capital plans, annual PARs, and constant reevaluation of our 

efforts create a recurring cycle of planning, program execution, 

measurement, verification, and reporting. This cycle creates a 

strong link between the expenditure of our resources and our 

performance.

Managing Performance

We manage organizational performance through a four-step 

process that is based on best practices borrowed from several 

private and public-sector organizations:

 Set Goals

 Plan, Work, and Budget

 Monitor Work

 Assess Results

Each year we improve on this strategy through adaptation and 

enhancements of technologies that support the process.

Set Goals

The first step in the performance management process includes 

consulting with management, employees, and stakeholders to 

identify areas to target for improvement. These areas include 

near-term priorities and long-standing management challenges. 

Goals, performance measures, targets, and initiatives are laid 

out in the business plans developed by each of the FAA’s lines 

of business and staff offices.

Plan, Work, and Budget

The second step in evaluating our performance focuses on 

planning, which begins with reviewing the critical activities and 

resources required to achieve our goals. Budget formulation 

involves a series of steps that the FAA takes to determine 

where a program or activity stands at present, where it is 

going (i.e., reasonable expectations for progress), and what 

else could be done (i.e., alternative approaches) to achieve 

stated objectives. One of the basic objectives of the budget 

formulation process is to ensure that decision-makers have 

the information they need to determine how best to allocate 

resources to achieve goals.

Our complete FY 2021 Congressional Justification can be 

found at: https://www.transportation.gov/mission/budget/

faa-cj-fy-2021-estimates.

The FAA also has a section in DOT's Budget Highlights 

document that summarizes the FY 2021 budget request. This 

document can be found at: https://www.transportation.gov/

mission/budget/fiscal-year-2021-budget-highlights.

In addition, our strategic initiatives and FY 2021 business plans 

for FAA organizations are available at: https://www.faa.gov/

about/plans_reports/#business_plans.

Monitor Work

Monitoring occurs in the course of the various performance 

management activities that our executives and employees 

participate in each month. The agency’s overall governance 

model was revised in FY 2018 to streamline decision-making at 

the executive level. The revised model includes two groups — a 

Management Board and a Deputy’s Meeting.

The Management Board provides agency-wide strategic 

direction and decision making for critical priorities. This 

includes setting short and long-term agency goals, as well as 
Fiscal Year 2021 | FAA Performance and Accountability Report 19

Management’s Discussion and Analysis

“ Whatever the future holds, 

the FAA will be ready. 

— Steve Dickson ”

History continued

FEBRUARY 12

Atlantic Southeast 

Airlines flights 5202 

and 5106 became 

the first commercial 

jet revenue flights to 

be operated by an 

all-female, all-AfricanAmerican crew.

2009

APRIL 23

The FAA awarded the first air carrier certification 

to a drone delivery company, Wing Aviation, 

paving the way for the company to begin 

commercial package delivery and, on

OCTOBER 18

Wing Aviation and FedEx Express completed the 

first scheduled package delivery by drone to a 

house in Christiansburg, VA.

2019

AUGUST 29

FAA implemented 

the first 

operational rules 

for routine nonhobbyist use of 

small Unmanned 

Aircraft Systems, 

or drones.

2016

MAY 22

The SpaceX Falcon 9 

rocket launched and, on 

MAY 25 

became the first U.S. 

commercial space 

rocket to dock at the 

International Space 

Station.

2012

making annual budget and financial decisions. The Board is the 

highest deliberative body in the agency and the primary forum 

to assist the Administrator in setting the agency’s direction.

The Deputy’s Meeting is the primary forum to advise and 

assist the Deputy Administrator in monitoring all operational 

activities conducted by the FAA (e.g., workforce, IT, and air 

traffic facilities). The Deputy’s Meeting also refers decisions 

needed on significant internal issues to the Management Board.

The two groups create a well-defined process with clear roles 

for making decisions and monitoring the agency’s performance; 

the groups clarify decisions across the FAA and clearly 

communicate decisions through senior leadership.

Assess Results

This is the final, but critically important step in the performance 

management process. Using performance information, the 

agency seeks ways to learn from past performance and 

improve outcomes. Performance measures and targets support 

our mission to provide the nation with a safe and efficient 

aerospace system. We have streamlined our strategic focus 

over the past several years. As our strategic management 

processes continue to mature and the focus becomes sharper, 

the number and mix of performance targets has changed. 

Targets are reviewed on a yearly basis to ensure that we are on 

track to meet future challenges.

Performance Goals

The FAA is currently updating its strategic plan that will 

establish new strategic goals and objectives for FY 2022 

through FY 2026. The FAA’s strategic goals align with the 

DOT’s draft strategic plan. The FAA’s strategic plan will describe 

overarching, long-term goals that the FAA aims to achieve, 

as well as the actions it will take to realize those goals. In 

alignment with the Administrator's vision, the new strategic 

goals are Safety, People, Global Leadership, and Operational 

Excellence. Innovation is the foundation of each strategic 

goal and it leads in the development of advanced aerospace 

capabilities that improve the safety and performance of our 

nation’s aerospace system. Once completed, the strategic plan 

will be found here: https://www.faa.gov/about/plans_reports/.

Each of the FAA’s annual performance measures follow one of 

the long-term goals described in the agency’s strategic plan:

 Safety: Oversee and operate the safest aerospace system 

in the world, all with a culture of continuous improvement. 

This year, the FAA was successful in achieving all eight

measures related to Safety. For more information, please 

see page 44.

 People: Strengthen our current and future aviation 

workforce by holding ourselves accountable, developing 

our people and planning for the aviation workforce of the 

future. This year, the FAA was successful in achieving both 

measures related to People. For more information, please 

see page 56.

 Global Leadership: Advance global aviation safety, 

operational excellence, and innovation by leading and 

collaborating with aviation authorities globally. This year, 

the FAA was successful in achieving both measures related 

to Global Leadership. For more information, please see

page 59.

 Operational Excellence: Operate the world’s most efficient 

aerospace system through daily execution, continuous 

improvement, and infrastructure investment. This year, the 

FAA was successful in achieving all eight measures related 

to Operational Excellence. For more information, please 

see page 63. 
20 Fiscal Year 2021 

| FAA Performance and Accountability Report

Management’s Discussion and Analysis

THE FAA WILLIAM J. HUGHES TECHNICAL CENTER 

(Technical Center) in Atlantic City, New Jersey, is the nation’s 

premier air transportation system laboratory. Its highly diverse, technical 

workforce and vast array of world-class laboratories provide a state-ofthe-art environment that enables research, engineering, development, test, 

and evaluation of advanced aviation technologies. These combined assets 

deliver next generation operational capabilities that modernize the nation’s 

airspace system — the safest, most efficient aviation system in the world. 

THE FAA 

WILLIAM 

J. HUGHES 

TECHNICAL 

CENTER

As the global COVID-19 pandemic continued and 

deepened into 2021, the ingenuity, innovation, and agility 

of the Technical Center workforce proved invaluable. The 

magnitude and impact of the pandemic was unforeseeable, 

but the Technical Center adapted quickly to the changing 

landscape without losing focus on achieving its goals. Key 

to attaining the goals of the Technical Center are its four 

focus areas: 1) advancing aviation technology, 2) cultivating 

a qualified aviation workforce of the future, 3) capitalizing 

on partnerships and outreach with government agencies and 

other entities, and 4) advancing core work that supports the 

other three goals. Some noteworthy accomplishments from 

FY 2021 are described below.

The Technical Center test and evaluation community 

leveraged advanced technologies to develop remote 

laboratory access capabilities that enabled developers, test 

engineers, air traffic controllers, and pilots all across the 

country to work together to continue the development, 

integration, and testing of national airspace system 

modifications and enhancements. A variety of methods and 

tools were developed and repurposed to enable continuity 

of test services during a maximum telework period. Now, 

test teams can collaborate with system developers and 

stakeholders from remote locations to develop test scenarios, 

conduct tests, verify requirements, and validate system 

functions in an operational environment. Consequently, test 

teams provided quality test and evaluation services across 78 

acquisition programs delivering over 131 test products. The 

teams are also continuing to build a robust, agile, hybrid test 

environment with both remote and onsite capabilities. 

As the nation’s airspace system evolves to support emerging 

operations and new vehicle types, the Technical Center is 

supporting the safe integration of Advanced Air Mobility 

(AAM) concepts. AAM represents a future, automated air 

transportation system that will use new aircraft types to 

move people and cargo between places previously not served 

or underserved by aviation. Technical Center personnel 

created an integrated laboratory where AAM concepts can 

be demonstrated using simulated traffic from the manned and 

unmanned aircraft system traffic management. This capability 

will establish the Technical Center as a leader in AAM 

integration research. See more about AAM on page 21.

An important resource used by pilots and controllers to 

ensure aviation safety is voice communications. Voice 

communications are also one of the most resource-intensive 

aviation capabilities to simulate for human factors studies, 

operational tests, and training. The Technical Center 

developed an automated simulation pilot which can interpret 

spoken instructions from controllers and respond with 

realistic pilot voice communications and associated behaviors, 

such as changing speed, heading, and altitude. This simulation 

pilot integrates state-of-the-art machine learning speech 

recognition techniques with air traffic control information and 

communications systems to provide more accurate speech 

recognition performance and better determination of intent 

than is currently possible with commercially available tools.

Technical Center personnel also completed the development 

of the FAA’s first classified cyber range facility — the 

Secure Enterprise Cyber Test Range. This facility creates 

opportunities for continued and expanded collaboration 

with the Department of Defense, Department of Homeland 

Security, and other government agencies. In addition, an 

Interagency Agreement established with the Department of 

Energy’s National Renewable Energy Laboratory will support 

research into smart airports, including vehicle electrification, 

automation and mobility, optimized transportation systems, 

and ways to reduce carbon and greenhouse gas emissions. 
Fiscal Year 2021 21 | 

 FAA Performance and Accountability Report 

Management’s Discussion and Analysis

Accelerating the Integration and Operationalization of Emerging Technologies

The FAA’s William J. Hughes Technical Center is supporting the safe integration of Advanced Air Mobility (AAM) concepts 

which are illustrated in the above graphic. AAM, portrayed on the left side of the graphic, refers to a future automated air 

transportation system that will use new aircraft types to move people and cargo between places previously not served or 

underserved by aviation. Other traffic management concepts are portrayed on the right side of the graphic:

 Upper Class E Air Traffic Management – refers to operations that take place over 60,000 feet above mean sea level. 

 Air Traffic Management – refers to the operation of airport towers, air route traffic control centers, and flight service 

stations, as well as the development of air traffic rules, designation of airspace use, and control of air traffic, in order to 

provide the safe and efficient use of navigable airspace.

 UAS Traffic Management – refers to traffic management of low-altitude uncontrolled operations — below 400 feet above 

ground level. 
22 Fiscal Year 2021 | FAA Performance and Accountability Report 

Management’s Discussion and Analysis

Performance at a Glance

Our FY 2021 performance is summarized in the following tables and discussed in detail in the Performance Results section. The 

measures are grouped according to the FAA’s strategic goals. In FY 2021, the FAA achieved all 20 performance measures. The FAA 

has noted the measures for which the data provided are preliminary. A discussion of the methods used to validate the reporting 

performance information begins on page 76.

SAFETY

Oversee and operate the safest aerospace system in the world, all with a culture of continuous improvement. 

Performance Measure Org.

FY 2018 

Results

FY 2019 

Results

FY 2020 

Results

FY 2021 

Target

FY 2021 

Results

FY 2021 

Status

Commercial Air Carrier Fatality Rate*

Reduce the commercial air carrier fatalities per 100 million persons 

on board U.S. carriers by 50 percent over 18-year period — FY 2008–

2025. Target for FY 2021 is 5.4. 

AVS 0.1 0.5 0.61 5.4 0.02 ✓

Commercial Surface Safety Risk Index

Manage the weighted surface safety risk index at or below 0.35 per 

million airport operations for commercial aviation.

ATO

New 

Measure 

for 

FY 2019

0.1054 0.053 0.35 0.0373 ✓

Non-Commercial Surface Safety Risk Index

Manage the weighted surface safety risk index at or below 0.60 per 

million airport operations for non-commercial aviation.

ATO

New 

Measure 

for 

FY 2019

0.5374 0.204 0.6 0.1463 ✓

Top 5 Corrective Action Plan Implementation Through 

Collaboration Across the Air Traffic Organization (ATO)

Implement 85 percent of approved mitigation activities in 

association with ATO’s Top 5 identified trending safety issues in the 

national airspace system.

ATO 89% 93% 86% 85% 87% ✓

General Aviation Fatal Accident Rate*

Reduce the general aviation fatal accident rate to no more than 

0.89 fatal accidents per 100,000 flight hours by 2028. FY 2021 

Target: 0.96. 

AVS 0.89 0.95 0.911 0.96 0.732 ✓

Commercial Space Licensed and Permitted Launch and Reentry 

Safety

Ensure there are no fatalities, serious injuries, or significant property 

damage to the uninvolved public during licensed or permitted space 

launch and reentry activities.

AST 0 0 0 0 0 ✓

National On-Airport Policy, Processes, and Procedures for 

Unmanned Aircraft Systems (UAS)

FAA is working to enable the national use of UAS on and/or near 

airports for a variety of mission types.

ATO

New 

Measure 

for 

FY 2021

New 

Measure 

for 

FY 2021

New 

Measure 

for 

FY 2021

Meet all 

five targets

Met all five 

targets  ✓

Unmanned Aircraft Systems Remote Identification (ID) Outreach 

and Engagement

Facilitate early adoption of Remote ID technology by conducting six 

enterprise-level outreach and engagement activities. 

AVS

Updated 

Measure 

for 

FY 2021

Updated 

Measure 

for 

FY 2021

Updated 

Measure 

for 

FY 2021

Conduct 

six 

activities

Accomplished 

six activities ✓

* This performance measure supports a DOT Agency Priority Goal. ✓ Target met ✗ Target not met

1 Preliminary estimate until final results are available in December 2021. We do not expect any change in the result to be significant enough to alter our year-end 

status of achieving the target.

2 Preliminary estimate until final results are available in December 2022. We do not expect any change in the result to be significant enough to alter our year-end 

status of achieving the target.

3 Preliminary estimate until the final result becomes available in March 2022. We do not expect any change in the final result to be significant enough to alter our yearend status of achieving the target.

4 Metric revised to reflect data stream enhancements to reflect the most current and accurate information possible.
Fiscal Year 2021 | FAA Performance and Accountability Report 23

Management’s Discussion and Analysis

PEOPLE

Strengthen our current and future aviation workforce by holding ourselves accountable, developing our people and planning 

for the aviation workforce of the future. 

Performance Measure Org.

FY 2018 

Results

FY 2019 

Results

FY 2020 

Results

FY 2021 

Target

FY 2021 

Results

FY 2021 

Status

FAA Corporate Diversity and Inclusion Strategic Plan 

Develop and design a Five-Year Diversity and Inclusion Strategic 

Plan that will provide relevant, strategies, goals, and tools needed 

to create an inclusive, discrimination-free workplace where all 

employees will have the opportunity to reach their full potential.

ACR/

AHR

New 

Measure 

for 

FY 2021

New 

Measure 

for 

FY 2021

New 

Measure 

for 

FY 2021

Meet two 

targets

Met two 

targets ✓

FAA National Science, Technology, Engineering, and Math (STEM) 

Aviation and Space Education (AVSED) Program Governance 

Structure 

Fully implement the cross-agency STEM AVSED governance 

structure, to include the STEM AVSED Executive Board, and the 

STEM AVSED Steering Committee.

APL

Updated 

Measure 

for 

FY 2021

Updated 

Measure 

for 

FY 2021

Updated 

Measure 

for 

FY 2021

Meet all 

three 

targets

Met three 

targets ✓

✓ Target met ✗ Target not met

GLOBAL LEADERSHIP

Advance global aviation safety, operational excellence, and innovation by leading and collaborating with aviation authorities 

globally.

Performance Measure Org.

FY 2018 

Results

FY 2019 

Results

FY 2020 

Results

FY 2021 

Target

FY 2021 

Results

FY 2021 

Status

Implement FAA International Strategy and Enhance International 

Civil Aviation Organization (ICAO) Work

Contribute to the development of the U.S. government position 

regarding the ICAO Secretary General Election in March 2021 

and qualified U.S. citizens for ICAO’s senior technical and regional 

positions in order to have a direct and continuous influence at the 

U.N. technical agency.

APL

New 

Measure 

for 

FY 2021

New 

Measure 

for 

FY 2021

New 

Measure 

for 

FY 2021

Meet all 

three 

targets

Met three 

targets ✓

Promote International Safety and U.S. Interests

Influence the development of international approaches to ensure the 

safe and sustainable recovery of the aviation sector after the global 

health emergency.

APL

New 

Measure 

for 

FY 2021

New 

Measure 

for 

FY 2021

New 

Measure 

for 

FY 2021

Meet two 

targets

Met two 

targets ✓

✓ Target met ✗ Target not met
24 Fiscal Year 2021 | FAA Performance and Accountability Report 

Management’s Discussion and Analysis

OPERATIONAL EXCELLENCE

Operate the world’s most efficient aerospace system through daily execution, continuous improvement, and infrastructure 

investment. 

Performance Measure Org.

FY 2018 

Results

FY 2019 

Results

FY 2020 

Results

FY 2021 

Target

FY 2021 

Results

FY 2021 

Status

Major System Investments

Ninety percent of major baselined acquisition programs must 

be maintained within ten percent of their current acquisition 

cost, schedule and performance baseline as of the end of 

FY 2021.

AFN 90.5% 75% 65% 90% 90.9% ✓

Unmodified Audit Opinion

Obtain an unmodified audit opinion on the FAA’s FY 2021 

financial statements identified by external independent 

auditors.

AFN

Unmodified

audit 

opinion

w/no 

material

weakness

Unmodified

audit 

opinion

w/no 

material

weakness

Unmodified

audit

opinion

Unmodified

audit

opinion

Unmodified

audit

opinion

✓

Community Engagement

Develop informational tools on FAA’s efforts to safely and 

efficiently integrate new entrant vehicles to the national 

airspace, including Unmanned Aircraft Systems (UAS), Urban 

Air Mobility, and Commercial Space operations. 

ATO

New 

Measure for 

FY 2021

New 

Measure for 

FY 2021

New 

Measure for 

FY 2021

Meet two 

targets

Met two 

targets ✓

Environmental Efficiency and Emissions

Continue FAA leadership in improving environmental 

efficiency and addressing carbon emissions from aviation 

through domestic implementation of International Civil 

Aviation Organization (ICAO) airplane carbon dioxide 

standard and continued domestic implementation of the 

Carbon Offsetting and Reduction Scheme for International 

Aviation.

APL

New 

Measure for 

FY 2021

New 

Measure for 

FY 2021

New 

Measure for 

FY 2021

Submit data 

to ICAO

Data 

submitted ✓

NextGen Advisory Committee Commitments

Achieve 80 percent of NextGen Advisory Committee NextGen 

Priorities Joint Implementation Plan commitments, excluding 

industry-controlled milestones, within a calendar quarter of 

their scheduled dates and within 10 percent of the planned 

cost.

ANG 91.3% 97.5% 100% 80% 100% ✓

Return of our aviation system post COVID impacts

Sustain and improve critical FAA cross-cutting support 

functions in response to a global pandemic. 

ASH

New 

Measure for 

FY 2021

New 

Measure for 

FY 2021

New 

Measure for 

FY 2021

Meet all 

three 

targets

Met three 

targets ✓

Address 80 percent of Internet Accessible High-Value 

Assets with Critical and High Vulnerabilities

Address 80 percent of the FAA’s Internet accessible 

high value assets with critical and high vulnerabilities in 

accordance with Department of Homeland Security's Binding 

Operational Directive 19-02. Provide monthly updates to the 

Cybersecurity Steering Committee.

AFN

Updated 

Measure for 

FY 2021

Updated 

Measure for 

FY 2021

Updated 

Measure for 

FY 2021

80% 100% ✓

Integrate Commercial Space Transportation into the 

National Airspace System*

Develop and implement Time-Based Launch/Reentry 

Procedures and Dynamic Launch and Reentry Windows for 

integrating complex commercial space launch and reentry 

operations into the national airspace system.

ATO

New 

Measure for 

FY 2020

New 

Measure for 

FY 2020

Developed 

two 

procedures

Implement 

procedures 

at two sites

Procedures 

implemented 

at two sites 

✓

* This performance measure supports a DOT Agency Priority Goal. ✓ Target met ✗ Target not met
Fiscal Year 2021 | FAA Performance and Accountability Report 25

Management’s Discussion and Analysis

Alignment of FAA Costs and 

Strategic Goals

The FAA uses a cost accounting system to track and summarize 

costs by organizational unit and project. This enables the 

FAA to evaluate whether its spending is in alignment with 

the agency’s four strategic goals. At the beginning of each 

project, the FAA determines the degree to which the project 

will contribute to one or more of the strategic goals. The FAA 

then allocates actual project costs to the strategic goals that 

are supported by the project. Because the FAA also routinely 

accumulates costs by organizational unit, it is then able to 

assign total net costs among its five lines of business and the 

combined staff offices, by strategic goal.

The FAA’s total net cost of $25.7 billion was allocated to its 

four strategic goals, as described below and as shown in the Net 

Cost by Strategic Goal chart on this page, and in Note 14 of the 

financial statements.

Safety. A little over $16.9 billion, or approximately 66 percent of 

total net cost, was devoted to further enhance the outstanding 

safety record of the nation’s airspace.

 The Air Traffic Organization (ATO) spent approximately 

$10.5 billion, largely to maintain the safe separation of 

aircraft in the air and on the ground.

 The Office of Airports (ARP) provided approximately $4.6 

billion for projects to preserve or enhance safety. Of the 

$4.6 billion, airport grant costs from COVID-19 funds 

amounted to approximately $3.2 billion. 

 The Aviation Safety (AVS) Organization spent just under 

$1.7 billion on its programs to regulate and certify aircraft, 

pilots, and airlines, directly supporting the safety of 

commercial and general aviation.

 The Office of Security and Hazardous Materials Safety 

(ASH) spent approximately $121 million on its programs 

to ensure critical infrastructure protection, emergency 

operations, contingency planning, and the safe 

transportation of hazardous materials in air commerce.

 The Office of Commercial Space Transportation (AST) 

spent a little under $26 million in support of the agency’s 

safety goal.

 Collectively, the FAA staff offices and other programs 

spent about $71 million to further support the agency’s 

safety goal which was offset by revenues of $104 million 

primarily from overflight user fees, along with revenues 

from reimbursable agreements.

People. As a whole, the FAA committed approximately $147 

million to strengthen the agency’s ability to fulfill its safety, 

operational excellence, and global leadership missions through 

a highly diverse, engaged, and skilled workforce.

Global Leadership. Approximately $39 million was used to 

help the U.S. reassert its global influence in aviation safety and 

leadership reputation around the globe by becoming the gold 

standard in safety again. 

Operational Excellence. A little over $8.6 billion, or about 

33 percent of total net costs, was assigned to invest in better 

technologies that enable efficiencies, while concurrently 

sustaining the existing infrastructure of the national airspace 

system.

 The ATO spent over $1.8 billion, largely to finance its 

facilities and equipment projects.

 ARP also provided approximately $6.6 billion to build or 

reconstruct core airfield infrastructure projects involving 

runways and taxiways, and sustain the operational 

excellence of US airports during the COVID-19 pandemic. 

Of the $6.6 billion, airport grant costs from COVID-19 

funds amounted to approximately $4.0 billion. 

NET COST BY STRATEGIC GOAL

as of September 30, 2021

(Dollars in Thousands)

 Safety

 People

 Global Leadership

 Operational Excellence

66%

<1% <1%

33%

Total $25,722,131 

PREPARING TO FLY? 

Visit https://www.faa.gov/travelers/

prepare_fly/ before you get to the airport 

for travel tips, information on weather and 

delays, and resources for passengers with 

disabilities.

ALREADY AT THE AIRPORT? 

Visit m.faa.gov from your mobile device for 

up-to-date information on airport status and 

delays, and the latest news from the FAA.
26 Fiscal Year 2021 | FAA Performance and Accountability Report 

Management’s Discussion and Analysis

Financial Highlights

Discussion and Analysis of the 

Financial Statements

The FAA prepares annual financial statements in conformity 

with accounting principles generally accepted in the United 

States. The financial statements are subject to an independent 

audit to ensure that they are free from material misstatement 

and that they can be used to assess the FAA’s performance.

FY 2021 Financial Statements Audit

The Chief Financial Officers Act of 1990 (Public Law 101–576), 

as amended by the Government Management Reform Act 

of 1994, requires that financial statements be prepared by 

certain agencies and commercial-like activities of the federal 

government and that the statements be audited in accordance 

with Generally Accepted Government Auditing Standards. 

The FAA is required to prepare its own financial statements 

under Office of Management and Budget (OMB) Bulletin No. 

21-04, Audit Requirements for Federal Financial Statements. The 

Department of Transportation's (DOT) Office of Inspector 

General (OIG) is statutorily responsible for the manner in which 

the audit of the FAA’s financial statements is conducted. The 

OIG selected KPMG LLP, an independent public accounting 

firm, to audit the FAA’s FY 2021 financial statements.

KPMG LLP has rendered an unmodified audit opinion on the 

FAA’s FY 2021 financial statements.

Understanding the Financial Statements

The FAA’s Consolidated Balance Sheets, Statements of Net 

Cost, Changes in Net Position, and Combined Statements 

of Budgetary Resources have been prepared to report the 

financial position and results of operations of FAA, pursuant 

to the requirements of the Chief Financial Officers Act of 

1990 and the Government Management Reform Act of 1994. 

The following section provides a brief description of (a) the 

nature of each financial statement and its relevance to FAA, 

(b) significant fluctuations from FY 2020 to FY 2021, and 

(c) certain significant balances, where necessary, to help clarify 

their link to the FAA’s operations.

Financial Impact of COVID-19 

The American Rescue Plan Act of 2021 (ARPA) provided an 

additional $8 billion in general fund appropriations for Relief 

for Airports to be allocated to sponsors of airports to prevent, 

prepare for and respond to coronavirus. Specifically, $6.6 billion 

can be used for operational expenses and debt service, $800 

million can be used for rent and airport concessions, and the 

remaining $600 million can be used to fund up to 100% of the 

federal share of any airport development grant awarded in 

FY 2020 or FY 2021.

The Coronavirus Response and Relief Supplemental 

Appropriations Act, 2021 (CRRSA), provided an additional $2 

billion in general fund appropriations for Grants-in-Aid for 

Airports to prevent, prepare for, and respond to COVID-19. 

Airport grants issued with CRRSA Act funds can be used for 

operational expenses and debt service. 

The Coronavirus Aid, Relief, and Economic Security (CARES) Act

in FY 2020 provided an additional $10 billion in general fund 

appropriations for Grants-in Aid for Airports to prevent, prepare 

for, and respond to the COVID-19 pandemic. The continuing 

grant activity from the CARES Act was significant in FY 2021. 

The CARES Act also suspended the collection of almost all 

aviation excise taxes for the third and fourth quarter of FY 2020 

and the first quarter of FY 2021. 

Due to the CARES Act suspension of the collection of almost all 

aviation excise taxes, the Continuing Appropriations Act, 2021 

and Other Extensions Act (Public Law 116-159), included a $14 

billion general fund transfer to the Airport and Airway Trust 

Fund (AATF) in order to shore up the AATF to ensure funding 

stability for federal aviation programs. This general fund 

transfer to the AATF is also referred to as a cash infusion.

The combined financial impact of ARPA, CRRSA, CARES and 

the $14 billion general fund transfer to AATF may create 

significant comparative differences between FY 2021 and 

FY 2020. These comparative differences will be discussed 

below as they are reflected in FAA’s principal financial 

statements.
Fiscal Year 2021 | FAA Performance and Accountability Report 27

Management’s Discussion and Analysis

Balance Sheet

The balance sheet presents the amounts available for use by FAA (assets) against the amounts owed (liabilities) and amounts that 

comprise the difference (net position).

Assets 

The FAA’s assets are the resources available to pay liabilities or satisfy future service needs. The following table presents a 

comparison of key asset measures as of September 30, 2021 and 2020.

(Dollars in Thousands) 2021 Percent 2020 Percent Increase/(Decrease)

ASSETS

Fund balance with Treasury $ 13,196,463 30 $ 10,995,645 32 $ 2,200,818 

Investments, net 18,189,656 41 10,259,928 30 7,929,728 

General property, plant and equipment, net 11,670,008 27 11,917,696 35 (247,688)

Other assets 948,135 2 947,881 3 254 

Total assets $ 44,004,262 100 $ 34,121,150 100 $ 9,883,112 

Fund balance with Treasury represents 30 percent of the FAA’s 

current period assets and consists of funding available through 

the Department of Treasury accounts from which the FAA 

is authorized to make expenditures to pay liabilities. It also 

includes passenger ticket and other excise taxes deposited to 

the Airport and Airway Trust Fund (AATF), but not yet invested. 

Fund balance with Treasury ended the year at $13.2 billion 

compared to $11.0 billion in 2020. The increase of $2.2 billion 

is primarily due to the $8.0 billion general fund appropriation 

for ARPA of which $7.7 billion remains and the $2.0 billion 

general fund appropriation for CRRSA of which $1.4 billion 

remains. The remaining funds from ARPA and CRRSA are offset 

by a comparative decrease in the remaining CARES Act funds 

of $4.3 billion and a comparative decrease of $1.7 billion in the 

AATF fund balance as of September 30, 2021 due to the excise 

tax certification adjustment for the tax period ending June 30, 

2021. The COVID-19 funding from CARES, ARPA, and CRRSA 

has had a significant impact on the fund balance with Treasury

and represents $11.6 billion of the FY 2021 ending balance. 

The COVID-19 funding remains a part of the fund balance with 

Treasury until grant recipients claim reimbursement for eligible 

costs incurred. 

At $18.2 billion, Investments represent 41 percent of the 

FAA’s current period assets, and are comprised of AATF 

investments and Aviation Insurance Program investments. The 

AATF investments are derived primarily from the collection of 

passenger ticket and other excise taxes deposited semi-monthly 

to the AATF. The deposited taxes are invested within several 

business days, thus transitioning the asset classification from 

fund balance with Treasury to investments. The AATF investment 

balances increased approximately $7.9 billion on a comparative 

basis. The increase was principally the result of the $14.0 billion 

cash infusion from the general fund, mentioned earlier, offset 

by a net decrease of $6.0 billion between excise tax collections 

and interest earned of $10.2 billion against the $16.2 billion of 

drawdowns to cover current period disbursements.

The investment balances also include the Aviation Insurance 

Program investments. These investments are redeemed, as 

needed, to finance the FAA’s daily operations to the extent 

authorized by the U.S. Congress, and to pay potential insurance 

claims. The Aviation Insurance Program investment balance 

decreased by $84.4 million to $2.2 billion due to a security that 

matured and was not yet reinvested as of September 30, 2021.

At $11.7 billion, General property, plant, and equipment, net

(PP&E) represents 27 percent of the FAA’s assets as of 

September 30, 2021, and primarily comprises construction in 

progress related to the development of the national airspace 

system assets, and capitalized real and personal property. 

There was a decrease of $248 million in the total composition 

of PP&E, as retirements, disposals, and depreciation exceeded 

purchases of equipment and additions to construction in 

progress through the normal course of business.
28 Fiscal Year 2021 | FAA Performance and Accountability Report 

Management’s Discussion and Analysis

Liabilities 

Liabilities are probable and measurable future outflows of resources arising from past transactions or events. The following table 

presents a comparison of key liability measures as of September 30, 2021 and 2020.

(Dollars in Thousands) 2021 Percent 2020 Percent Increase/(Decrease)

LIABILITIES

Accrued grant liabilities $ 7,230,444 67 $ 5,161,060 59 $ 2,069,384 

Federal employee benefits payable 1,328,131 12 1,343,644 15 (15,513)

Environmental and disposal liabilities 752,148 7 745,540 8 6,608 

Accounts payable 451,630 4 440,076 5 11,554 

Other liabilities 1,120,505 10 1,120,687 13 (182)

Total liabilities $ 10,882,858 100 $ 8,811,007 100 $ 2,071,851 

The FAA’s accrued grant liabilities are estimated amounts incurred, 

but not yet claimed, by Airport Improvement Program grant 

recipients and represent 67 percent of liabilities. Accrued grant 

liabilities increased significantly by $2.1 billion to $7.2 billion as 

of September 30, 2021. The increase is primarily comprised of 

year-end grants payable accruals totaling $6.4 billion for ARPA, 

CRRSA, and the CARES Act grants compared to $4.3 billion for 

the CARES Act grants alone in FY 2020. The accrued grants 

payable liability for the existing non-COVID-19 related grants 

programs basically remained constant year over year.

At $1.3 billion, Federal employee benefits payable represent 12 

percent of the FAA’s current year liabilities, and consist of the 

FAA’s expected liability for death, disability, and medical costs 

for approved workers’ compensation cases, plus a component 

for incurred but not reported claims. The Department of Labor 

calculates the liability for the DOT, and the DOT attributes a 

proportionate amount to the FAA based upon actual workers’ 

compensation payments to FAA employees over the preceding 

four years. This liability is updated on an annual basis at year end.

Environmental and disposal liabilities represent 7 percent of the 

FAA’s total liabilities and increased slightly by $6 million to $752 

million as of September 30, 2021 compared with $746 million 

a year earlier. Environmental and disposal liabilities include a 

component for remediation of known contaminated sites that 

increased by $12 million on a comparative basis. The other 

component of environmental liabilities includes the estimated 

costs for future facility decommissioning. This component’s 

costs decreased by a total of $6 million on a comparative basis.

Accounts payable represents 4 percent of liabilities and 

increased slightly by $12 million. Accounts payable are the 

amounts the FAA owes to other entities for unpaid goods and 

services received.

At $ 1.1 billion, Other liabilities represent 10 percent of the FAA’s 

total liabilities. These liabilities remained constant year over 

year and are comprised mainly of $359 million in advances from 

others and deferred revenue, $147 million in Federal Employee’s 

Compensation Act payable, $118 million in accrued payroll and 

benefits, $337 million in accrued leave and benefits, $52 million 

in legal claims liability, and $45 million in capital lease liability.

Statement of Net Cost

The Statement of Net Cost presents the cost of operating the FAA’s programs. The gross expense, less any earned revenue, 

represents the net cost of specific program operations. The FAA has used its cost accounting system to prepare the annual 

Statement of Net Cost since FY 1999. In contrast to the budgetary basis of accounting applicable to the Statement of Budgetary 

Resources discussed in Note 1C (page 103), balances reported on the Statement of Net Cost are reported on an accrual accounting 

basis. Under the accrual method, revenues are recognized when earned, and expenses are recognized when a liability is incurred.

The following table presents a comparison of FAA’s net costs by line of business for the years ended September 30, 2021 and 2020.
Fiscal Year 2021 | FAA Performance and Accountability Report 29

Management’s Discussion and Analysis

(Dollars in Thousands) 2021 Percent 2020 Percent Increase/(Decrease)

NET COSTS

Air Traffic Organization $ 12,459,208 48 $ 12,078,641 48 $ 380,567 

Airports 11,225,978 44 11,300,066 45 (74,088)

Aviation Safety 1,730,971 7 1,610,340 6 120,631 

Security and Hazardous Materials Safety 134,149 < 1 93,526 < 1 40,623 

Commercial Space Transportation 34,186 < 1 28,322 < 1 5,864 

Non-line of business programs 137,639 < 1 78,322 < 1 59,317 

Total net cost $ 25,722,131 100 $ 25,189,217 100 $ 532,914 

With a net cost of $12.5 billion, the Air Traffic Organization is the 

FAA’s largest line of business, comprising 48 percent of total 

net costs. The Air Traffic Organization’s net costs increased by 

$381 million, on a comparative basis, primarily from increases 

in costs for contractor services, labor, and employee benefits 

offset by a decrease in equipment and transportation costs.

The Airports line of business net cost decreased slightly from 

$11.3 billion to $11.2 billion for the fiscal year ended September 

30, 2021, and represents 44 percent of the FAA’s total net 

costs. Airports net costs are comprised primarily of Stewardship 

Investments from the Airport Improvement Program. The 

Stewardship Investments are made through grants to airport 

authorities, local and state governments, and metropolitan 

planning authorities for airport facilities throughout the 

United States and its territories. In FY 2021, the combined 

grant expenses for all grant activity including CARES, CRRSA, 

and ARPA, accounted for 92 percent of the Airports net cost 

decrease from FY 2020 on a comparative basis.

At $1.7 billion, the net cost for Aviation Safety represents 7 percent 

of the FAA’s total net costs, while Security and Hazardous Materials 

Safety, Commercial Space Transportation, and non-line of business 

programs each represent less than 1 percent of total net costs.

Statement of Changes in Net Position

The Statement of Changes in Net Position presents those accounting items that caused the net position section of the balance sheet 

to change from the beginning to the end of the reporting period. Various financing sources increase net position. These financing 

sources include appropriations received and non-exchange revenue, such as excise taxes and imputed financing from costs paid on 

the FAA’s behalf by other federal agencies. The agency’s net cost of operations and net transfers to other federal agencies serve to 

reduce net position.

The following table presents a comparison of key measures of net position for the years ended September 30, 2021 and 2020.

(Dollars in Thousands) 2021 2020 Percent Change Increase/(Decrease)

CHANGES IN NET POSITION

Unexpended appropriations, ending $ 5,555,123 $ 432,928 1183 $ 5,122,195 

Cumulative results of operations, ending 27,566,281 24,877,215 11 2,689,066 

Net position $ 33,121,404 $ 25,310,143 31 $ 7,811,261 

Unexpended appropriations increased from $433 million to 

$5.6 billion. The $5.1 billion increase is comprised mostly from 

appropriations received of $24.9 billion offset by appropriations 

used of $19.7 billion. The appropriations received are primarily 

comprised of general fund appropriations of $14.0 billion from 

the AATF cash infusion, $8.0 billion from ARPA, and $2.0 

billion from CRRSA. The appropriations used are primarily 

comprised of the cash infusion into the AATF of $14.0 billion 

and the $2.0 billion from CRRSA, both of which are required 

to be transferred from the general fund account to the trust 

fund account resulting in appropriations used at the time of the 

transfer. Additionally, there was $3.2 billion of appropriations 

used from ARPA. The general fund appropriation from ARPA 

did not require a transfer to the trust fund.

The Net Change in FAA’s Cumulative Results of Operations for 

the fiscal year ended September 30, 2021, was an increase of 

$2.7 billion from $24.9 billion to $27.6 billion. The $2.7 billion 

increase is comprised primarily of $19.7 billion in appropriations 

used and $8.5 billion in non-exchange revenue offset by a net 

cost of $25.7 billion. The appropriations used are discussed 

above in Unexpended appropriations. The non-exchange revenue 

is almost entirely from the aviation excise tax collections and 

interest earned on AATF investments. 
30 Fiscal Year 2021 

| FAA Performance and Accountability Report

Management’s Discussion and Analysis

Statement of Budgetary Resources

The Statement of Budgetary Resources provides information on the budgetary resources available to the FAA and the status of 

those budgetary resources. The following table presents a comparison of key budgetary resource measures for the years ended 

September 30, 2021 and 2020.

(Dollars in Thousands) 2021 2020 Percent Change Increase/(Decrease)

BUDGETARY RESOURCES

Total budgetary resources $ 62,380,658 $ 55,793,608 12 $ 6,587,050 

New obligations and upward adjustments $ 52,810,501 $ 49,437,939 7 $ 3,372,562 

Agency outlays, net $ 23,003,059 $ 20,351,738 13 $ 2,651,321 

The FAA’s Total budgetary resources consist of new budget 

authority and unobligated balances of budget authority 

provided in previous years. New budget authority consists of 

the enacted budget, as well as other funding sources made 

available which are not provided through the enactment of 

annual appropriations. This also includes expenditure transfers 

of resources between federal fund types, which reflect the 

resources in both the enacted account and the program account 

to which they are transferred. Total budgetary resources for 

the fiscal year ended September 30, 2021 were $62.4 billion, 

of which $55.6 billion of new budget authority comes from 

appropriations, contract authority, and offsetting collections. 

The appropriations of $41.0 billion include the annual funding 

for Operations, Facilities and Equipment, Research, Engineering 

and Development and Grants-in-Aid to Airports totaling $14.6 

billion. There are additional supplemental appropriations of 

$14.0 billion for a cash infusion to shore up the AATF due to 

the excise tax holiday included in last year’s CARES Act, $8 

billion from ARPA, $2 billion from CRRSA, and $2.4 billion 

of appropriated receipts resulting from financial transfers 

between general and trust funds. Contract authority remained 

constant at $3.4 billion while spending authority from offsetting 

collections slightly decreased to $11.2 billion. 

Total budgetary resources for the fiscal year ended September 

30, 2020, were $55.8 billion, of which $49.3 billion of new 

budget authority comes from appropriations, contract 

authority, and offsetting collections. The appropriations 

of $34.7 billion include the annual funding for Operations, 

Facilities and Equipment, Research, Engineering and 

Development and Grants-in-Aid to Airports totaling $14.3 

billion. There was an additional supplemental appropriation 

of $10.0 billion for the CARES Act and $10.4 billion of 

appropriated receipts resulting from financial transfers between 

general funds and trust funds. Contract authority was $3.4 

billion while offsetting collections were $11.3 billion. 

New obligations and upward adjustments result from an order 

placed, contract awarded, service received, or similar transaction, 

which will require payments during the same or a future period. 

New obligations and upward adjustments increased $3.4 billion 

from $49.4 billion to $52.8 billion. The increase is mainly from 

new obligations from the AATF cash infusion, ARPA, and CRRSA 

of $21.2 billion, of which $16.0 billion is the result of expenditure 

transfers between FAA funds, and a comparative increase of 

approximately $1.0 billion from recurring programs. The increases 

are offset by an $18.9 billion comparative decrease in CARES 

Act obligations. The CARES Act obligations were $19.4 billion 

in FY 2020, of which $10.0 billion is the result of expenditure 

transfers between FAA funds, compared to new obligations of 

$512 million in FY 2021 which accounts for the large variance. 

Net outlays reflect the actual cash disbursed by the Treasury 

for the FAA’s obligations net of offsetting collections. Net 

outlays, net of distributed offsetting receipts, increased by $2.6 

billion from $ 20.4 to $23.0 billion. The increase is primarily 

comprised of net outlays from the AATF cash infusion, CRRSA, 

and ARPA of $16.9 billion and an increase of $449 million in 

recurring programs offset by a comparative decrease of $8.8 

billion from the CARES Act which amounts to a comparative 

increase in net outlays of $8.5 billion. The distributed offsetting 

receipts including the AATF cash infusion, CRRSA, and CARES 

increased by $6.0 billion. The increase in net outlays of $8.5 

billion reduced by the increase in distributed offsetting receipts 

of $6.0 billion accounts for $2.5 billion of the year over year 

increase of $2.6 billion. 

Expenditure Transfers between FAA Accounts

Budgetary concepts require that appropriations derived from 

the Airport and Airway Trust Fund for a general fund program be 

transferred through an intermediary trust fund program account. 

The appropriated amount is transferred, as needed to fund 

current period disbursements, from the Airport and Airway Trust 

Fund to a trust fund program account, then transferred from the 

trust fund program account to the general fund program account.

The following is an illustrative example that shows the effect of 

these transfers on budgetary resources.
Fiscal Year 2021 31 | 

 FAA Performance and Accountability Report 

Management’s Discussion and Analysis

(Dollars in Thousands)

Trust Fund 

Account

General Fund 

Account

Appropriations $ 10,519,000 $ –

Spending authority from 

offsetting collections – 10,519,000 

Total budgetary resources $ 10,519,000 $ 10,519,000 

New obligations and upward 

adjustments

Expenditure transfers - paid $ 9,500,000 $ –

Expenditure transfers - payable 1,019,000 –

Apportioned, unexpired account – 10,519,000 

Total budgetary resources $ 10,519,000 $ 10,519,000 

Outlays, net 

Expenditure transfers - paid $ 9,500,000 $ –

Expenditure transfers - collected – (9,500,000)

Agency outlays, net $ 9,500,000 $ (9,500,000)

Similarly, budgetary concepts require that general fund 

appropriations for trust fund programs be deposited to a 

general fund payment account, apportioned, then transferred 

to an available trust fund receipt account, fully expending 

the appropriation. The transfer-in to the available trust fund 

receipt account is then recorded as an appropriated receipt, 

apportioned, and available for obligation.

The following is an illustrative example that shows the effect of 

these transfers on budgetary resources.

(Dollars in Thousands)

General Fund 

Account

Trust Fund 

Account

Appropriations

General fund appropriations 

realized $ 16,400,000 $ –

Appropriated receipts – 16,400,000 

Total budgetary resources $ 16,400,000 $ 16,400,000 

New obligations and upward 

adjustments

Expenditure transfer $ 16,400,000 $ –

Apportioned, unexpired account – 16,400,000 

Total budgetary resources $ 16,400,000 $ 16,400,000 

Outlays, net $ 16,400,000 $ –

Distributed offsetting receipts – (16,400,000)

Agency outlays, net $ 16,400,000 $ (16,400,000)

Other Matters

Climate Change Risks

Environmental impacts, such as that resulting from climate 

change, can have potentially profound impacts on the assets 

and infrastructure supporting the nation’s airspace system. 

An example of FAA’s efforts to assess and measure the risk to 

national airspace assets resulting from category 1-4 hurricanes 

includes a study of 14 areas in the northeastern United States, 

finding that 12 are at risk of water inundation. While the 

Northeast has historically experienced less frequent hurricane 

activity than the Southeast and Gulf Coast, hurricanes may also 

increase in severity due to climate change. 

Climate change can also have potentially profound impacts on 

airports. The FAA recognizes, for example, that it may need to 

make investments for airports exposed to flooding and melting 

permafrost ground. Runways, taxiways, aprons, and other airport 

infrastructure may need to be rebuilt, replaced, or relocated. As 

temperatures rise, aircraft need longer runways to safely takeoff. 

There is also potential for climate-driven changes to wildlife 

habitats and migratory patterns around airports. The FAA 

continues to assess these risks and is working with airports to 

address and mitigate these risks through infrastructure grants. 

While climate change presents some degree of risk to FAA’s 

assets, program costs, and financial position, such matters are 

not reflected in the FAA’s financial statements because they do 

not meet the accounting standards for recognition of liabilities. 

Limitations of the Financial Statements

The principal financial statements are prepared to report 

the financial position, financial condition, and results of 

operations, pursuant to the requirements of 31 U.S.C. 3515(b). 

The statements are prepared from records of Federal entities 

in accordance with Federal generally accepted accounting 

principles (GAAP) and the formats prescribed by OMB. 

Reports used to monitor and control budgetary resources are 

prepared from the same records. Users of the statements are 

advised that the statements are for a component of the U.S. 

Government.
32 Fiscal Year 2021 | FAA Performance and Accountability Report 

Management’s Discussion and Analysis

Budgetary Integrity: FAA 

Resources and How They 

Are Used

The following discussion of FAA's Resources and How They 

Are Used is graphically shown on page 33. The FAA receives 

budget authority to obligate and expend funds from both 

the General Fund of the U.S. Treasury and the Airport and 

Airway Trust Fund (AATF). Created by the Airport and Airway 

Revenue Act of 1970, the AATF pays for investments in the 

airport and airway system and a majority of the FAA’s operating 

costs. Aviation excise taxes, which include taxes on domestic 

passenger tickets, freight way bills, general and commercial 

aviation fuel, and international departures and arrivals, are 

deposited into the AATF. The Department of the Treasury, 

which administers the AATF, invests those funds in government 

securities. Interest earned is also deposited into the AATF. 

Funds are withdrawn from the AATF as needed to meet cash 

disbursement needs. 

The unparalleled drop in aviation activity in 2020 and the 

temporary suspension of aviation-related excise taxes resulted 

in greatly decreased revenues flowing into the AATF last 

year. To address this challenge, on October 1, 2020, the U.S. 

Congress appropriated a one-time infusion of $14 billion into 

the AATF. This appropriation allowed the trust fund to continue 

supporting the FAA’s budget in FY 2021.

In FY 2021, the AATF paid for approximately 95 percent of the 

FAA’s enacted budget authority provided in the Consolidated 

Appropriations Act, 2021 (Public Law 116-260), with the 

remaining funds coming from the General Fund of the U.S. 

Treasury. In addition to the funding provided in the Act for the 

FAA’s annual budget, the FAA received supplemental funds 

from the Coronavirus Response and Relief Supplemental 

Appropriations Act, 2021 (CRRSA), which was included in 

the same public law as the Consolidated Appropriations Act, 

2021, as well as the American Rescue Plan Act of 2021 (ARPA)

(Public Law 117-2), which the U.S. Congress enacted in March 

2021. CRRSA provided the FAA an additional $2 billion and 

ARPA provided another $8 billion from the General Fund to 

help the nation’s airports contend with the financial impacts 

of COVID-19. ARPA also provided $9 million from the General 

Fund to allow FAA employees to take paid leave for COVID19-related reasons. While these supplemental appropriations 

increased the total amount of funding provided to the FAA, 

they reduced the AATF share of the FAA’s total budget to 

61 percent for FY 2021.

The FY 2021 enacted budget of $27.97 billion was an increase 

of $354 million (1.3 percent) from the FY 2020 enacted level, 

which also included $10 billion in supplemental appropriations 

from the General Fund for COVID-19 relief. Absent the 

supplemental funding from both fiscal years, the FY 2021 FAA 

budget was an increase of $345 million (2.0 percent) over the 

FY 2020 enacted level.

The FAA requests and receives its funding in four primary 

accounts: 

 Operations

 Grants-in-Aid for Airports

 Facilities and Equipment (F&E)

 Research, Engineering, and Development (RE&D)

The largest account, Operations, is supported by both the 

General Fund and the AATF. In FY 2021, the AATF supported 

96 percent of the funding for the Operations account. In most 

previous years, the AATF supported 100 percent of the funding 

for the three other accounts — Grants-in-Aid for Airports, F&E, 

and RE&D. Since FY 2018, however, the Grants-in-Aid for 

Airports account has received funding from both the AATF and 

the General Fund. Due to the large supplemental appropriation 

for COVID-19, the AATF provided 58 percent of the total 

funding for the Grants-in-Aid for Airports account in FY 2021.

In addition to these longstanding accounts, in FY 2021 the 

FAA established two new budget accounts — Relief for Airports 

for the airport funding provided in ARPA, and the Emergency 

Leave Fund for funding provided in ARPA to cover paid leave 

for COVID-19-related needs. As mentioned above, the funding 

in both of these accounts is supported by the General Fund. 

The following information provides further details on the FAA's 

budget accounts (with the exception of the Emergency Leave 

Fund, which includes only $9 million in FY 2021).

Operations. This account finances operating costs, 

maintenance, communications, and logistical support for the 

air traffic control and air navigation systems. It also funds 

the salaries and costs associated with safety inspections and 

regulatory responsibilities. In addition, the account covers 

administrative and managerial costs for international, medical, 

engineering, and development programs, as well as for policy 

oversight and overall management functions. For FY 2021, the 

Operations account received $10.5 billion from the AATF and 

$0.5 billion from the General Fund. This funding level is 3.6 

percent greater than the FY 2020 level.
Fiscal Year 2021 | FAA Performance and Accountability Report 33

Management’s Discussion and Analysis

Grants-in-Aid for Airports. This account funds the Airport 

Improvement Program (AIP), through which the FAA awards 

grants for airport planning and development to maintain a 

safe and efficient nationwide system of public airports. These 

grants normally fund approximately one-third of all capital 

development at the nation’s public-use airports. The FAA issues 

grants to maintain and enhance airport safety, preserve existing 

infrastructure, and expand capacity and efficiency throughout 

the system. The account also funds airport-related research 

and the administrative costs of the FAA’s Office of Airports. 

FY 2021 funding for the account was $3.75 billion, with $400 

million of that total coming from the General Fund. This funding 

is unchanged from the FY 2020 levels. In addition, the account 

received $2 billion from the General Fund from CRRSA in 

FY 2021. When combined with the $8 billion provided from 

ARPA in the Relief for Airports account, this funding is equal 

to the level provided from the General Fund in FY 2020 for 

COVID-19 airports grants.

F&E. This account funds the capital improvement projects 

necessary to establish, replace, relocate, or improve air 

navigation facilities and equipment and aviation safety systems 

across the national airspace system, particularly through 

programs supporting NextGen. F&E received $3.015 billion 









Grants-in-Aid

for Airports

ARP





Relief for 

Airports

ARP





are appropriated to these

BUDGET ACCOUNTS Operations

ATO

AVS

ASH

AST

Non-Line 

of Business 

Programs









F&E

ATO

AVS

ASH

AST

Non-Line 

of Business 

Programs









RE&D

ATO

AVS

AST

Non-Line 

of Business 

Programs

to support the

FAA LINES OF 

BUSINESS

and 

NON LINE OF

BUSINESS PROGRAMS

which support these 

STRATEGIC GOALS

Safety

People

Global Leadership

Operational Excellence

General Fund Airport and

Airway Trust Fund

Two Primary

SOURCES OF FUNDING

FAA Resources and How They Are Used

1x

This chart aligns with the presentation of the FAA’s audited Consolidated Statements of Net Cost on page 99 and Net Cost by Program and Strategic Goal in 

Note 14 on page 124. The columns represent each of the FAA’s budget accounts in FY 2021, with the exception of the Emergency Leave Fund, which includes 

only $9 million in FY 2021. The chart also shows a one-time infusion of funding from the General Fund into the Airport and Airway Trust Fund (refer to pages 27, 

29, 30, and 32 for more information). Net costs are presented among FAA’s five lines of business and collectively for its non-line of business programs. 

General and administrative costs from the FAA’s staff offices are allocated to the lines of business they support, on a reasonable and consistent basis. For more 

information, also see discussion of funding sources on pages 32–34 and the FAA’s lines of business and staff offices on pages 10–11. 

In FY 2021, the Grants-in-Aid for Airports account received an additional $2 billion from the General Fund for COVID-19-related supplemental funding. 

In addition to the primary funding types listed above, the FAA also receives budgetary resources from revolving funds and user fees that are not graphically 

illustrated. For additional information on these funding sources, refer to page 34.
34 Fiscal Year 2021 | FAA Performance and Accountability Report 

Management’s Discussion and Analysis

from the AATF in FY 2021, a decrease of 1 percent from the 

FY 2020 level.

RE&D. This account funds research, engineering, and 

development programs to plan, conduct, and integrate domestic 

and international research efforts, and develop products 

and services that will ensure a safe, efficient, and more 

environmentally-conscious global air transportation system. The 

RE&D account received $198 million from the AATF in FY 2021, 

an increase of about 2.8 percent above the FY 2020 level.

Relief for Airports. The FAA established this account in FY 2021 

for the $8 billion provided in ARPA from the General Fund to 

help the nation’s airports contend with the financial impacts 

of COVID-19. When combined with the $2 billion provided 

from CRRSA in the Grants-in-Aid for Airports account (also in 

FY 2021), this funding is equal to the level provided from the 

General Fund in FY 2020 for COVID-19 airports grants.

The FAA must use its funds in the way they are appropriated. 

On its own, the FAA does not possess the legal authority to 

move funds between these accounts. A transfer between 

accounts requires an act of the U.S. Congress.

Other Budgetary Resources. In addition to the primary funding 

resources appropriated by the U.S. Congress, the FAA also 

receives budgetary resources from revolving funds and user 

fees. Revolving funds are accounts established by law to 

finance a continuing cycle of operations with receipts derived 

from such operations. These funds are usually available in their 

entirety for their intended use without further action by the 

U.S. Congress. User fees are specific charges for the purchase 

or use of government goods or services. The “other funds” 

described next are not part of the enacted budget, but do 

provide another source of budgetary resources.

Aviation Insurance Revolving Fund. The Aviation Insurance 

Revolving Fund provides non-premium war risk insurance, 

which includes hull loss and passenger, crew, and third-party 

liability coverage, for certain U.S. government-contracted 

air carrier operations, as authorized by 49 U.S.C. 44305. 

This non-premium insurance authority is authorized through 

September 30, 2023.

Administrative Services Franchise Fund (Franchise Fund). 

The Franchise Fund is a revolving fund designed to create 

competition within the public sector in the performance of 

a wide variety of support services. These services include 

accounting, travel, multi-media, information technology, 

logistics and material management, aircraft maintenance, 

international training, and management training.

Aviation Overflight User Fees. Aviation Overflight User Fees 

is a fund whose receipts come from charges to operators of 

aircraft that fly in U.S.-controlled airspace, but neither take off 

nor land in the United States. Under current law, the receipts 

are transferred to the Office of the Secretary of Transportation 

and used to support air service at certain locations under the 

Essential Air Service program.

Passengers walking through the terminal in Orlando, Florida. 

Photo by Khairil A Junos/Bigstock Images.
Fiscal Year 2021 | FAA Performance and Accountability Report 35

Management’s Discussion and Analysis

Keeping it ‘CLEEN’ 

Aviation has made tremendous environmental performance 

gains, largely from advances in technologies that are helping to 

make air transportation cleaner, quieter, and more efficient. So 

what’s next on the horizon?

The FAA is working on technological, operational, and policy 

solutions to reduce the environmental impacts of aviation. 

In partnership with industry, the FAA’s Continuous Lower 

Energy, Emissions, and Noise (CLEEN) Program is developing 

certifiable aircraft and engine technologies that reduce noise, 

produce fewer emissions, and use less fuel. The CLEEN 

Program, initiated in 2010, has goals for fuel burn, emissions, 

and noise reduction tied to environmental standards that 

aircraft and engines are required to meet as a part of their 

airworthiness certification. 

Through the CLEEN Program, the FAA shares the cost of 

accelerating development of these environmentally beneficial 

technologies with industry. Phase I of the CLEEN Program 

(2010 to 2015) funded several technologies that are in service 

today, including General Electric’s low emissions twin-annular 

pre-mixing swirler combustors, which help reduce nitrogen 

oxides and non-volatile particulate matter emissions. Phase II 

of the CLEEN Program began in 2015, supporting an increased 

range of engine and aircraft technologies and alternative fuel 

projects. Some of these projects are ongoing and have an 

expected date of entry into commercial service by 2026.

Expanding on CLEEN Phases I and II, the third phase of the 

Program, which launched this year and runs through 2026, 

includes new goals for reducing community noise exposure, 

which complements the long-standing CLEEN goal to develop 

and demonstrate certifiable aircraft technologies that reduce 

noise levels. It also has a new goal to reduce aircraft engine 

particulate matter emissions (including soot) to complement 

the long-standing goal of reducing nitrogen oxide emissions. 

Whereas the first two phases of the CLEEN Program focused 

on subsonic (slower than the speed of sound) technologies, 

Phase III is open to technologies for both subsonic and 

supersonic (greater than the speed of sound) aircraft. 

Technologies developed under CLEEN Phase III are expected 

to be on a path for entry into service by 2031.

In addition to direct product applications, the knowledge 

gained from the development of these aircraft technologies is 

leading to improved design codes and fabrication methods that 

are being applied throughout these companies’ product lines 

and leading to improved environmental performance across 

the industry.

For more information and to see the 

quantitative goals of the CLEEN program, 

visit the program website, here:

https://www.faa.gov/about/office_org/

headquarters_offices/apl/research/aircraft_

technology/cleen/. 

CROSS CROSS CHECK CHECKYOUR KNOWLEDGE
36 Fiscal Year 2021 | FAA Performance and Accountability Report 

Management’s Discussion and Analysis

MIKE MONRONEY 

AERONAUTICAL CENTER

In 2021, the Mike Monroney Aeronautical Center (MMAC) marked its 75th anniversary under arguably the most challenging 

conditions faced in their 75-year history. In response to the pandemic, approximately 4,000 of the 6,000 MMAC employees were in 

full-time telework status, with 2,000 employees working on-site to support mission-critical operations. Despite the challenges and 

restrictions associated with the COVID-19 pandemic, MMAC continued to carry out activities to support a diverse customer base, 

including over 30 federal agencies in addition to the FAA. The MMAC delivers unique agency functions including, but not limited to: 

technical training; centralized supply chain management and field site services such as maintenance, repair, overhaul, and distribution; 

financial management shared services and information technology support across government; aviation medical and human factors 

research; and registration of the nation’s civil aircraft and certification of airmen. Continuation of safe on-site mission critical services, 

as well as implementing maximum telework across much of the mission, was an unprecedented challenge that the MMAC team 

successfully met. Notable FY 2021 accomplishments include:

 Achieved $44 million in cost savings and avoidance 

by implementing streamlined processes, renegotiating 

contracts, implementing process automation, optimizing 

utilities, and improving workforce management. 

 ISO-9001 re-certification audit — achieved level 5 (maturity 

level) for management control, Best-in-Class across industry. 

 MMAC Facility Management provided facility-related 

services and maintenance for MMAC’s 137 buildings and 

3.4 million square feet of industrial, administrative, and 

laboratory space. FY 2021 accomplishments include: 

 Led the MMAC COVID-19 response team, which included 

tracking over 1,100 total cases and completing 303 Level 

3 cleanings. The MMAC COVID-19 response team was 

winner of two FAA level awards for their accomplishments.

 Achieved $700,000 cost avoidance in energy costs. 

 Completed 98 construction projects, valued at $15.3 

million, across the MMAC. 

 Performed approximately 21,000 work requests with 

a cost of over $5.2 million, and performed over 3,000 

building inspections.

 MMAC Energy Team won Outstanding FAA 

Environmental Achievement Award for reducing their 

carbon footprint, achieving over 7 million kilowatt hours 

in electricity savings.

 The FAA Academy developed and delivered technical 

training that enables the FAA workforce to maintain and 

safely operate the national airspace system. In FY 2021, the 

FAA Academy: 

 Recorded over 39,300 participant course completions. 

 Successfully transitioned numerous courses to a 

variety of virtual learning platforms. More than 30,000 

participants were trained using virtual platforms. 

 Achieved cost savings/avoidance of $5 million through 

modernization and process improvement efforts.

 In response to COVID-19, developed and delivered webbased training to over 1,830 U.S. Customs and Border 

Protection employees.

 The Enterprise Services Center (see also page 37)

delivered financial and technology-shared services to 

over 30 federal agencies, processing millions of financial 

transactions. FY 2021 accomplishments include: 

 Continued focus on cost-efficiency initiatives such 

as implementation of electronic invoicing, contract 

negotiations, etc. resulting in millions of dollars of savings, 

thereby creating more value for its customers. 

 Achieved over $2.4 million in savings for the FAA through 

centralized management of FAA cellular services. 

 Completed a 2-year project to migrate Office of Personnel 

Management’s financial system onto the Department 

of Transportation’s (DOT) Financial System and 

Procurement System in support of shared services across 

government, resulting in substantial cost savings to the 

U.S. government, increased efficiencies, and reduced 

redundancies. 

 Processed over $39.3 billion in disbursements authorized 

under the Coronavirus Aid, Relief, and Economic Security 

Act, the Consolidated Appropriations Act of 2021, and 

the American Rescue Plan Act of 2021. 

 Processed over $197.6 million in direct disbursements to 

eligible recipients under the DOT Aviation Manufacturing 

Jobs Protection Program. 

 Processed over $62.7 billion in grant payments for the 

DOT, with 100 percent on time. 

 Processed 50,548 travel vouchers across DOT, with over 

98 percent on time. 
Fiscal Year 2021 | FAA Performance and Accountability Report 37

Management’s Discussion and Analysis

Enterprise Services Center

The FAA’s Enterprise Services Center (ESC), a Mike Monroney 

Aeronautical Center organization in Oklahoma City (see 

additional discussion of ESC services and accomplishments 

on pages 36 and 144), is embracing the momentum of 

government innovation through digital transformation using 

the latest agile software development processes and new 

technologies such as Intelligent Automation. 

A highly collaborative effort is underway at ESC, focused on 

improving services, organizational effectiveness, and mission 

capabilities. One of the Intelligent Automation approaches 

pursued by ESC is Robotic Process Automation (RPA). RPA 

will allow employees at ESC to focus on strategically creative 

work while robots take care of more mundane and repetitive 

tasks. The goal of RPA is not to replace human workers, but to 

introduce digital workers to augment the existing workforce. 

RPA has a variety of benefits such as improved accuracy, 

improved audit compliance, improved data quality, business 

efficiency, cost savings, and cost avoidance. 

ESC’s Financial Services Division rolled out their first two RPA 

processes to production in late July. One automation is used 

exclusively for testing the robot’s communication points, and 

the other monitors the robot email account for out-of-office 

replies and system-generated messages. ESC followed this 

successful migration with 

four additional business 

function automations 

from the Financial 

Services Travel branch. As 

RPA is socialized across 

the enterprise, ESC staff 

members are quickly 

recognizing its potential 

and the opportunities 

have grown to over 40 

prospective automations. ESC plans to build on their early 

successes and lessons learned to create a robust automation 

pipeline that delivers new capabilities at a predictable pace.

Use cases for RPA are not limited to finance-related 

activities. To varying degrees, there are opportunities to 

use RPA across many ESC functions including acquisitions, 

business operations, and information technology operations. 

ESC hosted an Immersion Lab to further explore potential 

opportunities for RPA in these business areas and how to work 

with automation at scale.

RPA is not the only intelligent automation approach used 

or tested by ESC. ESC utilizes other automation tools that 

leverage system log file reviews, security policies, and system 

baseline configurations. ESC has also implemented automation 

for data quality reviews and tools to upload transactions 

via a web-based application. These tools reduce the labor 

costs associated with day-to-day operations while improving 

accuracy and predictability, and allowing employees to focus 

on higher-value work. 

ESC is invested in embracing innovation and empowering 

the workforce with the tools needed to be good stewards of 

taxpayer money and to focus on higher-value work and data 

analysis. 

CROSS CROSS CHECK CHECKYOUR KNOWLEDGE

Rendering of the exterior renovations to the Multipurpose Building, the main ESC facility at the Mike Monroney 

Aeronautical Center. This facility is currently under renovation, with an anticipated completion date in fall 2022. 

Rendering provided by FSB Architects and Engineers.
38 Fiscal Year 2021 | FAA Performance and Accountability Report 

Management’s Discussion and Analysis

Analysis of Systems, 

Controls, and Legal 

Compliance

Financial Management Systems 

Strategy and Actions

Financial Management Systems Strategy

The FAA’s financial management systems strategy is based 

on a framework called the Federal Enterprise Architecture, 

which is recognized across the federal government as the best 

practice for aligning business and technology resources to 

achieve strategic outcomes. Achieving this in all areas of our 

financial systems, including making it part of our organizational 

design, entails ongoing focus and performance improvement. 

Our financial management systems strategy can be divided into 

five categories: Business, Applications, Data, Information, and 

Services. A summary of each is provided below:

Business. Continues to transition to increasingly centralized 

management of financial information to optimize efficiency, 

transparency, and consistency.

Applications. Decreases the number of financial management 

applications being used by the agency via a financial systems 

modernization program.

Data. Implements a financial data management roadmap and 

stewardship council to govern the use and sharing of FAA 

financial data as a common asset.

Information. Builds an FAA-wide financial data “warehouse” to 

increase the consistency of reporting while maintaining each 

organization’s ability to meet individual core mission business 

reporting requirements.

Services. Defines and delivers shared operational and 

infrastructure services for the FAA’s multiple financial systems.

Systems Critical to Financial Management and 

Actions

The FAA is working with DOT in ongoing efforts to consolidate 

and modernize its financial management systems and streamline 

processes and financial reports. Maintaining fewer systems 

will enable the FAA to operate more efficiently by having 

fewer points of data entry, fewer systems to reconcile with the 

official sources of the data, and fewer systems on which to train 

employees. Below is a summary of the systems critical to FAA’s 

financial management and the actions and improvements that 

are recently completed, underway, or planned for each:

Accounting. DELPHI is an Oracle web-based financial 

management system and is integrated with the Procurement 

Information System for Management (PRISM), which is 

discussed below. DELPHI, a DOT-wide system, supports the 

FAA's business objectives; reduces program exposure to various 

sources of risk; automates, streamlines, and standardizes 

financial and business processes; and provides accurate financial 

results. The following are some highlights of DELPHI’s features 

and benefits:

 One system and one set of books shared by all FAA 

regions, centers, and headquarters.

 Ability to share and extract information and data from a 

common source.

 Accurate financial statements produced directly from the 

system.

 Accurate and timely information available to management 

for decision-making.

 Flexibility for program and accounting managers to report 

financial information.

 Clear lines of responsibility and accountability on 

projects that improve FAA’s ability to measure program 

effectiveness.

 Accurate cost and lifecycle asset valuations.

Acquisition. PRISM is the official internet-based system for 

procurement processing for the agency. PRISM supports 

the entire procurement life cycle, including generating and 

maintaining procurement documentation and contractor award 

information. Until this year, PRISM interfaced with the agency’s 

accounting system, DELPHI, using Oracle/Compusearch 

Integration (OCI) software. In FY 2021, the FAA upgraded to 

PRISM version 7.4. This software upgrade provides a more 

efficient interface with vendors, allows for easier upgrades in 

the future and eliminates the OCI interface with DELPHI. The 

interface with DELPHI was replaced with a service-oriented 

architecture where services are provided to PRISM and other 

components in a more common and efficient manner.

Travel. E2 Solutions, used across DOT and by many other federal 

agencies, provides the FAA with end-to-end travel approval, 

booking, and expense management capabilities. Last year, 

E2 Solutions was modernized to synchronize reservation and 

ticket data and add new system validation rules to ensure that 

reimbursements are compliant with financial policy.
Fiscal Year 2021 | FAA Performance and Accountability Report 39

Management’s Discussion and Analysis

Management Control Highlights

Financial Management Integrity: Controls, 

Compliance, and Challenges

On November 9, 2021, the FAA Administrator reported to 

the Secretary of the Department of Transportation (DOT) 

an unmodified statement of assurance under the Federal 

Managers’ Financial Integrity Act (FMFIA) of 1982. Every 

year, program managers in the FAA’s lines of business and 

staff offices assess the vulnerability of their programs. Based 

on these assessments, reviews are conducted to determine 

their compliance with Sections 2 and 4 of FMFIA. Section 2 

requires management controls to be in place, and Section 4 

requires financial systems to conform to government-wide 

standards. The head of each line of business or staff office 

identifies, in writing, to the Administrator any potential 

material internal control weakness or system nonconformance. 

Identified weaknesses deemed material are consolidated in a 

Statement of Assurance signed by the Administrator and sent 

to the DOT Secretary. This FAA response becomes a part of 

the DOT Statement of Assurance sent to the President. FAA 

also reports to DOT compliance with the Federal Financial 

Management Improvement Act (FFMIA) of 1996. The FFMIA 

requires an assessment of adherence to financial management 

system requirements, accounting standards, and U.S. Standard 

General Ledger transaction level reporting. For FY 2021, FAA is 

reporting overall substantial compliance.

Enterprise Risk Management at the FAA

Office of Management and Budget (OMB) Circular A-123 is the 

detailed guidance for management’s responsibility for reporting 

and internal controls. While initially the guidance focused on 

internal controls over financial reporting, OMB has expanded its 

scope to consider both financial and operational controls over 

the past few years.

The FAA collaborated with the DOT to discuss the best 

approach to incorporate risk management into FAA’s longstanding risk-based business architecture. As a mature riskbased entity whose mission is to provide the safest and most 

efficient aerospace system in the world, the FAA has a longstanding performance committee to monitor agency strategic 

goals. This committee provides monthly progress reports of the 

status of the strategic goals to the Administrator.

Technicians working on the Instrument 

Landing System at Seattle-Tacoma 

International Airport in Washington. 

FAA photo.
40 Fiscal Year 2021 

| FAA Performance and Accountability Report

Management’s Discussion and Analysis

Using the performance committee structure and existing 

strategic goals, FAA developed a specific enterprise risk 

management implementation plan for OMB Circular A-123 

that identified a governance approach and a Chief Risk 

Officer. Each year, with approval from our Enterprise Risk 

Management Board and our Chief Risk Officer, FAA prepares 

and submits a risk profile document to the DOT for inclusion 

in the department-level risk profile that is submitted to OMB. 

A risk profile examines the nature and level of threats faced by 

an organization and the effectiveness of controls in place to 

manage those risks. In its FY 2021 risk profile document, the 

FAA aligned its risks to DOT's top risk area, which pertains to 

integrating innovations safely while reducing transportation 

fatalities.

As the FAA COVID-19 recovery continues and uncertainty 

exists, FAA took this challenge into consideration when 

identifying and prioritizing enterprise risks. FAA will continue to 

strengthen its risk management and reporting process through 

comprehensive collaboration with various stakeholders, to 

more effectively identity key risks and opportunities, develop 

risk responses, and implement timely mitigation actions. 

Payment Integrity

The Payment Integrity Information Act of 2019 (PIIA) requires 

federal agencies to annually report information on improper 

payments to the President and the U.S. Congress. The 

PIIA spells out a systematic approach by which the federal 

government must address a difficult and often complex problem. 

Paying billions of dollars every year, the federal government 

cannot afford to be at risk of improper payments. In addition, 

OMB Circular A-123, Appendix C, Requirements for Payment 

Integrity Improvement (last updated March 5, 2021), provides 

government-wide guidance for preventing and recovering losses.

The purpose of these regulations and guidance is to improve 

agency efforts to reduce and recover improper payments. 

Specifically, PIIA requires agencies to identify and estimate their 

improper payments, conduct payment recovery audits, reuse 

recovered improper payments, and report compliance actions.

In simple terms, an improper payment is any payment that should 

not have been made at all, was paid in the incorrect amount 

(overpayments or underpayments), was paid to an ineligible 

recipient, or was for an ineligible good or service. It is important 

to note that payments made without complete supporting 

documentation are also considered improper payments.

Under the PIIA, agencies are required to assess all programs 

and financial activities in order to identify those that are most 

susceptible to improper payments. This risk assessment allows 

agencies to identify and focus on areas that have the potential 

for significant improper payments.

OMB defines significant improper payments as those payments 

exceeding both $10 million and 1.5 percent of total program 

payments, or exceeding $100 million. The FAA’s FY 2021 

PIIA review did not identify any programs or activities with 

potential for significant improper payments, as determined by 

OMB. Additional details can be found in the Other Information 

section of this report on page 140.

To support the safe, expeditious, and 

efficient transportation of approved 

COVID-19 vaccines, the FAA collaborated 

with aviation stakeholders and our federal 

partners to provide around-the-clock air 

traffic services to keep air cargo moving. 

Read more, here: 

https://medium.com/faa/faavaccine-flights-getpriority-treatment-7af090d8ece2.

FAA employee working at FAA headquarters in Washington, D.C. FAA 

photo.
Fiscal Year 2021 41 | 

 FAA Performance and Accountability Report 

Management’s Discussion and Analysis

Management Assurances

Federal Managers’ Financial Integrity Act and Federal Financial Management 

Improvement Act Assurance Statement

Fiscal Year 2021

The FAA is responsible for managing risks and maintaining effective internal control and financial 

management systems that meet the objectives of Section 2 and Section 4 of the Federal Managers’ 

Financial Integrity Act of 1982. This includes conducting assessments to determine the effectiveness 

of internal control and conformance with financial system requirements. The FAA conducted its 

assessments in accordance with OMB Circular No. A-123, Management’s Responsibility for Enterprise Risk 

Management and Internal Control.

The FAA's assessments considered the effectiveness of internal control over operations, financial 

reporting (which includes safeguarding of assets), and compliance with applicable laws and regulations. 

The objectives are to ensure:

 Effectiveness and efficiency of operations

 Reliability of reporting for internal and external use

 Compliance with applicable laws and regulations

Based on the results of this assessment, the FAA can provide reasonable assurance that its internal 

control over operations, financial reporting, and compliance were operating effectively as of 

September 30, 2021. No material weaknesses were found in the design or operation of internal control 

over financial reporting.

The FAA also assessed its financial management systems’ conformance with financial system 

requirements, in accordance with the requirements of OMB Circular No. A-123 Appendix D, Compliance 

with the Federal Financial Management Improvement Act of 1996. Based on this assessment, the FAA can 

provide reasonable assurance that its financial management systems conform to these requirements 

and no material non-conformances or instances of noncompliance were identified.

STEVE DICKSON

Administrator 

November 9, 2021
42 Fiscal Year Fiscal Year 2021 | FAA Performance and Accountability Report Performance and Accountability Report 

PERFORMANCE 

RESULTS

The Automated People Mover makes huge progress as the construction activity takes advantage of the low volume of vehicle traffic during 

California’s stay-at-home orders. The Automated People Mover is the centerpiece of the Los Angeles International Airport landside access 

modernization project. The project is scheduled for completion in 2023. Photo by Kelvin Cheng/iStock Images.
Fiscal Year 2021 | FAA Performance and Accountability Report 43

Performance Results

Performance Measures 

Overview

In this section, the FAA discusses its achievements in 

addressing our 20 performance measures.

The FAA is currently updating its strategic plan that will 

establish new strategic goals and objectives for FY 2022 

through FY 2026. The FAA’s strategic goals align with the 

Department of Transportation’s draft strategic plan. In 

alignment with the administrator’s vision, the new strategic 

goals are Safety, People, Global Leadership, and Operational 

Excellence. Once completed, the strategic plan will be found 

here: https://www.faa.gov/about/plans_reports/.

The long-term goals described in the strategic plan inform 

the annual measures included in this year’s Performance and 

Accountability Report. While some of these measures were also 

published in last year’s report, several have been revised, and 

others are new measures. Each of the annual measures aligns to 

a specific strategic goal:

 Safety: Oversee and operate the safest aerospace system 

in the world, all with a culture of continuous improvement. 

 People: Strengthen our current and future aviation 

workforce by holding ourselves accountable, developing 

our people, and planning for the aviation workforce of the 

future. 

 Global Leadership: Advance global aviation safety, 

operational excellence, and innovation by leading and 

collaborating with aviation authorities globally. 

 Operational Excellence: Operate the world’s most efficient 

aerospace system through daily execution, continuous 

improvement, and infrastructure investment. 

In the pages that follow, the FAA provides the FY 2021 

performance targets, a discussion of our FY 2021 performance, 

and, when available, up to five years of historical trend data. 

We also present a graph of performance measures when 

appropriate.

In FY 2021, the FAA was successful in achieving all 20 of 

the agency’s performance measures. The FAA has noted the 

measures for which the data provided are preliminary.

Although in some cases the FAA achieved a result this year that 

was significantly better than the target, the FAA did not change 

its targets to reflect the prior year’s result. Annual performance is 

subject to greater variability than long-term performance. Over 

time, short-term trends tend to balance out, and the long-term 

view provides a more accurate picture of agency performance. 

Moreover, some annual targets use data acquired over a multiyear period. The targets used in this section have been set to 

measure the FAA’s performance in meeting long-term goals.

We also include a discussion on page 76 of how our 

performance data is verified, and deemed complete and reliable.

Air Traffic Controllers at work in the Louisville-Standiford Terminal Radar Approach Control facility in Kentucky. FAA photo.
44 Fiscal Year 2021 | FAA Performance and Accountability Report 

Performance Results

SAFETY

Oversee and operate the safest aerospace system in the world, all with a culture of continuous improvement. 

Performance Measure Org.

FY 2018 

Results

FY 2019 

Results

FY 2020 

Results

FY 2021 

Target

FY 2021 

Results

FY 2021 

Status

Commercial Air Carrier Fatality Rate*

Reduce the commercial air carrier fatalities per 100 million persons 

on board U.S. carriers by 50 percent over 18-year period — FY 2008–

2025. Target for FY 2021 is 5.4. 

AVS 0.1 0.5 0.61 5.4 0.02 ✓

Commercial Surface Safety Risk Index

Manage the weighted surface safety risk index at or below 0.35 per 

million airport operations for commercial aviation.

ATO

New 

Measure 

for 

FY 2019

0.1054 0.053 0.35 0.0373 ✓

Non-Commercial Surface Safety Risk Index

Manage the weighted surface safety risk index at or below 0.60 per 

million airport operations for non-commercial aviation.

ATO

New 

Measure 

for 

FY 2019

0.5374 0.204 0.6 0.1463 ✓

Top 5 Corrective Action Plan Implementation Through 

Collaboration Across the Air Traffic Organization (ATO)

Implement 85 percent of approved mitigation activities in 

association with ATO’s Top 5 identified trending safety issues in the 

national airspace system.

ATO 89% 93% 86% 85% 87% ✓

General Aviation Fatal Accident Rate*

Reduce the general aviation fatal accident rate to no more than 

0.89 fatal accidents per 100,000 flight hours by 2028. FY 2021 

Target: 0.96. 

AVS 0.89 0.95 0.911 0.96 0.732 ✓

Commercial Space Licensed and Permitted Launch and Reentry 

Safety

Ensure there are no fatalities, serious injuries, or significant property 

damage to the uninvolved public during licensed or permitted space 

launch and reentry activities.

AST 0 0 0 0 0 ✓

National On-Airport Policy, Processes, and Procedures for 

Unmanned Aircraft Systems (UAS)

FAA is working to enable the national use of UAS on and/or near 

airports for a variety of mission types.

ATO

New 

Measure 

for 

FY 2021

New 

Measure 

for 

FY 2021

New 

Measure 

for 

FY 2021

Meet all 

five targets

Met all five 

targets  ✓

Unmanned Aircraft Systems Remote Identification (ID) Outreach 

and Engagement

Facilitate early adoption of Remote ID technology by conducting six 

enterprise-level outreach and engagement activities. 

AVS

Updated 

Measure 

for 

FY 2021

Updated 

Measure 

for 

FY 2021

Updated 

Measure 

for 

FY 2021

Conduct 

six 

activities

Accomplished 

six activities ✓

* This performance measure supports a DOT Agency Priority Goal. ✓ Target met ✗ Target not met

1 Preliminary estimate until final results are available in December 2021. We do not expect any change in the result to be significant enough to alter our year-end 

status of achieving the target.

2 Preliminary estimate until final results are available in December 2022. We do not expect any change in the result to be significant enough to alter our year-end 

status of achieving the target.

3 Preliminary estimate until the final result becomes available in March 2022. We do not expect any change in the final result to be significant enough to alter our yearend status of achieving the target.

4 Metric revised to reflect data stream enhancements to reflect the most current and accurate information possible.
Fiscal Year 2021 | FAA Performance and Accountability Report 45

Performance Results

Commercial Air Carrier Fatality Rate 

Reduce the commercial air carrier fatalities per 100 million persons on board U.S. carriers by 50 percent over an 18-year period between 

FY 2008–2025.

FY 2021 Target No more than 5.4 fatalities per 100 million persons on board (this equates to approximately 57 fatalities).

FY 2021 Result 0.0 fatalities per 100 million persons on board (this is a preliminary estimate until the final result can be confirmed by the National 

Transportation Safety Board in December 2022).

Public Benefit As fatal air carrier accidents have declined in terms of average fatalities per accident, this metric reflects FAA’s commitment to making air 

travel even safer.

The commercial air carrier fatality rate metric includes both 

scheduled and non-scheduled flights of U.S. passenger and 

cargo carriers, but excludes on-demand (i.e., air taxi) service 

and general aviation. Accidents involving passengers, crew, 

personnel, and the uninvolved public are all included. 

Since the target is fatalities per persons on board, the level of 

safety is the same regardless of the number of flights in the 

air. Our target rate this year is 5.4 fatalities per 100 million 

persons on board which equates to approximately 57 fatalities. 

This essentially means the FAA has a goal of zero catastrophic 

commercial aviation accidents with significant loss of life. 

Additionally, although accidents and incidents still occur 

infrequently, they are much more survivable when they do 

happen due to advances in aviation safety, which contribute to 

our success in meeting our Commercial Aviation Fatality Rate.

The FAA’s long-term goal is to reduce the number of fatalities 

in commercial aviation by 50 percent by 2025, equating to 4.4 

fatalities per 100 million persons on board from a baseline of 

8.9 that was established during the 1997–2006 timeframe. The 

annual targets were calculated to reflect a linear reduction over 

an 18-year period from 2008 to 2025.

In FY 2021, the FAA was successful in ensuring no more 

than 5.4 fatalities per 100,000 million persons on board by 

achieving 0.0 fatalities per 100 million people on board. This 

is the first time we have achieved zero commercial aviation 

fatalities since FY 2012. Aviation is one of the safest forms 

of transportation and the FAA strives every year to maintain 

this distinction. Our success is attributed in part to FAA’s 

establishment of safety-critical regulations and our mandate 

for air carriers to implement safety management systems. 

Also critical is the government-aviation industry partnership 

called the Commercial Aviation Safety Team (CAST), which 

was established in 1997 to reduce fatality risk in commercial 

aviation.

Safety Management Systems 

Our commercial safety record indicates that safety management 

systems have successfully addressed the majority of system 

hazards that contribute to accidents or incidents. An effective 

safety management system provides processes to continuously 

identify hazards and mitigate associated risks before they lead 

to an accident or incident. For this reason, the FAA continues to 

work with aviation industry stakeholders to ensure continuous 

improvement and maturity of safety management systems to 

identify hazards and mitigate the associated risks within their 

operations and in the nation’s airspace.

A Safety Management System (SMS) requires the organization 

itself to examine its operations and the decisions around 

those operations. It allows an organization to adapt to 

change, increasing complexity, and limited resources. SMS 

also promotes the continuous improvement of safety through 

specific procedures such as employee reports and data 

COMMERCIAL AIR CARRIER FATALITY RATE 

Fatalities per 100 million persons on board

RATE

0.6

6.7

✓

0.3

6.4

✓

0.1

6.2

✓

0.5

5.9

✓

0.6

5.7

✓

0.01

5.4

✓

Actual

Target

Target

Achieved?

1 Preliminary estimate until final results are available in December 2022. We do not expect any 

change in the result to be significant enough to alter our year-end status of achieving the 

target. 

* Actual results in this area indicate successful performance.

0

2

4

6

8

FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

TARGET AREA*
46 Fiscal Year 2021 | FAA Performance and Accountability Report 

Performance Results

collection which are used to predict hazards. Organizations 

then use this information to analyze, assess, and control 

risk. Part of the SMS process also includes the monitoring of 

controls and review of the system itself for effectiveness. SMS 

helps organizations comply with existing regulations while 

predicting the need for future action by sharing knowledge 

and information. Finally, SMS includes requirements that will 

enhance the safety attitudes of an organization by improving 

the safety culture of leadership, management, and employees. 

All of these changes are designed to help the organization 

incorporate safety in all three forms of thinking — reactive, 

proactive, and predictive. With these systems in place, the 

FAA and the aviation industry work together using a proactive 

approach that continuously improves aviation safety by 

preventing accidents from happening and reducing incidents as 

much as possible.

Commercial Aviation Safety Team (CAST) 

Our success in commercial aviation safety is due in large part 

to the aviation industry and government investing in safety 

enhancements that reduce fatality risk in commercial air travel 

in the United States. The CAST brings together representatives 

from government, pilot and air traffic controller associations, 

airlines, airports, and aviation manufacturers to analyze data, 

identify top safety concerns, and implement interventions to 

address fatality risks. The work of the CAST, along with new 

aircraft regulations and other activities, continues to have a 

positive impact on reducing the fatality risk for commercial 

aviation in the United States. 

The CAST has developed over 100 safety enhancements 

to date. The last 22 enhancements were based on nonaccident data, demonstrating its progress from reactive 

safety enhancements to proactive risk mitigation. The CAST 

has developed an integrated, data-driven strategy to reduce 

the commercial aviation fatality risk in the United States. To 

learn more about the CAST, please visit: https://www.faa.gov/

newsroom/commercial-aviation-safety-team.

Regulations 

On June 10, 2021, the Pilot Records Database final rule was 

published in the Federal Register. This rule establishes an 

electronic Pilot Records database that will facilitate the sharing 

of pilot records among air carriers and other operators and 

regulates its use. 

The FAA is currently developing several other regulations that 

are designed to enhance aviation safety. These rules cover a 

broad variety of topics, including: increasing commercial cockpit 

protection, flight attendant rest requirements, and improving 

aircraft system safety certification methods.

View from Kodiak Benny Benson State Airport in Alaska. 

Photo by Tremayne Cobb. 
Fiscal Year 2021 | FAA Performance and Accountability Report 47

Performance Results

Commercial and Non-Commercial Surface Safety Risk Index

FY 2021 Target Target 1: Manage the weighted surface safety risk index at or below 0.35 per million airport operations for commercial aviation.

Target 2: Manage the weighted surface safety risk index at or below 0.60 per million airport operations for non-commercial aviation. 

FY 2021 Result Target 1: 0.037 (Preliminary estimate until the final becomes available in March 2022).

Target 2: 0.146 (Preliminary estimate until the final becomes available in March 2022).

Public Benefit The Surface Safety Metric represents the potential for fatal accidents on the runway or taxiway surface. A reduction in the Surface Safety 

Metric score is an indication of overall safety performance improvements for the flying public in the surface environment.

The Surface Safety Risk Index measures the overall 

safety performance of the national airspace in the runway 

environment. It includes all manner of operations (commercial 

and other types), aircraft, vehicles, and pedestrians in the 

runway environment. Surface accidents and incidents include 

runway collision accidents, runway excursion accidents, 

taxiway collision accidents, runway incursion incidents, 

runway excursion incidents, and taxiway surface incidents. 

Operations are defined as total takeoffs and landings. 

Commercial operations are considered those operating under 

Federal Aviation Regulations parts 121, 129, and 135; all other 

operation types are considered non-commercial.

Both metrics are based on a risk index score calculated by 

applying a score to each surface event based on its proximity to 

a fatality, with a fatal injury having a score of 1.0. The total of 

all scores is then divided by total operations expressed as a rate 

per million operations. The Surface Safety Risk Index remains 

well below target for both the commercial and non-commercial 

metrics as a result of the collaborative efforts of FAA lines of 

business and aviation industry and labor organizations. 

The FAA has made significant progress in improving runway 

safety at U.S. airports over the past 15 years by working with 

the aviation community on education, training, and airfield 

improvements such as improved marking and lighting. In July 

2015, the FAA initiated the Runway Incursion Mitigation (RIM) 

program to address runway/taxiway intersections with high 

incidence of runway incursions related to airport geometry. As 

of October 2021, there are 130 RIM locations at 79 airports. 

Airports use a combination of strategies to improve these 

intersections, such as changes to the airport layout, lights, signs, 

markings, and operational procedures. These strategies reduce 

the likelihood of pilot confusion and have a direct impact 

on reducing runway incursions. To date, the RIM program 

completed mitigations at 73 locations, with projects started 

at an additional 16 locations as of October 2021. Mitigations 

reduced runway incursions by an average of 81 percent at RIM 

locations. The monitoring of mitigated RIM locations continues 

over time to determine if mitigation efforts were successful, 

and if additional mitigation is necessary.

The FAA has also worked to mitigate the impacts of runway 

excursions by improving runway safety areas (RSAs) at 

commercial service airports. An RSA is a paved or graded 

surface around the runway that reduces the risk of damage or 

injury in the event of a runway excursion. For example, in July 

2013, Asiana Airlines Flight 214 landed short on Runway 28L 

at San Francisco International Airport. Although the aircraft 

sustained severe damage, a majority of those on board the 

aircraft survived, with many being able to walk away, due 

to an RSA improvement that provided 600 feet of available 

“undershoot” before the runway. 

Many airports were built before the current 1,000-foot RSA 

standard was adopted, and many had RSAs that weren’t 

improved until the beginning of the RSA Improvement Program, 

approximately 20 years ago. In some cases, it is not practicable 

to achieve the full standard RSA because of a lack of available 

land. For this reason, the FAA has worked with airports to 

install Engineered Material Arrestor Systems (EMAS) that use 

crushable material placed at the end of a runway to stop an 

aircraft that overruns the runway. The tires of the aircraft sink 

into the lightweight material and the aircraft is decelerated 

as it rolls through the material. Currently, EMAS products are 

installed at the end of 115 runways at 67 U.S. airports. To date, 

there have been 17 incidents where EMAS has safely stopped 

overrunning aircraft with a total of 419 crew and passengers 

aboard those flights. For example, in July of 2021, a flight into 

Reading Regional Airport, Pennsylvania, with seven passengers 

and two crew, overran the end of the runway and came to a 

stop in the EMAS off the end of the runway. There were no 

injuries and the aircraft sustained minor damage.

To learn more about runway safety, please visit: http://www.faa.

gov/airports/runway_safety/.
48 Fiscal Year 2021 | FAA Performance and Accountability Report 

Performance Results

Top 5 Corrective Action Plan Implementation through Collaboration across the 

Air Traffic Organization (ATO)

FY 2021 Target Implement 85 percent of approved mitigation activities in association with ATO's Top Five (5) identified trending safety issues in the 

national airspace.

FY 2021 Result 87 percent (76 of 87 mitigations implemented)

Public Benefit The adoption of this metric benefits the public by identifying trending safety issues in the national airspace and enabling risk-based 

decision making and mitigation strategies.

The Top 5 Program is a powerful illustration of how the ATO 

uses a proactive approach to safety, focusing its resources and 

data on identifying safety issues, taking corrective actions, 

and monitoring the results. The program utilizes safety 

data to identify growing safety risks in the national airspace 

system. These risks are grouped into issues, with the top five 

identified issues establishing the Top 5 “Most Wanted” metric. 

A cross section of ATO representatives come together for a 

Safety Roundtable to select the Top 5. Roundtable members 

review data extracted from various reporting systems, direct 

feedback from facilities, trends from voluntary safety reporting 

programs such as the Air Traffic Safety Action Program and 

the Confidential Information Share Program, and accident 

and National Transportation Safety Board data, among other 

sources.

Once the Top 5 issues are identified, mitigation strategies 

are established for each issue based on review of incidents, 

accidents, and other relevant data. These mitigation strategies 

go through a yearly cycle of review and refinement as well as 

the establishment of specific mitigation activities to support 

the mitigation strategies that address each issue. Additionally, 

the process includes continuous tracking and reporting of 

mitigation activities implementation, as well as the impacts 

of the activity. Once the issue is no longer a growing safety 

concern, it is closed out. Finally, the Roundtable selects a new 

issue based on prevailing safety data. This process ensures that 

the FAA is taking a proactive stance in constantly analyzing 

data to identify and mitigate growing risks before they become 

systemic problems. Listed below are the Top 5 safety issues for 

2021:

 Altitude Compliance: Aircraft operating at unexpected or 

unintended altitude. 

 Traffic Advisories/Safety Alerts: Conflict between aircraft 

becomes imminent because a traffic advisory and/or safety 

alert was not issued. 

 Pilot Report Solicitation/Dissemination: Pilots do not 

receive pilot reports of weather encountered in flight. 

 Wrong Surface Landings: Aircraft lands or attempts to land 

on the wrong surface. 

 Notices to Airmen (NOTAMs): Ensure NOTAMs are 

accurate and efficiently disseminated.

For FY 2021, the ATO identified and approved 87 mitigation 

activities across these top five trending issues, with the goal 

to implement 85 percent, or at least 74 of the 87 activities. 

The FAA has surpassed this goal by implementing 76 of the 

identified mitigation activities.

While COVID-19 has impacted some Top 5 program activities, 

it has not prevented the FAA from developing new methods to 

work around these unforeseen circumstances. This year, the FAA 

achieved planned mitigation activities by implementing virtual 

communication and team flexibility. Despite the COVID-19 

pandemic, all Top 5 participants continued to demonstrate their 

unwavering commitment to making our national airspace safer 

through continued analysis of safety risks.
Fiscal Year 2021 | FAA Performance and Accountability Report 49

Performance Results

General Aviation (GA) Fatal Accident Rate

FY 2021 Target No more than 0.96 fatal accidents per 100,000 flight hours in FY 2021. 

FY 2021 Result 0.73 (Preliminary estimate until the final result can be confirmed in December 2022). 

Public Benefit By tracking the rate of fatal GA accidents per flight hours, the FAA can more accurately identify trends, indicating a decrease or increase 

of potential safety risks. The data is used for safety enhancements in flight procedures, mechanical and technological improvements in 

aircraft, pilot education, and flight hazard research.

The United States has the most vibrant GA community in 

the world, with more than 200,000 active aircraft, including 

amateur-built aircraft, rotorcraft, balloons, and highly 

sophisticated turbojets. The FAA is continuously working with 

the greater GA community and industry to reduce the number 

of general aviation fatalities.

In FY 2021, we achieved our goal of not exceeding a rate of 

0.96 fatal accidents per 100,000 flight hours. This equates to 

less than one GA fatal accident for every 100,000 hours flown. 

The FAA and the GA community have agreed that a GA fatal 

accident rate, rather than the number of fatal accidents, more 

accurately reflects the level of system safety as the volume of 

GA traffic fluctuates. Using this metric allows for an accurate 

comparison of GA safety across fiscal years, geographic 

jurisdictions, and varying aviation traffic levels.

In FY 2021, the FAA continued to work with the General 

Aviation Joint Steering Committee (GAJSC) on improving 

general aviation safety. The GAJSC, formed by the FAA and 

industry, uses a non-regulatory, proactive, and data-driven 

strategy to improve safety. The GAJSC has developed 46 

safety enhancements aimed at addressing the top causes of 

fatal accidents. Of this total, 30 have been completed to date. 

The enhancements address engine failures, situations in which 

flight crews are unable to maintain control of an aircraft in 

flight, and controlled flight into terrain (unintentional collisions 

with the ground, a mountain, or a body of water). The safety 

enhancements include technological improvements, improved 

education and training for both pilots and mechanics, increased 

awareness of issues related to medications, and outreach on a 

range of topics aimed at preventing loss of control, controlled 

flight into terrain, and accidents related to engine failures. Due 

to the ongoing COVID-19 pandemic, the start of any new studies 

has been delayed. However, the next GAJSC study will look 

into data on mechanical failures not related to engine failure. In 

FY 2021, the GAJSC working group completed their analysis and 

findings on the topic of controlled flight into terrain. 

The GAJSC produced a document, working with the GA 

operators and the community to document risks, lessons 

learned, and mitigations developed during the COVID-19 

pandemic. This document reflects the unprecedented open 

and transparent exchange of information between the FAA and 

industry to ensure safety remains the top priority. 

As part of its strategy to reduce accidents, the GAJSC regularly 

reaches out to the general aviation community to educate 

pilots and other stakeholders on the benefits of sharing safety 

data through the Aviation Safety Information Analysis and 

Sharing (ASIAS) program. This is a continuous effort with 

data submitted by the aviation community to ASIAS. The data 

is confidential, de-identified, and not used for enforcement 

purposes. The goal is to assist the GA community in reducing 

the number of fatal accidents by looking for systematic risks 

that could potentially lead to fatal accidents. The GAJSC has 

established training topics for airmen based on GAJSC analysis 

of aircraft accidents compiled from this data. 

GENERAL AVIATION FATAL ACCIDENT RATE 

Fatal accidents per 100,000 flight hours

RATE

0.89

1.02

✓

0.83

1.01

✓

0.89

1.00

✓

0.95

0.98

✓

0.911

0.97

✓

0.732

0.96

✓

Actual

Target

Target

Achieved?

1 Preliminary estimate until final results are available in December 2021. We do not expect any 

change in the result to be significant enough to alter our year-end status of achieving the 

target. 

2 Preliminary estimate until final results are available in December 2022. We do not expect any 

change in the result to be significant enough to alter our year-end status of achieving the 

target. 

 * Actual results in this area indicate successful performance.

0.7

0.8

0.9

1.0

1.1

FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

TARGET AREA*
50 Fiscal Year 2021 

| FAA Performance and Accountability Report

Performance Results

The U.S. Helicopter Safety Team (USHST) is another 

collaborative effort between the FAA and industry that 

has approved and initiated 16 safety enhancements related 

to helicopter safety. Initially, the USHST had approved 

and initiated work on 21 safety enhancements. Several 

enhancements had areas of significant overlap that could be 

completed through the combined effort of one enhancement 

rather than several different ones. This resulted in the overall 

count of enhancements reducing from 21 to 16 during FY 2021. 

Of the 16 safety enhancements, 8 have been completed and are 

currently in outreach mode, the remaining enhancements are 

expected to be completed in the next 3–5 years. 

The USHST holds a meeting every 2 months where industry 

leaders and educators reach out to the rotorcraft industry in 

pursuit of the mission to drive the helicopter fatal accidents 

to zero. The FAA is working with industry by supporting the 

USHST safety enhancements that are designed to reduce fatal 

accidents during flights in poor weather conditions and at low 

altitudes. 

The top three occurrence categories for fatal accidents are: 

1) loss of control inflight, 2) unintended flight into adverse 

weather conditions, and 3) low altitude operations where the 

helicopter strikes an object. Over 50 percent of the helicopter 

fatal accidents occur in one of these three occurrence 

categories — that is where the USHST is maintaining its focus. The 

latest public outreach is a commercial video titled “56 Seconds to 

Live.” This video was specifically intended to leverage what was 

learned through data analysis to address reduction of unintended 

flights into adverse weather conditions. 

To spread safety awareness throughout the general aviation 

community, the FAA Safety Team (FAASTeam) conducts live 

safety seminars and webinars throughout the fiscal year. The 

FAASTeam is comprised of mostly volunteer representatives 

that are experts in particular fields, like mechanics or piloting, 

who help promote safety outreach to the general aviation 

public and provide training and resources specific to their 

specialties and regions while being supported by the FAASTeam 

program managers. 

On a bi-weekly basis, the FAASTeam, in collaboration with the 

FAA’s Unmanned Aircraft Systems (UAS) Integration Office, 

presented webinars to the Flight Standards Safety Assurance 

Offices focusing on relevant UAS topics to ensure they have the 

knowledge necessary to address UAS concerns in the national 

airspace. The FAASTeam supported the UAS Integration Office 

in an additional 27 live webinars. In response to numerous 

requests coming from the FAA website, internal and external 

stakeholders, the FAASTeam has sent approximately 1,600,000 

notices, reaching as many as 48,000,000 people on various 

topics, as well as reaching 9,000,000 through FAAST Blasts. 

Through the FAASafety.gov website, the FAASTeam reaches 

52,364,000 airmen annually through email distribution. 
Fiscal Year 2021 51 | 

 FAA Performance and Accountability Report 

Performance Results

Commercial Space Licensed and Permitted Launch and Reentry Safety

FY 2021 Target Ensure there are no fatalities, serious injuries, or significant property damage to the uninvolved public during licensed or permitted space 

launch and reentry activities. 

FY 2021 Result 0.0 No fatalities to the uninvolved public.

Public Benefit The FAA’s oversight of commercial space launch industry activities has resulted in no loss of life or public property damage while 

maintaining a robust entrepreneurial environment fostering significant innovations and economic opportunities for the American public.

In FY 2021, there were 64 licensed and permitted commercial 

space launches and reentries. The FAA was successful in 

collaborating with the commercial space industry to maintain 

its perfect record of no fatalities, serious injuries, or significant 

property damage to the uninvolved public during licensed 

or permitted space launch and reentry activities. Since its 

involvement in commercial space activities, the FAA has licensed 

or permitted more than 488 launches and reentries, oversees 

12 launch or reentry sites (spaceports), and has issued 6 active 

safety approvals. Safety approvals are issued by the FAA when 

a component, process, service, or qualified person has been 

evaluated for safety suitability and found to be qualified and 

within acceptable risk standards when supporting or conducting 

a space activity. Once approved, a component, service, or person 

does not have to be reevaluated for every licensed activity.

The commercial space industry continues to grow at a 

tremendous pace. Since 2012, licensing workload has increased 

over 1,000 percent while FAA staffing associated with licensing 

and permits has increased about 30 percent. In FY 2020, 

there were 33 licensed launches and reentries; that number 

climbed to 64 in 2021 — a 94 percent year-over-year increase. 

To safely accommodate this increase in space operations, 

the FAA published new safety regulations named Code of 

Federal Regulations part 450 Streamlined Launch and Reentry 

Licensing Requirements, in March 2021. These new regulations 

are a complete overhaul of how FAA licenses commercial 

space launches and consolidates four prescriptive rules into 

one performance-based standard. With performance-based 

regulations, the FAA focuses on achieving results rather than 

trying to mandate the specific processes or technologies used 

to achieve those results. The FAA also published 10 supporting 

Advisory Circulars which provide concise, technically accurate 

information to help the aerospace industry comply with 

regulations.

In addition to the growth in the number of commercial space 

operations, the complexity of the missions coming to the FAA 

for approval continues to evolve and change dramatically. This 

year, the Office of Commercial Space Transportation continued 

to prepare for an extremely dynamic and rapidly maturing set 

of future missions, which include orbital and suborbital space 

tourism, interplanetary travel, space-based internet services, 

commercial space stations, and innovative new designs for 

traditional launch systems.

In 2021, private space companies continued to extend the 

realm of commercial space transportation activities:

 On July 11, Virgin Galactic launched the SpaceShipTwo 

rocket carrying two pilots and four crew into suborbital 

space. The launch from Spaceport America in New Mexico 

was an operation test conducted prior to the establishment 

of scheduled commercial spaceflights. 

 On July 20, Blue Origin launched their New Shepard 

suborbital launch vehicle from their West Texas launch 

site. The flight carried four people, including the oldest and 

youngest people ever to fly into space. It also included the 

first person designated as a spaceflight participant under 

FAA rules.

 SpaceX continued to provide spaceflight capability to 

National Aeronautics and Space Administration (NASA) 

astronauts and the International Space Station (ISS). This 

capability has eliminated U.S. dependence on high-cost 

Russian transportation to the ISS. The company also 

continued its efforts to develop a reusable super-heavy 

lift launch system, known as the Starship Super Heavy 

system. It is designed to be the world’s tallest, most 

powerful rocket. Composed of two separating rocket 

stages, it stands at approximately 394 ft. in height, will 

be fully reusable, and is estimated to be capable of 

launching between 100-150 tons to low earth orbit (250 

tons if the rocket is not intended for reuse). SpaceX has 

already conducted multiple suborbital tests of the Starship 

vehicle from their Boca Chica, Texas launch site.

 Boeing continued its development of their commercial 

capsule and executed a demonstration flight for NASA in 

late 2021. 

To view FAA’s fact sheet on commercial space transportation 

activities, please visit: www.faa.gov/space/.
52 Fiscal Year 2021 | FAA Performance and Accountability Report 

Performance Results

National On-Airport Policy, Processes, and Procedures for Unmanned Aircraft 

Systems (UAS)

FAA is working to enable the national use of UAS on and/or near airports for a variety of mission types. In FY 2021, FAA developed required 

processes and procedures for FAA-wide use of commercial UAS vendors for facility maintenance inspections and surveillance of FAA towers, 

radars, buildings, and other assets. FAA will leverage the development of a national on-airports policy to accomplish this strategic priority. 

When fully developed, the policy will provide clear guidance for safely allowing on and near airport UAS operations for multiple uses, including 

aircraft inspections and maintenance parts delivery.

FY 2021 Target Target 1: Publish a national policy for airspace access for UAS operations on or near airports.

Target 2: Develop a UAS maintenance implementation plan and data management plan to support Technical Operations for maintenance 

and inspections.

Target 3: Complete phase 1 of UAS inspections to support the evaluation of UAS applications for on-airport operations.

Target 4: Assess available data sources, and conduct data analyses to determine the effectiveness of risk mitigations associated with the 

national use of UAS on and/or near airports across FAA-approved mission types.

Target 5: Participate in the development and the update to policy and procedures related to UAS operations on or near airports.

FY 2021 Result Target 1: The national policy is published, effective September 6, 2021.

Target 2: Draft implementation and data management plan to support Technical Operations for maintenance and inspections are 

developed and delivered.

Target 3: All phase 1 UAS inspections to support the evaluation of UAS applications for on-airport operations are complete.

Target 4: Data analysis to determine the effectiveness of risk mitigations associated with the national use of UAS on and/or near airports 

across FAA-approved mission types are complete.

Target 5: Notice JO 7210.933 UAS Operations on Airports and JO 7200.23C Processing of Unmanned Aircraft Systems Requests were 

published, both effective September 6, 2021.

Public Benefit The National On-Airport Policy, Processes, and Procedures for Unmanned Aircraft Systems paves the way to safely and efficiently increase 

UAS use on or near airport operations for improving the safety and efficiency of the airport environment.

1 This policy is being added to FAA Order JO 7210.3 “Facility Operation and Administration”

The remote capabilities of UAS, along with their on-board 

sensor and imaging technologies, have vastly expanded and 

improved in recent years. These capabilities could reduce 

risk for FAA personnel performing infrastructure inspections 

and maintenance while maintaining the safety, security, and 

operability of the airport environment. For example, UAS could 

be used for post-natural disaster inspections and for parts 

delivery where more traditional transportation methods might 

be unavailable. 

FAA pursued this opportunity with a phased exploration and 

implementation approach. This included developing a national 

on-airports policy, developing and executing appropriate use 

cases, and approving commercial vendors to conduct UAS 

operations for the FAA. Assessing the effectiveness of safety 

risk mitigations associated with these operations is a key 

component in ensuring the continued safety of the national 

airspace as these new operations are introduced. 

In order to meet Target 1, FAA defined the “on and near 

airport” environment that UAS would operate in. This policy 

ensures that the safety of the national airspace is not impacted 

by the introduction of UAS around the airport environment. 

Airports present unique risks for UAS operations. These are 

congested airspaces shared with both commercial airlines and 

general aviation. The FAA published the new national policy in 

September.1

In order to meet Targets 2 and 3, FAA developed concepts and 

use cases for deploying UAS to support inspections. This will 

reduce risks to FAA personnel while still accomplishing the 

mission. For FY 2021, 15 types of infrastructure inspections 

were completed. Observations and data from these field 

missions were used to develop preliminary maintenance 

implementation and data-management plans that support 

policy establishment, coordination requirements, and safety 

evaluations for on-airport operations. 

In order to meet Target 4, FAA gathered data related to current 

on-airport UAS operations and the safety mitigations employed 

in those applications. Three sources of data were reviewed: 

Certificates of Waiver or Authorization; operating parameters 

for model airplane hobbyist organizations; and the Safety 

Management Tracking System (SMTS). SMTS was identified as 

the best source of data for analysis to determine if further data 

are needed to assess the safety level of these new operations. 
Fiscal Year 2021 | FAA Performance and Accountability Report 53

Performance Results

Given the unique risks posed by the airport environment, the 

FAA must be certain that the safety mitigations used in these 

UAS operations work as intended. This work will provide 

leading indicators for potential issues with on-airport UAS 

operations and enhance the agency’s proactive safety culture. 

In order to meet Target 5, FAA developed draft order 4040.UAS 

to define requirements for commercial UAS vendors seeking 

to conduct FAA missions. Developing this draft order required 

extensive coordination across the agency to ensure all necessary 

information was reviewed and properly accounted for.

The use of commercial UAS services in support of flight 

inspection and technical operations missions is a large 

undertaking and has the potential to change the way the FAA 

uses its resources for maintaining and improving the national 

airspace.

Using Unmanned Aircraft Systems for 

COVID-19 Response and Recovery 

The FAA's role as regulator means that we must unlock not 

only the economic benefits of Unmanned Aircraft Systems 

(UAS), but also the societal ones. Consistent with that role, 

is our task and privilege to facilitate the use of drones to 

reduce danger to humans or, said differently, to enable relief 

efforts. When COVID-19 was named a national emergency in 

2020, the FAA took a proactive approach and began enabling 

drone use for COVID-19 response efforts within our existing 

regulations and emergency procedures. As needed, we used 

special approvals — granting some in less than an hour. 

During the pandemic, many participants in our Integration 

Pilot Program (IPP) — which brings state, local, and 

tribal governments together with UAS operators and 

manufacturers to test and evaluate the integration of civil 

and public drone operations into our nation’s airspace — were 

able to pivot from their original missions to support 

COVID-19 response and recovery. For example: 

 UPS Flight Forward used its certification to provide 

prescription deliveries to a retirement community in 

Florida and conduct medical deliveries near Charlotte, 

North Carolina. 

 Wing Aviation used its certification to increase its 

partnerships with local businesses in Christiansburg, 

Virginia, to significantly increase contactless 

deliveries — including library book deliveries to children. 

 The Chula Vista Police Department in California used 

drones to conduct outreach to homeless communities 

in remote canyon areas to direct them to medical 

assistance, food, and personal protective equipment 

distribution locations.

 Some IPP teams responded to the pandemic by 

delivering medical equipment and personal protective 

equipment to frontline workers. Companies operating 

under the Small Unmanned Aircraft Systems Rule 

also joined the fight. One of those is Flytrex, which 

conducted operations in certain locations to deliver food 

and essential goods from select businesses to residential 

backyards.

While the IPP concluded early this fiscal year, we have since 

been collaborating with industry partners in BEYOND, the 

successor program to the IPP, to enable delivery of medical 

supplies and food items. 

Read more about the BEYOND 

participants, here: https://www.faa.gov/

uas/programs_partnerships/beyond/lead_

participants/. 

CROSS CROSS CHECK CHECKYOUR KNOWLEDGE
54 Fiscal Year 2021 | FAA Performance and Accountability Report 

Performance Results

Unmanned Aircraft Systems (UAS) Remote Identification Outreach and 

Engagement

FY 2021 Target Facilitate early adoption of Remote Identification (ID) technology by conducting six enterprise-level outreach and engagement activities. 

Target milestones include: 

Milestone 1: Establish a cross-agency working-level enterprise-wide outreach and engagement team.

Milestone 2: Develop a detailed other external media plan.

Milestone 3: Develop a detailed social media plan.

Milestone 4: With appropriate internal and external stakeholders, develop a series of virtual informational events (content/schedule/

vehicle).

Milestone 5: Develop educational materials for Federal Aviation Administration/Department of Transportation employees.

Milestone 6: Ensure consistent Remote ID messaging across FAA.

FY 2021 Result The final rule was published in the Federal Register on January 15, 2021 with an original effective date of March 16, 2021. Corrections 

were made to the rule and it was published in the Federal Register on March 10, 2021 postponing the effective date to April 21, 2021. Key 

FAA milestones include:

Milestone 1: Developed an outreach and engagement plan to support the Remote ID roll out.

Milestone 2: Developed a tactical communications plan.

Milestone 3: Crafted a social media plan, which included promoting outreach material on the new website, as well as socializing 

information through Facebook, Twitter, and Instagram posts.

Milestone 4: Hosted 34 informational sessions and webinars for domestic and international stakeholders.

Milestone 5: Developed and distributed internally numerous educational materials on Remote ID rule to employees via broadcast 

email messages and targeted correspondence.

Milestone 6: Created a consistent message about the rule to internal and external stakeholders, including recreational flyers and 

commercial UAS pilots, standards bodies, governmental agencies, and more.

Public Benefit Remote ID helps the FAA, law enforcement, and other federal agencies find the control station when a drone appears to be flying in an 

unsafe manner or in a restricted area. Remote ID also lays the foundation for the safety and security groundwork needed for more complex 

drone operations.

On January 15, 2021, the FAA successfully published the 

Remote ID rule with an original effective date of March 16, 

2021. Corrections were made to the rule and published in the 

Federal Register on March 10, 2021, delaying the effective date 

to April 21, 2021. The final rule on Remote ID requires most 

drones operating in U.S. airspace to have Remote ID capability. 

Remote ID provides information about drones in flight, such 

as the identity, location, and altitude of the drone and its 

control station or take-off location. Authorized individuals from 

public safety organizations may request identity of the drone's 

owner from the FAA. The FAA is facilitating early adoption of 

Remote ID technology by conducting outreach and engagement 

activities across the agency and throughout the country.

The Remote ID rule, as originally proposed, was controversial 

within the recreational flying community. The Notice 

of Proposed Rulemaking garnered over 53,000 public 

comments and resulted in the FAA amending its proposal. To 

communicate how the final rule changed from the proposed 

rule and the impact that would have on stakeholders, FAA 

formed a stakeholder engagement team of international and 

operational experts to develop and provide briefings on the 

rule. We also provided plain-language updates targeted to 

public safety networks.

Since adoption of the final rule, the FAA has hosted 34 

informational sessions and webinars for domestic and 

international stakeholders. Attendees included international 

civil aviation authorities, public safety organizations, airlines, 

state aviation and airport authorities, and industry. We also 

held two YouTube sessions on Remote ID and the Operation of 

Unmanned Aircraft Systems Over People rule aimed at helping 

recreational and commercial UAS flyers better understand 

the rules. We have also updated our internal employee sites 

to reflect the change in the rule while providing educational 

materials for FAA employees. Finally, to ensure a consistent 

message about the rule, FAA continues to work closely with 

law enforcement agencies to ensure they receive accurate 

messaging about the rule and their rights and obligations. 

To see the full extent of FAA outreach efforts, check out: 

www.faa.gov/uas. 

In support of the development of the Remote ID capability, 

the FAA issued a Request for Information (RFI) that seeks 
Fiscal Year 2021 | FAA Performance and Accountability Report 55

Performance Results

participation from the low-altitude manned-aviation 

community (agriculture operators and helicopters) in 

developing remote identification information technology 

applications. Issuance of the RFI was one of the 

integral steps towards the development of the remote 

identification framework. When used in tandem with 

new technologies and infrastructure, this framework 

will facilitate more advanced operational capabilities, 

such as detect-and-avoid and aircraft-to-aircraft 

communications, that support beyond visual line-of-sight 

operations. The information collected also assists in 

developing the necessary elements for comprehensive 

UAS traffic management. 

In addition, on October 22, 2020, the FAA tasked 

the Drone Advisory Committee (DAC) to engage with 

operators in low altitude airspace to obtain feedback on 

how Remote ID might be used to increase situational 

awareness. The DAC delivered a recommendation 

report based on this work to the FAA on June 23, 2021. 

The full report can be found in the June 23, 2021 DAC 

meeting eBook link found here: https://www.faa.gov/uas/

programs_partnerships/drone_advisory_committee/.

A compilation of various models of drones.
56 Fiscal Year 2021 | FAA Performance and Accountability Report 

Performance Results

PEOPLE

Strengthen our current and future aviation workforce by holding ourselves accountable, developing our people and planning 

for the aviation workforce of the future. 

Performance Measure Org.

FY 2018 

Results

FY 2019 

Results

FY 2020 

Results

FY 2021 

Target

FY 2021 

Results

FY 2021 

Status

FAA Corporate Diversity and Inclusion Strategic Plan

Develop and design a Five-Year Diversity and Inclusion Strategic 

Plan that will provide relevant, strategies, goals, and tools needed 

to create an inclusive, discrimination-free workplace where all 

employees will have the opportunity to reach their full potential.

ACR/

AHR

New 

Measure 

for 

FY 2021

New 

Measure 

for 

FY 2021

New 

Measure 

for 

FY 2021

Meet two 

targets

Met two 

targets ✓

FAA National Science, Technology, Engineering, and Math (STEM) 

Aviation and Space Education (AVSED) Program Governance 

Structure 

Fully implement the cross-agency STEM AVSED governance 

structure, to include the STEM AVSED Executive Board, and the 

STEM AVSED Steering Committee.

APL

Updated 

Measure 

for 

FY 2021

Updated 

Measure 

for 

FY 2021

Updated 

Measure 

for 

FY 2021

Meet all 

three 

targets

Met three 

targets ✓

✓ Target met ✗ Target not met
Fiscal Year 2021 | FAA Performance and Accountability Report 57

Performance Results

FAA Corporate Diversity and Inclusion Strategic Plan 

The FAA developed and designed a Five-Year Diversity and Inclusion Strategic Plan that will provide relevant strategies, goals, and tools 

needed to create an inclusive, discrimination-free workplace where all employees have the opportunity to reach his or her full potential.

FY 2021 Target Target 1: Complete the Diversity and Inclusion Strategic Plan and send to the FAA Administrator’s Office for final approval and signature 

by December 9, 2020.

Target 2: Market and provide awareness to FAA employees about the Diversity and Inclusion Strategic Plan by conducting six webinar 

and informational sessions throughout FY 2021 by June 30, 2021.

FY 2021 Result Target 1: FAA Administrator signed the Diversity and Inclusion Strategic Plan on December 9, 2020.

Target 2: Conducted six webinars and informational sessions by June 30, 2021.

Public Benefit The agency as a whole is stronger, more innovative, and more successful when all talents, backgrounds, and experiences are included 

and utilized for achieving aviation safety. Additionally, the implementation of this plan will ensure an understanding of the importance of 

diversity and inclusion to all FAA employees for the benefit of the flying public and aviation sector. 

The Department of Transportation (DOT) and the FAA all 

are placing a high priority on creating diverse and inclusive 

workforces. To advance this priority, the FAA created a Diversity 

and Inclusion Strategic Plan for the agency in FY 2021. 

The Diversity and Inclusion Strategic Plan (for Fiscal Years 

2021–2025) is a collaborative joint effort developed by FAA’s 

Office of Civil Rights and Office of Human Resources. The 

plan was circulated throughout the agency, to employee 

associations and program managers, and to special emphasis 

groups such as People with Disabilities, the Federal Women’s 

Program, and the Hispanic Employment Program, with the goal 

of ensuring complete transparency and demonstrating the 

integration of all viewpoints and perspectives in successfully 

driving organizational diversity and inclusion within the FAA. 

Numerous comments, edits, and suggestions were considered 

from across the agency. The Plan was approved and signed by 

the FAA Administrator on December 9, 2020.

The Diversity and Inclusion Strategic Plan includes the 

following strategic goals:

 Demonstrate FAA leadership’s commitment to diversity 

and inclusion

 Cultivate an inclusive workplace culture that emphasizes 

respect

 Attain and retain a diverse and highly skilled workforce

During FY 2021, the FAA conducted six webinars to promote 

leadership, commitment, and accountability for modeling 

behavior that advances diversity, equity, and inclusion. FAA 

continues to work with the DOT, FAA employees, labor groups, 

special emphasis program managers, and others to identify 

implementation strategies for the Diversity and Inclusion 

Strategic Plan. The approval and implementation of the plan 

demonstrates the FAA's commitment to making diversity and 

inclusion a top priority essential to the FAA’s mission, core 

activities, and business practices. For more information, see 

the Office of Civil Rights website: https://www.faa.gov/about/

office_org/headquarters_offices/acr/.

Employees working on commercial space launch activities at the Joint 

Space Operations Group room at the FAA's Command Center. FAA photo.
58 Fiscal Year 2021 | FAA Performance and Accountability Report 

Performance Results

FAA National Science, Technology, Engineering, and Math (STEM) Aviation and 

Space Education (AVSED) Program Governance Structure

Fully implement the cross-agency STEM AVSED governance structure, to include the STEM AVSED Executive Board (EB), and the STEM AVSED 

Steering Committee (SC).

FY 2021 Target Target 1: Identify committed members of the STEM AVSED EB and SC from all FAA organizations that are involved in STEM AVSED 

engagement initiatives by March 31, 2021.

Target 2: Establish recurring meetings and develop charters for STEM AVSED EB and SC by June 30, 2021.

Target 3: Implement oversight procedures for cross-agency STEM AVSED engagement initiatives, to include development of annual 

agency business plan goals and activities for FY 2022 and identification of resources to support those goals. 

FY 2021 Result Target 1: As of the end of March 2021, members from all FAA Lines of Business and Staff Offices were identified for participation in the EB 

and the SC.

Target 2: Recurring meetings were scheduled through the end of FY 2021 and charters were finalized.

Target 3: The SC developed draft activities for FY 2022 and presented them to the EB in August 2021. These activities were incorporated 

into annual agency business plans.

Public Benefit The FAA is tackling the growing aviation employee shortage by ensuring a consistent pipeline of skilled aerospace professionals into the 

workforce, thereby securing a robust U.S. aviation industry into the future. 

The STEM AVSED Program is an integral part of the FAA’s 

outreach to the public. In light of the forecasted growth in 

aviation jobs, as well as the number of aviation employees 

reaching retirement age, there is a need to expand our outreach 

to today's students — as many are unaware of aviation as 

a feasible career path. In addition to the AVSED program, 

FAA will be collaborating with industry, academia, and other 

government agencies to address any current or future needs in 

the aviation workforce.

In FY 2021, the STEM AVSED program was moved from 

Human Resource Management to the Office of National 

Engagement and Regional Administration within the Office 

of Policy, International Affairs and Environment. This shift 

reflects the program’s national reach and desire for more 

regional engagement. The FAA’s goal is to prepare and inspire 

the next generation of skilled professionals for the aviation 

and aerospace workforce pulling from STEM learning and 

occupational tracks, at the same time raising public awareness 

of FAA’s mission to maintain the safest, most efficient 

aerospace system in the world. One of the four goals of the 

recently approved STEM AVSED Strategic Plan is to implement 

FAA STEM and AVSED education efforts on a national, regional, 

and local level through effective cross-agency collaboration. 

While many FAA organizations currently participate in 

various types of STEM engagement and outreach, they do 

so independently. Collaboration and awareness across all 

engaged STEM activities will allow for increased effectiveness 

in outreach efforts and improve focus on the overall strategic 

goals of the program.

In early 2021, National Engagement and Regional 

Administration worked to identify appropriate members at 

both the managerial and executive level to make up the STEM 

AVSED Executive Board (EB) and Steering Committee (SC). The 

Executive Board serves as the governance and coordination 

body for all FAA STEM AVSED engagement initiatives. In 

addition, the EB will work cooperatively to establish, ensure, 

and maintain adequate resources and develop strategy for the 

National STEM AVSED program. 

The SC is made up of representatives from each FAA Line of 

Business and Staff Office, including representatives from the 

FAA William J. Hughes Technical Center and Mike Monroney 

Aeronautical Center, as well as a representative from the 

FAA’s National Employee Forum. The EB and SC held a joint 

kickoff meeting in June 2021. Since that time, the SC has met 

four times. The main focus areas of the SC meetings to date 

have been to establish the charter and norms of the group and 

to enable the collection of data on all STEM AVSED-related 

activities conducted throughout the FAA in FY 2021. Members 

of both bodies signed their respective charters in August 2021.

The SC developed the draft activities and targets for FY 2022 

and presented them to the EB on August 25, 2021. These 

activities will be included in business plans throughout the 

agency in support of the FAA STEM AVSED Strategic Plan.
Fiscal Year 2021 | FAA Performance and Accountability Report 59

Performance Results

GLOBAL LEADERSHIP

Advance global aviation safety, operational excellence, and innovation by leading and collaborating with aviation authorities 

globally.

Performance Measure Org.

FY 2018 

Results

FY 2019 

Results

FY 2020 

Results

FY 2021 

Target

FY 2021 

Results

FY 2021 

Status

Implement FAA International Strategy and Enhance International 

Civil Aviation Organization (ICAO) Work

Contribute to the development of the U.S. government position 

regarding the ICAO Secretary General Election in March 2021 

and qualified U.S. citizens for ICAO’s senior technical and regional 

positions in order to have a direct and continuous influence at the 

U.N. technical agency.

APL

New 

Measure 

for 

FY 2021

New 

Measure 

for 

FY 2021

New 

Measure 

for 

FY 2021

Meet all 

three 

targets

Met three 

targets ✓

Promote International Safety and U.S. Interests

Influence the development of international approaches to ensure the 

safe and sustainable recovery of the aviation sector after the global 

health emergency.

APL

New 

Measure 

for 

FY 2021

New 

Measure 

for 

FY 2021

New 

Measure 

for 

FY 2021

Meet two 

targets

Met two 

targets ✓

✓ Target met ✗ Target not met
60 Fiscal Year 2021 

| FAA Performance and Accountability Report

Performance Results

Implement FAA International Strategy and Enhance International Civil Aviation 

Organization (ICAO) Work

Implement FAA international strategies and enhance International Civil Aviation Organization (ICAO) work. Contribute to the development of 

the U.S. government’s position for the ICAO secretary general election in March 2021 and proactively identify qualified U.S. citizens for ICAO’s 

senior technical and regional positions in order to have a direct and continuous influence at the United Nations’ (UN) technical agency.

FY 2021 Target Target 1: Evaluate each secretary general candidate’s technical capabilities and familiarity with managing complex civil aviation matters, 

and provide FAA’s recommendations to the Department of State (DOS).

Target 2: Conduct outreach to states and regional organizations in support of U.S. government positions for the secretary general 

election.

Target 3: Establish an ICAO succession planning strategy to identify and support highly qualified U.S. candidates for selected ICAO 

director-level positions that have a direct impact on FAA’s strategic priorities.

FY 2021 Result Target 1: The FAA evaluated the technical capabilities of each secretary general candidate and submitted its recommendations to the 

DOS. 

Target 2: The FAA supported DOS outreach with key states and organizations to convey secretary general qualifications as laid out in a 

DOS cable on August 2020. 

Target 3: The FAA developed an ICAO succession planning strategy that identifies and supports highly qualified U.S. candidates for 

selected ICAO director-level positions having a direct impact on the FAA’s strategic priorities.

Public Benefit U.S. citizens flying internationally will benefit from ICAO standards affecting the safety, security, efficiency, and sustainability of airlines 

and their supporting organizations worldwide. The United States will benefit by ensuring the U.S. aerospace industry will be able to 

operate seamlessly and compete on a level playing field with international competitors.

The ICAO Secretary General Election

ICAO is a specialized agency of the UN and is recognized as 

the global standard-setting organization for the civil aviation 

community. ICAO not only guides the regulatory decisions 

of its 193 Member States, it also provides the technical and 

diplomatic framework needed to debate and resolve the 

challenges involved in promoting safe and efficient air travel 

across the globe.

The FAA plays a critical leadership role at every level of ICAO’s 

standards-setting process. This includes providing subject 

matter experts for ICAO panels, committees, task forces, and 

advisory groups. The FAA also provides a participant to the Air 

Navigation Commission (ICAO’s technical body), which helps to 

ensure the technical excellence of ICAO’s work, as well as the 

efficacy of the standards it promulgates. 

In February 2021, the ICAO Council elected a new secretary 

general. Given the devastating impact of the COVID-19 

pandemic on global aviation, the new secretary general will play 

a critical role in the recovery of the global aviation sector.

In preparation for this important election, a U.S. government 

interagency team led by the FAA and the DOS initiated a 

process to identify the candidate who best supported U.S. 

aviation interests. On August 27, 2020, the DOS performed 

a global outreach to key states and organizations outlining 

expected qualifications, experiences, and characteristics that 

the U.S. considered essential for any competitive candidate. 

The FAA interviewed all five candidates and presented its 

views during an interagency meeting led by the DOS. The U.S. 

Interagency Election Team, guided by the DOS, last convened 

on October 9, 2020. The team endorsed the current direction 

laid out by the DOS, a decision that, as a matter of policy, the 

U.S. does not disclose. 

ICAO Director-Level Positions

The U.S has historically occupied two critical ICAO posts. The 

posting of U.S. candidates is critical in helping the U.S. promote 

its leadership in the region and globally. For both vacancies, the 

ICAO Council will play a central role in selecting the candidate. 

The FAA has identified and is currently supporting highly 

qualified U.S. candidates for selected ICAO positions that have 

a direct impact on FAA’s strategic priorities by preparing them 

professionally to meet the selection challenges. 
Fiscal Year 2021 61 | 

 FAA Performance and Accountability Report 

Performance Results

Promote International Safety and U.S. Interests

Influence the development of international approaches to ensure the safe and sustainable recovery of the aviation sector after the global 

health emergency.

FY 2021 Target Target 1: Develop global pandemic risk mitigation measures for passengers and aviation professionals in alignment with U.S. best 

practices through the International Civil Aviation Organization’s (ICAO) Council Aviation Recovery Task Force (CART).

Target 2: Develop, maintain, and actively promote an FAA policy position in support of CART implementation measures in at least three 

bilateral and multilateral venues to include ICAO regional engagement.

FY 2021 Result Target 1: The FAA supported the ICAO CART leading to the development of global pandemic risk mitigation measures.

Target 2: The FAA advanced its positions through its direct participation in ICAO’s Ad Hoc Small Group on the High Level Conference on 

COVID-19 (HLCC), the Collaborative Arrangement for the Prevention and Management of Public Health Events in Civil Aviation 

(CAPSCA), and the CART Technical Working Group.

Public Benefit The development and maintenance of pandemic response measures throughout the global aviation system reduces the risk of COVID 

transmission among passengers, crews, and aviation workers while allowing a critical sector of the U.S. economy and provider of U.S. jobs 

to recover. These measures also allow the public access to air travel while reducing the risk of the translocation of the COVID virus between 

and within countries, slowing the global spread of the virus while allowing air travel to continue.

ICAO is an agency of the United Nations recognized as the 

global standard-setting organization for the civil aviation 

community. ICAO not only guides the regulatory decisions 

of its 193 Member States, it also provides the technical and 

diplomatic framework needed to debate and resolve the 

challenges involved in promoting safe and efficient air travel 

across the globe. 

Target 1: ICAO Council Aviation Recovery Task Force 

(CART)

Phase I (March–June 2020)

The ICAO Council is ICAO’s permanent governing body. It is 

comprised of representatives from 36 Member States, and has 

non-voting observers, representatives of most international 

trade and advocacy organizations. In response to the COVID-19 

pandemic, ICAO Council created the CART. The ICAO 

Council directed the CART to “facilitate the restart of aviation 

operations in a sustainable, safe, secure, and orderly manner 

as soon as practicable, taking into consideration the evolution 

of the COVID-19 pandemic and decisions by international and 

national public health authorities.” 

The CART has also worked closely with the World Health 

Organization and other health organizations via the 

Collaborative Arrangement for the Prevention and Management 

of Public Health Events in Civil Aviation to develop risk 

mitigation measures and recommendations for passengers and 

aviation professionals in order to bring aviation operations back 

to pre-pandemic levels.

The U.S. has been closely involved in the work of CART, 

contributing to the high-level CART report, as well as drafting 

mitigating measures and more in-depth guidance materials. 

The final CART report highlighted both the support ICAO has 

given to Member States, along with the regulatory alleviation 

measures ICAO helped coordinate with regulators throughout 

the world. The inclusion of this information is important, as it 

will help serve as a guide for responding to similar emergencies 

in the future, should they occur.

Phase II (June 2020–January 2021)

The work of the ICAO CART did not stop with the publication 

of the first set of measures. As this pandemic and the global 

response to it evolves, so too do the measures needed to 

effectively manage the challenges ahead. Elements that were 

critical in the early stages need to be amended, eliminated, or 

replaced by new procedures based on the evolving operational 

experience. As the second round of CART policy-making 

activities began, the Council’s and industry’s attention had also 

turned toward addressing other aviation segments in need of 

guidance. These include business and general aviation and air 

traffic control. In addition, ICAO and the medical community 

explored addressing mental health concerns that may impact 

flight and ground crews as they resume their duties during 

these unusually stressful times.

CART Phase II emphasized public health risk management, 

testing regimes, and quarantine protocols. The ICAO Council 

approved the CART Phase II report and updated the TakeOff Guidance Document on November 9, 2020 to include 

COVID-19 policies. The revision of the document Take-off: 

Guidance for Air Travel through the COVID-19 Public Health 

Crisis, is available at: https://www.icao.int/covid/cart/Pages/

default.aspx. 

Phase III (January 2021–March 2021)

CART Phase III began on January 19, 2021 and targeted issues 

related to COVID-19 testing and vaccination of passengers 
62 Fiscal Year 2021 | FAA Performance and Accountability Report 

Performance Results

as part of a Member State multilayer risk management 

strategy. CART also considered the position of the World 

Health Organization that advised that national authorities and 

conveyance operators should not require proof of COVID-19 

vaccination for international travel as a condition for departure 

or entry.

On March 12, 2021, the ICAO Council approved the CART 

Phase III High Level Cover Document, the updated Take-Off 

Guidance Document, and the updated Testing and CrossBorder Risk Mitigation Measures Manual (Document 10152). 

Target 2: Promote FAA policy in support of CART 

implementation measures. 

The FAA supported the development and publication of CART 

guidance documents that serve as a global benchmark for 

testing protocols, and reflect policies and recommendations 

championed by the FAA. The FAA advanced these positions 

through its direct participation in ICAO’s Ad Hoc Small Group 

on the High Level Conference on COVID-19 (HLCC), the 

Collaborative Arrangement for the Prevention and Management 

of Public Health Events in Civil Aviation (CAPSCA), and the 

CART Technical Working Group.

Upon completion of CART Phase III in March 2021, the 

FAA continued to support the HLCC, which was held in 

October 2021. 

On June 28, 2021, the CART Technical Working Group met. 

During this meeting, updates were provided by CAPSCA, 

the European Union Aviation Safety Agency, and ICAO on 

vaccination performance, visible digital seals, and health 

certificates. CAPSCA is currently reviewing existing CART 

guidance material to determine if updates should be made 

to any of the 20 recommendations. Once CAPSCA has 

completed this review, proposed updates/revisions to CART 

Recommendations and the Testing and Cross-Border Risk 

Mitigation Measures Manual (Document 10152) will be 

circulated to the CART Technical Working Group for review/

approval prior to being submitted to ICAO Council for official 

approval. 

The FAA continues to support activities related to CART and 

HLCC. FAA participation in these groups will be especially 

important as we prepare for the HLCC in October 2021 to 

shape the global aviation policy response to the pandemic.

Through its support in drafting of CART’s global pandemic risk 

mitigation efforts, as well as its promotion of their adoption, 

the FAA contributes towards slowing the global spread of the 

COVID-19 virus.

Passengers boarding a commercial flight. Photo by Kiril Vasilev/Bigstock Images.
Fiscal Year 2021 | FAA Performance and Accountability Report 63

Performance Results

OPERATIONAL EXCELLENCE

Operate the world’s most efficient aerospace system through daily execution, continuous improvement, and infrastructure 

investment. 

Performance Measure Org.

FY 2018 

Results

FY 2019 

Results

FY 2020 

Results

FY 2021 

Target

FY 2021 

Results

FY 2021 

Status

Major System Investments

Ninety percent of major baselined acquisition programs must 

be maintained within ten percent of their current acquisition 

cost, schedule and performance baseline as of the end of 

FY 2021.

AFN 90.5% 75% 65% 90% 90.9% ✓

Unmodified Audit Opinion

Obtain an unmodified audit opinion on the FAA’s FY 2021 

financial statements identified by external independent 

auditors.

AFN

Unmodified

audit 

opinion

w/no 

material

weakness

Unmodified

audit 

opinion

w/no 

material

weakness

Unmodified

audit

opinion

Unmodified

audit

opinion

Unmodified

audit

opinion

✓

Community Engagement

Develop informational tools on FAA’s efforts to safely and 

efficiently integrate new entrant vehicles to the national 

airspace, including Unmanned Aircraft Systems (UAS), Urban 

Air Mobility, and Commercial Space operations. 

ATO

New 

Measure for 

FY 2021

New 

Measure for 

FY 2021

New 

Measure for 

FY 2021

Meet two 

targets

Met two 

targets ✓

Environmental Efficiency and Emissions

Continue FAA leadership in improving environmental 

efficiency and addressing carbon emissions from aviation 

through domestic implementation of International Civil 

Aviation Organization (ICAO) airplane carbon dioxide 

standard and continued domestic implementation of the 

Carbon Offsetting and Reduction Scheme for International 

Aviation.

APL

New 

Measure for 

FY 2021

New 

Measure for 

FY 2021

New 

Measure for 

FY 2021

Submit data 

to ICAO

Data 

submitted ✓

NextGen Advisory Committee Commitments

Achieve 80 percent of NextGen Advisory Committee NextGen 

Priorities Joint Implementation Plan commitments, excluding 

industry-controlled milestones, within a calendar quarter of 

their scheduled dates and within 10 percent of the planned 

cost.

ANG 91.3% 97.5% 100% 80% 100% ✓

Return of our aviation system post COVID impacts

Sustain and improve critical FAA cross-cutting support 

functions in response to a global pandemic. 

ASH

New 

Measure for 

FY 2021

New 

Measure for 

FY 2021

New 

Measure for 

FY 2021

Meet all 

three 

targets

Met three 

targets ✓

Address 80 percent of Internet Accessible High-Value 

Assets with Critical and High Vulnerabilities

Address 80 percent of the FAA’s Internet accessible 

high value assets with critical and high vulnerabilities in 

accordance with Department of Homeland Security's Binding 

Operational Directive 19-02. Provide monthly updates to the 

Cybersecurity Steering Committee.

AFN

Updated 

Measure for 

FY 2021

Updated 

Measure for 

FY 2021

Updated 

Measure for 

FY 2021

80% 100% ✓

Integrate Commercial Space Transportation into the 

National Airspace System*

Develop and implement Time-Based Launch/Reentry 

Procedures and Dynamic Launch and Reentry Windows for 

integrating complex commercial space launch and reentry 

operations into the national airspace system.

ATO

New 

Measure for 

FY 2020

New 

Measure for 

FY 2020

Developed 

two 

procedures

Implement 

procedures 

at two sites

Procedures 

implemented 

at two sites 

✓

* This performance measure supports a DOT Agency Priority Goal. ✓ Target met ✗ Target not met
64 Fiscal Year 2021 | FAA Performance and Accountability Report 

Performance Results

Major System Investments

FY 2021 Target Ninety percent of major baselined acquisition programs must be maintained within 10 percent of their current acquisition cost, schedule, 

and performance baseline as of the end of FY 2021.

FY 2021 Result 90.9 percent of major baselined acquisition programs were maintained within 10 percent of their current acquisition cost.

Public Benefit The FAA’s ability to keep acquisitions within budget and on schedule will allow for a timely transition of NextGen programs and other 

new programs. The transition to NextGen and other new programs involves acquiring numerous systems to support precision satellite 

navigation; digital, networked communications; integrated weather information; layered, adaptive security; and more.

The FAA’s ability to manage investments in an efficient and 

cost-effective manner is critical to the implementation of 

NextGen programs. For this reason, the FAA established a 

performance measure that tracks the agency’s success in 

maintaining its cost, schedule, and performance baselines with 

regard to Major System Investments. The FAA defines Major 

System Investments as capital programs typically classified in 

Acquisition Categories that have an aggregate rating of medium 

or high in the following areas: 

 Complexity 

 Risk

 Political sensitivity

 Safety

 Security or cost 

 Requiring of special management attention because of 

importance to the mission of the FAA 

 Significant program or policy implications 

 Executive visibility

 High developmental costs 

The FAA tracks and reports the status of each program’s 

acquisition program baseline using an automated database. 

The data is used to convey program status and performance 

information to senior executives for purposes of program 

performance reporting, periodic reviews, and decision-making.

The target for each year has been to keep 90 percent of these 

major acquisition programs within a 10 percent variance of 

their cost, schedule, and performance goals. Up until 2019, 

the FAA had met this goal every year since its inception in 

FY 2012. However, in FY 2019, the FAA did not achieve 

the target due to the month-long government shutdown. 

In FY 2020, the FAA did not achieve the 90 percent target 

because of restrictions to FAA’s work activities on these 

programs due to the COVID-19 pandemic. 

Once a milestone is missed, it is removed from the metric until 

the program has new cost, schedule, and performance goals. 

Since programs generally do not recover from such significant 

delays in either cost or schedule, new goals are often

necessary in order to meaningfully measure program progress. 

As a result, the FAA is now tracking 11 programs, as opposed 

to the 20 programs tracked in FY 2020. This means failure in 

any individual program will have a much greater impact on 

the metric as a whole. As long as the COVID-19 restrictions 

continue, this metric will continue to present challenges for 

the FAA.

In an effort to make progress on major systems while dealing 

with the uncertainty around when operations will return to 

normal, the FAA was able to mitigate some risks through 

virtual/remote access to facilities and modifying program 

schedules to conduct work that did not require traveling. As 

some restrictions eased in FY 2021, FAA was able to continue 

to make progress on programs.

As a result, one out of the 11 programs tracked for this metric 

has exceeded the 10 percent threshold — Aerospace Medicine 

Safety Information System Phase 1. This program has projected 

MAJOR SYSTEM INVESTMENTS 

Percent of major baselined acquisition programs within 10 percent of 

their current acquisition cost, schedule and technical performance RATE

95.5

90.0

✓

95.2

90.0

✓

90.5

90.0

✓

75.0

90.0

✗

65.0

90.0

✗

90.9

90.0

✓

Actual

Target

Target

Achieved?

60

70

80

90

100

FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

TARGET AREA*
Fiscal Year 2021 | FAA Performance and Accountability Report 65

Performance Results

a schedule delay of 12 months (23.1 percent variance) and a 

projected cost increase of $41.9 million (49.1 percent variance). 

The schedule and cost variances are due to performance 

issues with the prime vendor, including delays in software 

development and delays in hiring personnel. In addition, 

emerging complexity in requirements, delays in provisioning 

government-furnished equipment and information, and the 

COVID-19 pandemic have impacted the program. 

The FAA will continue to implement standard best practices 

for managing its programs. The FAA’s investment-decisionmaking body, the Joint Resources Council, provides oversight 

of acquisition programs through quarterly reviews to oversee 

program costs, schedules, and performance goals. They 

may take action to address issues and provide guidance and 

direction to acquisition programs as necessary. These may 

include reviewing and approving program mitigation strategies 

to minimize or eliminate further issues.

Reporting this performance measure ensures consistency with 

the Air Traffic Management System Performance Improvement 

Act of 1996. This Act requires the FAA Administrator to 

terminate programs funded from the FAA’s Facilities and 

Equipment budget account that are more than 50 percent 

over their budget, schedule, or performance goals, unless 

the Administrator determines that termination would be 

inconsistent with keeping safe and efficient the development 

or operation of the national airspace system. In addition, the 

law requires the FAA Administrator to consider terminating 

any substantial acquisition that is more than 10 percent over its 

budget, schedule, or performance goals.

Rendering of the new Teterboro 

Tower in New Jersey. The tower 

is currently under construction 

with an anticipated completion 

date in FY 2023. Rendering 

provided by Archer Western.
66 Fiscal Year 2021 | FAA Performance and Accountability Report 

Performance Results

Unmodified Audit Opinion

FY 2021 Target Obtain an unmodified audit opinion on the agency’s financial statements.

FY 2021 Result Unmodified audit opinion on the agency’s financial statements. 

Public Benefit The public benefits by being assured, confirmed by independent auditors, that the consolidated financial statements of the FAA are 

presented fairly in all material respects.

The unmodified audit opinion target is a critical indicator of 

the financial condition of the FAA because it independently 

assesses the fair presentation of the agency’s financial 

statements. In connection with that process, the unmodified 

audit opinion considers the internal control over financial 

reporting and compliance with laws and regulations that could 

have a material impact on the financial statements. 

In FY 2021, the FAA achieved this target by receiving an 

unmodified audit opinion on its consolidated financial 

statements. An unmodified audit opinion means that the 

financial statements are presented, in all material respects, in 

accordance with U.S. generally accepted accounting principles. 

Achieving this measure is a signal to the public and the U.S. 

Congress that the agency is transparent and accountable in its 

use of taxpayer resources. It requires every FAA organization 

to be responsible for following accounting policy by entering 

accurate and timely source data into the accounting system. 

From the highest levels of the agency down, the financial 

statements audit is a priority. Executive-level leadership allocate 

resources where they are needed so that sound internal controls 

operate routinely and effectively, audit issues are resolved 

promptly, the integrity of data and business system operations 

are ensured, and ongoing performance is monitored. The strong 

emphasis on fiscal responsibility is the most significant factor 

contributing to the achievement of this measure.
Fiscal Year 2021 | FAA Performance and Accountability Report 67

Performance Results

Community Engagement

Develop a series of informational tools (presentations, talking points, infographics, webpages) that can be used by the FAA to educate and 

inform airport sponsors, community groups, and local elected officials.

FY 2021 Target Target 1: Work with the existing regional Community Engagement teams to develop informational tools on FAA’s efforts to safely and 

efficiently integrate new entrants to the national airspace, including Unmanned Aircraft Systems, Urban Air Mobility, and 

Commercial Space operations. 

Target 2: Work with the existing regional Community Engagement teams to develop informational tools on the FAA’s aircraft noise 

research programs, including efforts to better understand potential community impacts from aircraft noise and ways to address 

them.

FY 2021 Result Target 1: The FAA developed high-level communication products across multiple lines of business, connecting staff offices and regional 

community engagement teams.

Target 2: The FAA conducted a national webinar to provide additional detail and an opportunity to address questions on the FAA’s 

noise research priorities. Multiple briefings on the noise research program were also provided in coordination with community 

meetings and FAA regional staff.

Public Benefit Target 1: The public benefits from more thoughtful responses to frequently asked airspace questions, as well as early and consistent 

engagement with their communities.

Target 2: The public benefits from opportunities to learn about and contribute to a national discussion on aircraft noise.

1 https://www.federalregister.gov/documents/2021/01/13/2021-00564/overview-of-faa-aircraft-noise-policy-and-research-efforts-request-forinput-on-research-activities

The FAA takes an active leadership role in balancing aviation 

safety, capacity, and efficiency with environmental concerns 

(such as noise and air quality). This includes working with 

aircraft manufacturers and others in reducing noise at the 

source through quieter aircraft engines and airframe design; 

noise abatement procedures (working to redirect flight-paths 

away from noise-sensitive areas when possible); and noise 

compatibility planning, which is a structured approach to 

collaboration between airports, airlines, communities, and 

the FAA. 

The FAA seeks to engage with our stakeholders to address 

aviation noise challenges through noise research efforts 

focused in three core areas: studying the effect of aircraft noise 

on individuals and communities; developing tools to measure 

the level of aircraft noise, including models, metrics, and 

data visualizations; and researching effective ways to reduce 

or mitigate aircraft noise. Further detail summarizing these 

research topics was published in a Federal Register Notice on 

January 13, 2021, (86 FR 2722).1

Since 2016, the FAA has been working to further enhance 

standardized, scalable, and repeatable community engagement 

strategies and practices. This builds a robust framework that 

can inform new entrants on best practices for engagement. Our 

Community Engagement efforts are flexible based on the needs 

of the airport, project, and community. For example, we offered 

different solutions during discussions with Regan National 

Airport and the Community Roundtable in Washington, D.C. 

than we offered during our engagement efforts with the 

South-Central Florida Metroplex. These practices are captured 

in our guidance so they can be utilized for engagement by FAA 

regional teams with new and different concerns. The use of 

best practices, accumulated experiences, and the alignment 

derived from the matrix team will form a good foundation for 

regional support for engaging stakeholders of new entrants to 

the airspace. 

These strategies and priorities are currently being utilized in 35 

ongoing roundtable discussions around the country. Roundtable 

discussions bring together members of the public, elected 

officials, and aviation industry representatives who meet and 

discuss airspace modernization projects, the expected benefits 

from them, and any potential impacts that could result from 

airspace actions.

The FAA recorded a virtual broadcast, both on Zoom and via 

FAA social media channels, to meet its second target. This 

broadcast creates an extended and recurring outreach to 

communities.

The lessons learned from developing these activities have been 

incorporated into formal training and guidance. The following is 

a sample: 

 Community Engagement Training – developed for the 

Community Engagement Officers and suggested for all 

FAA personnel who interact with the public.
68 Fiscal Year 2021 | FAA Performance and Accountability Report 

Performance Results

 Environmental Justice and Communication Training – the 

FAA office of Civil Rights provided training in two sessions 

with regular annual refresher training for the Community 

Engagement Officers and all FAA personnel who interact 

with the public.

 Presentation Training – geared to building effective 

presentations and communication skills training for 

Community Engagement Officers.

 Strategic Outreach Training – targeted training specifically 

to improve outreach communications 

Additionally, the FAA provided a series of community 

briefings on the agency’s noise research program, including 

a presentation of the results from the January 2021 release 

of the Neighborhood Environmental Survey on community 

annoyance from aircraft noise exposure. Detailed briefings 

and live questions and answers sessions were conducted 

at over 35 community roundtables. The FAA also hosted a 

national webinar on February 22, 2021, providing the public 

with a comprehensive overview of the agency noise research 

programs.

FAA understands the responsibility and value of engaging with 

the communities surrounding airports, flight paths, and launch 

sites. As more entrants seek to use our airspace, community 

engagement becomes even more important and the FAA will be 

prepared by using lessons learned, best practices, and the tools 

described here to meet that challenge. 

It’s not an exaggeration to say that 

when many Alaskans go to the grocery 

store, they are actually going to the 

local airport. In a state where more 

than 80 percent of communities are 

accessible only by air, aviation is the 

daily backbone of commerce. 

See how the FAA is increasing aviation safety in 

Alaska, here: 

https://medium.com/faa/how-the-faa-is-increasingaviation-safety-in-a-state-like-no-other-alaskac7e23a2fbbca.

General aviation aircraft at Wasilla Airport in Alaska. 

Photo by Tremayne Cobb. 
Fiscal Year 2021 | FAA Performance and Accountability Report 69

Performance Results

Environmental Efficiency and Emissions

Continue FAA leadership in improving environmental efficiency and addressing carbon emissions from aviation through domestic 

implementation of the International Civil Aviation Organization (ICAO) airplane carbon dioxide standard and continued domestic 

implementation of the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA).

FY 2021 Target Submit monitoring, reporting, and verification information for 2019 emissions from U.S. operators to ICAO in accordance with the FAA 

CORSIA Monitoring, Reporting, and Verification Program.

FY 2021 Result Data Submitted to ICAO on October 30, 2020.

Public Benefit Communities benefit from coordinated efforts to minimize and mitigate environmental effects.

In October 2016, after years of negotiations, all ICAO Member 

States reached agreement on a global market-based measure to 

address carbon dioxide emissions from international aviation, 

referred to as the Carbon Offsetting and Reduction Scheme 

for International Aviation (CORSIA). The agreement fulfilled 

congressional direction by creating a global approach on 

aircraft emissions. It also garnered widespread industry support 

by establishing a single measure for international flights, as 

opposed to a growing patchwork of carbon taxes and charges 

applied unilaterally to international aviation. In the simplest 

terms, CORSIA will require aircraft operators to reduce their 

emissions or purchase emissions offsets for their international 

carbon dioxide emissions above a defined baseline. 

The FAA has initiated domestic implementation of CORSIA 

with a voluntary program for the Monitoring, Reporting, and 

Verification (MRV) requirements of CORSIA. The program 

fulfills the responsibilities of the United States under the 

Chicago Convention to implement the ICAO Standards and 

Recommended Practices for the MRV of carbon dioxide 

emissions from international flights as part of CORSIA. The 

annual CORSIA emissions report is an aggregation of verified, 

monitored international emissions from U.S. operators that FAA 

transmits directly to ICAO. 

Under the FAA CORSIA MRV Program, U.S. operators are 

encouraged to voluntarily provide MRV data to FAA as 

participants in the program. As of August 2021, operators 

representing more than 98 percent of international carbon 

dioxide emissions from the U.S. have volunteered to participate 

in the program. As participants, these operators monitor the 

fuel use on a flight-by-flight basis. The operators compile this 

flight-level data and then work with a third-party verifier to 

confirm the accuracy of this information before transmitting the 

data to FAA for a final review and approval. For those operators 

who do not participate in the program, FAA estimates annual 

emissions based on fuel use data submitted to the Department 

of Transportation’s Bureau of Transportation Statistics. 

FY 2019 was the first year of the FAA CORSIA MRV program, 

and despite the ongoing global pandemic, operators were able 

to complete the necessary steps in a timely manner and provide 

accurate data to FAA. FAA carefully reviewed each report that 

was submitted before anonymizing and aggregating the detailed 

information and uploading the aggregated data to ICAO’s 

secure database as the U.S. submission on October 30, 2020.

For more information on the FAA CORSIA MRV Program, 

please visit: https://www.faa.gov/about/office_org/

headquarters_offices/apl/research/environmental_policy/.
70 Fiscal Year 2021 

| FAA Performance and Accountability Report

Performance Results

NextGen Advisory Committee Commitments

FY 2021 Target Achieve eighty (80) percent of NextGen Advisory Committee (NAC) NextGen Priorities Joint Implementation Plan commitments, excluding 

industry-controlled milestones, within a calendar quarter of their scheduled dates and within 10 percent of the planned cost.

FY 2021 Result Achieved 100 percent of NAC NextGen Priorities Joint Implementation Plan commitments. 

Public Benefit Capabilities identified by the NextGen Advisory Committee as “high priority, high readiness” bring tangible, near-term benefits to users 

of the national airspace. NextGen is the modernization of the way airplanes are organized for flying in the air and taxiing on the ground, 

all with the goal of making flying even safer, more efficient (getting to the destination faster using less fuel), and more predictable (more 

on-time arrivals and departures). The public will reap the benefits from NextGen implementation by having an improved flying experience 

that has less impact on our environment.

The NextGen Advisory Committee (NAC) NextGen Priorities 

Joint Implementation Plan outlines a number of high-priority 

NextGen capabilities that will provide significant nearterm benefits to users of the national airspace. The plan 

is updated every year and includes a three-year window 

of joint implementation planning, implementation, and 

industry commitments. The most recent plan covers the 

2019–2021 period and can be found at: https://www.faa.

gov/about/office_org/headquarters_offices/ang/nac/media/

NAC_NextGen_Priorities_Joint_Implementation_Plan_CY2019-

2022_2021_Update.pdf.

As a result of pandemic disruptions, the FAA announced a 

one-year extension of the current NextGen Priorities Joint 

Implementation Plan at the November 2020 NAC meeting. This 

extension allowed the FAA to reschedule some of the agreed 

upon milestones into 2022. The pandemic greatly impacted our 

implementation of NextGen milestones in 2021. For example, 

the metric for 2021 encompassed just seven milestones, 

whereas the 2020 metric included 35 milestones. Despite 

these delays, the FAA remains committed to the successful 

implementation of all the milestones that were jointly agreed to 

with NAC stakeholders. 

Travel to FAA facilities has continued to be restricted due to 

the pandemic, which prevented hardware implementation, 

operational testing, and training on new systems. Despite 

these challenges, the FAA and industry has made significant 

progress on NextGen implementation. To date, the FAA 

has completed six of the FY 2021 NextGen Priorities Joint 

Implementation Plan milestones on time, surpassing the target 

for the year by delivering 100 percent across the five focus 

areas: Multiple Runway Operations, Data Communication, 

Performance-Based Navigation, Surface and Data Sharing, and 

the Northeast Corridor.

A key part of the Surface and Data sharing focus area is the 

Terminal Flight Data Manager (TFDM) program. This program 

will facilitate greater sharing of air traffic management system 

information such as airport operational status, flight data, and 

national airspace system restrictions. 

The FAA developed a new remote access capability to the 

Technical Center laboratory. This new remote testing capability 

enabled the TFDM program to continue software testing of the 

system despite restrictions on travel due to the pandemic. The 

remote software testing continues the progress toward TFDM 

commitments to deliver initial software to Phoenix Sky Harbor 

Airport in Arizona. In parallel, the TFDM program continued the 

development of the next phase in TFDM software. An initial 

version of this software was delivered to the FAA in January 

2021. This software development continues the progress toward 

TFDM commitments to deliver the next phase of the software to 

Charlotte-Douglas International Airport in North Carolina.

NEXTGEN JOINT IMPLEMENTATION PLAN 

RECOMMENDATIONS

Percent of commitments achieved within schedule and cost parameters RATE

92.0

80.0

✓

91.3

80.0

✓

97.5

80.0

✓

100.0

80.0

✓

100.0

80.0

✓

Actual

Target

Target

Achieved?

60

70

80

90

100

FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

TARGET AREA*
Fiscal Year 2021 71 | 

 FAA Performance and Accountability Report 

Performance Results

Delivering NextGen Capabilities

Past Practices NextGen Capabilities

Communications Controllers communicate only by 

voice to each individual aircraft.

In addition to voice communications, controllers 

communicate via computer (digital messages) 

to multiple aircraft at a time, which increases 

efficiency and improves safety by reducing 

misunderstandings.

Aircraft Routes

Flight paths are limited by reliance 

on ground-based navigation 

infrastructure.

Aircraft can follow more efficient flight paths that 

use GPS navigation, reducing delays, fuel burn, 

and carbon emissions. 

Aircraft Spacing

Controllers manage air traffic by 

maintaining specific distances 

between aircraft.

Controllers can strategically manage the flow of 

air traffic using the expected position of aircraft 

throughout intended flight paths, improving the 

safety and efficiency of the national airspace.

Information

Air traffic controllers and users 

of the national airspace (such as 

commercial airlines) do not have 

access to the same information to 

inform their decisions.

Information (including weather and flight status) 

is shared between the FAA and the users of 

the national airspace, allowing collaborative 

decision-making and improving the efficiency and 

predictability of the flow of air traffic.
72 Fiscal Year 2021 | FAA Performance and Accountability Report 

Performance Results

Return of Our Aviation System Post COVID Impacts

Sustain and improve critical FAA cross-cutting support functions in response to a global pandemic.

FY 2021 Target Target 1: Identify key FAA crosscutting functions, challenges, and opportunities, especially those requiring collaboration across the 

agency.

Target 2: Develop lessons learned, processes, and mechanisms to encourage best practices.

Target 3: Develop a strategy to enhance crosscutting support functions in order to enable FAA safety and efficiency operations to remain 

intact in case of another global pandemic.

FY 2021 Result Target 1: Identified key FAA crosscutting functions, challenges, and opportunities.

Target 2: FAA developed, and continues to identify, best practices.

Target 3: Drafted a Pandemic Response Strategy.

Public Benefit An FAA Pandemic Response Strategy will provide FAA leadership with a focused plan to address future pandemics. 

The COVID-19 pandemic has presented unique challenges to 

almost every organization, including the FAA. The FAA has 

adjusted its operations to continue supporting U.S. civil aviation 

and protect the safety of air transportation. This past year, 

the FAA has assessed our impacts, opportunities, and costs 

resulting from our response to the stressed aviation system 

caused by the global COVID-19 pandemic. This comprehensive 

assessment is crucial for the FAA to continue to effectively 

adapt to the ongoing pandemic and to develop a strategy to 

prepare for future pandemics. 

In 2021, the FAA successfully completed three activities to 

capture, measure, sustain, and improve the FAA’s response to 

the global pandemic. The first activity identified the specific 

impacts of the initial pandemic response and cataloged the 

actions needed to achieve mission success under these stressed 

conditions, both internally and in support of the aviation and 

space transportation systems. This activity sought to identify the 

issues and opportunities uncovered in an uncertain environment, 

and to provide a forum to distill the most effective contributions 

to our current operations and our eventual recovery. The second 

activity was an agency-wide effort to capture the lessons 

learned after eighteen months of pandemic operations and to 

compile them into an integrated, useful tool. Finally, the third 

activity developed an updated pandemic response strategy to 

incorporate into future operations and planning. 

Identify key FAA crosscutting functions, challenges, and 

opportunities, especially those requiring collaboration across 

the agency. As conditions across the globe worsened, a Crisis 

Response Working Group (CRWG) was convened comprised 

of Emergency Planners from across the FAA, including the 

regional offices. The CRWG began to map out the response 

for the FAA, with Emergency Planners serving as conduits for 

sharing their expertise, planning experience, communication 

and coordination of policies, updates, and evolving 

requirements with the rest of the agency. 

As the pandemic proved to be an enduring concern that 

demanded a more deliberate, long-term response, the FAA 

leadership chartered the COVID-19 Incident Management 

Team (IMT) as the dedicated focal point for COVID-19 issues. 

The IMT published situation reports for both internal and 

external consumption to ensure all stakeholders understood 

the status of FAA personnel, facilities, activities, and response 

efforts. These reports included the impact on domestic 

and international travel and the efforts and responses of 

international communities and countries.

Initial challenges to the IMT included representing and 

reconciling different challenges and solutions across different 

parts of the FAA, including its regional offices, and industry 

stakeholders. IMT members were able to represent their 

specific offices’ concerns and bring those to the group for 

discussion and resolution. The result was a consistent approach 

to problem solving and policy development. In addition, 

external audiences understood the IMT to be the intake 

point for requests and inquiries of the FAA that allowed for a 

consistent and cohesive response.

Develop lessons learned, processes, and mechanisms to 

encourage best practices. The FAA is a data-driven learning 

organization. As such, the agency is dedicated to documenting 

lessons learned and successful procedures and implementing 

best-practices to continuously improve our operations and 

better fulfil our mission. As the pandemic began to retreat in 

the spring of 2021, the IMT organized an agency-wide effort 

to identify, collect, and catalog lessons learned during the 

course of the pandemic. Several hundred inputs were received 

identifying successes, shortcomings, and areas benefitting from 

policies and procedures in response to the pandemic. These 

collected inputs provided the basis for an updated agency 

pandemic response strategy. 
Fiscal Year 2021 | FAA Performance and Accountability Report 73

Performance Results

The IMT utilized a process improvement cycle to complete their 

work. The group began by adopting existing best practices 

for incident response and management, such as responses to 

hurricanes and other weather events. Best practices included 

developing Situation Reports, holding group meetings, and 

leaning on emergency planners, all of which were learned from 

previous working groups. The IMT adopted these practices 

and expanded them. In an effort to address group bias, the 

IMT asked an outside expert to lead a lessons learned exercise 

and to provide recommendations for improvement. The IMT 

adopted those recommendations calling for tighter quality 

control processes and information flow. The IMT has just 

completed another round of collecting lessons learned and is in 

the process of implementing additional process improvements, 

this time, to include vaccination requirements and industry 

recovery processes.

Develop a strategy to enhance crosscutting support functions 

in order to enable FAA safety and efficiency operations to 

remain intact in case of another global pandemic. The FAA 

drafted a document that serves as the foundation for FAA’s 

Pandemic Response Strategy; this living document provides 

a recommended series of specific actions tied to specific 

intervals in the Centers for Disease Control and Prevention 

pandemic identification and response structure. This document 

will more closely align our requirements and responses with 

other government departments and agencies to facilitate an 

effective response to safely, rapidly, and efficiently protect our 

personnel and respond to the needs of the aviation and space 

transportation sectors in a future pandemic situation. 

As conditions continue to evolve, FAA will incorporate lessons 

learned and best practices from COVID-19 incident response 

and management into the Crisis Management Handbook and 

Continuity of Government processes. Complementing these 

actions, the Office of Aerospace Medicine will incorporate 

additional lessons learned and best practices to address the 

long-term response to pandemic or pandemic-like situations. 

A coordinated strategy will provide FAA leadership with a 

means to address and remain focused during a future pandemic 

and more closely integrate our requirements with the national 

response. It also ties our overall pandemic response to any 

emerging strategy for recovery. We fully expect additional 

processes, procedures, and lessons to be guided by our 

collective experience because new requirements and responses 

arise on a daily basis. 

Air Traffic Trends During the COVID-19 Pandemic

The COVID-19 pandemic has had a significant impact on the volume of air traffic in the United States, with the total number of flights 

(including passenger, cargo, and military flights) falling precipitously in the middle of FY 2020. While air traffic has been gradually 

recovering over the last 18 months, the volume of air traffic in FY 2021 is still below pre-pandemic levels. The graph below compares 

traffic levels for FY 2020 and FY 2021 to the average level over the FY 2017–2019 period.

10,000

20,000

30,000

40,000

50,000

60000

OCTOBER NOVEMBER DECEMBER JANUARY FEBRUARY MARCH APRIL MAY JUNE JULY AUGUST SEPTEMBER

Seven-Day Moving Average of Flights

FY 2020 FY 2021 FY 2017–FY 2019 average

TOTAL PASSENGER, CARGO, AND MILITARY FLIGHTS
74 Fiscal Year 2021 | FAA Performance and Accountability Report 

Performance Results

Address 80 percent of Internet-Accessible High-Value Assets with Critical and 

High Vulnerabilities

FY 2021 Target Address 80 percent of the FAA's internet-accessible high-value assets with critical and high vulnerabilities in accordance with Department 

of Homeland Security (DHS) and Binding Operational Directive 19-02. Provide monthly updates to the Cybersecurity Steering Committee.

FY 2021 Result Addressed 100% of internet-accessible high-value assets with critical and high vulnerabilities in accordance with DHS Binding 

Operational Directive 19-02. 

Public Benefit The FAA is undertaking multiple strategic and tactical initiatives in the development of a comprehensive and strategic framework to 

reduce cybersecurity risks to the national airspace system, civil aviation, and agency information and information systems. Cybersecurity 

ensures the availability, integrity, and usability of information systems for the flying public.

The FAA plays a crucial role in safeguarding cybersecurity 

through management of the national airspace and other 

mission-critical systems for air transportation. Assuring 

that FAA information systems — both operational and 

administrative — are protected and secure reduces the risk of 

compromising aviation safety-related information and potential 

threat damage. Our national airspace system is a critical part 

of the national infrastructure and a key resource for which a 

cyber-attack could have economic, catastrophic, and national 

defense impacts, compromising the safety of the flying public 

and the international community. 

As the FAA continues to increase the deployment of internetaccessible systems, it is more critical than ever to rapidly 

remediate vulnerabilities that otherwise could allow malicious 

actors to compromise federal networks through exploitable, 

external-facing systems. In accordance with the DHS Binding 

Operational Directive 19-02, DHS provides notification to 

the FAA of all critical and high vulnerabilities. Based on the 

industry-standard Common Vulnerability Scoring System, high 

vulnerabilities are those that receive a score between 7.0 and 

9.0, while critical vulnerabilities receive a score greater than 

9.0, with the score of 10 being the maximum. FAA prioritizes 

vulnerabilities in high-value assets, which are systems and 

services that have been deemed so critical that the loss or 

corruption of this information or loss of access to the system 

would have a serious impact on the organization's ability to 

perform its mission. High-value assets are based on FAA's 

Federal Information Security Management Act reportable 

system inventory. This performance target is a percentage that 

is calculated by comparing the total number of critical and high 

vulnerabilities identified on internet-accessible high-value assets 

that are addressed within the required timeframes to the total 

number of critical and high vulnerabilities identified on internetaccessible high-value assets.

In FY 2021, the FAA addressed 52 of the 52 (100 percent 

success rate) critical and high vulnerabilities identified on 

internet-accessible high-value assets within 15 or 30 days from 

initial detection. The revised metric target for FY 2021 calls 

out critical vulnerabilities and requires them to be remediated 

within a shorter timeframe than last year’s 30 day timeline. It is 

consistent with DHS's Binding Operational Directive 19-02 that 

states: 

 Critical vulnerabilities must be remediated within 15 

calendar days of initial detection.

 High vulnerabilities must be remediated within 30 calendar 

days of initial detection.

The Security Operations Center 24 hour/365 days-a-year 

operation, is the central reporting point for all cyber events 

occurring within the FAA and Department of Transportation. 

The Security Operations Center detects threats, attacks, and 

weaknesses across all three FAA operating domains: Mission 

Support, National Air Space, and Research and Development.

FAA continues to enhance its external detection and 

protection mechanisms by deploying web application firewalls, 

cloud-based security access brokers, and critical scanning 

services to identify and remediate vulnerabilities in a more 

timely manner. In addition, deployment of new capabilities 

identified in Executive Order 14028, Improving the Nation's 

Cybersecurity, will further bolster the security posture of 

the FAA by increasing visibility and enhancing the Security 

Operations Center detection and response capabilities. To 

strengthen the U.S. civil aviation security posture, the FAA is 

leading an effort with private and public aviation entities to 

identify cybersecurity risks and develop mitigation strategies 

across the aviation ecosystem. This effort enables FAA and its 

stakeholders across the U.S. government (including the DHS 

and the Department of Defense), industry, and international 

partners to identify cybersecurity vulnerabilities and prevent 

cyber-attacks that could disrupt the safe and efficient operation 

of air travel.
Fiscal Year 2021 | FAA Performance and Accountability Report 75

Performance Results

Integrate Commercial Space Transportation into the National Airspace System

Develop and implement Time-Based Launch/Reentry Procedures (TBLP) and Dynamic Launch and Reentry Windows (DLRW) for integrating 

complex commercial space launch and reentry operations into the national airspace system.

FY 2021 Target Develop and implement TBL/DLRW procedures at two additional U.S. launch and reentry sites; further integrating commercial space 

launches and reentries into the national airspace system, using lessons learned in the FY 2020 Cape Canaveral Space Force Station/

Kennedy Space Center pilot project.

FY 2021 Result Developed and implemented DLRW at launch sites in Boca Chica, TX, and Van Horn, TX. 

Public Benefit Fewer aircraft affected by commercial launches and reentries will result in reduced flight times and costs; improving overall efficiency as 

flight traffic increases in the national airspace system.

In April 2021, the FAA met its target of implementing Dynamic 

Launch and Reentry Windows (DLRW) procedures at launch 

sites in Van Horn, Texas and Boca Chica, Texas. DLRW 

procedures reduce the amount of time airspace is closed due to 

rocket launch and reentry activity.

DLRW continuously updates the amount of time airspace is 

locked down in preparation for a rocket launch and reentry by 

evaluating key mission events. If a launch is ahead of schedule, 

the airspace can be cleared earlier than planned. For example, 

the FAA will continuously communicate with the operator as 

they achieve mission milestones such as loading of propellants 

onto a rocket or rocket ignition. Thus, the FAA can actively 

adjust the time during which the airspace needs to be kept 

closed. Alternatively, Time-Based Launch/Reentry Procedures 

(TBLP) use existing technology to allow air traffic controllers to 

release aircraft from their departure points depending on how 

close they are to the hazard areas, earlier than with the prior 

model of holding all aircraft. 

Historically, the 

Department of Defense 

(DoD) and the National 

Aeronautics and Space 

Administration (NASA) 

have managed launch and 

reentry operations out 

of federal ranges, land 

owned by the federal 

government and used for 

rocket launch activities, 

in support of DoD and 

civil government missions. 

The airspace required for 

these missions was also 

predominately managed 

by DoD and NASA. This 

airspace management 

structure led to a model in which launches and reentries were 

easily segregated from other airspace stakeholders.

With the proliferation of commercial launch and reentry 

operations, there is an increased emphasis on ensuring efficient 

launch and reentry operations to minimize disruptions to other 

airspace users. Collaboration with federal ranges, FAA air 

traffic facilities, and launch and reentry operators led to the 

development of TBLP and DLRW as a method for increasing 

efficiency and reducing delays associated with launch and 

reentry operations.

The FAA first developed and implemented TBLP and DLRW 

to better integrate complex commercial space launch and 

reentry operations at Cape Canaveral Space Force Station/

Kennedy Space Center into the national airspace. Based on this 

experience, the FAA developed and implemented DLRW at 

launch sites in Boca Chica, Texas, and Van Horn, Texas. DLRW 

procedures alone proved effective in reducing delays, making 

TBLPs unnecessary.

Aerial view of Spaceport America, “the world's first purpose-built commercial spaceport", designed and constructed 

specifically for commercial users, located in New Mexico. Photo courtesy of Spaceport America.
76 Fiscal Year 2021 | FAA Performance and Accountability Report 

Performance Results

Quality Assurance

Verification and Validation of 

Performance Information

The FAA employs strong management controls to ensure the 

accuracy, completeness, and timely reporting of performance 

data. Because of rigorous internal and external reviews, the 

FAA’s verification and validation process produces performance 

results in which agency managers, the Administrator, the FAA 

workforce, and the public can be confident of.

The FAA has created a robust governance structure that 

has oversight over the agency’s performance management 

framework. In addition to internal verification and review by 

the FAA, performance data is independently verified by the 

Department of Transportation. Moreover, data from several 

FAA safety performance measures, such as the Commercial Air 

Carrier Fatality Rate, require independent verification by the 

National Transportation Safety Board (NTSB) and the Bureau 

of Transportation Statistics. Data for these measures are not 

considered final until the NTSB completes its report on each 

incident.

Completeness and Reliability of 

Performance Data

The agency’s internal review processes support the integrity 

of our performance data. At the beginning of each fiscal year 

we update our performance measure profiles. These profiles 

contain technical definitions for each measure, as well as data 

source information, statistical issues, and completeness and 

reliability statements. Where the criteria for targets have 

changed, it is noted and the changes are explained. This robust 

level of detail earns the FAA a high level of confidence from all 

interested parties, internal and external, in the accuracy of both 

the measures themselves and the results the FAA publishes.

To supplement the performance measure profiles, the agency 

annually conducts an internal review of the verification 

processes used by all internal FAA organizations responsible for 

collecting and reporting performance data. The agency’s full 

understanding of these processes allows it to provide complete 

and definitive documentation of results at the end of the year.

Use of Data and Evidence in FAA 

Decision-Making

Safety is the core of the FAA’s mission and our top priority. While 

the United States has the safest air transportation system in the 

world, aviation is a complex and dynamic system that will always 

include risks. To mitigate these risks and improve the safety of 

air transportation, the FAA continually monitors data to identify 

safety trends and conducts discrete evaluations on threats to 

aircraft and aviation that include fire, extreme weather, aircraft 

icing, lithium batteries, cyber threats, bird strikes, and more. The 

data and evidence that the FAA collects from this continuous 

monitoring, feedback mechanisms from aviation partners, 

and testing of new technologies and protocols, are critical to 

informing the agency’s decisions on regulations, guidelines, 

policies, and air traffic control procedures.

The continuous monitoring is particularly important as the FAA 

deploys programs and safety enhancements. An example is our 

“Top 5” program. The program continuously monitors safety data 

to identify growing safety risks in the national airspace system. A 

cross section of FAA experts form a Safety Roundtable to select 

the top 5 safety risks. Once identified, mitigation strategies are 

established for each issue. These experts then continuously track 

the impacts of these mitigation activities, to ensure the FAA is 

adequately mitigating the identified risks. Once the safety issue 

is no longer a growing safety concern, it is replaced with the 

next most important safety risk. To read more about the Top 5 

program, go to page 48.

Another example of FAA tracking and evaluating the efficiency 

of its safety enhancements is the Runway Incursion Mitigation 

(RIM) program. A runway incursion is the incorrect presence of 

a person, vehicle, or aircraft on the protected area of runway. 

The RIM Program identifies airport locations experiencing 

a high number of runway incursions, determines the cause, 

and attempts to address the problem (hence the “mitigation”). 

Utilizing almost 14,000 runway incursion reports over more 

than 12 years, the RIM Program has made significant progress 

since its creation in 2015. 

As of October 2021, there are 130 RIM locations at 79 airports. 

These locations often feature unique geographic layouts and 

runway intersections that lead to an increased risk of runway 

incursions. Airports use a combination of strategies to improve 

these intersections, such as changes to the airport layout, lights, 

signs, markings, and operational procedures. These strategies 

reduce the likelihood of pilot confusion and ultimately, runway 

incursions. To date, the RIM program completed mitigations at 

73 locations, with construction projects started at an additional 
Fiscal Year 2021 | FAA Performance and Accountability Report 77

Performance Results

16 locations in FY 2021. The monitoring of mitigated RIM 

locations continues over time to determine if mitigation efforts 

were successful, and if additional mitigation is necessary. 

Implemented mitigations reduce runway incursions by an 

average of 81 percent at their specific locations. The collection 

of this data has allowed the FAA to take a more proactive 

stance. Instead of using incident data to identify existing 

locations, the FAA is looking at the risk factors that create 

RIM locations in order to prevent locations from becoming 

a concern in the future. FAA’s Office of Airports has been 

evaluating locations across the country this year and developed 

a prioritized inventory of locations.

Continuous Monitoring of Data

Commercial and General Aviation

The FAA continually monitors aviation data to identify trends, 

make informed decisions, and address problems before they 

result in an accident. This effort does not have a beginning 

and end point like many FAA projects and requires continuous 

vigilance to maintain safety.

The FAA’s Aviation Safety Information Analysis and Sharing 

(ASIAS) program gathers data from across government 

and industry, including data from the FAA, members of the 

general aviation community, commercial airlines, corporate 

and business aviation operators, universities, aviation 

manufacturers, as well as maintenance, repair, and overhaul 

organizations. Participants in ASIAS provide data on a voluntary 

basis, knowing that information about potential safety problems 

is shared with the FAA in a non-punitive environment, and that 

proprietary information is protected.

The FAA participates in two groups that monitor ASIAS and 

other available data to identify trends, to understand the 

underlying reasons for safety risks, and to make important 

safety decisions. The Commercial Aviation Safety Team 

(CAST) brings together representatives from government, 

pilot and air traffic controller associations, airlines, airports, 

and aviation manufacturers to identify the top safety concerns 

in commercial aviation and to implement interventions. The 

FAA also participates in the General Aviation Joint Steering 

Committee (GAJSC) with industry stakeholders such as 

pilot organizations, flight instructors, mechanics, builders, 

and manufacturers. Both groups issue voluntary safety 

enhancements that, along with the development of new aircraft 

technology, regulations, and other safety activities, have 

substantially reduced aviation fatalities. 

The FAA evaluates the effectiveness of its safety efforts, 

including the safety enhancements issued by the CAST and the 

GAJSC, by setting performance goals and monitoring results. 

For example, the fatality risk for commercial aviation in the 

U.S. fell by 83 percent from 1998 to 2008, and the FAA aims to 

reduce the U.S. commercial fatality risk by another 50 percent 

from 2010 to 2025. This performance goal and the work of 

CAST are discussed in more detail on pages 45–46. In 

addition, the FAA aims to reduce the general aviation fatality 

rate by 10 percent from 2019 to 2028, with a target of no more 

than 0.89 fatal accidents per 100,000 flight hours by 2028. The 

work of the GAJSC is discussed in more detail on page 49.

Drone Safety Team (DST)

As Unmanned Aircraft Systems (UAS) have increased in number 

and complexity, a new group was created in 2016 to monitor 

safety data from this new airspace entrant. Originally called the 

Unmanned Aircraft Safety Team, the group recently changed 

its name to the Drone Safety Team (DST). The goal of the 

DST is to ensure the safe operations of UAS into the national 

airspace system through data-driven safety enhancements and 

collaboration amongst the members of the UAS industry. 

The UAS industry is very new, and many young and small 

UAS companies do not yet have internal safety teams. Unlike 

well-established airline manufacturers and operators, these 

small companies have limited resources to measure, train for, 

anticipate, and simulate risks to their UAS or others in the sky or 

on the ground, although they clearly recognize the importance 

of safety. One early challenge for staffing the DST was finding 

people in these emerging companies who had the time and 

expertise to devote to working on safety issues. Despite early 

challenges, the DST now consists of 78 members from the 

aviation and UAS industries all committed to the team’s mission. 

Even with limited data to draw from, the DST identified a 

number of UAS safety issues to mitigate, including loss of 

control, injury, and lack of a safety culture. DST formed new 

groups to examine each of these issues. Each group will create 

a list of safety enhancements and evaluate how effective they 

are at mitigating risk. With a limited number of accidents, 

analyzing flight data will be crucial in determining root causes 

of accidents. DST is also developing a governance structure 

for their team and a data collection strategy — a topic on which 

they held a workshop this year with several DST members. 

DST is committed to promoting safety through participation 

in Drone Safety Awareness Week and by educating the UAS 

community on the use of the Aviation Safety Reporting System.
78 Fiscal Year 2021 | FAA Performance and Accountability Report 

Performance Results

Quality Financial 

Management

Financial Analysis and Oversight to 

Inform Decision-Making

When people think of the FAA, they typically think of our air 

traffic controllers, aviation safety inspectors, engineers, and 

many others in connection with achievement of our mission 

to provide the safest, most efficient aerospace system in 

the world. However, achieving our mission also requires a 

tremendous amount of “behind the scenes” analysis and 

oversight by our financial analyst professionals who inform 

financial decision-making and ensure the agency is a responsible 

steward of the taxpayer’s money. This section highlights some 

of these activities.

Investment Analysis

The automated systems required to operate our nation’s 

airspace are complex, expensive to develop, and safety-critical. 

These systems integrate unmanned aircraft into our airspace, 

support the transition of surveillance from ground-based to 

satellite-based radar, and help modernize communication 

between air traffic controllers and pilots from voice to data.

The Joint Resources Council (JRC) is the agency’s senior 

investment review board that makes executive-level resource 

decisions, including authorization and funding for investment 

programs, to ensure funding goes to investments with 

the highest potential to contribute to FAA strategic and 

performance goals. Before going to the JRC, every program 

undergoes a rigorous evaluation by the FAA Office of 

Finance and Management and the NextGen, Aviation Safety, 

Information Technology, and Air Traffic Organization offices. 

In these evaluations, the FAA considers many factors such 

as costs, user benefits, implementation timeline, and risks. 

In FY 2021, these organizations conducted reviews for 34 

separate capital investment decisions by the JRC to ensure that 

cost, schedule, and benefits estimates were accurate, complete, 

and well-documented. These decisions encompass over $5.6 

billion in agency capital investments. See pages 64–65

for a discussion of the FAA’s Major System Investments 

performance goal.

Procurement Investment Reviews

The FAA relies on outside companies to provide certain 

contract services and systems, equipment, software, hardware, 

and other products and services in order to run the nation’s 

airspace system and its mission support activities.

The FAA has a robust set of controls over procurements 

for contracts including reviews for legal and contractual 

sufficiency; procurement plans to ensure that outcomes 

are clearly defined and measurable; performance risks; and 

ensuring that proposed contracts reflect cost/pricing model 

incentives and disincentives and, that if implemented, optimize 

performance.

In FY 2005, the FAA’s Chief Financial Officer (CFO) was 

directed to exercise greater oversight and fiscal control over 

all agency procurements costing $10 million or more. To 

ensure fiscal responsibility as part of the agency’s overall set 

of procurement controls and processes, the CFO has presolicitation approval authority over each of these proposed 

procurement actions. To inform the CFO’s decision, the Office 

of Financial Services analyzes costs, performance, schedule, 

and procurement-related risks, and makes risk-reduction 

Pilots and passengers walking through the terminal at Hartsfield-Jackson 

Atlanta International Airport. Photo by Joel Carillet/iStock.
Fiscal Year 2021 | FAA Performance and Accountability Report 79

Performance Results

recommendations. An additional benefit of these reviews is 

that time-consuming rework and contract reconciliations have 

decreased, which helps FAA meet its procurement milestones 

and satisfy their business needs more efficiently and effectively. 

These controls also help uphold the FAA’s procurement 

decisions when they are reviewed by internal and external 

auditors.

Since this more robust procurement-investment-review 

process began in FY 2005, the Office of Financial Services 

has evaluated 984 procurement packages with an estimated 

total value of more than $145.8 billion, greatly improving 

the agency’s ability to better define program requirements, 

more accurately estimate costs, and substantiate those cost 

estimates. In FY 2021, the Office of Financial Analysis reviewed 

63 procurement packages for proposed investments, each 

with estimated values of $10 million or more to support CFO 

decisions on about $8.2 billion of procurements.

Information Technology

To better coordinate FAA’s information technology (IT) 

investments, any IT-related spending in excess of $250,000 

must be approved by the FAA’s Chief Information Officer. This 

requirement ensures that IT investments are coordinated and 

consistent with the FAA’s agency-wide IT strategy. The IT 

Shared Services Committee, chaired by the Chief Information 

Officer, serves as a forum to discuss and ensure effective, 

secure, and cost-efficient use of IT resources across the agency.

Conferences

In FY 2009, the CFO and FAA Acquisition Executive issued 

guidance requiring that all conferences estimated to cost 

$100,000 or more be approved by the CFO before funds may 

be committed. That continues today, in concert with additional 

actions taken by the FAA to strengthen policies and controls 

over conference spending. For example, in FY 2010, the level of 

approval was elevated to the Administrator, and in FY 2012 it 

was elevated to the Deputy Secretary of the DOT.

Reflecting strengthened internal controls for conference 

spending across government, in FY 2017, Office of Management 

and Budget issued its Memorandum M-17-26, raising the 

dollar threshold of conferences requiring Deputy Secretary 

approval to $500,000. However, to ensure continued strong 

fiscal responsibility, the FAA Administrator also reviews all 

conferences proposed to be held by the agency costing more 

than $20,000.

Cost Control Program

The FAA’s strategic plan includes an objective to improve the 

financial management of the agency while delivering quality 

customer service. Each fiscal year, FAA lines of business and 

staff offices determine annual savings estimates for cost-saving 

activities. The target is set at 90 percent of the total costsavings estimate for the fiscal year for all activities included 

in the program. In FY 2021, the Cost Control Program met its 

target for the year. Monthly, the FAA tracks and reports the 

actual cost savings for the activities included in the program. 

The FAA’s efforts in this area are described below:

FY 2021 COST CONTROL PROGRAM RESULT

(Dollars in Thousands)

Activity

FY 2021 

Savings 

Estimate

Actual 

FY 2021 

Savings

FY 2021 

Savings as 

a Percent of 

Estimate

SAVES $51,671 $92,576 179%

Office of Information & 

Technology Services Harvesting $3,656 $2,670 73%

Administrative Space Reduction $2,500 $2,500 100%

National Wireless Program $2,100 $3,053 145%

VERA/VSIP $1,829 $1,948 107%

Worker's Compensation $1,750 $2,783 159%

DOT e-Learning Management 

System $535 $535 100%

E-Invoicing $250 $424 170%

Enterprise Services Center 

License Reduction $150 $306 204%

Total $64,442 $106,796 166%

TARGET $57,998 184%

How activities are selected for the Cost Control Program: 

For an activity to be included in the Cost Control Program, the 

savings must be measurable. Activities must produce legitimate 

cost savings and not simply shift costs to other time periods 

or other FAA lines of business, and the cost savings must be 

Every Air Traffic Control facility in the 

country has a contingency plan to keep 

air traffic moving safely when events 

impede normal operations. 

Learn more about our resilient national 

airspace system, here: 

https://www.youtube.com/watch?v=LDYuRCRDhMk.
80 Fiscal Year 2021 

| FAA Performance and Accountability Report

Performance Results

measured net of any implementation costs or offsetting impacts 

to other organizations or activities.

Activities must meet the following:

 The reduction in costs must be measurable and able to be 

accurately estimated.

 Estimates must be based on accepted industry standards 

and able to withstand an audit by an external organization; 

estimates are also validated by the FAA’s finance office.

 Cost savings must reflect a reduction in the total costs 

incurred by the FAA and not simply a shifting of costs from 

one fiscal year to another.

 Cost savings should represent a genuinely more efficient 

way of conducting operations and should not simply be the 

result of a natural cycle in costs.

 Cost control activities that represent a permanent 

shift in the composition of the workforce should not 

have associated decreases in the level of services the 

organization provides.

The Strategic Sourcing for the Acquisition of Various 

Equipment and Supplies (SAVES) Program: The SAVES program 

is an ambitious effort that began in FY 2006 to implement 

private sector best practices in the FAA’s procurement of 

administrative supplies, equipment, information technology 

hardware, commercial off-the-shelf software, and courier 

services. In FY 2021, the SAVES contracts achieved $92.6

million in cost savings and total savings of $585.8 million since 

program implementation began in FY 2006. About 99 percent 

of FY 2021 savings were generated by information technology 

hardware and software.

Office of Information & Technology Services Harvesting: 

Licenses for installations of Microsoft Project and Visio that had 

not been used for at least 90 days were reallocated, leading to a 

cost avoidance of $2.7 million for the FAA in FY 2021.

Administrative Space Reduction: The FAA is implementing and 

managing programs that drive the efficient and economical use 

of its real property assets. Annually since FY 2014, the FAA has 

established a goal to achieve a square footage reduction in its 

administrative space portfolio by identifying and implementing 

space consolidation, relocation, and colocation initiatives. In 

FY 2021, the FAA saved $2.5 million.

Passengers traveling on a commercial flight. Photo by Damir Cudic/iStock Images.
Fiscal Year 2021 81 | 

 FAA Performance and Accountability Report 

Performance Results

National Wireless Program: This program manages the 

ever-growing, mobile-connected workforce. Cost savings are 

achieved by analyzing usage and determining the most costeffective plan for individual users and by leveraging the volume 

of the inventory to obtain volume-pricing discounts. FY 2021 

savings for this activity were $3.1 million.

Voluntary Early Retirement Authority (VERA) and Voluntary 

Separation Incentive Payments (VSIP): The FAA provided 

incentives for retirement and/or separation to eligible 

employees. Savings were realized through abolished positions 

or backfilling these positions at a reduced experience/salary 

level. The FAA established the cost-savings target based on 

the estimated reduction in personnel costs associated with the 

number of employees projected to accept the offer. In FY 2021, 

the agency saved $1.9 million from this initiative.

Workers’ Compensation: The FAA works with the Department 

of Labor (DOL) to develop case management strategies 

with a focus on returning injured employees to work earlier, 

reducing lost production, and reducing the cost of workers’ 

compensation. To achieve these strategies, FAA undertakes 

many efforts, including:

 Electronic filing of injury and illness claims, which 

expedites receipt of the claim at the DOL and authorization 

for medical treatment.

 Early intervention actions on disability claims, including 

initiating contact with the injured worker to discuss their 

responsibility to return to duty when medically able.

 Requesting and analyzing contemporaneous medical 

documentation to determine work capacity.

 Collaborating with supervisors across various DOT 

agencies to facilitate return to work by providing light duty 

assignments when appropriate.

 Conducting ongoing reviews of long-term claims and 

maintaining a collaborative partnership with claims staff at 

DOL.

The FAA has saved $178.7 million in workers’ compensation 

claims since FY 2005. Due to the FAA’s success in this area, 

the DOT gave the FAA centralized responsibility for managing 

workers’ compensation claims DOT-wide. In FY 2021, the FAA 

saved the DOT $2.8 million in workers’ compensation costs. 

Cost avoidance is estimated as follows:

1. Short-term disability claims (disability < one 

year) — computed as compensation payments avoided from 

1 Office of Personnel Management regulations provide disabled employees with job retention rights if they return to work within one year from 

the commencement of their disability. Department of Labor uses an internal goal of having disabled employees return to work within one year.

the date of return to work through the remaining balance 

of one year following the employee’s date of injury. Shortterm calculations are based on regulation standards and 

DOL standards.1

2. Long-term disability claims (disability > one 

year) — computed as compensation payments avoided 

over the course of one full calendar year from the date 

of successful resolution (return to work, termination/

reduction of benefits, etc.).

3. Questionable claims challenged by the FAA’s Human 

Resource Management National Workers’ Compensation 

Program Office and denied by the DOL — computed as 

compensation payments avoided over the course of one 

full calendar year from the date of injury.

DOT e-Learning Management System: The FAA extended 

its online learning system to the rest of the DOT agencies, 

covering an additional 10,500 employees and about 500 more 

courses. Due to this consolidation effort that resulted in fixed 

cost sharing, the FAA was able to save $535,202 in FY 2021.

E-Invoicing: The FAA implemented electronic invoicing for 

vendors through the DELPHI e-invoicing web-portal and 

through the use of an Electronic Data Interchange. This 

implementation was in response to Office of Management and 

Budget Memorandum 15-19, Improving Government Efficiency 

and Saving Taxpayer Dollars Through Electronic Invoicing.

The DELPHI electronic invoicing web-portal is a real-time 

electronic invoicing tool that improves efficiency and data 

transparency by reducing the time between invoice submission 

and payment, and by providing vendors with accurate invoice 

status and reporting capabilities. The Electronic Data Interchange 

reduces the level of effort associated with manually keying 

and processing invoices, and provides vendors with increased 

visibility into the status of payments, reducing the need for 

status inquiries with the FAA. DELPHI electronic invoicing and 

the Electronic Data Interchange consolidated a variety of legacy 

invoice approval systems into one single system of record, and 

resulted in a cost savings of $424,493 in FY 2021.

Enterprise Services Center License Reduction: The FAA’s 

Enterprise Services Center streamlined activities to reduce the 

number of Oracle licenses needed to support customers and 

negotiated better pricing on Oracle licensing agreements. These 

activities saved $306,356 in FY 2021.
82 Fiscal Year 2021 | FAA Performance and Accountability Report 

Performance Results

Efficiency

In addition to cost control, each FAA organization develops, 

tracks, and reports quarterly on a comprehensive measure of its 

operating efficiency and financial performance.

Air Traffic Organization Cost-per-Operation. This cost-based 

metric provides a broad historical picture of the overall cost 

efficiency of air traffic control. The FAA regularly reviews its 

Air Traffic Organization’s cost-per-operation to evaluate cost 

efficiency over the course of time and compares it with our 

international counterparts. The most recent Cost-per-Operation 

data available is for the fiscal years ending September 30, 2019 

and 2020:

Air Traffic Organization Cost-per-Operation

2019 2020

$ 84.41 $ 107.80

In FY 2020, the Air Traffic Organization Cost-per-Operation 

increased by 27.71 percent over FY 2019. This was driven by a 

1.1 percent increase in Air Traffic Organization costs and a 20.8 

percent decrease in traffic.

Data for this metric is not yet available for the full fiscal 

year ending September 30, 2021; however, listed below is a 

comparison of the Air Traffic Organization Cost-per-Operation 

Results for the first three quarters of FY 2020 and FY 2021, 

ending June 30 of each year:

Air Traffic Organization Cost-per-Operation

2020 Q3 2021 Q3

$ 106.70 $ 106.90

For the most recent partial period available (the first three 

quarters of FY 2021) the Air Traffic Organization Cost-perOperation increased by 0.18 percent over the same period 

a year earlier. This was driven by a 0.3 percent decrease in 

Air Traffic Organization costs and a 0.5 percent decrease in 

traffic. Note that this metric is the average cost-per-air traffic 

operation. Therefore, when the number of operations increases 

at a greater rate than cost, the metric decreases for a given 

period. Conversely, if cost increases at a greater rate than the 

number of operations, the metric increases for a given period.

Overhead Rates. This metric provides insight into the costeffectiveness of overhead resources at the FAA. The resulting 

performance indicator informs management decisions 

concerning the allocation of general and administrative services 

and mission support services. The most recent overhead rate 

data available is for the fiscal years ending September 30, 2019 

and 2020:

Overhead Rates

2019 2020

27.0% 28.5%

This is a composite overhead rate of all of the FAA’s lines of 

business and staff offices. The overhead rate increased slightly 

because more Operations funding was obligated in some 

organizations in FY 2020 as compared to FY 2019.

Regulatory Cost-per-Launch/Reentry. This metric provides 

trend data for the average regulatory cost-per-launch or reentry 

of commercial space vehicles. This information is used to track 

how efficiently the FAA is interacting with the commercial 

space industry. Trend data are also reviewed to forecast human 

resource needs to regulate and support future launch and 

reentry operations.

Regulatory Cost-per-Launch/Reentry

2019 2020

$ 572,933 $ 528,319

In FY 2020, Regulatory Cost-per-Launch/Reentry saw a 

decrease of 7.8 percent over FY 2019, which was driven by 

two factors: three more launches/reentries, together with only 

a very slight increase in labor cost to support the expanding 

mission of the Office of Commercial Space Transportation.

Regulatory Cost-per-Launch/Reentry

2020 Q3 2021 Q3

$ 537,876 $ 271,258

For the most recent partial period available (the first three 

quarters of FY 2021), Regulatory Cost-per-Launch/Reentry is 

48.66 percent lower than it was in FY 2020 Q3. The driving 

factor is the significant increase in the number of launches/

reentries. The increase in launches this fiscal year supports 

the expanding mission and continued success of the Office of 

Commercial Space Transportation.
Fiscal Year 2021 | FAA Performance and Accountability Report 83

Performance Results

Ensuring Diversity and Inclusivity for a More Effective FAA Workforce

The FAA is committed to ensuring a diverse and inclusive 

workforce both internally within FAA as well as externally 

throughout the aviation sector. Achievement of the FAA’s 

critical work is made possible in part by our ability to attract 

and retain a talented and dedicated workforce that reflects the 

diverse backgrounds of those we serve. To that end, the agency 

administers several programs aimed at building both internal 

and external workforces, to address current and future needs.

Minority Serving Institutions (MSI) Internship 

Program 

The MSI Internship Program seeks to build a robust pipeline 

of entry-level, diverse, and highly qualified talent into the FAA, 

along with raising awareness about employment opportunities 

in the aviation industry. An important focus of the program 

is providing opportunities to eligible students from groups 

that have been underrepresented in aviation, aeronautics, 

and science, technology, engineering, and mathematics fields. 

Through the MSI Internship Program, students are provided 

an opportunity to capitalize on their academic studies and gain 

meaningful work experience and developmental activities, in 

addition to gaining professional knowledge, expertise, and 

practical experience to chart their own career paths and make 

informed career choices. 

While the pandemic hindered the operations of many federal 

agencies, FAA’s MSI Internship Program remained strong during 

the pandemic; and in fact, recorded a 300 percent increase in 

participation since 2018.

FAA Task Force Focused on Youth Access 

to Jobs

The Youth Access to American Jobs in Aviation Task 

Force — which is comprised of aviation leaders from industry 

and academia, and charged with providing independent 

recommendations and strategies to the FAA to educate youth 

on career opportunities in aviation — held three public meetings 

in FY 2021. The Task Force is conducting its work under four 

sub-committees: Trends, Awareness Building, Funding, and 

Expanded Pathways. Focusing on U.S. high school students, 

the Youth Access to American Jobs in Aviation Task Force 

recommendations and strategies will be presented to the FAA 

in 2022 and will be used to facilitate and encourage students to 

enroll in aviation career and technical education courses, and to 

help identify and develop pathways for students.

Accessing More Women, Minorities,

and Individuals from Underrepresented 

Communities in Aviation 

Ahead of the short window for eligible U.S. citizens to apply 

to become air traffic control specialists in FY 2021, the 

FAA launched a week-long campaign to encourage more 

applications from women, minorities, and individuals from 

underrepresented communities. The campaign featured current 

air traffic controllers and FAA leaders sharing their stories 

in media interviews, on social media, during Instagram Live 

conversations, and on other platforms.

Workforce Grant Programs

Totaling $5 million each, two grant programs — the Aircraft 

Pilots Workforce Development Grants and the Aviation 

Maintenance Technical Workers Workforce Development 

Grants — were authorized by the U.S. Congress in the FAA’s 

2018 reauthorization legislation. These two programs intended 

to support the education of future aircraft pilots; operators 

of unmanned aircraft systems; aerospace engineers in rural, 

urban, and suburban areas; aviation maintenance technicians 

(including those underrepresented in the field and in 

economically disadvantaged areas); and veterans transitioning 

from military service. The grant application period occurred 

in early FY 2021 and drew a very strong public response, with 

several hundred applications filed. 

STEM AVSED Outreach

In addition to these efforts, the agency continues to promote 

a strong Science, Technology, Engineering, and Mathematics 

(STEM) Aviation and Space Education (AVSED) program. For 

more information about the FAA’s STEM AVSED Program, 

see page 58. Learn more about FAA's outreach efforts at 

faa.gov/education, and read about the ways aviation outreach 

is still happening during the pandemic, here: 

https://medium.com/faa/7-ways-aviationoutreach-is-still-happening-during-thepandemic-311f668edd9. 

CROSS CROSS CHECK CHECKYOUR KNOWLEDGE
84 Fiscal Year Fiscal Year 2021 | FAA Performance and Accountability Report Performance and Accountability Report 

FINANCIAL

RESULTS

Runway at sunset. Photo by Piotr Mitelski/iStock Images.
Fiscal Year 2021 | FAA Performance and Accountability Report 85

Financial Results

DAVID RICKARD

A MESSAGE from the 

CHIEF FINANCIAL OFFICER

I am proud that our FAA workforce has proven more resilient than ever. Even amidst the challenges of 

the pandemic, they continue to provide the safest airspace in the world. In addition to the operational 

challenges, the pandemic also presented several financial and economic challenges for the FAA and our 

nation’s airports due to significant reductions in air travel and the suspension of many aviation taxes.

The unprecedented drop in aviation activity in 2020 and the temporary suspension of aviationrelated excise taxes resulted in vastly reduced revenues flowing into the Airport and Airway 

Trust Fund (AATF) last year. This was a significant financial challenge because the AATF usually 

pays for most of the FAA’s annual budget, including all of the FAA’s facilities and equipment; 

all of its research, engineering, and development activities; almost all of its airport capital 

grants; and the majority of FAA’s operations. To address this challenge, on October 1, 2020 

the U.S. Congress appropriated a one-time infusion of $14 billion into the AATF. You can read 

more about this on pages 27, 29, 30, and 32 . By the end of this fiscal year, air 

travel levels have returned to nearly 93 percent of pre-pandemic activity levels, substantially 

restoring the flow of revenues into the AATF. 

The reduction in air travel also presented financial challenges for our nation’s airports. 

Last year, the CARES Act tasked us with administering an additional $10 billion in grants 

to airports to help offset lost operating revenues due to the pandemic. This year, the 

Coronavirus Response and Relief Supplemental Appropriations Act and the American Rescue 

Plan Act together provided another $10 billion for FAA grants to help the nation’s airports 

contend with the financial impacts of COVID-19. This funding represents new activities for 

the FAA, which has traditionally provided airport grants to support capital improvements. 

These new programs drove up our disbursements this fiscal year alone by about $4.5 billion. 

The FAA also began managing a new area of responsibility — the Aviation Workforce Development Grant 

Program, which will help develop a pipeline of skilled aviation professionals through grants to educational 

programs for aircraft pilot and aviation maintenance technicians. 

I am very proud to report that we have undertaken these significant financial programs and new 

responsibilities while maintaining our track record of strong payment integrity at a rate of 99.94 

percent accuracy. See more information on COVID-19 activity in Note 20 on page 131, and in the 

section on Payment Integrity on page 140. As we move into FY 2022, we look forward to meeting 

the administration’s focus on infrastructure and continuing our support of the important priorities of 

employee equity and environmental protection.

We are proud of our ability to maintain exceptional financial management even as we undertake significant 

new spending responsibilities. Even with these significant new responsibilities and in spite of this 

“the pandemic ... 

presented several 

financial and 

economic challenges 

for the FAA and our 

nation’s airports 

due to significant 

reductions in air 

travel and the 

suspension of many 

aviation taxes. ”
86 Fiscal Year 2021 | FAA Performance and Accountability Report 

Financial Results

unprecedented environment, we have once again achieved an unmodified audit opinion on our FY 2021 

financial statements. Also this year, the Association of Government Accountants awarded FAA the 

prestigious Certificate of Excellence in Accountability Reporting (CEAR) award for the 17th time, as well as 

a special “best in class” award for “A Report that Tells A Story.” The CEAR award is considered the highest 

form of recognition in federal government financial and performance management reporting. Read more 

about our CEAR recognition on page 3.

Our goal continues to be to move the national air transportation system safely, efficiently, and responsibly 

into the future. We pursue this goal despite challenging circumstances and while taking on responsibility 

for vastly expanded programs. We continue to do so in a manner that reflects the highest standards of 

fiscal responsibility and accountability.

DAVID RICKARD

Chief Financial Officer

November 9, 2021
Fiscal Year 2021 | FAA Performance and Accountability Report 87

Financial Results

QC2022013 1

Memorandum

Date: 

Subject: 

November 12, 2021 

ACTION: Quality Control Review of the Independent Auditor's Report on the 

Federal Aviation Administration’s Audited Consolidated Financial Statements for 

Fiscal Years 2021 and 2020 | Report No. QC2022013 

From: Dormayne “Dory” Dillard-Christian 

Acting Assistant Inspector General for Financial Audits

To: Federal Aviation Administrator

I respectfully submit the results of our quality control review (QCR) of the 

independent auditor’s report on the Federal Aviation Administration’s (FAA) 

audited consolidated financial statements for fiscal years 2021 and 2020.

We contracted with the independent public accounting firm KPMG, LLP to audit 

FAA’s consolidated financial statements as of and for the fiscal years ended 

September 30, 2021, and September 30, 2020, and provide an opinion on those 

financial statements, report on internal control over financial reporting, and 

report on compliance with laws and other matters. The contract required the 

audit to be performed in accordance with U.S. generally accepted Government 

auditing standards, Office of Management and Budget audit guidance, and the 

Government Accountability Office’s and Council of the Inspectors General on 

Integrity and Efficiency’s Financial Audit Manual.

1

We appreciate the cooperation and assistance of FAA’s representatives and 

KPMG. If you have any questions about this report, please call me at 

(202) 570-6381, or Ingrid Harris, Program Director, at (202) 450-7637.

cc: The Secretary

DOT Audit Liaison, M-1 

FAA Audit Liaison, AAE-001 

1 GAO, Financial Audit Manual, Volume 1 (GAO-18-601G), April 2020; Volume 2 (GAO-18-625G), March 2021; Volume 

3, (GAO-21-105127), September 2021. 

Office of the Inspector General (OIG) Quality Control Review
88 Fiscal Year 2021 | FAA Performance and Accountability Report 

Financial Results

QC2022013 2 

Independent Auditor’s Report 

In its audit of FAA’s consolidated financial statements for fiscal years 2021 and 2020, 

KPMG reported that 

• FAA’s consolidated financial statements2 were fairly presented, in all material 

respects, in accordance with U.S. generally accepted accounting principles; 

• it found one significant deficiency3 in internal control over financial reporting 

that it did not consider to be a material weakness;4 and

• there were no instances of reportable noncompliance with provisions of laws 

tested, or reportable other matters. 

KPMG made three recommendations to address the significant deficiency in internal 

control over financial reporting (see attachment 1). 

Significant Deficiency

Weaknesses in general information technology controls. KPMG identified 

general information technology control deficiencies at the application, database, 

and/or operating system levels related to audit log review and access controls for 

FAA’s general ledger, timekeeping, inventory, procurement, and environmental 

systems. More specifically, controls were not operating effectively over system 

access, including privileged account reviews, new user authorizations, and 

periodic review and recertification of access. Furthermore, FAA had not 

completed remediation related to controls identified in the prior year as not 

operating effectively over the review of audit logs, including documentation of

appropriate and timely completion of the review. 

KPMG also determined that FAA management did not develop componentspecific implementation of security plan requirements for certain systems. 

 

2 The consolidated financial statements are included in FAA’s Performance and Accountability Report (see attachment 

3). For FAA’s full Performance and Accountability Report, which includes these statements, related notes, and required 

supplementary information, go to https://www.faa.gov/about/plans_reports/#performance. 

3A significant deficiency is a deficiency, or a combination of deficiencies, in internal control over financial reporting 

that is less severe than a material weakness but important enough to merit attention by those charged with 

governance. A deficiency in internal control exists when the design or operation of a control does not allow 

management or employees, in the normal course of performing their assigned functions, to prevent, or detect and 

correct, misstatements on a timely basis. 4A material weakness is a deficiency, or a combination of deficiencies, such that there is a reasonable possibility that a 

material misstatement of the entity's financial statements will not be prevented, or detected and corrected, on a 

timely basis. 
Fiscal Year 2021 | FAA Performance and Accountability Report 89

Financial Results

QC2022013 3 

Recommendations

To help strengthen FAA’s general information technology controls, KPMG 

recommended that FAA management design and implement: 

1. Procedures to consistently and timely perform and document audit log 

reviews as required by standards for effective internal control systems 

and/or internal policy; 

2. Procedures to consistently and timely perform and document user 

account access reviews as required by standards for effective internal 

control systems and/or internal policy; and

3. Component-specific system security plan requirements in instances where 

plans for those areas not addressed in the Departmental system security 

plan.

Quality Control Review

We performed a QCR of KPMG’s report, dated November 9, 2021, and related 

documentation, and inquired of its representatives. Our review, as differentiated 

from an audit of the financial statements in accordance with U.S. generally 

accepted Government auditing standards, was not intended to enable us to 

express, and we do not express, an opinion on FAA’s financial statements or

conclusions about the effectiveness of internal control over financial reporting, or 

compliance with laws and other matters. KPMG is responsible for its report and 

the conclusions expressed therein. 

Our QCR disclosed no instances in which KPMG did not comply, in all material 

respects, with U.S. generally accepted Government auditing standards.

Agency Comments and OIG Response

KPMG provided FAA with its draft report on November 4, 2021, and received 

FAA’s response, dated November 9, 2021 (see attachment 2). FAA agreed with 

the deficiency KPMG found.

FAA concurred with KPMG’s three recommendations and committed to

developing a corrective action plan to address the deficiencies by December 31, 

2021. We agree with KPMG’s recommendations and are not making any 

additional recommendations.
90 Fiscal Year 2021 

| FAA Performance and Accountability Report

Financial Results

QC2022013 4

Actions Required

We consider all three of KPMG’s recommendations open and unresolved pending 

receipt of the corrective action plan.
Fiscal Year 2021 91 | 

 FAA Performance and Accountability Report 

Financial Results

Exhibit. List of Acronyms 5 

Exhibit. List of Acronyms

DOT Department of Transportation

FAA Federal Aviation Administration

OIG Office of Inspector General 

QCR quality control review
92 Fiscal Year 2021 | FAA Performance and Accountability Report 

Financial Results

KPMG LLP

Suite 12000

1801 K Street, NW

Washington, DC 20006

KPMG LLP, a Delaware limited liability partnership and a member firm of 

the KPMG global organization of independent member firms affiliated with 

KPMG International Limited, a private English company limited by guarantee. 

Independent Auditors’ Report 

Administrator, Federal Aviation Administration and Inspector General 

United States Department of Transportation, Federal Aviation Administration: 

Report on the Financial Statements 

We have audited the accompanying consolidated financial statements of the United States Department of 

Transportation, Federal Aviation Administration (FAA), which comprise the consolidated balance sheets as of 

September 30, 2021 and 2020, and the related consolidated statements of net cost and changes in net 

position, and combined statements of budgetary resources for the years then ended, and the related notes to 

the consolidated financial statements. 

Management’s Responsibility for the Financial Statements 

Management is responsible for the preparation and fair presentation of these consolidated financial statements 

in accordance with U.S. generally accepted accounting principles; this includes the design, implementation, and 

maintenance of internal control relevant to the preparation and fair presentation of consolidated financial 

statements that are free from material misstatement, whether due to fraud or error. 

Auditors’ Responsibility 

Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We 

conducted our audits in accordance with auditing standards generally accepted in the United States of America, 

in accordance with the standards applicable to financial audits contained in Government Auditing Standards

issued by the Comptroller General of the United States, and in accordance with Office of Management and 

Budget (OMB) Bulletin No. 21-04, Audit Requirements for Federal Financial Statements. Those standards and 

OMB Bulletin No. 21-04 require that we plan and perform the audit to obtain reasonable assurance about 

whether the consolidated financial statements are free from material misstatement. 

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the 

consolidated financial statements. The procedures selected depend on the auditors’ judgment, including the 

assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud 

or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s

preparation and fair presentation of the consolidated financial statements in order to design audit procedures 

that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness 

of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the 

appropriateness of accounting policies used and the reasonableness of significant accounting estimates made 

by management, as well as evaluating the overall presentation of the consolidated financial statements. 

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our 

audit opinion. 

Opinion 

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, 

the financial position of the United States Department of Transportation, Federal Aviation Administration as of 

September 30, 2021 and 2020, and its net costs, changes in net position, and budgetary resources for the 

years then ended in accordance with U.S. generally accepted accounting principles. 

Independent Auditors’ Report
Fiscal Year 2021 | FAA Performance and Accountability Report 93

Financial Results

2

Other Matters

Interactive Data

Management has elected to reference to information on websites or other forms of interactive data outside the 

Performance and Accountability Report to provide additional information for the users of its consolidated 

financial statements. Such information is not a required part of the basic consolidated financial statements or 

supplementary information required by the Federal Accounting Standards Advisory Board. The information on 

these websites or the other interactive data has not been subjected to any of our auditing procedures, and 

accordingly we do not express an opinion or provide any assurance on it.

Required Supplementary Information

U.S. generally accepted accounting principles require that the information in the Management’s Discussion and 

Analysis and Required Supplementary Information sections be presented to supplement the basic consolidated

financial statements. Such information, although not a part of the basic consolidated financial statements, is 

required by the Federal Accounting Standards Advisory Board who considers it to be an essential part of

financial reporting for placing the basic consolidated financial statements in an appropriate operational, 

economic, or historical context. We have applied certain limited procedures to the required supplementary 

information in accordance with auditing standards generally accepted in the United States of America, which 

consisted of inquiries of management about the methods of preparing the information and comparing the 

information for consistency with management’s responses to our inquiries, the basic consolidated financial 

statements, and other knowledge we obtained during our audits of the basic consolidated financial statements. 

We do not express an opinion or provide any assurance on the information because the limited procedures do 

not provide us with sufficient evidence to express an opinion or provide any assurance.

Other Information

Our audits were conducted for the purpose of forming an opinion on the basic consolidated financial statements 

as a whole. The In a Day’s Work, Foreword, Messages from the Administrator and the Chief Financial Officer, 

Performance Results and Other Information sections, as listed in the Table of Contents of the Performance and 

Accountability Report is presented for purposes of additional analysis and is not a required part of the basic 

consolidated financial statements. Such information has not been subjected to the auditing procedures applied 

in the audits of the basic consolidated financial statements, and accordingly, we do not express an opinion or 

provide any assurance on it.

Other Reporting Required by Government Auditing Standards

Internal Control over Financial Reporting

In planning and performing our audit of the consolidated financial statements as of and for the year ended 

September 30, 2021, we considered the FAA’s internal control over financial reporting (internal control) as a 

basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing 

our opinion on the consolidated financial statements, but not for the purpose of expressing an opinion on the 

effectiveness of the FAA’s internal control. Accordingly, we do not express an opinion on the effectiveness of 

the FAA’s internal control. We did not test all internal controls relevant to operating objectives as broadly 

defined by the Federal Managers’ Financial Integrity Act of 1982.

A deficiency in internal control exists when the design or operation of a control does not allow management or 

employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, 

misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in 

internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial 

statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a 

deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet 

important enough to merit attention by those charged with governance.
94 Fiscal Year 2021 | FAA Performance and Accountability Report 

Financial Results

3 

Our consideration of internal control was for the limited purpose described in the first paragraph of this section 

and was not designed to identify all deficiencies in internal control that might be material weaknesses or 

significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that have not 

been identified. Given these limitations, during our audit we did not identify any deficiencies in internal control 

that we consider to be material weaknesses. We did identify certain deficiencies in internal control, described in 

the accompanying exhibit as item 2021-01 that we consider to be a significant deficiency. 

Compliance and Other Matters 

As part of obtaining reasonable assurance about whether the FAA’s consolidated financial statements as of 

and for the year ended September 30, 2021 are free from material misstatement, we performed tests of its 

compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with 

which could have a direct and material effect on the consolidated financial statements. However, providing an 

opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not 

express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that 

are required to be reported under Government Auditing Standards or OMB Bulletin No. 21-04. 

FAA’s Response to Findings 

The FAA’s response to the findings identified in our audit is described and presented in the section 

Management’s Response to the Independent Auditor’s Report. The FAA’s response was not subjected to the 

auditing procedures applied in the audit of the consolidated financial statements and, accordingly, we express 

no opinion on the response. 

Purpose of the Other Reporting Required by Government Auditing Standards 

The purpose of the communication described in the Other Reporting Required by Government Auditing 

Standards section is solely to describe the scope of our testing of internal control and compliance and the 

results of that testing, and not to provide an opinion on the effectiveness of the FAA’s internal control or 

compliance. Accordingly, this communication is not suitable for any other purpose. 

Washington, DC

November 9, 2021 
Fiscal Year 2021 | FAA Performance and Accountability Report 95

Financial Results

Federal Aviation Administration

Independent Auditors’ Report Exhibit I

Internal Control Over Financial Reporting Significant Deficiency

4 

2021 - 01: Weaknesses in General Information Technology Controls

Background 

The Federal Aviation Administration (FAA) utilizes various information technology systems to carry out its 

mission and to compile amounts recorded in its financial statements. In addition to its general ledger 

system, FAA utilizes various information technology systems including; a timekeeping system to record 

employee time and attendance, an inventory system related to asset management and inventory control, a 

procurement system to record and track requisitions, purchase orders, and contracts, and a site 

management system that tracks the environmental investigation, remediation, and regulatory closure status 

of the FAA’s environmental sites. 

The general ledger system and the timekeeping systems are owned by the Department of Transportation 

(the Department). All other systems are owned by the FAA.

For systems owned by FAA, FAA is required to implement controls defined in the component-specific 

system security plans for those areas not addressed in the Departmental system security plan. For systems 

owned by the Department, the Department is required to implement controls defined in the componentspecific system security plans for those areas not addressed in the Departmental system security plan. 

Criteria

The U.S. Government Accountability Office (GAO) Standards for Internal Control in the Federal 

Government (Green Book), sets the standards for an effective internal control system and provides an 

overall framework for designing, implementing, and operating effective internal control systems. The 

standards require entities to design appropriate types of control activities to include limiting access to 

resources and records to authorized individuals, and to periodically compare resources with the recorded 

accountability to help reduce the risk of errors, fraud, misuse, or unauthorized alteration. In addition, 

management should communicate quality information down and across reporting lines to enable personnel 

to perform key roles in achieving objectives, addressing risks, and supporting the internal control system. In 

these communications, management assigns the internal control responsibilities for key roles.

Condition 

Control deficiencies exist at the application, database, and/or operating system levels related to audit log 

review and access controls for the systems mentioned above and as listed below: 

• Remediation is not complete related to controls identified in the prior year as not operating effectively 

over the review of audit logs, including documentation to evidence appropriate and timely completion of 

the review.

• Controls were not operating effectively over system access, including privileged account reviews, new 

user authorizations, and periodic review and recertification of access. 

In addition, operating administration management did not develop component-specific implementation of 

security plan requirements for certain systems.
96 Fiscal Year 2021 | FAA Performance and Accountability Report 

Financial Results

Federal Aviation Administration

Independent Auditors’ Report Exhibit I (continued) 

Internal Control Over Financial Reporting Significant Deficiency

5 

Cause

Management has not established, or consistently implemented procedures to ensure compliance with 

standards for effective internal control systems and/or internal policy. 

Effect

The absence of timely reviews of audit logs leaves the FAA exposed to the risk of delays in identifying and 

responding to incidents which could result in the exposure, modification, or loss of system data. Further, 

user accounts with inappropriate access may result in unauthorized use, disclosure, or modification of 

system data. Lastly, weaknesses in security management controls increase the risk that systems are not 

properly controlled and secured. 

Recommendations 

We recommend that FAA management design and implement: 

1. Procedures to consistently and timely perform and document audit log reviews as required by 

standards for effective internal control systems and/or internal policy. 

2. Procedures to consistently and timely perform and document user account access reviews as 

required by standards for effective internal control systems and/or internal policy. 

3. Component-specific system security plan requirements in instances where plans for those areas 

are not addressed in the Departmental system security plan.
Fiscal Year 2021 | FAA Performance and Accountability Report 97

Financial Results

Office of Financial Services	 800 Independence Ave. S.W.

Washington, DC 20591

November 9, 2021

Mr. James Gould

KPMG LLP

1801 K Street, NW, Suite 1200

Washington, DC 20006

Dear Mr. Gould,

We have received your Independent Auditors’ Report related to the Federal Aviation Administration's 

fiscal years 2021 and 2020 consolidated financial statements and offer the following response.

We appreciate working with you in support of an efficient and effective audit and are pleased to 

receive an unmodified audit result. The audit is an essential part of our fiscal responsibilities to our 

citizens and we take it very seriously.

We concur with the finding and recommendations in your report that additional remediation work is 

required to mitigate the noted significant deficiency. We will refine the adopted corrective action plan 

to further address this weakness and provide it to the Office of Inspector General by December 31, 

2021. The corrective actions will include updating procedures and governing policies to consistently 

and timely perform and document audit log and user account access reviews, and further implement 

component-specific system security plan requirements. I will monitor implementation of the plan 

throughout the corrective action process.

Thank you for your candor and the professional manner in which you and your team conducted your 

audit.

Sincerely,

David Rickard

Chief Financial Officer

Management’s Response to the 

FY 2021 Independent Auditors’ Report

U.S. Department of Transportation Federal Aviation Administration

November 9, 2021
98 Fiscal Year 2021 | FAA Performance and Accountability Report 

Financial Results

Financial Statements

U.S. DEPARTMENT OF TRANSPORTATION

FEDERAL AVIATION ADMINISTRATION

CONSOLIDATED BALANCE SHEETS

As of September 30, 2021 and 2020

(Dollars in Thousands)

ASSETS 2021 2020

Intragovernmental

Fund balance with Treasury (Note 2) $ 13,196,463 $ 10,995,645 

Investments, net (Note 3) 18,189,656 10,259,928 

Accounts receivable, net (Note 4) 12,372 16,745 

Advances and prepayments 94,101 88,948 

Total intragovernmental 31,492,592 21,361,266 

Other than intragovernmental/with the public

Accounts receivable, net (Note 4) 30,308 30,039 

Inventory and related property, net (Note 5) 810,664 811,168 

General property, plant, and equipment, net (Note 6) 11,670,008 11,917,696 

Advances and prepayments 690 954 

Other assets (Note 7) – 27 

Total other than intragovernmental/with the public 12,511,670 12,759,884 

Total assets $ 44,004,262 $ 34,121,150 

LIABILITIES

Intragovernmental

Accounts payable $ 9,833 $ 29,475 

Advances from others and deferred revenue 206,838 207,148 

Other liabilities (Note 10) 313,200 306,745 

Total intragovernmental 529,871 543,368 

Other than intragovernmental/with the public

Accounts payable 441,797 410,601 

Federal employee benefits payable 1,328,131 1,343,644 

Environmental and disposal liabilities (Note 9) 752,148 745,540 

Advances from others and deferred revenue 152,613 189,319 

Other liabilities

Accrued grant liabilities 7,230,444 5,161,060 

Other (Note 10) 447,854 417,475 

Total other than intragovernmental/with the public 10,352,987 8,267,639

Total liabilities $ 10,882,858 $ 8,811,007 

Commitments and contingencies (Note 12)

NET POSITION

Unexpended appropriations - funds from dedicated collections (combined) (Note 13) $ 716,250 $ 432,928

Unexpended appropriations - funds from other than dedicated collections (combined) 4,838,873 –

Total unexpended appropriations (consolidated) 5,555,123 432,928

Cumulative results of operations – funds from dedicated collections (combined) (Note 13) 17,645,310 14,194,593 

Cumulative results of operations – funds from other than dedicated collections (combined) 9,920,971 10,682,622 

Total cumulative results of operations (consolidated) 27,566,281 24,877,215 

Total net position 33,121,404 25,310,143

Total liabilities and net position $ 44,004,262 $ 34,121,150

The accompanying notes are an integral part of these financial statements.
Fiscal Year 2021 | FAA Performance and Accountability Report 99

Financial Results

U.S. DEPARTMENT OF TRANSPORTATION

FEDERAL AVIATION ADMINISTRATION

CONSOLIDATED STATEMENTS OF NET COST

For the Years Ended September 30, 2021 and 2020

(Dollars in Thousands)

LINE OF BUSINESS PROGRAMS (NOTE 14) 2021 2020

Air Traffic Organization

Gross program costs $ 12,816,633 $ 12,436,808 

Less earned revenues (357,425) (358,167)

Net cost 12,459,208 12,078,641 

Airports

Gross program costs 11,225,978 11,300,066 

Net cost 11,225,978 11,300,066 

Aviation Safety

Gross program costs 1,737,993 1,622,514 

Less earned revenues (7,022) (12,174)

Net cost 1,730,971 1,610,340 

Security and Hazardous Materials Safety

Gross program costs 149,892 139,621 

Less earned revenues (15,743) (46,095)

Net cost 134,149 93,526 

Commercial Space Transportation

Gross program costs 34,186 28,322 

Net cost 34,186 28,322 

NON-LINE OF BUSINESS PROGRAMS

Gross program costs 277,631 268,557 

Less earned revenues (139,992) (190,235)

Net cost 137,639 78,322 

NET COST OF OPERATIONS

Total gross program costs 26,242,313 25,795,888 

Less earned revenues (520,182) (606,671)

Total net cost $ 25,722,131 $ 25,189,217 

The accompanying notes are an integral part of these financial statements.
100 Fiscal Year 2021 

| FAA Performance and Accountability Report

Financial Results

U.S. DEPARTMENT OF TRANSPORTATION

FEDERAL AVIATION ADMINISTRATION

CONSOLIDATED STATEMENTS OF CHANGES IN NET POSITION

For the Years Ended September 30, 2021 and 2020

(Dollars in Thousands)

2021 2020

UNEXPENDED 

APPROPRIATIONS

Funds from 

dedicated 

collections 

(combined) 

(Note 13)

Funds from 

other than 

dedicated 

collections

(combined)

Consolidated 

total

Funds from 

dedicated 

collections 

(combined) 

(Note 13)

Funds from 

other than 

dedicated 

collections

(combined)

Consolidated 

total

Beginning balances $ 432,928 $ – $ 432,928 $ 730,649 $ – $ 730,649 

Appropriations received (Note 16) 482,500 24,409,000 24,891,500 111,000 10,400,000 10,511,000 

Other adjustments (50,235) – (50,235) (73,203) – (73,203)

Appropriations used (148,943) (19,570,127) (19,719,070) (335,518) (10,400,000) (10,735,518)

Net change in unexpended 

appropriations 283,322 4,838,873 5,122,195 (297,721) – (297,721)

Total unexpended appropriations - 

ending $ 716,250 $ 4,838,873 $ 5,555,123 $ 432,928 $ – $ 432,928 

CUMULATIVE RESULTS 

OF OPERATIONS

Beginning balances $ 14,194,593 $ 10,682,622 $ 24,877,215 $ 18,842,731 $ 11,027,855 $ 29,870,586 

Appropriations used 148,943 19,570,127 19,719,070 335,518 10,400,000 10,735,518 

Non-exchange revenue – excise taxes 

and other 8,466,804 – 8,466,804 9,348,111 – 9,348,111 

Transfers-in/out without reimbursement 12,939,495 (13,134,060) (194,565) 8,881,011 (9,148,415) (267,404)

Donations and forfeitures of property – 25,703 25,703 – 35,860 35,860 

Imputed financing (Note 15) 383,923 10,262 394,185 334,103 9,575 343,678 

Other – – – – 83 83 

Net cost of operations 18,488,448 7,233,683 25,722,131 23,546,881 1,642,336 25,189,217 

Net change in cumulative results of 

operations 3,450,717 (761,651) 2,689,066 (4,648,138) (345,233) (4,993,371)

Cumulative results of operations - 

ending $ 17,645,310 $ 9,920,971 $ 27,566,281 $ 14,194,593 $ 10,682,622 $ 24,877,215 

Net position $ 18,361,560 $ 14,759,844 $ 33,121,404 $ 14,627,521 $ 10,682,622 $ 25,310,143 

The accompanying notes are an integral part of these financial statements.
Fiscal Year 2021 101 | 

 FAA Performance and Accountability Report 

Financial Results

U.S. DEPARTMENT OF TRANSPORTATION

FEDERAL AVIATION ADMINISTRATION

COMBINED STATEMENTS OF BUDGETARY RESOURCES

For the Years Ended September 30, 2021 and 2020

(Dollars in Thousands)

2021 2020

BUDGETARY RESOURCES (NOTE 16)

Unobligated balance from prior year budget authority, net $ 6,775,933 $ 6,493,683 

Appropriations 41,032,106 34,669,210 

Contract authority 3,350,000 3,350,000 

Spending authority from offsetting collections 11,222,619 11,280,715 

Total budgetary resources $ 62,380,658 $ 55,793,608 

STATUS OF BUDGETARY RESOURCES

New obligations and upward adjustments $ 52,810,501 $ 49,437,939 

Unobligated balance, end of year

Apportioned, unexpired accounts 7,114,408 3,882,345 

Unapportioned, unexpired accounts 2,329,956 2,303,292 

Unexpired unobligated balance, end of year 9,444,364 6,185,637 

Expired unobligated balance, end of year 125,793 170,032 

Unobligated balance, end of year (total) 9,570,157 6,355,669 

Total budgetary resources $ 62,380,658 $ 55,793,608 

OUTLAYS, NET

Outlays, net (total) $ 39,421,662 $ 30,761,594 

Distributed offsetting receipts (16,418,603) (10,409,856)

Agency outlays, net $ 23,003,059 $ 20,351,738 

The accompanying notes are an integral part of these financial statements.
102 Fiscal Year 2021 | FAA Performance and Accountability Report 

Financial Results

Notes to the Financial Statements

Note 1. Summary of Significant Accounting Policies

A. Reporting Entity

The reporting entity is a component of the U.S. Government. 

For this reason, some of the assets and liabilities reported by 

the entity may be eliminated for government-wide reporting 

because they are offset by assets and liabilities of another U.S. 

Government entity. These financial statements should be read 

with the realization that they are for a component of the U.S. 

Government.

Created in 1958, the FAA is a component of the Department of 

Transportation (DOT), a cabinet-level agency of the executive 

branch of the federal government. The FAA’s mission is to 

provide a safe, secure, and efficient global aerospace system 

that contributes to national security and safety. As the leading 

authority in the international aviation community, the FAA is 

responsive to the dynamic nature of customer needs, economic 

conditions, and environmental concerns.

The U.S. Congress annually enacts appropriations to permit 

the FAA to incur obligations for specified purposes. The FAA 

is accountable for amounts made available per appropriations 

laws, from the Airport and Airway Trust Fund (AATF), 

revolving funds, a special fund, and the general fund. The FAA 

recognizes budgetary resources as assets when authorized 

by congressional action and apportioned by the Office of 

Management and Budget (OMB).

The FAA has contract authority, which allows the agency to 

enter into contracts prior to receiving an appropriation for the 

payment of obligations. A subsequently enacted appropriation 

provides funding to liquidate the obligations. Current contract 

authority is provided for the Airport Improvement Program 

(AIP) and funded by appropriations from the AATF.

The FAA also has spending authority from offsetting collections 

primarily from a non-expenditure transfer from the AATF for 

Operations funding. The balance of the spending authority 

from offsetting collections comes from other federal agencies 

which fund reimbursable activities performed by the FAA on 

their behalf.

The consolidated and combined financial statements present 

the accounts of all funds that have been established and 

maintained to account for the resources under the FAA’s 

control. The FAA has rights and ownership of all assets 

reported in these financial statements. The FAA does not 

possess any non-entity assets.

The reporting entity is comprised of the FAA’s lines of 

business and staff offices. For additional information, see FAA 

Organization on pages 10–11.

The FAA is the sponsor of the Center for Advanced Aviation 

System Development (CAASD), a Federally Funded Research 

and Development Center (FFRDC). CAASD is a disclosure 

entity, which is not a consolidated entity. While the FAA’s 

financial statements include its spending for studies it contracts 

with CAASD, the financial statements of the FAA do not 

include the financial results or position of CAASD. Additional 

information on FAA’s relationship with CAASD is presented in 

Note 19.

B. Basis of Presentation

The financial statements have been prepared to report the 

financial position, net cost of operations, changes in net 

position, and status and availability of budgetary resources 

of the FAA. The statements are a requirement of the 

Chief Financial Officers Act of 1990 and the Government 

Management Reform Act of 1994. They have been prepared 

from, and are fully supported by, the books and records of 

the FAA in accordance with OMB Circular A-136, as revised, 

Financial Reporting Requirements, and the DOT and the 

FAA significant accounting policies, the latter of which are 

summarized in this note. The statements are subjected to audit, 

as required by OMB Bulletin 21-04, Audit Requirements for 

Federal Financial Statements.

All material intra-agency activity has been eliminated for 

presentation on a consolidated basis, with a few exceptions. 

The Statement of Budgetary Resources is presented on a 

combined basis in accordance with OMB Circular A-136, as 

revised, Financial Reporting Requirements. Intra-agency activity 

reported in funds from dedicated collections is often offset 

with activity in other funds. Accordingly, funds from dedicated 

collections and funds from other than dedicated collections, 

presented separately in the Balance Sheets and Statements of 

Changes in Net Position, are presented on a combined basis.
Fiscal Year 2021 | FAA Performance and Accountability Report 103

Financial Results

Accounting standards require all reporting entities to disclose 

that accounting standards allow certain presentations and 

disclosures to be modified, if needed, to prevent the disclosure 

of classified information.

Unless specified otherwise, all dollar amounts are presented in 

thousands.

C. Basis of Accounting

The financial statements are prepared in accordance with all 

applicable accounting principles and standards developed and 

issued by the Federal Accounting Standards Advisory Board, 

which is recognized by the American Institute of Certified 

Public Accountants as the entity to establish generally accepted 

accounting principles for the federal government. The Federal 

Financial Management Improvement Act of 1996 requires 

the FAA to comply substantially with (1) federal financial 

management systems requirements, (2) applicable federal 

accounting standards, and (3) the United States Standard 

General Ledger requirements at the transaction level.

Transactions are recorded on both an accrual accounting 

basis and a budgetary accounting basis. Under the accrual 

method, revenues are recognized when earned and expenses 

are recognized when a liability is incurred, without regard to 

receipt or payment of cash. Budgetary accounting facilitates 

compliance with legal requirements on the use of federal funds.

D. Revenues and Other Financing Sources

As a component of the U.S. Government-wide reporting entity, 

the FAA is subject to the federal budget process, which involves 

appropriations that are provided annually and appropriations that 

are provided on a permanent basis. The financial transactions 

that are supported by budgetary resources, which include 

appropriations, are generally the same transactions reflected in 

entity and the U.S. Government-wide financial reports. 

The FAA’s budgetary resources reflect past congressional action 

and enable the entity to incur budgetary obligations, but they do 

not reflect assets to the U.S. Government as a whole. Budgetary 

obligations are legal obligations for goods, services, or amounts to 

be paid based on statutory provisions. After budgetary obligations 

are incurred, the U.S. Treasury will make disbursements 

to liquidate the budgetary obligations and finance those 

disbursements in the same way it finances all disbursements, 

using some combination of receipts, other inflows, and borrowing 

from the public (if there is a budget deficit).

The U.S. Congress enacts annual, multi-year, and no-year 

appropriations to be used, within statutory limits, for operating, 

capital, and grant expenditures. Additional amounts are 

obtained from service fees (e.g., landing, registry, and aviation 

user fees), and through reimbursements for products and 

services provided to domestic and foreign governmental 

entities, and the public.

The AATF is sustained by excise taxes that the Internal Revenue 

Service (IRS) collects from airway system users. Excise taxes 

collected are initially deposited to the General Fund of the U.S. 

Government. The IRS does not receive sufficient information 

at the time the excise taxes are collected to determine how 

they should be distributed to specific funds from dedicated 

collections. Therefore, the U.S. Treasury makes initial semimonthly distributions to the AATF based on allocations 

prepared by its Office of Tax Analysis. These allocations are 

based on historical excise tax data applied to current excise tax 

receipts and later adjusted to agree to actual collections when 

certified by the IRS.

The CARES Act suspended the collection of almost all aviation 

excise taxes from March 28, 2020 through December 31, 2020.

The FAA’s September 30, 2021 financial statements reflect 

excise taxes certified by the IRS though June 30, 2021, and 

excise taxes allocated by the Office of Tax Analysis for the 

period July 1, 2021 through September 30, 2021, in compliance 

with Statement of Federal Financial Accounting Standards 

Number 7, Accounting for Revenue and Other Financing Sources. 

Actual excise tax collections for the quarter ended September 

30, 2021 will not be available from the IRS until February 2022. 

When actual amounts are certified by the IRS, generally four 

to five months after the end of each quarter, adjustments are 

made to the AATF to account for the difference. Additional 

information on this subject is disclosed in Note 13.

Interest on investments is recognized as revenue on an accrual 

basis, and classified as exchange or nonexchange depending 

on the predominant source of funds upon which the interest 

payment is based.

Appropriations are recognized as a financing source when 

expended. Revenues from services provided by the FAA associated 

with reimbursable agreements are recognized concurrently with 

the recognition of accrued expenditures for performing the 

services. Aviation overflight user fees are recognized as revenue in 

the period in which the flights take place. 
104 Fiscal Year 2021 | FAA Performance and Accountability Report 

Financial Results

Goods and services are received from other federal entities 

at no cost or at a cost less than the full cost to the providing 

federal entity. Consistent with accounting standards, certain 

costs of the providing entity that are not fully reimbursed by 

the FAA are recognized as imputed cost (in the Statement of 

Net Cost), and are offset by imputed financing (in the Statement 

of Changes in Net Position). Such imputed costs and revenues 

relate to business-type activities, employee benefits, and 

claims to be settled by the Treasury Judgment Fund. However, 

unreimbursed costs of goods and services other than those 

identified above are not included in our financial statements.

E. Taxes

The FAA, as a federal entity, is not subject to federal, state, or 

local income taxes and, accordingly, does not record a provision 

for income taxes in the accompanying financial statements.

F. Fund Balance with the U.S. Treasury

The U.S. Treasury processes cash receipts and disbursements. 

Funds held with the U.S. Treasury are available to pay agency 

liabilities. The FAA does not maintain cash in commercial 

bank accounts or foreign currency balances. Foreign currency 

payments are made either by the U.S. Treasury or the U.S. 

Department of State and are reported by the FAA in the U.S. 

dollar equivalent.

Fund balance with Treasury is an asset of the FAA and a 

liability of the General Fund of the U.S. Government. Similarly, 

investments in U.S. Government securities that are held by 

dedicated collections accounts are assets of the FAA and 

liabilities of the General Fund of the U.S. Government. In both 

cases, the amounts represent commitments by the government 

to provide resources for particular programs, but they do not 

represent net assets to the government as a whole.

When the FAA seeks to use fund balance with Treasury 

or investments in U.S. Government securities to liquidate 

budgetary obligations, Treasury will finance the disbursements 

in the same way it finances all other disbursements, using some 

combination of receipts, other inflows, and borrowing from the 

public (if there is a budget deficit).

G. Investment in U.S. Government Securities

Unexpended funds in the AATF and Aviation Insurance Revolving 

Fund are invested in U.S. Government securities and reported 

at cost. A portion of the AATF investments is liquidated monthly 

in amounts needed to provide cash for the FAA appropriation 

accounts, to the extent authorized. Aviation Insurance Revolving 

Fund investments are intended to be held to maturity, but 

may be liquidated to pay insurance claims when necessary. 

Investments, redemptions, and reinvestments are held and 

managed under the direction of the FAA by the U.S. Treasury.

H. Accounts Receivable

Accounts receivable consists of amounts owed to the FAA 

by other federal agencies and the public. Amounts due from 

federal agencies are generally the result of the provision 

of goods and services to other federal agencies. Accounts 

receivable from the public include, for example, aviation user 

fees, fines and penalties, reimbursements from employees, 

and services performed for foreign governments. Accounts 

receivable are presented net of an allowance for loss on 

uncollectible amounts, which is based on historical collection 

experience or an analysis of the individual receivables.

I. Inventory

Within the FAA’s Administrative Services Franchise Fund 

(Franchise Fund), inventory is held for sale to the FAA field 

locations and other domestic entities and foreign governments. 

Inventory consists of materials and supplies that the FAA uses 

to support our nation’s airspace system and is predominantly 

located at the Mike Monroney Aeronautical Center in 

Oklahoma City, Oklahoma. Inventory costs include material, 

labor, and applicable manufacturing overhead.

Inventory held for sale includes both purchased inventory and 

refurbished inventory. Inventory held for sale is valued using 

historical cost, applying the moving average cost flow method. 

The moving average cost flow method is an inventory costing 

method used in conjunction with a perpetual inventory system. 

A weighted average cost per unit is recomputed after every 

purchase. Goods sold are costed at the most recent moving 

average cost.

The FAA has an exchange and repair program where the 

FAA field locations exchange non-operational components 

with the Franchise Fund for operational components. The 

nonoperational repairable components are classified as “held 

for repair” and valued using the direct method. Under the direct 

method, inventory held for repair is valued at the same value as 

a serviceable item less the estimated repair costs.

Raw materials and work in progress is comprised of repairable 

inventory components, the materials used to bring the 

components to a re-useable or serviceable condition along with 

the labor and overhead incurred during the refurbishing process. 

Raw materials are valued using historical cost, applying the 

moving average cost flow method. The repairable components, 
Fiscal Year 2021 | FAA Performance and Accountability Report 105

Financial Results

reported as work in progress, are valued at the same value as 

a serviceable item less the estimated repair costs at the time 

of transfer from the “held for repair” account to the work in 

progress account. When the refurbishing process is complete, the 

inventory components are reclassified to “held for sale.”

Inventory may be deemed to be “excess, obsolete, and 

unserviceable” if, for example, the quantity exceeds projected 

demand for the foreseeable future or if the item has been 

technologically surpassed. The “excess, obsolete, and 

unserviceable” inventory is determined to have no residual net 

realizable value, therefore, a loss is recognized to write off the 

inventory in the current period.

J. Operating Materials and Supplies

Operating materials and supplies primarily consist of unissued 

materials and supplies that will be used in the repair and 

maintenance of FAA-owned aircraft. They are valued based on 

the latest acquisition cost. Operating materials and supplies are 

expensed using the consumption method of accounting. Under 

the consumption method, goods are recognized as assets upon 

acquisition and are expensed as they are consumed.

Operating materials and supplies “held for use” are those items 

that are consumed on a regular and ongoing basis. Operating 

materials and supplies “held for repair” are awaiting service 

to restore their condition to “held for use.” An allowance of 

50 percent has been established for operating materials and 

supplies “held for repair” based on historical experience.

Operating materials and supplies may be classified as “excess, 

obsolete, and unserviceable” if, for example, the quantity 

exceeds projected demand for the foreseeable future or if 

the item has been technologically surpassed. An allowance is 

established for “excess, obsolete, and unserviceable” operating 

materials and supplies based on the condition of various asset 

categories as well as the FAA’s historical experience with 

disposing of such assets.

K. Property, Plant, and Equipment

The FAA capitalizes acquisitions of Property, Plant, and 

Equipment (PP&E) when the cost equals or exceeds $100 

thousand (except for internal use software, for which the 

threshold is $200 thousand) and the useful life equals 

or exceeds two years. The FAA records PP&E at original 

acquisition cost. However, where applicable, the FAA allocates 

an average cost of like assets within a program, commonly 

referred to as “unit costing.” The FAA purchases some capital 

assets in large quantities, which are known as “bulk purchases.” 

If the cost per unit is below the capitalization threshold of the 

FAA, then these items are expensed.

Depreciation expense is calculated using the straight-line 

method. Depreciation commences the first month after the 

asset is placed in service. The FAA does not recognize residual 

value of its PP&E.

Real property assets, such as buildings, air traffic control 

towers, en route air traffic control centers, mobile buildings, 

roads, sidewalks, parking lots, and other structures, are 

depreciated over a useful life of up to 40 years.

Personal property assets, such as aircraft; decision support 

systems; navigation-, surveillance-, communications-, and 

weather-related equipment; office furniture; vehicles and office 

equipment, are depreciated over a useful life of up to 20 years.

Internal use software, such as software used to operate 

programmatic and administrative information systems, is 

generally amortized over a useful life of five years. However, it 

may be adjusted if a determination is made by specific program 

office and/or subject matter experts to have a longer or shorter 

useful life (not less than two years).

Construction in progress and internal use software in 

development are valued at actual direct costs plus applied 

overhead and other indirect costs.

The FAA researches and develops new technologies to support 

the nation’s airspace system. Until such time as a research and 

development project reaches “technological feasibility,” the costs 

associated with the project are expensed in the year incurred.

L. Leases

The FAA occupies certain real property that is leased by the 

DOT from the General Services Administration (GSA). The FAA 

also has non-GSA leases. Payments made by the FAA are based 

on contractual agreements. Future payments are disclosed for 

both cancellable and non-cancellable operating leases, but not 

disclosed separately since most lease agreements are either 

cancellable or contain termination rights.

Capital leases for buildings and equipment are amortized 

over the lease term. If the lease agreement contains a bargain 

purchase option or otherwise provides for transferring title 

of the asset to the FAA, the buildings are depreciated over a 

40-year service life and the equipment is depreciated over its 

estimated useful life.
106 Fiscal Year 2021 | FAA Performance and Accountability Report 

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M. Prepaid Charges

The FAA generally does not pay for goods and services 

in advance, except for certain reimbursable agreements, 

subscriptions, and payments to contractors and employees. 

Payments made in advance of the receipt of goods and services 

are recorded as prepaid charges at the time of prepayment and 

recognized as expenses when the related goods and services 

are received.

N. Liabilities

Liabilities covered by budgetary or other resources are those 

liabilities for which the U.S. Congress has appropriated 

funds, and which are otherwise available to pay amounts 

due. Liabilities not covered by budgetary or other resources 

represent amounts owed in excess of available, congressionallyappropriated funds or other amounts. The liquidation of 

liabilities not covered by budgetary or other resources is 

dependent on future congressional appropriations or other 

funding, including the AATF. Liabilities not requiring budgetary 

resources include custodial liabilities which are collections 

on behalf of other federal entities or funds, such as the 

General Fund of the U.S. Government. Custodial liabilities are 

liquidated when the collections are transferred to the owner. 

Intragovernmental liabilities are claims against the FAA by other 

federal agencies.

O. Accounts Payable

Accounts payable are amounts that the FAA owes to other 

federal agencies and the public. Accounts payable to federal 

agencies generally consist of amounts due under interagency 

reimbursable agreements. Accounts payable to the public 

primarily consist of unpaid goods and services received by the 

FAA in support of our nation’s airspace system.

P. Annual, Sick, and Other Leave

Annual leave is accrued as it is earned and the accrual is 

reduced as leave is taken. For each biweekly pay period, 

the balance in the accrued annual leave account is adjusted 

to reflect the latest pay rates and unused hours of leave. 

Liabilities associated with other types of vested leave, including 

compensatory, credit hours, restored leave, and sick leave in 

certain circumstances, are accrued based on latest pay rates 

and unused hours of leave. Sick leave is generally non-vested, 

except for sick leave balances at retirement under the terms 

of certain union agreements. Funding will be obtained from 

future financing sources to the extent that current or prior 

year appropriations are not available to fund annual and other 

types of vested leave earned but not taken. Non-vested leave is 

expensed when used.

Q. Federal Employees' Compensation Act

The Federal Employees' Compensation Act (FECA) (Public Law 

103-3) provides income and medical cost protection to covered 

federal civilian employees injured on the job, to employees 

who have incurred work-related occupational diseases, and to 

beneficiaries of employees whose deaths are attributable to 

job-related injuries or occupational diseases.

The FECA program is administered by the Department of 

Labor (DOL), which pays valid claims and subsequently seeks 

reimbursement from the FAA for these paid claims. The FECA 

liability consists of two elements. The first element, accrued 

FECA liability, is based on workers’ compensation claims paid by 

DOL but not yet reimbursed by the FAA. The FAA reimburses 

DOL for claims as funds are appropriated for this purpose. In 

general, there is a two-year period between payment by DOL 

and reimbursement to DOL by the FAA. As a result, the FAA 

recognizes an intragovernmental liability for the claims paid by 

DOL and not yet reimbursed by the FAA.

The second element, actuarial FECA liability, is the estimated 

liability for future benefit payments. The actuarial FECA 

liability includes the expected liability for death, disability, 

medical, and miscellaneous costs for approved compensation 

cases, plus a component for incurred but unreported claims. 

DOL determines the actuarial FECA liability annually, as of 

September 30, using an actuarial method that considers 

historical benefit payment patterns, wage inflation factors, 

medical inflation factors, and other variables. The projected 

annual benefit payments are discounted to present value using 

the OMB economic assumptions for 10-year Treasury notes 

and bonds. The DOL calculates the FECA liability for the DOT, 

and the DOT allocates the liability amount to the FAA, based 

on actual workers’ compensation payments to FAA employees 

over the preceding four years. The actuarial FECA liability is not 

covered by budgetary resources and will require future funding.

R. Retirement Plan

FAA employees participate in either the Civil Service 

Retirement System (CSRS) or the Federal Employees 

Retirement System (FERS). The employees who participate 

in the CSRS contribute seven percent of their pay and are 

beneficiaries of the FAA’s matching contribution program, equal 

to seven percent of pay, distributed to their annuity account in 

the Civil Service Retirement and Disability Fund.

FERS went into effect on January 1, 1987. FERS and Social 

Security automatically cover most employees hired after 

December 31, 1983. Employees hired prior to January 1, 

1984 could elect either to join FERS and Social Security or to 
Fiscal Year 2021 | FAA Performance and Accountability Report 107

Financial Results

remain in CSRS. FERS offers a savings plan to which the FAA 

automatically contributes one percent of pay and matches any 

employee contribution up to an additional four percent of pay. 

For FERS participants, the FAA also contributes the employer’s 

matching share for Social Security. The FAA’s matching 

contributions are recognized as operating expenses.

The FAA recognizes the full cost of pensions and other 

retirement benefits during an employee’s active years of 

service. The costs are covered through a combination of FAA 

appropriations and imputed costs. The imputed amount is 

calculated using the Office of Personnel Management's (OPM) 

cost factors and is the difference between the FAA’s and the 

employee’s contributions during the year and the total cost of 

the benefit. OPM actuaries determine pension cost factors by 

calculating the value of pension benefits expected to be paid in 

the future and communicate these factors to the FAA.

The OPM also provides information regarding the full cost 

of health and life insurance benefits. The imputed costs are 

completely offset with other financing sources, which are 

reported as an imputed financing source on the Consolidated 

Statements of Changes in Net Position to the extent that 

these costs will be paid by the OPM. Reporting of the assets 

and liabilities associated with the retirement plans is the 

responsibility of the administering agency, OPM. Therefore, the 

FAA does not report CSRS or FERS assets, accumulated plan 

benefits, or unfunded liabilities, if any, applicable to employees.

S. Grants

The FAA records an obligation at the time a grant is awarded. 

As grant recipients conduct eligible activities under the terms 

of their grant agreement, they request payment by the FAA, 

typically made via an electronic payment process. Expenses 

are recorded at the time of payment approval during the year. 

The FAA also recognizes an accrued liability and expense for 

estimated eligible grant payments not yet requested by grant 

recipients. Grant expenses, including associated administrative 

costs, are classified on the Consolidated Statements of Net 

Cost under the Airports line of business.

T. Use of Estimates

Management has made certain estimates and assumptions 

when reporting assets, liabilities, revenues, and expenses, and 

in the note disclosures. Actual results could differ from these 

estimates. Significant estimates underlying the accompanying 

financial statements include: (a) legal, environmental, and 

contingent liabilities; (b) accruals of accounts and grants 

payable; (c) allowance for doubtful accounts receivable; (d) 

allowances for operating materials and supplies; (e) allocations 

of common costs to construction in progress; (f) the allocation 

of an average cost of like property, plant, and equipment 

within a program, commonly referred to as unit costing; and (g) 

accrued benefits and benefits payable.

U. Environmental and Disposal Liabilities

In compliance with applicable laws and regulations including 

the Clean Air Act of 1963, the Resource Conservation and 

Recovery Act of 1976, the Comprehensive Environmental 

Response, Compensation and Liability Act of 1980 as amended 

by the Superfund Amendments and Reauthorization Act of 

1986 and the Community Environmental Response Facilitation 

Act of 1992, the FAA recognizes two types of environmental 

and disposal liabilities: environmental remediation, and cleanup 

and decommissioning.

The liability for environmental remediation is an estimate 

of costs necessary to bring a known contaminated site into 

compliance with applicable environmental standards. The 

increase or decrease in the annual liability is charged to current 

year expense.

The liability for environmental cleanup and decommissioning 

is the estimated cost that will be incurred to remove, contain, 

and/or dispose of hazardous materials when an asset presently 

in service is shutdown. The FAA estimates the environmental 

cleanup and decommissioning costs at the time that an FAAowned asset is placed in service. For assets placed in service 

through FY 1998, the increase or decrease in the estimated 

environmental cleanup liability is charged to expense. Assets 

placed in service in FY 1999 and after do not contain any known 

hazardous materials, and therefore do not have associated 

environmental liabilities.

There are no known possible changes to these estimates based 

on inflation, deflation, technology, or applicable laws and 

regulations.

V. Contingencies

A contingent liability represents a potential cost to the FAA 

depending on the outcome of future events. Three categories 

of contingent liabilities — probable, reasonably possible, and 

remote — determine the appropriate accounting treatment. 

The FAA recognizes contingent liabilities, in the accompanying 

balance sheet and statement of net cost, when they are both 

probable and can be reasonably estimated. The FAA discloses 

contingent liabilities in the notes to the financial statements 

(see Note 12) when the conditions for liability recognition are 
108 Fiscal Year 2021 | FAA Performance and Accountability Report 

Financial Results

not met but are reasonably possible. Contingent liabilities that 

are considered remote are not disclosed.

In some cases, once losses are certain, payments may be made 

from the Judgment Fund maintained by the U.S. Treasury rather 

than from the amounts appropriated to the FAA for agency 

operations. Payments from the Judgment Fund are recorded as 

“Imputed Financing” when made.

W. Funds from Dedicated Collections

The FAA’s financial statements include the following funds, 

considered to be “funds from dedicated collections”:

 AATF

 Operations-AATF

 Operations-General Fund

 Grants-in-Aid for Airports

 Facilities and Equipment

 Research, Engineering, and Development

 Aviation Insurance Fund

 Aviation User Fees

Funds from dedicated collections are those that are financed 

by specifically identified revenues and financing sources which 

remain available over time. They are required by statute to be 

used for designated activities, benefits, or purposes and must 

be accounted for separately from the government’s general 

revenues.

The AATF is funded by excise taxes that the IRS collects from 

airway system users. These receipts are unavailable until 

appropriated by the U.S. Congress. Once appropriated for 

use, the FAA transfers the AATF receipts necessary to meet 

cash disbursement needs to several other funds, from which 

expenditures are made. Those funds that receive transfers from 

the AATF are the Operations-AATF, Grants-in-Aid for Airports, 

Facilities and Equipment, and Research, Engineering and 

Development. These funds represent the majority of the FAA 

annual expenditures.

In addition, while the Operations-General Fund is primarily 

funded through transfers from Operations-AATF, it is also 

supplemented by funding from the General Fund of the U.S. 

Government through annual appropriations. Because the 

Operations-General Fund is primarily funded from the AATF, 

and because it is not reasonably possible to differentiate cash 

balances between those originally flowing from the AATF 

versus those that come from general fund appropriations, the 

Operations-General Fund is presented as funds from dedicated 

collections.

Similarly, while the Grants-in-Aid for Airports account is 

typically funded through transfers from the AATF, it was also 

supplemented by funding from the General Fund of the U.S. 

Government as a result of the Coronavirus Aid, Relief, and 

Economic Security (CARES) Act, Public Law 116-136. Because 

the funding from general fund appropriations is expected to be 

temporary and the predominant source of funding historically 

comes from the AATF, Grants-in-Aid for Airports is presented 

as funds from dedicated collections.

The funds from dedicated collections in the Facilities and 

Equipment fund are used to purchase or construct PP&E. When 

PP&E has been placed in service, the funds from dedicated 

collections are no longer available for future expenditure, 

have been used for their intended purpose, and are therefore 

classified as “funds from other than dedicated collections” on 

the balance sheet and the statement of changes in net position. 

Construction in progress is classified as “funds from dedicated 

collections” because although the funds have been expended, 

they have not yet fully achieved their intended purpose. The 

intended result of this presentation is to differentiate between 

funds from dedicated collections that remain available for future 

expenditure, or have not yet fully achieved their designated 

purpose, and funds from dedicated collections previously 

expended that have achieved their intended purpose.

Additional disclosures concerning funds from dedicated 

collections can be found in Note 13.

X. Reclassifications

Certain prior year amounts have been reclassified for 

consistency with the current year presentation. 

The format of the Balance Sheet has changed to reflect more 

detail for certain line items, as required for all significant 

reporting entities by OMB Circular A-136. This change does 

not affect totals for assets, liabilities, or net position and 

is intended to allow readers of this report to see how the 

amounts shown on the Balance Sheet are reflected on the 

Government-wide Balance Sheet, thereby supporting the 

preparation and audit of the Financial Report of the United States 

Government. The presentation of the fiscal year 2020 Balance 

Sheet was modified to be consistent with the fiscal year 2021 

presentation.
Fiscal Year 2021 | FAA Performance and Accountability Report 109

Financial Results

Note Disclosures Related to the Balance Sheet

Note 2. Fund Balance with Treasury

Status of fund balance with Treasury balances as of September 30, 2021 and 2020 were:

(Dollars in Thousands) 2021 2020

Status of fund balance with Treasury

Unobligated balance

Available $ 7,114,408 $ 3,882,345 

Not available 2,455,749 2,473,324 

Obligated balance not yet disbursed 18,804,450 17,154,870 

Investments and contract authority supporting obligated and unobligated balances (15,182,111) (12,520,542)

Non-budgetary fund balance with Treasury 3,967 5,648 

Total $ 13,196,463 $ 10,995,645 

Unobligated budgetary account balances are also reflected on 

the Statement of Budgetary Resources. Certain unobligated 

balances may be restricted to future use and are not available 

for current use. For additional information, see Legal 

Arrangements Affecting the Use of Unobligated Balances in 

Note 16.

Obligated balances not yet disbursed include unpaid obligations 

offset by uncollected customer payments from other U.S. 

federal government entities.

The FAA is funded with appropriations from the AATF and 

the General Fund of the U.S. Government. While amounts 

appropriated from the General Fund of the U.S. Government 

are included in fund balance with Treasury, AATF investments 

are not. AATF investments are redeemed, as needed, to meet 

FAA’s cash disbursement needs, at which time the funds are 

transferred into fund balance with Treasury. The FAA also 

receives contract authority that allows obligations to be 

incurred in advance of an appropriation. The contract authority 

is subsequently funded, as authorized, from the AATF allowing 

for the liquidation of the related obligations.

Thus, investments and contract authority are not part of 

fund balance with Treasury; however, their balances will be 

transferred from the AATF to fund balance with Treasury over 

time to liquidate obligated balances and unobligated balances 

as they become obligated, and thus are necessarily included in 

the Status of fund balance with Treasury. Only the investment 

and contract authority balances that support the obligated and 

unobligated balances are presented in this note. Whereas, the 

investment balances presented in Note 3 also include amounts 

invested from receipts that are unavailable for obligation upon 

collection, and therefore do not support the obligated and 

unobligated balances. 

As of September 30, 2021 and 2020, the unused funds in 

expired appropriations that were returned to Treasury at the 

end of the fiscal year were $50.2 million and $57.7 million, 

respectively. These balances are excluded from amounts 

reported as fund balance with Treasury.
110 Fiscal Year 2021 

| FAA Performance and Accountability Report

Financial Results

Note 3. Investments, Net 

As of September 30, 2021 and 2020, the FAA’s investment balances were as follows:

(Dollars in Thousands) 2021

Intragovernmental Securities Cost 

Unamortized 

Premium/ 

(Amortized 

Discount) 

Interest 

Receivable Investments (Net)

 Market/Fair 

Value

Nonmarketable par value $ 15,901,898 $ – $ 47,043 $ 15,948,941 $ 15,901,898 

Nonmarketable market-based 2,217,198 13,213 10,304 2,240,715 2,240,042 

Total intragovernmental securities $ 18,119,096 $ 13,213 $ 57,347 $ 18,189,656 $ 18,141,940 

(Dollars in Thousands) 2020

Intragovernmental Securities Cost 

Unamortized 

Premium/ 

(Amortized 

Discount)

Interest 

Receivable Investments (Net)

 Market/Fair 

Value

Nonmarketable par value $ 7,900,279 $ – $ 34,552 $ 7,934,831 $ 7,900,279 

Nonmarketable market-based 2,302,424 12,082 10,591 2,325,097 2,335,706 

Total intragovernmental securities $ 10,202,703 $ 12,082 $ 45,143 $ 10,259,928 $ 10,235,985 

The Secretary of the Treasury invests AATF funds on behalf 

of the FAA. The FAA investments are considered investment 

authority and are available to offset the cost of operations to 

the extent authorized by the U.S. Congress. As of September 

30, 2021 and 2020, $15.9 billion and $7.9 billion were invested 

respectively in U.S. Treasury Certificates of Indebtedness. 

Nonmarketable par value Treasury securities are special series 

debt securities that the U.S. Treasury issues to federal entities 

at face value (par value). The securities are redeemed at face 

value on demand; thus investing entities recover the full 

amounts invested plus interest. Investments as of September 

30, 2021, mature on various dates through June 30, 2022, and 

investments as of September 30, 2020, matured on various dates 

through June 30, 2021. The annual rate of return on Certificates 

of Indebtedness is established in the month of issuance. The 

average rate of return for certificates issued during FY 2021 and 

FY 2020 was 1.38 percent and 1.75 percent, respectively.

Nonmarketable, market-based Treasury securities are debt 

securities that the Treasury issues to federal entities without 

statutorily fixed interest rates. Although the securities are 

not marketable, their terms (prices and interest rates) mirror 

the terms of marketable Treasury securities. The FAA invests 

Aviation Insurance Fund collections in nonmarketable marketbased securities and amortizes premiums and discounts 

over the life of the security using the interest method. As of 

September 30, 2021, these nonmarketable, market-based 

securities have maturity dates ranging from January 15, 2022 

to January 31, 2023 and have an average rate of return of 

approximately 1.4 percent. As of September 30, 2020, these 

nonmarketable, market-based securities had maturity dates 

ranging from November 15, 2020 to January 31, 2023 and had 

an average rate of return of approximately 1.8 percent.

The U.S. Treasury does not set aside assets to pay the future 

expenditures of the AATF and the Aviation Insurance Fund 

(i.e., dedicated collections). Instead, the cash collected from 

the public for the AATF and the Aviation Insurance Fund is 

deposited in the U.S. Treasury, and used for general government 

purposes. Treasury securities are issued to the FAA as evidence 

of the collections by the AATF and the Aviation Insurance Fund. 

Treasury securities are an asset to the FAA and a liability to the 

U.S. Treasury. Because the FAA and the U.S. Treasury are both 

parts of the federal government, these assets and liabilities 

offset each other from the standpoint of the federal government 

as a whole. For this reason, they do not represent an asset or a 

liability in the government-wide financial statements.

To the extent authorized by law, the FAA has the ability to 

redeem its Treasury securities to make expenditures. When the 

FAA redeems these securities, the federal government finances 

those expenditures from accumulated cash balances by raising 

tax or other receipts, borrowing from the public, repaying less 

debt, or curtailing other expenditures. This is the same manner in 

which the federal government finances all other expenditures.

The FAA does not have any investment in non-federal securities.
Fiscal Year 2021 111 | 

 FAA Performance and Accountability Report 

Financial Results

Note 4. Accounts Receivable, Net 

Accounts receivable is shown net of an allowance for uncollectible accounts, which is based on historical collection experience or an 

analysis of the individual receivables. As of September 30, 2021 and 2020, accounts receivable were:

(Dollars in Thousands) 2021 2020

Intragovernmental

Accounts receivable, gross $ 13,523 $ 18,409 

Allowance for uncollectible amounts (1,151) (1,664)

Total intragovernmental 12,372 16,745 

Other than intragovernmental/with the public

Accounts receivable, gross 45,252 44,141 

Allowance for uncollectible amounts (14,944) (14,102)

Total other than intragovernmental/with the public 30,308 30,039 

Total accounts receivable, net $ 42,680 $ 46,784 
112 Fiscal Year 2021 | FAA Performance and Accountability Report 

Financial Results

Note 5. Inventory and Related Property, Net

Inventory is classified as either held for sale, held for repair, or raw materials and work in progress. Collectively, the FAA’s 

inventory is used to support our nation’s airspace system and is predominantly located at the Mike Monroney Aeronautical Center 

in Oklahoma City, Oklahoma. Inventory that is deemed to be excess, obsolete and unserviceable is expected to have no net 

realizable value and a loss is recognized for the carrying amount. The carrying amount before identification as excess, obsolete, and 

unserviceable inventory was $6.2 million in fiscal year 2021 and $3.1 million in fiscal year 2020.

Operating materials and supplies primarily consists of materials and supplies that will be used in the repair and maintenance of FAAowned aircraft. As of September 30, 2021 and 2020, inventory and related property balances were:

(Dollars in Thousands) 2021

Cost Allowance Net

Inventory

Held for sale $ 263,246 $ – $ 263,246 

Held for repair 433,515 – 433,515 

Raw materials and work in progress 38,539 – 38,539 

Inventory total 735,300 – 735,300 

Operating materials and supplies

Held for use 49,850 – 49,850 

Held for repair 48,599 (24,299) 24,300 

Excess, obsolete, and unserviceable 2,849 (1,635) 1,214 

Operating materials and supplies total 101,298 (25,934) 75,364 

Total inventory and related property $ 836,598 $ (25,934) $ 810,664 

(Dollars in Thousands) 2020

Cost Allowance Net

Inventory

Held for sale $ 264,559 $ – $ 264,559 

Held for repair 431,067 – 431,067 

Raw materials and work in progress 39,833 – 39,833 

Inventory total 735,459 – 735,459

Operating materials and supplies

Held for use 54,663 – 54,663 

Held for repair 39,045 (19,522) 19,523 

Excess, obsolete, and unserviceable 4,097 (2,574) 1,523 

Operating materials and supplies total 97,805 (22,096) 75,709 

Total inventory and related property $ 833,264 $ (22,096) $ 811,168 
Fiscal Year 2021 | FAA Performance and Accountability Report 113

Financial Results

Note 6. General Property, Plant, and Equipment, Net

General property, plant, and equipment balances as of September 30, 2021 and 2020 were:

(Dollars in Thousands) 2021

Class of fixed asset Acquisition value

Accumulated 

depreciation Net book value

Real property, including land $ 6,906,994 $ (4,047,003) $ 2,859,991 

Personal property 18,642,947 (14,050,068) 4,592,879 

Internal use software 3,760,750 (2,713,304) 1,047,446 

Internal use software in development 1,284,383 – 1,284,383 

Assets under capital lease (Note 11) 94,988 (55,605) 39,383 

Construction in progress 1,845,926 – 1,845,926 

Total property, plant, and equipment $ 32,535,988 $ (20,865,980) $ 11,670,008 

(Dollars in Thousands) 2020

Class of fixed asset Acquisition value

Accumulated 

depreciation Net book value

Real property, including land $ 6,779,022 $ (3,895,755) $ 2,883,267 

Personal property 18,467,959 (13,376,239) 5,091,720 

Internal use software 3,532,469 (2,458,540) 1,073,929 

Internal use software in development 1,096,142 – 1,096,142 

Assets under capital lease (Note 11) 94,988 (52,039) 42,949 

Construction in progress 1,729,689 – 1,729,689 

Total property, plant, and equipment $ 31,700,269 $ (19,782,573) $ 11,917,696 

The changes to the general property, plant, and equipment balance for the fiscal years ended September 30, 2021 and 

September 30, 2020 were:

(Dollars in Thousands) 2021 2020

Balance beginning of the year $ 11,917,696 $ 12,045,969 

Capitalized acquisitions 1,182,409 1,304,029 

Dispositions (1,081) (75,945)

Revaluations (156,837) (62,756)

Depreciation expense (1,313,052) (1,336,609)

Transfers-in/out without reimbursement 15,170 7,148 

Donations 25,703 35,860 

Balance at end of year $ 11,670,008 $ 11,917,696 

The FAA’s construction in progress relates primarily to national airspace assets, which are derived from centrally funded national 

systems development contracts, site preparation and testing, raw materials, and internal labor charges. The accumulation of costs 

to be capitalized for assets in the FAA’s PP&E typically flow into and remain in the construction in progress account until the asset 

is ready for deployment and placed in service. Once placed in service, the asset balance is transferred from the construction in 

progress category to its respective asset category.
114 Fiscal Year 2021 | FAA Performance and Accountability Report 

Financial Results

Note 7. Other Assets 

Other asset balances as of September 30, 2021 and 2020 were:

(Dollars in Thousands) 2021 2020

Other than intragovernmental/with the public

General property, plant, and equipment permanently 

removed but not yet disposed $ – $ 27

Total other than intragovernmental/with the public – 27

Total other assets $ – $ 27

Note 8. Liabilities not Covered by Budgetary Resources

Liabilities not covered by budgetary resources require future congressional action whereas liabilities covered by budgetary resources 

reflect prior congressional action. Regardless of when the congressional action occurs, when the liabilities are liquidated, Treasury 

will finance the liquidation in the same way that it finances all other disbursements, using some combination of receipts, other 

inflows, and borrowing from the public (if there is a budget deficit). Liabilities not requiring budgetary resources include custodial 

liabilities which are collections on behalf of other federal entities or funds, such as the General Fund of the U.S. Government. 

Custodial liabilities are liquidated when the collections are transferred to the owner. The following table shows liabilities not covered 

by budgetary resources as of September 30, 2021 and 2020.

(Dollars in Thousands) 2021 2020

Intragovernmental

Other liabilities (Note 10)

Federal Employees' Compensation Act payable $ 147,477 $ 153,091 

Other unfunded employment related liabilities 28,878 30,095 

Deposit funds and clearing accounts – 4,182 

Total intragovernmental 176,355 187,368 

Other than intragovernmental/with the public 

Federal employee benefits payable

FECA actuarial 713,087 727,770 

Unfunded leave 553,301 556,071 

Other unfunded employment related liability 47,888 47,212 

Environmental and disposal liabilities (Notes 9 and 12) 752,148 745,540 

Other liabilities

Capital leases (Notes 10 and 11) 45,344 51,348 

Legal claims (Notes 10 and 12) 52,009 57,251 

Other accrued liabilities (Note 10) 13,782 9,656 

Total other than intragovernmental/with the public 2,177,559 2,194,848 

Total liabilities not covered by budgetary resources $ 2,353,914 $ 2,382,216 

Total liabilities not covered by budgetary resources $ 2,353,914 $ 2,382,216 

Total liabilities covered by budgetary resources 8,510,340 6,412,870 

Total liabilities not requiring budgetary resources 18,604 15,921 

Total liabilities $ 10,882,858 $ 8,811,007 
Fiscal Year 2021 | FAA Performance and Accountability Report 115

Financial Results

Note 9. Environmental and Disposal Liabilities

The FAA’s environmental and disposal liabilities as of September 30, 2021 and 2020 were:

(Dollars in Thousands) 2021 2020

Environmental remediation $ 276,341 $ 264,193 

Environmental cleanup and decommissioning 475,807 481,347 

Total environmental and disposal liabilities $ 752,148 $ 745,540 

Remediation is performed at contaminated sites where the FAA 

has liability due to past operations or waste disposal activities. 

To help manage the cleanup of the contaminated sites, the FAA 

established an Environmental Cleanup Program that includes 

three service areas, which are responsible for oversight of 

the contaminated sites. The service area personnel use both 

actual costs and an automated, parametric cost-estimating 

tool that provides estimates for all phases of investigation and 

remediation to estimate the environmental remediation liability.

The Environmental cleanup and decommissioning liability is 

estimated using a combination of actual costs and project 

specific cost proposals for certain targeted facilities. The 

FAA uses the average decommissioning and cleanup costs 

of the targeted facilities as the cost basis for the other like 

facilities to arrive at the estimated environmental liability for 

decommissioning and cleanup.

A description of the two categories of environmental liabilities 

can be found in Note 1U. Information on contingencies related 

to environmental liabilities can be found in Note 12.

Environmental and disposal liabilities are not covered by 

budgetary or other resources and thus will require future 

appropriated funding.
116 Fiscal Year 2021 | FAA Performance and Accountability Report 

Financial Results

Note 10. Other Liabilities

As of September 30, 2021, the FAA’s other liabilities were:

(Dollars in Thousands) 2021

Intragovernmental

Non-current 

liabilities

Current

 liabilities Total

Accrued payroll & benefits payable to other agencies $ – $ 118,241 $ 118,241 

Liabilities covered by budgetary resources – 118,241 118,241 

Federal Employees' Compensation Act payable 79,727 67,750 147,477 

Other unfunded employment related liabilities – 28,878 28,878 

Deposit funds and clearing accounts – – –

Liabilities not covered by budgetary resources 79,727 96,628 176,355 

Custodial liabilities – 18,604 18,604 

Liabilities not requiring budgetary resources – 18,604 18,604 

Intragovernmental total 79,727 233,473 313,200 

Other than intragovernmental/with the public

Accrued funded payroll and leave – 336,719 336,719 

Liabilities covered by budgetary resources – 336,719 336,719 

Capital leases (Notes 8 and 11) 37,285 8,059 45,344 

Legal claims – 52,009 52,009 

Other – 13,782 13,782 

Liabilities not covered by budgetary resources 37,285 73,850 111,135 

Other than intragovernmental/with the public total 37,285 410,569 447,854 

Total other liabilities $ 117,012 $ 644,042 $ 761,054 
Fiscal Year 2021 | FAA Performance and Accountability Report 117

Financial Results

As of September 30, 2020, the FAA’s other liabilities were:

(Dollars in Thousands) 2020

Intragovernmental

Non-current 

liabilities

Current

 liabilities Total

Accrued payroll & benefits payable to other agencies $ – $ 103,456 $ 103,456 

Liabilities covered by budgetary resources – 103,456 103,456 

Federal Employees' Compensation Act payable 82,854 70,237 153,091 

Other unfunded employment related liabilities – 30,095 30,095 

Deposit funds and clearing accounts – 4,182 4,182 

Liabilities not covered by budgetary resources 82,854 104,514 187,368 

Custodial liabilities – 15,921 15,921 

Liabilities not requiring budgetary resources – 15,921 15,921 

Intragovernmental total 82,854 223,891 306,745 

Other than intragovernmental/with the public

Accrued funded payroll and leave – 299,220 299,220 

Liabilities covered by budgetary resources – 299,220 299,220 

Capital leases (Notes 8 and 11) 43,305 8,043 51,348 

Legal claims – 57,251 57,251 

Other – 9,656 9,656 

Liabilities not covered by budgetary resources 43,305 74,950 118,255 

Other than intragovernmental/with the public total 43,305 374,170 417,475 

Total other liabilities $ 126,159 $ 598,061 $ 724,220 

Accrued payroll and benefits payable to other agencies consists 

of FAA contributions payable to other federal agencies for 

employee benefits. These include FAA contributions payable 

toward life insurance, health insurance, retirement benefits, 

Social Security, and matching contributions to the Thrift Savings 

Plan. The Thrift Savings Plan is a tax-deferred retirement savings 

and investment plan available to federal employees. These 

benefits also include FAA contributions payable for the Federal 

Insurance Contributions Act taxes, which are composed of the 

old-age, survivors, and disability insurance taxes, also known as 

social security taxes, and the hospital insurance tax, also known 

as Medicare tax. 

An unfunded liability is recorded for the actual cost of workers’ 

compensation benefits to be reimbursed to the DOL, pursuant 

to the FECA. Reimbursement to the DOL occurs approximately 

two years subsequent to the actual disbursement. Budgetary 

resources for this intragovernmental liability are made available 

to the FAA as part of its annual appropriation from the U.S. 

Congress in the year in which the reimbursement takes place. 

The FAA’s accrued liability as of September 30, 2021, includes 

workers’ compensation benefits paid by DOL during the periods 

July 1, 2019 through June 30, 2021, and accrued liabilities for 

the quarter July 1, 2021 through September 30, 2021. The FAA’s 

accrued liability as of September 30, 2020, included workers’ 

compensation benefits paid by the DOL during the period 

July 1, 2018 through June 30, 2020, and accrued liabilities for the 

quarter July 1, 2020 through September 30, 2020.

The FAA estimated that 100 percent of its $52.0 million and 

$57.3 million legal claims liabilities as of September 30, 2021 

and 2020, respectively, would be paid from the permanent 

appropriation for judgments, awards, and compromise 

settlements (Judgment Fund) administered by the Department 

of Treasury.

Other accrued liabilities with the public are composed primarily 

of deposit funds and clearing accounts. 

Total liabilities not covered by budgetary resources are 

presented in Note 8.
118 Fiscal Year 2021 | FAA Performance and Accountability Report 

Financial Results

Note 11. Leases 

Entity as Lessee

The FAA is the lessee for both capital and operating leases.

Capital Leases

Following is a summary of the FAA’s assets under capital lease 

as of September 30, 2021 and 2020:

(Dollars in Thousands) 2021 2020

Non-Federal

Land, buildings, and machinery $ 94,988 $ 94,988 

Accumulated depreciation (55,605) (52,039)

Non-Federal assets under capital 

lease, net 39,383 42,949 

Total assets under capital lease, net $ 39,383 $ 42,949 

As of September 30, 2021, the FAA’s future payments due on 

assets under capital lease were:

(Dollars in Thousands)

Future payments due by fiscal year

(Liabilities not covered by budgetary or other resources)

Year 1 (FY 2022) $ 8,059 

Year 2 (FY 2023) 8,038 

Year 3 (FY 2024) 7,891 

Year 4 (FY 2025) 7,238 

Year 5 (FY 2026) 6,701 

After 5 Years 14,893 

Total future payments 52,820 

Less: Imputed interest (7,476)

Net capital lease liability $ 45,344 

As of September 30, 2021, all future payments due on assets 

under capital lease were non-federal.

The FAA’s capital lease payments are authorized to be funded 

annually as codified in the 49 U.S.C. 40110(c)(1) which 

addresses general procurement authority. The remaining 

principal payments are recorded as unfunded lease liabilities. 

The imputed interest is funded and expensed annually. The 

lease terms for capital leases expire at various dates through 

FY 2039.

Operating Leases

The FAA has operating leases for real property, aircraft, 

and telecommunications equipment. Future operating lease 

payments due as of September 30, 2021, were:

(Dollars in Thousands)

Fiscal year Federal Non-Federal Total

Year 1 (FY 2022) $ 102,920 $ 80,002 $ 182,922 

Year 2 (FY 2023) 98,501 60,722 159,223 

Year 3 (FY 2024) 91,277 32,689 123,966 

Year 4 (FY 2025) 86,905 26,916 113,821 

Year 5 (FY 2026) 87,509 23,347 110,856 

After 5 Years 378,231 81,026 459,257 

Total future operating 

lease payments $ 845,343 $ 304,702 $ 1,150,045 

Operating lease expense incurred during the year ended 

September 30, 2021 was $197.9 million, of which $107.8 million 

was federal and $90.1 million was non-federal. Operating lease 

expense incurred during the year ended September 30, 2020 

was $197.4 million, of which $120.7 million was federal and 

$76.7 million was non-federal. Federal operating leases include 

General Services Administration leases that have a short 

termination privilege. However, the FAA intends to remain in 

the lease. The operating lease amounts due after five years do 

not include estimated payments for leases with annual renewal 

options. The lease terms for operating leases expire at various 

dates through FY 2043. Estimates of the lease termination 

dates are subjective, and any projection of future lease 

payments would be arbitrary.
Fiscal Year 2021 | FAA Performance and Accountability Report 119

Financial Results

Note 12. Commitments, Contingencies, and Other Disclosures 

Continuing Resolution and Reauthorization. Effective 

October 1, 2021, the FAA is operating under a continuing 

resolution, Public Law 117-43, for its FY 2022 appropriation 

and many of its programmatic and financing authorities. 

The continuing resolution will be in effect through 

December 3, 2021, unless superseded by enactment of 

specified appropriations legislation and includes a provision that 

allows the FAA to continue spending at FY 2021 rates. 

In addition, the passage of the FAA Reauthorization Act of 

2018, Public Law 115-254, authorizes the FAA’s programmatic 

and financing authorities, the Airport Improvement Program 

contract authority, and the authority to collect and deposit 

excise taxes into and make expenditures from the AATF. The 

new authority expires on September 30, 2023.

Airport Improvement Program. The Airport Improvement 

Program provides grants for the planning and development of 

public-use airports that are included in the National Plan of 

Integrated Airport Systems. Eligible projects generally include 

improvements that address airport safety, capacity, security, 

and environmental concerns. The FAA’s share of eligible costs 

for large and medium primary hub airports is 75 percent, with 

the exception of noise program implementation, for which the 

FAA’s share is 80 percent. For remaining airports (small primary, 

reliever, and general aviation), the FAA’s share of eligible costs is 

90 percent. However, the CARES Act provided funding for the 

FAA to pay a Federal share of the costs for grants awarded under 

Public Law 116-94, Further Consolidated Appropriations Act, 

2020, to 100 percent. Similarly, the American Rescue Plan Act of 

2021 provided funding for the FAA to pay a Federal share of 100 

percent of the costs for any grant awarded in fiscal years 2021 or 

2020, for an airport development project.

The FAA has authority under 49 U.S.C. 47110(e) to issue letters 

of intent to enter into a series of annual Airport Improvement 

Program grant agreements. The FAA records an obligation when 

a grant is awarded. As of September 30, 2021, the FAA had 

letters of intent extending through FY 2026 totaling $7.2 billion. 

As of September 30, 2021, the FAA had obligated $7.0 billion of 

this total amount, leaving $209 million unobligated.

As of September 30, 2020, the FAA had letters of intent 

extending through FY 2026 totaling $7.3 billion. As of 

September 30, 2020, the FAA had obligated $6.9 billion of this 

total amount, leaving $323 million unobligated.

Aviation Insurance Program. The FAA provides non-premium 

war risk insurance for certain U.S. Government contracted 

operations as permitted by 49 U.S.C. 44305. Coverage is 

provided without premium to air carriers at the written request 

of other U.S. Government agencies. The scope of coverage under 

the Non-Premium War Risk Insurance program includes hull, 

bodily injury, personal injury, and property damage. The FAA 

is currently providing coverage for certain U.S. Department of 

Defense (DOD) contracted air carrier operations.

Because insurance policies are issued only at the request of 

other federal departments and agencies, total coverage-in-force 

fluctuates throughout the fiscal year. The coverage-in-force at 

any given point in time does not represent a potential liability 

against the Aviation Insurance Revolving Fund because the 

Secretary of Defense has entered into an indemnity agreement 

with the Secretary of Transportation and will fully reimburse 

the Fund for all losses paid by the FAA on behalf of DOD.

Contingencies. The FAA has the following contingencies as of 

September 30, 2021 and 2020:

 Legal Contingencies. The FAA’s legal contingencies include 

asserted and pending legal claims. An accrued liability is 

recognized for legal claims where the loss is probable and 

the amount can be reasonably estimated. For pending legal 

claims where the loss is reasonably possible, a liability is 

not recognized, however, the estimated range of loss is 

disclosed in the following table. There are other claims 

that could result in significant pay-outs; however, it is 

not possible at this time to determine the probability of 

an unfavorable outcome, or to estimate the amount of 

potential loss in the event of such an outcome.

 Environmental Contingencies. The FAA’s environmental 

contingencies include environmental remediation, and 

environmental clean-up and decommissioning. The 

nature of these contingencies is described in Note 1U. 

An accrued liability is recognized for environmental 

contingencies where the loss is probable and the 

amount can be reasonably estimated. For environmental 

contingencies where the loss is reasonably possible, a 

liability is not recognized, however, the estimated range 

of loss is disclosed in the following table. FAA is a party 

to environmental remediation sites in Alaska, the Pacific 

Islands, and New Jersey, in which the extent of liability is 

not both probable and reasonably estimable. As a result, 

a liability is not recognized for these sites without further 

studies and negotiations with other federal agencies.
120 Fiscal Year 2021 

| FAA Performance and Accountability Report

Financial Results

 Warranty Contingencies. The FAA’s logistics center 

issues parts to customers with a 90-day warranty, that are 

replaced free of charge if warranty conditions are met. An 

accrued liability is recognized for warranty contingencies 

where the loss is probable and the amount can be 

reasonably estimated. The loss contingency is estimated 

based on historical averages of parts that failed and the 

warranty claims were approved. A loss contingency is not 

estimated for warranty claims that are reasonably possible 

of loss.



The following table shows the loss contingencies as of September 30, 2021 and 2020:

2021 2020

(Dollars in Thousands) Accrued 

Liabilities 

Estimated Range of Loss Accrued 

Liabilities 

Estimated Range of Loss

Lower End Upper End Lower End Upper End

Legal Contingencies:

Probable $ 52,009 $ 52,009 $ 52,009 $ 57,251 $ 57,251 $ 57,251 

Reasonably Possible N/A $ 76,583 $ 76,583 N/A $ 222,331 $ 222,331 

Environmental Contingencies:

Probable $ 752,148 $ 752,148 $ 752,148 $ 745,540 $ 745,540 $ 745,540 

Reasonably Possible N/A $ 108,607 $ 108,607 N/A $ 103,145 $ 103,145 

Warranty Contingencies:

Probable $ 515 $ 515 $ 515 $ 515 $ 515 $ 515 

Reasonably Possible N/A $ – $ – N/A $ – $ –
Fiscal Year 2021 121 | 

 FAA Performance and Accountability Report 

Financial Results

Note 13. Funds from Dedicated Collections

Funds from dedicated collections are those that are financed 

by specifically identified revenues and financing sources that 

remain available over time. They are required by statute to be 

used for designated activities, benefits, or purposes and must 

be accounted for separately from the government’s general 

revenues.

The FAA’s funds from dedicated collections are reported in 

the Consolidated Statements of Changes in Net Position and 

on pages 122–123 among two classifications. The first 

classification is comprised of the financial statement balances in 

AATF as of the end of each fiscal year. The second classification 

of “All other funds from dedicated collections” is comprised 

of the financial statement balances of all the related funds 

that receive funding from the AATF and includes OperationsAATF, Grants-in-Aid for Airports, Facilities and Equipment, 

and Research, Engineering and Development. The “All other 

funds from dedicated collections” classification also includes 

the Operations-General Fund, which is primarily funded 

through transfers from Operations-AATF, but is additionally 

supplemented by the General Fund of the U.S. Government 

through annual appropriations. However, since the Operations 

account is primarily funded from the AATF, it is properly 

presented as a “fund from dedicated collections.” The category 

of “All other funds from dedicated collections” also includes the 

Aviation Insurance Revolving Fund and aviation user fees.

Grants-in-Aid for Airports is primarily funded through transfers 

from the AATF, but also received funding in FY 2020 from 

the General Fund of the U.S. Government as a result of the 

Coronavirus Aid, Relief, and Economic Security (CARES) 

Act, Public Law 116-136. Because the funding from general 

fund appropriations is expected to be temporary and the 

predominant source of funding historically comes from the 

AATF, Grants-in-Aid for Airports is presented as funds from 

dedicated collections.

This note presents only the funds from dedicated collections 

that are financing sources available for future expenses, and 

funds that have been expended but have not yet fully achieved 

their designated purpose, such as construction in progress. As 

such, PP&E that has been placed in service, though funded from 

Facilities and Equipment, are excluded from this note; these 

funds are no longer available for future expenditure and have 

been used for their intended purpose.

This note is presented on both a combined and consolidated 

basis. The combined presentation does not eliminate 

intra-entity balances or transactions between funds from 

dedicated collections held by the entity. Similarly, the 

combined presentation does not eliminate intra-entity 

balances or transactions with funds from other than dedicated 

collections, such as the FAA’s Franchise Fund. The consolidated 

presentation eliminates intra-entity balances or transactions 

between the FAA’s funds from dedication collections.

Airport and Airway Trust Fund

The FAA’s consolidated financial statements include the results 

of operations and the financial position of the AATF. The U.S. 

Congress created the AATF with the passage of the Airport and 

Airway Revenue Act of 1970.

The Airport and Airway Revenue Act provides a dedicated 

source of funding for the nation’s aviation system through 

the collection of several aviation-related excise taxes. The IRS 

collects these taxes on behalf of the FAA’s AATF. These taxes 

can be withdrawn only as appropriated by the U.S. Congress. 

Twice a month, Treasury allocates the amount collected and 

subsequently adjusts the allocation to reflect actual collections 

on a quarterly basis.

As discussed in Note 1D, FY 2021 excise tax revenue includes 

amounts certified as actual by the IRS for the first three 

quarters of the year and amounts allocated by the Office of Tax 

Analysis for the fourth quarter of the year.

All Other Funds from Dedicated Collections

 The Aviation Insurance Program had investments of $2.2 

billion and revenues of $14.8 million for the period ended 

September 30, 2021 compared to $2.3 billion and $42.8 

million, respectively, for the period ended September 30, 

2020. The Aviation Insurance Program is also discussed in 

Notes 1G and 12.

 Aviation user fees are charged to commercial airlines that 

fly in U.S. controlled air space, but neither take off nor 

land in the U.S. The FAA reported aviation user fees of 

$43.9 million and $100.7 million for the periods ended 

September 30, 2021 and 2020, respectively.
122 Fiscal Year 2021 | FAA Performance and Accountability Report 

Financial Results

The FAA’s funds from dedicated collections as of and for the year ended September 30, 2021, consist of the following: 

2021

(Dollars in Thousands)

AATF

All other funds 

from dedicated 

collections

Total funds 

from dedicated 

collections 

(combined)

Eliminations 

between funds 

from dedicated 

collections

Total funds 

from dedicated 

collections 

(consolidated)

BALANCE SHEET 

Assets

Intragovernmental

Fund balance with Treasury $ (1,868,836) $ 4,286,618 $ 2,417,782 $ – $ 2,417,782 

Investments, net 15,948,941 2,240,715 18,189,656 – 18,189,656 

Accounts receivable, net – 7,999,529 7,999,529 (7,987,058) 12,471 

Advances and prepayments – 208,005 208,005 – 208,005 

Total intragovernmental 14,080,105 14,734,867 28,814,972 (7,987,058) 20,827,914 

Other than intragovernmental/with the public

Accounts receivable, net – 11,543 11,543 – 11,543 

General property, plant, and equipment, net – 3,067,049 3,067,049 – 3,067,049 

Advances and prepayments – 679 679 – 679 

Total other than intragovernmental/with the public – 3,079,271 3,079,271 – 3,079,271 

Total assets $ 14,080,105 $ 17,814,138 $ 31,894,243 $ (7,987,058) $ 23,907,185

Liabilities

Intragovernmental liabilities

Accounts payable $ 6,965,558 $ 1,031,247 $ 7,996,805 $ (7,987,058) $ 9,747 

Advances from others and deferred revenue – 26,046 26,046 – 26,046 

Other liabilities – 291,427 291,427 – 291,427 

Total intragovernmental liabilities 6,965,558 1,348,720 8,314,278 (7,987,058) 327,220 

Other than intragovernmental/with the public

Accounts payable – 415,008 415,008 – 415,008 

Federal employee benefits payable – 1,327,835 1,327,835 – 1,327,835 

Advances from others and deferred revenue – 149,298 149,298 – 149,298 

Other liabilities

Accrued grant liabilities – 2,975,926 2,975,926 – 2,975,926

Other – 350,338 350,338 – 350,338 

Total other than intragovernmental/with the public – 5,218,405 5,218,405 – 5,218,405 

Total liabilities $ 6,965,558 $ 6,567,125 $ 13,532,683 $ (7,987,058) $ 5,545,625

Net position

Unexpended appropriations $ – $ 716,250 $ 716,250 $ – $ 716,250 

Cumulative results of operations 7,114,547 10,530,763 17,645,310 – 17,645,310 

Total liabilities and net position $ 14,080,105 $ 17,814,138 $ 31,894,243 $ (7,987,058) $ 23,907,185 

Statement of net cost 

Gross program costs $ – $ 18,781,077 $ 18,781,077 $ – $ 18,781,077 

Less earned revenue (1) (292,628) (292,629) – (292,629)

Net cost of operations $ (1) $ 18,488,449 $ 18,488,448 $ – $ 18,488,448 

Statement of changes in net position

Unexpended appropriations

Beginning balances $ – $ 432,928 $ 432,928 $ – $ 432,928 

Appropriations received – 482,500 482,500 – 482,500 

Other adjustments – (50,235) (50,235) – (50,235)

Appropriations used – (148,943) (148,943) – (148,943)

Net change in unexpended appropriations – 283,322 283,322 – 283,322 

Total unexpended appropriations - ending $ – $ 716,250 $ 716,250 $ – $ 716,250 

Cumulative results of operations

Beginning balances $ 1,842,196 $ 12,352,397 $ 14,194,593 $ – $ 14,194,593 

Appropriations used – 148,943 148,943 – 148,943 

Intragovernmental non-exchange revenue 8,463,962 – 8,463,962 – 8,463,962 

Other than intragovernmental non-exchange revenue – 2,842 2,842 – 2,842 

Transfers-in/out without reimbursement (3,191,612) 16,131,107 12,939,495 – 12,939,495 

Imputed financing – 383,923 383,923 – 383,923 

Net cost of operations (1) 18,488,449 18,488,448 – 18,488,448 

Net change in cumulative results of operations 5,272,351 (1,821,634) 3,450,717 – 3,450,717 

Cumulative results of operations - ending $ 7,114,547 $ 10,530,763 $ 17,645,310 $ – $ 17,645,310 

Net position end of period $ 7,114,547 $ 11,247,013 $ 18,361,560 $ – $ 18,361,560 
Fiscal Year 2021 | FAA Performance and Accountability Report 123

Financial Results

The FAA’s funds from dedicated collections as of and for the year ended September 30, 2020, consist of the following: 

2020

(Dollars in Thousands)

AATF

All other funds 

from dedicated 

collections

Total funds 

from dedicated 

collections 

(combined)

Eliminations 

between funds 

from dedicated 

collections

Total funds 

from dedicated 

collections 

(consolidated)

BALANCE SHEET 

Assets

Intragovernmental

Fund balance with Treasury $ (124,690) $ 9,201,036 $ 9,076,346 $ – $ 9,076,346 

Investments, net 7,934,830 2,325,098 10,259,928 – 10,259,928 

Accounts receivable, net – 6,759,191 6,759,191 (6,742,444) 16,747 

Advances and prepayments – 215,568 215,568 – 215,568 

Total intragovernmental 7,810,140 18,500,893 26,311,033 (6,742,444) 19,568,589 

Other than intragovernmental/with the public

Accounts receivable, net – 13,875 13,875 – 13,875 

General property, plant, and equipment, net – 2,779,169 2,779,169 – 2,779,169 

Advances and prepayments – 944 944 – 944 

Total other than intragovernmental/with the public – 2,793,988 2,793,988 – 2,793,988 

Total assets $ 7,810,140 $ 21,294,881 $ 29,105,021 $ (6,742,444) $ 22,362,577 

Liabilities

Intragovernmental liabilities

Accounts payable $ 5,967,944 $ 803,580 $ 6,771,524 $ (6,742,444) $ 29,080 

Advances from others and deferred revenue – 23,708 23,708 – 23,708 

Other liabilities – 286,485 286,485 – 286,485 

Total intragovernmental liabilities 5,967,944 1,113,773 7,081,717 (6,742,444) 339,273 

Other than intragovernmental/with the public

Accounts payable – 383,738 383,738 – 383,738 

Federal employee benefits payable – 1,343,379 1,343,379 – 1,343,379 

Advances from others and deferred revenue – 188,759 188,759 – 188,759 

Other liabilities

Accrued grant liabilities – 5,161,060 5,161,060 – 5,161,060 

Other – 318,847 318,847 – 318,847 

Total other than intragovernmental/with the public – 7,395,783 7,395,783 – 7,395,783 

Total liabilities $ 5,967,944 $ 8,509,556 $ 14,477,500 $ (6,742,444) $ 7,735,056 

Net position

Unexpended appropriations $ – $ 432,928 $ 432,928 $ – $ 432,928 

Cumulative results of operations 1,842,196 12,352,397 14,194,593 – 14,194,593 

Total liabilities and net position $ 7,810,140 $ 21,294,881 $ 29,105,021 $ (6,742,444) $ 22,362,577 

Statement of net cost 

Gross program costs $ – $ 23,914,854 $ 23,914,854 $ – $ 23,914,854 

Less earned revenue (14) (367,959) (367,973) – (367,973)

Net cost of operations $ (14) $ 23,546,895 $ 23,546,881 $ – $ 23,546,881 

Statement of changes in net position

Unexpended appropriations

Beginning balances $ – $ 730,649 $ 730,649 $ – $ 730,649 

Appropriations received – 111,000 111,000 – 111,000 

Other adjustments – (73,203) (73,203) – (73,203)

Appropriations used – (335,518) (335,518) – (335,518)

Net change in unexpended appropriations – (297,721) (297,721) – (297,721)

Total unexpended appropriations - ending $ – $ 432,928 $ 432,928 $ – $ 432,928 

Cumulative results of operations

Beginning balances $ 9,391,754 $ 9,450,977 $ 18,842,731 $ – $ 18,842,731 

Appropriations used – 335,518 335,518 – 335,518 

Intragovernmental non-exchange revenue 9,345,585 – 9,345,585 – 9,345,585 

Other than intragovernmental non-exchange revenue – 2,526 2,526 – 2,526 

Transfers-in/out without reimbursement (16,895,157) 25,776,168 8,881,011 – 8,881,011 

Imputed financing – 334,103 334,103 – 334,103 

Net cost of operations (14) 23,546,895 23,546,881 – 23,546,881 

Net change in cumulative results of operations (7,549,558) 2,901,420 (4,648,138) – (4,648,138)

Cumulative results of operations - ending $ 1,842,196 $ 12,352,397 $ 14,194,593 $ – $ 14,194,593 

Net position end of period $ 1,842,196 $ 12,785,325 $ 14,627,521 $ – $ 14,627,521 
124 Fiscal Year 2021 | FAA Performance and Accountability Report 

Financial Results

Note Disclosures Related to the Statement of Net Cost

Note 14. Net Cost by Program and Strategic Goal

The FAA’s five lines of business represent the programs reported in the Consolidated Statements of Net Cost. Cost centers assigned 

to each line of business permit the direct accumulation of costs. Other costs that are not directly traced to each line of business, 

such as agency overhead, are allocated. The net cost for non-line of business programs includes services provided by the Mike 

Monroney Aeronautical Center, aviation overflight user fees, and other programs.

The following is the net cost of operations by strategic goal for the years ended September 30, 2021 and 2020:

(Dollars in Thousands) For the Year Ended September 30, 2021

Strategic Goals

Safety People

Global 

Leadership

Operational 

Excellence Total

Line of business programs

Air Traffic Organization $ 10,496,156 $ 93,338 $ 2,432 $ 1,867,282 $ 12,459,208 

Airports 4,627,245 1,703 3 6,597,027 11,225,978 

Aviation Safety 1,675,746 21,432 28,590 5,203 1,730,971 

Security and Hazardous Materials Safety 121,475 825 706 11,143 134,149 

Commercial Space Transportation 25,545 2,745 222 5,674 34,186 

Non-line of business programs (32,738) 27,310 6,786 136,281 137,639 

Net cost $ 16,913,429 $ 147,353 $ 38,739 $ 8,622,610 $ 25,722,131 

(Dollars in Thousands) For the Year Ended September 30, 2020

Strategic Goals

Safety People

Global 

Leadership

Operational 

Excellence Total

Line of business programs

Air Traffic Organization $ 10,183,615 $ 88,153 $ 2,033 $ 1,804,840 $ 12,078,641 

Airports 5,712,288 1,586 20 5,586,172 11,300,066 

Aviation Safety 1,556,228 21,097 28,375 4,640 1,610,340 

Security and Hazardous Materials Safety 80,182 908 671 11,765 93,526 

Commercial Space Transportation 24,928 1,701 209 1,484 28,322 

Non-line of business programs (103,356) 33,956 5,726 141,996 78,322 

Net cost $ 17,453,885 $ 147,401 $ 37,034 $ 7,550,897 $ 25,189,217 
Fiscal Year 2021 | FAA Performance and Accountability Report 125

Financial Results

Note 15. Inter-Entity Costs

The FAA receives certain goods and services from other federal 

entities at no cost or at a cost less than the full cost to the 

providing federal entity. Consistent with accounting standards, 

only certain costs of the providing entity that are not fully 

reimbursed by the FAA are recognized as imputed costs (in the 

Statement of Net Cost), and are offset by imputed financing 

sources (in the Statement of Changes in Net Position). Each 

of these costs are listed below. However, unreimbursed costs 

of goods and services other than those listed below are not 

included in our financial statements.

 The Office of Personnel Management (OPM) provides 

pension and post-retirement benefits to employees 

upon retirement from federal service. The imputed 

cost recognized by the FAA is based on the annual 

Benefits Administration Letter issued by the OPM, which 

provides actuarial cost factors for accrued pension and 

post-retirement benefit expenses for current employees. 

The amount recognized represents the difference between 

employer and employee contributions and the total cost of 

the benefit.

 The U.S. Treasury’s Judgment Fund provides payments for 

settlements of lawsuits or court assessments against the 

FAA.

For the fiscal years ended September 30, 2021 and 2020, 

imputed costs were as follows:

(Dollars in Thousands) 2021 2020

Office of Personnel Management $ 390,809 $ 337,429 

Treasury Judgment Fund 3,376 6,249 

Total imputed costs $ 394,185 $ 343,678 
126 Fiscal Year 2021 | FAA Performance and Accountability Report 

Financial Results

Note Disclosures Related to the Statement of Budgetary Resources

Note 16. Statement of Budgetary Resources Disclosures 

Unobligated Balance from Prior Year Budget Authority, Net

The unobligated balance from prior year budget authority is presented net of transfers, recoveries from prior year obligations, and 

balances withdrawn for cancelled authority. As a result, the amount will not equal the prior year unobligated balance, end of year 

total. As of September 30, 2021 and 2020, the unobligated balances from prior year budget authority, net of adjustments were:

(Dollars in Thousands) 2021 2020

Unobligated balance, brought forward from prior year $ 6,355,669 $ 6,243,915 

Adjustments to budgetary resources made during current year

Transferred to other accounts (13,950) –

Adjustments to unobligated balance brought forward 174 (561)

Recoveries of prior year obligations 516,387 331,505 

Balances withdrawn to Treasury (50,235) (57,667)

Balances withdrawn to the AATF (32,112) (23,509)

Unobligated balance from prior year budget authority, net $ 6,775,933 $ 6,493,683 

Appropriations

Appropriations, as reported in the Combined Statements of Budgetary Resources, includes amounts made available to the FAA from 

general, revolving, and special funds, as well as funds from dedicated collections. In contrast, appropriations received, as reported in 

the Consolidated Statements of Changes in Net Position, pertain only to amounts made available to the FAA from general funds. The 

following is a reconciliation of these amounts as of September 30, 2021 and 2020:

(Dollars in Thousands) 2021 2020

Combined Statement of Budgetary Resources - appropriations $ 41,032,106 $ 34,669,210 

Less amounts made available to FAA from AATF dedicated collections (13,732,000) (13,756,665)

Less other appropriated receipts and budgetary adjustments (2,408,606) (10,401,545)

Consolidated Statement of Changes in Net Position - appropriations received $ 24,891,500 $ 10,511,000 

Available Contract Authority

Contract authority, as reported on the Combined Statement of Budgetary Resources, is the amount permitted by law to enter into 

contracts or incur obligations. Throughout the fiscal year, the contract authority is liquidated by appropriation. As of September 30, 

2021 and 2020, the remaining contract authority available was $2.9 million and $4.2 million, respectively.

Undelivered Orders

As of September 30, 2021 and 2020, the amount of budgetary resources obligated for undelivered orders were:

(Dollars in Thousands) 2021 2020

Federal Non-Federal Total Federal Non-Federal Total

Obligations, unpaid $ 184,878 $ 10,629,304 $ 10,814,182 $ 169,702 $ 11,133,901 $ 11,303,603 

Obligations, prepaid/advanced 208,677 755 209,432 211,886 1,229 213,115 

Total $ 393,555 $ 10,630,059 $ 11,023,614 $ 381,588 $ 11,135,130 $ 11,516,718 
Fiscal Year 2021 | FAA Performance and Accountability Report 127

Financial Results

Legal Arrangements Affecting the Use of Unobligated Balances

Unobligated balances remain legally available for obligation when the funds are apportioned by the OMB and the period of availability 

is unexpired. Unobligated balances are not available when the funds are not yet apportioned or the period of availability is expired. 

Unobligated balances of expired accounts are not available to fund new obligations, but they can be used for upward adjustments of 

obligations that were incurred during the period of availability or for paying claims attributable to that time period.

Aviation insurance investments are not available for obligation until authorized, for example, in the event of a major air carrier loss 

caused by a war risk occurrence.

Distributed Offsetting Receipts

Distributed offsetting receipts are amounts that an agency collects from the public or from other U.S. Government agencies that are 

used to offset or reduce an agency’s budget outlays. Agency outlays are measured on both a gross and net basis, with net outlays 

being reduced by offsetting receipts (and other amounts).

Statement of Budgetary Resources vs. the Budget of the U.S. Government

The following is a reconciliation of the Combined Statement of Budgetary Resources with the Budget of the U.S. Government:

(Dollars in Millions) For the Year Ended September 30, 2020

Budgetary 

Resources

New 

Obligations 

and Upward 

Adjustments

Distributed

Offsetting

Receipts Net Outlays

FAA Combined Statement of Budgetary Resources $ 55,794 $ 49,438 $ (10,410) $ 30,762 

Items included in the Combined Statement of Budgetary Resources, but 

excluded from the President’s budget:

Expired Funds (205) – – –

Other (2) – – 1

Budget of the United States Government $ 55,587 $ 49,438 $ (10,410) $ 30,763 

(For consistency with the presentation of the Budget of the U.S. Government, dollars are presented in millions in this table only.)

The Budget of the U.S. Government is available on the OMB’s web site. The budgetary resources, new obligations, upward 

adjustments, and net outlay amounts are from the “Detailed Budget Estimates by Agency” found in the Appendix of the Budget. 

The distributed offsetting receipts amount is from the “Federal Budget by Agency and Account” found in the Analytical Perspectives 

of the Budget. The actual amounts for FY 2020 are presented in the FY 2022 Budget. The actual amounts for FY 2021 will be 

presented in the FY 2023 Budget, which occurs after the issuance of these financial statements. The OMB is expected to publish this 

information early in calendar year 2022.

The primary difference between the Combined Statement of Budgetary Resources and the Budget of the U.S. Government is that 

budgetary resources available from funds with expired authority are not included in the Budget of the U.S. Government. Other 

differences are due to rounding.
128 Fiscal Year 2021 | FAA Performance and Accountability Report 

Financial Results

Note Disclosures Not Pertaining to a Specific Statement

Note 17. Incidental Custodial Collections

Cash collections that are “custodial” are not revenue to the FAA, but are collected on behalf of other federal entities or funds. 

Custodial collections are considered to be incidental to the FAA’s primary mission. The following table presents custodial collections 

and the disposition of those collections for the years ended September 30, 2021 and 2020:

(Dollars in Thousands) 2021 2020

Custodial revenue

Sources of cash collections:

Fines, penalties, and forfeitures $ 30,770 $ 3,286 

Unclaimed money and property 46 –

General fund proprietary interest 12 10 

Miscellaneous recoveries and refunds 9,400 7,128 

Total cash collections 40,228 10,424 

Accrual adjustment 2,684 (3,203)

Total custodial revenue 42,912 7,221 

Disposition of collections

Transferred to others (by recipient): 

Treasury (general fund) 40,228 10,424 

Amounts yet to be transferred 2,684 (3,203)

Total disposition of collections 42,912 7,221 

Net custodial activity $ – $ –

Note 18. Reconciliation of Net Cost to Net Outlays

Budgetary and financial accounting information differ. 

Budgetary accounting is used for planning and control purposes 

and relates to both the receipt and use of cash, as well as 

reporting the federal deficit. Financial accounting is intended to 

provide a picture of the government’s financial operations and 

financial position so it presents information on an accrual basis. 

The accrual basis includes information about costs arising from 

the consumption of assets and the incurrence of liabilities.

The reconciliation of net outlays, presented on a budgetary 

basis, and the net cost, presented on an accrual basis, provides 

an explanation of the relationship between budgetary and 

financial accounting information. The reconciliation serves 

not only to identify costs paid for in the past and those that 

will be paid in the future, but also to assure integrity between 

budgetary and financial accounting.

The analysis below illustrates this reconciliation by listing the 

key differences between net cost and net outlays.

 The acquisition of capital assets results in outlays, but does 

not result in costs. Rather, the costs are recognized over 

the useful lives of the assets as depreciation expense. To 

reconcile this difference, depreciation is a component of 

net operating cost, but not part of net outlays; and the 

acquisition of capital assets is a component of net outlays, 

but not part of net operating cost.

 Special fund receipts, such as aviation overflight user fees, 

are collected from specific sources that are earmarked by 

law for a specific purpose, and require an appropriation to 

be expended. The exchange revenue from these receipts 

is included in the net cost of operations, but there is no 

corresponding net outlay.

Although some differences presented in the reconciliation 

relate to amounts reported in the balance sheet and statement 

of net position, amounts may not agree. Certain financial 

activities do not result in net operating cost, nor net outlays, 

and are therefore excluded from the reconciliation. For 

example, the purchase of investments results in a change in 

assets on the balance sheet, but does not result in net operating 

cost nor net outlays.
Fiscal Year 2021 | FAA Performance and Accountability Report 129

Financial Results

The following is a reconciliation of net cost to net outlays as of September 30, 2021:

2021

(Dollars in Thousands)

Intragovernmental

Other than 

intragovernmental/

with the public Total

Net Operating Cost $ 2,744,521 $ 22,977,610 $ 25,722,131

Components of Net Operating Cost Not Part of Net Outlays

Property, plant, and equipment depreciation expense – (1,313,052) (1,313,052)

Property, plant, and equipment disposals and revaluations – (157,918) (157,918)

Cost of goods sold 159 (67,126) (66,967)

Inventory and related property disposals and revaluations – 13,216 13,216 

Increase/(decrease) in assets:

Accounts receivable, net (4,377) (2,132) (6,509)

Investments, net (4,272) – (4,272)

Advances and prepayments 5,153 (264) 4,889 

Other assets – (27) (27)

(Increase)/decrease in liabilities:

Accounts payable 19,642 (31,195) (11,553)

Federal employee benefits payable – 15,513 15,513 

Environmental and disposal liabilities – (6,608) (6,608)

Advances from others and deferred revenue 310 39,147 39,457 

Other liabilities

Accrued grant liabilities – (2,069,384) (2,069,384)

Other (4,050) (30,810) (34,860)

Financing sources:

Imputed cost (394,185) – (394,185)

Total Components of Net Operating Cost Not Part of Net Outlays (381,620) (3,610,640) (3,992,260)

Components of Net Outlays Not Part of Net Operating Cost

Acquisition of capital assets 50,263 1,132,146 1,182,409 

Acquisition of inventory and related property 24,307 28,940 53,247 

Financing sources:

Transfers-in/out without reimbursement 13,758 – 13,758 

Total Components of Net Outlays Not Part of Net Operating Cost 88,328 1,161,086 1,249,414 

Miscellaneous Items

Special fund receipts 36,050 – 36,050 

Deposit funds and miscellaneous receipts – (9,435) (9,435)

Other 1,888 (4,729) (2,841)

Total Miscellaneous Items 37,938 (14,164) 23,774 

Net Outlays $ 2,489,167 $ 20,513,892 $ 23,003,059 

Related Amounts on the Statement of Budgetary Resources

Outlays, net (total) 39,421,662 

Distributed offsetting receipts (16,418,603)

Agency outlays, net $ 23,003,059 
130 Fiscal Year 2021 

| FAA Performance and Accountability Report

Financial Results

The following is a reconciliation of net cost to net outlays as of September 30, 2020:

2020

(Dollars in Thousands)

Intragovernmental

Other than 

intragovernmental/

with the public Total

Net Operating Cost $ 2,554,374 $ 22,634,843 $ 25,189,217 

Components of Net Operating Cost Not Part of Net Outlays

Property, plant, and equipment depreciation expense – (1,336,609) (1,336,609)

Property, plant, and equipment disposals and revaluations – (138,701) (138,701)

Cost of goods sold (1,021) (60,363) (61,384)

Inventory and related property disposals and revaluations – 39,778 39,778 

Increase/(decrease) in assets:

Accounts receivable, net (11,703) (16,383) (28,086)

Investments, net 9,567 – 9,567 

Advances and prepayments (6,288) 520 (5,768)

Other assets – – –

(Increase)/decrease in liabilities:

Accounts payable 2,151 30,752 32,903 

Federal employee benefits payable – (58,480) (58,480)

Environmental and disposal liabilities – 121,452 121,452 

Advances from others and deferred revenue (1,650) (17,031) (18,681)

Other liabilities

Accrued grant liabilities – (4,417,792) (4,417,792)

Other (23,030) (88,532) (111,562)

Financing sources:

Imputed cost (343,678) – (343,678)

Total Components of Net Operating Cost Not Part of Net Outlays (375,652) (5,941,389) (6,317,041)

Components of Net Outlays Not Part of Net Operating Cost

Acquisition of capital assets 47,197 1,256,832 1,304,029 

Acquisition of inventory and related property – 67,007 67,007 

Financing sources:

Transfers-in/out without reimbursement 8,807 – 8,807 

Total Components of Net Outlays Not Part of Net Operating Cost 56,004 1,323,839 1,379,843 

Miscellaneous Items

Special fund receipts 109,473 – 109,473 

Deposit funds and miscellaneous receipts – (6) (6)

Other (6,826) (2,922) (9,748)

Total Miscellaneous Items 102,647 (2,928) 99,719 

Net Outlays $ 2,337,373 $ 18,014,365 $ 20,351,738 

Related Amounts on the Statement of Budgetary Resources

Outlays, net (total) 30,761,594 

Distributed offsetting receipts (10,409,856)

Agency outlays, net $ 20,351,738 
Fiscal Year 2021 131 | 

 FAA Performance and Accountability Report 

Financial Results

Note 19. Disclosure Entities 

The Center for Advanced Aviation System Development 

(CAASD) is a Federally Funded Research and Development 

Center (FFRDC) sponsored by the FAA. FFRDCs are nonprofit 

entities that are sponsored and funded by the U.S. Government 

to meet special long-term research or development needs. 

CAASD serves the public interest by providing essential 

research to advance the safety, security, effectiveness, and 

efficiency of aviation and transportation in the United States 

and around the world.

The administrator of CAASD is The MITRE Corporation 

(MITRE). MITRE is a not-for-profit organization that operates 

multiple FFRDCs including CAASD. MITRE is a “public interest 

company” having no commercial interests. The absence of 

commercial conflicts of interest is essential to maintaining 

independence and objectivity.

As the sponsor of CAASD, the FAA has a long-term relationship 

with MITRE. The nature of this relationship is for the FAA to 

provide sufficient physical and financial resources in support 

of CAASD’s innovative research and development that in turn 

supports the accomplishment of FAA’s mission. The FAA’s 

relationship with MITRE and CAASD presents no financial or 

non-financial risk, and there is no expectation of benefits based 

on this relationship, other than the results of the independent 

research and development.

For the periods ended September 30, 2021 and 2020, the 

FAA had new obligations of $173 million and $144 million, 

respectively, in support of its sponsorship agreement with 

MITRE for CAASD.

Note 20. COVID-19 Activity

The Coronavirus Aid, Relief, and Economic Security (CARES) 

Act, Public Law 116-136, provided $10 billion in general fund 

appropriations for Grants-in-Aid for Airports to prevent, prepare 

for, and respond to the COVID-19 pandemic. In addition, of the 

amounts previously made available from the AATF for operations 

in the Bipartisan Budget Act of 2018 (Public Law 115–123), up 

to $25 million may be repurposed to prevent, prepare for, and 

respond to the COVID-19 pandemic. Airport grants issued with 

CARES Act funds can be used for airport capital expenditures 

and airport operating expenses such as payroll, utilities, and debt 

services.

The Coronavirus Response and Relief Supplemental 

Appropriations Act, 2021 (CRRSA), Public Law 116-260, 

provided an additional $2 billion in general fund appropriations 

for Grants-in-Aid for Airports to prevent, prepare for, and 

respond to coronavirus. Airport grants issued with CRRSA Act 

funds can be used for operational costs and debt service but 

not for capital expenditures.

The American Rescue Plan Act of 2021 (ARPA), Public Law 117-2, 

provided an additional $8 billion in general fund appropriations 

under Relief for Airports, a new program account, to be allocated 

to sponsors of airports to prevent, prepare for, and respond to 

coronavirus. Airport grants issued with ARPA funds can be used 

for operating expenses, debt service payments, the federal share 

of airport development projects, and airport concessions. In 

addition, the act established an emergency FAA employee leave 

fund and appropriated $9 million from the general fund for the 

use of paid leave by any FAA employee who is unable to work due 

to circumstances related to COVID-19.

Because Grants-in-Aid for Airports is a trust fund program 

account, budgetary concepts require that general fund 

appropriations (i.e., $10 billion from the CARES Act and $2 billion 

from the CRRSA Act) be deposited to a general fund payment 

account, apportioned, then transferred to an available trust fund 

receipt account, fully expending the appropriation. The transferin to the available trust fund receipt account is then recorded as 

an appropriated receipt, apportioned, and available for obligation.

Because Relief for Airports was established as a general fund 

program account, the general fund appropriation is deposited, 

apportioned, and expended out of the same budgetary program 

account. 

The classification of funds from dedicated collections is made 

by individual fund. In situations where there is a mixed source 

of funding, the classification is based on the predominant 

source of funding.

This note is presented on a combined basis. The combined 

presentation does not eliminate intra-entity balances or 

transactions.
132 Fiscal Year 2021 | FAA Performance and Accountability Report 

Financial Results

The FAA’s COVID-19 activity as of and for the year ended September 30, 2021, consist of the following:

2021

(Dollars in Thousands) Funds from dedicated 

collections

Funds from other than 

dedicated collections

Consolidated

total

BALANCE SHEET 

Assets

Fund balance with Treasury (Note 2) $ 2,550,749 $ 9,094,602 $ 11,645,351 

Accounts receivable, net (Note 4) 82 – 82 

Advances and prepayments 2,030 – 2,030 

Total assets $ 2,552,861 $ 9,094,602 $ 11,647,463

Liabilities and net position

Accounts payable $ (59) $ 245 $ 186 

Federal employee benefits payable 52 – 52 

Other liabilities

Accrued grant liabilities 2,184,474 4,254,518 6,438,992 

Other (Note 10) 31 – 31 

Unexpended appropriations – 4,838,873 4,838,873 

Cumulative results of operations 368,363 966 369,329 

Total liabilities and net position $ 2,552,861 $ 9,094,602 $ 11,647,463 

STATEMENT OF NET COST

Gross program costs $ 2,135,346 $ 5,165,161 $ 7,300,507 

Total net cost $ 2,135,346 $ 5,165,161 $ 7,300,507 

STATEMENT OF CHANGES IN NET POSITION

Unexpended appropriations

Appropriations received (Note 16) $ – $ 10,009,000 $ 10,009,000 

Appropriations used – (5,170,127) (5,170,127)

Total unexpended appropriations $ – $ 4,838,873 $ 4,838,873 

Cumulative results of operations

Beginning balances $ 2,503,690 $ – $ 2,503,690 

Appropriations used – 5,170,127 5,170,127 

Transfers-in/out without reimbursement (1) (4,000) (4,001)

Imputed financing (Note 15) 20 – 20 

Net cost of operations 2,135,346 5,165,161 7,300,507 

Net change in cumulative results of operations (2,135,327) 966 (2,134,361)

Cumulative results of operations $ 368,363 $ 966 $ 369,329 

Total net position $ 368,363 $ 4,839,839 $ 5,208,202 

COMBINED STATEMENTS OF BUDGETARY RESOURCES

Budgetary resources (Note 16)

Unobligated balance from prior year budget authority, net $ 725,172 $ – $ 725,172 

Appropriations – 12,009,000 12,009,000 

Total budgetary resources $ 725,172 $ 12,009,000 $ 12,734,172 

Status of budgetary resources

New obligations and upward adjustments $ 513,099 $ 8,340,531 $ 8,853,630 

Unobligated balance, end of year 212,073 3,668,469 3,880,542 

Total budgetary resources $ 725,172 $ 12,009,000 $ 12,734,172 

Outlays, net

Outlays, net (total) $ 4,318,204 $ 2,914,398 $ 7,232,602 

Distributed offsetting receipts – (2,000,000) (2,000,000)

Agency outlays, net $ 4,318,204 $ 914,398 $ 5,232,602 
Fiscal Year 2021 | FAA Performance and Accountability Report 133

Financial Results

The FAA’s COVID-19 activity as of and for the year ended September 30, 2020, consist of the following: 

2020

(Dollars in Thousands) Funds from dedicated 

collections

Funds from other than 

dedicated collections

Consolidated

total

BALANCE SHEET 

Assets

Fund balance with Treasury (Note 2) $ 6,868,828 $ – $ 6,868,828 

Accounts receivable, net (Note 4) 1,500 – 1,500 

Advances and prepayments 2,699 – 2,699 

Total assets $ 6,873,027 $ – $ 6,873,027 

Liabilities and net position

Accounts payable $ 141 $ – $ 141 

Federal employee benefits payable 47 – 47 

Other liabilities

Accrued grant liabilities 4,369,120 – 4,369,120 

Other (Note 10) 29 – 29 

Unexpended appropriations – – –

Cumulative results of operations 2,503,690 – 2,503,690 

Total liabilities and net position $ 6,873,027 $ – $ 6,873,027 

STATEMENT OF NET COST

Gross program costs $ 7,520,994 $ – $ 7,520,994 

Total net cost $ 7,520,994 $ – $ 7,520,994 

STATEMENT OF CHANGES IN NET POSITION

Unexpended appropriations

Appropriations received (Note 16) $ – $ 10,000,000 $ 10,000,000 

Appropriations used – (10,000,000) (10,000,000)

Total unexpended appropriations $ – $ – $ –

Cumulative results of operations

Beginning balances $ 25,000 $ – $ 25,000 

Appropriations used – 10,000,000 10,000,000 

Transfers-in/out without reimbursement 9,999,674 (10,000,000) (326)

Imputed financing (Note 15) 10 – 10 

Net cost of operations 7,520,994 – 7,520,994 

Net change in cumulative results of operations 2,478,690 – 2,478,690 

Cumulative results of operations $ 2,503,690 $ – $ 2,503,690 

Total net position $ 2,503,690 $ – $ 2,503,690 

COMBINED STATEMENTS OF BUDGETARY RESOURCES

Budgetary resources (Note 16)

Unobligated balance from prior year budget authority, net $ 25,000 $ – $ 25,000 

Appropriations 10,000,000 10,000,000 20,000,000 

Total budgetary resources $ 10,025,000 $ 10,000,000 $ 20,025,000 

Status of budgetary resources

New obligations and upward adjustments $ 9,383,133 $ 10,000,000 $ 19,383,133 

Unobligated balance, end of year 641,867 – 641,867 

Total budgetary resources $ 10,025,000 $ 10,000,000 $ 20,025,000 

Outlays, net

Outlays, net (total) $ 3,131,172 $ 10,000,000 $ 13,131,172 

Distributed offsetting receipts (10,000,000) – (10,000,000)

Agency outlays, net $ (6,868,828) $ 10,000,000 $ 3,131,172 
134 Fiscal Year 2021 | FAA Performance and Accountability Report 

Financial Results

Required Supplementary Information

U.S. DEPARTMENT OF TRANSPORTATION

FEDERAL AVIATION ADMINISTRATION

DEFERRED MAINTENANCE AND REPAIRS

As of September 30, 2021

(Dollars in Thousands)

Unaudited

Cost to return to acceptable condition

Category Description Facility condition is < Beginning balance Ending balance

Staffed Facilities

Tier 1 ARTCCs, ATCT/TRACONs at major airports 95% $ 270,481 $ 473,526 

Tier 2 WJHTC and MMAC 95% 62,645 67,250 

Tier 3 ATCT/TRACONs at all non-major airports 90% 30,981 76,663 

Unstaffed Facilities

Tier 1 Long range radars 95% 70,891 81,801

Other Unstaffed infrastructure and fuel storage tanks N/A 1,006,970 1,025,714 

Total $ 1,441,968 $ 1,724,954 

Deferred maintenance and repair is maintenance or repair that 

was not performed when it should have been, or was scheduled 

to be performed but was delayed until a future period due to a 

lack of resources or funding. 

The FAA reports deferred maintenance for facilities critical to 

the operation of our nation’s airspace with a Facilities Condition 

Index score less than 90-95 percent — meaning that they must 

be maintained at 90-95 percent of prescribed levels or better to 

be considered in fair condition or better. These facilities include 

Air Route Traffic Control Centers (ARTCCs), Air Traffic Control 

Towers (ATCTs), Terminal Radar Approach Control (TRACON) 

facilities, the William J. Hughes Technical Center (WJHTC), the 

Mike Monroney Aeronautical Center (MMAC), and long range 

radar facilities. Deferred maintenance for fuel storage tanks, 

and unstaffed infrastructure facilities are reported if they have 

exceeded the expected lifecycle for those assets. The Facilities 

Condition Index score is not considered for those assets. All 

of these facilities are capitalized general property, plant, and 

equipment, and most of these facilities are fully depreciated 

given that they were constructed more than 50 years ago.

The FAA prioritizes the maintenance of facilities by their 

operational significance within the national airspace system. 

Tier 1 and Tier 2 facilities are those staffed with FAA 

employees and contractors that support the busiest airports 

in the United States. Maintenance and repair activities are 

prioritized to elevate and sustain the greatest number of Tier 1 

and Tier 2 facilities to fair to good condition within available 

funding appropriated to FAA. Ancillary facilities such as long 

range radars, unstaffed infrastructure, and fuel storage tanks 

that support Tier 1 and Tier 2 facilities are given higher priority 

than those that support Tier 3 facilities. Tier 3 facilities support 

airports with low operational air traffic volume.

Staffed facilities are assessed for deferred maintenance and 

lifecycle costs on a rotating basis by a qualified engineering 

firm. Deferred maintenance for unstaffed facilities is 

determined based on facility surveys or estimated based on 

the age of the structure. FAA facilities that are administrative 

in nature have been excluded from these estimates since the 

state of those facilities does not have a direct impact on the 

control of air traffic operations. Personal property housed 

within air traffic facilities, both staffed and unstaffed, has also 

been excluded from these estimates because it is likely to 

become obsolete as technology continues to advance. The FAA 

recognizes maintenance and repair expenses as incurred.

The increase in Tier 1 staffed facilities is due to the net 

addition of eighteen ATCT and TRACON facilities whose 

facility condition scores fell below the acceptable range. The 

increase in Tier 3 staffed facilities is because of an increase of 

seventeen facilities that fell below the acceptable condition 

level. The increase in deferred maintenance for Long Range 

Radars relates to the offsetting decreases and increases of parts 

of the facilities that have aged into the deferred maintenance 
Fiscal Year 2021 | FAA Performance and Accountability Report 135

Financial Results

backlog. For 2021 there were three facilities that increased by 

nearly $1 million over the previous year and two facilities that 

increased by approximately $2 million over the previous year. 

The increase in unstaffed infrastructure and fuel storage tanks 

is attributed to improved cataloguing of all assets on unstaffed 

infrastructure sites which identified 7,695 new assets that were 

added to the inventory this year.
136 Fiscal Year 2021

| FAA Performance and Accountability Report 

Financial Results

Schedule of Budgetary Resources by Major Fund Type

U.S. DEPARTMENT OF TRANSPORTATION

FEDERAL AVIATION ADMINISTRATION

SCHEDULE OF BUDGETARY RESOURCES BY MAJOR FUND TYPE

For the year ended September 30, 2021 

 (Dollars in Thousands)

Unaudited

Grants-in-Aid 

for Airports

Relief for 

Airports

Facilities & 

Equipment

Research, Eng. 

& Development

Aviation 

Insurance 

Revolving Franchise Fund Operations

Expenditure 

Transfers 

between FAA 

Accounts

Other 

Funds

Combined 

Total 

BUDGETARY RESOURCES

Unobligated balance from prior year budget 

authority, net $ 1,347,545 $ – $ 2,343,575 $ 179,432 $ 2,300,692 $ 264,600 $ 332,950 $ – $ 7,139 $ 6,775,933

Appropriations 2,400,000 8,000,000 3,015,000 198,000 – – 482,500 26,919,000 17,606 41,032,106Contract authority 3,350,000 – – – – – – – – 3,350,000Spending authority from offsetting 

collections 38 – 59,872 8,165 18,943 470,389 10,665,212 – – 11,222,619

Total budgetary resources $ 7,097,583 $ 8,000,000 $ 5,418,447 $ 385,597 $ 2,319,635 $ 734,989 $ 11,480,662 $ 26,919,000 $ 24,745 $ 62,380,658STATUS OF BUDGETARY RESOURCES

New obligations and upward adjustments $ 6,388,557 $ 4,340,869 $ 3,125,054 $ 230,330 $ 3,640 $ 520,755 $ 11,280,539 $ 26,919,000 $ 1,757 $ 52,810,501Unobligated balance, end of year

Apportioned, unexpired accounts 687,255 3,659,131 2,211,709 149,812 17,680 214,150 160,289 – 14,382 7,114,408Unapportioned, unexpired accounts 19,462 – 443 – 2,298,315 84 3,046 – 8,606 2,329,956Unexpired unobligated balance, 

end of year 706,717 3,659,131 2,212,152 149,812 2,315,995 214,234 163,335 – 22,988 9,444,364

Expired unobligated balance, end of year 2,309 – 81,241 5,455 – – 36,788 – – 125,793

Unobligated balance, end of year (total) 709,026 3,659,131 2,293,393 155,267 2,315,995 214,234 200,123 – 22,988 9,570,157

Total budgetary resources $ 7,097,583 $ 8,000,000 $ 5,418,447 $ 385,597 $ 2,319,635 $ 734,989 $ 11,480,662 $ 26,919,000 $ 24,745 $ 62,380,658OUTLAYS, NET

Outlays, net (total) $ 8,835,285 $ 332,979 $ 2,761,309 $ 159,041 $ (15,613) $ 1,015 $ 673,385 $ 26,672,000 $ 2,261 $ 39,421,662Distributed offsetting receipts – – – – – – – (16,400,000) (18,603) (16,418,603)

Agency outlays, net $ 8,835,285 $ 332,979 $ 2,761,309 $ 159,041 $ (15,613) $ 1,015 $ 673,385 $ 10,272,000 $ (16,342) $ 23,003,059
Fiscal Year 2021

| FAA Performance and Accountability Report 137

Financial Results

U.S. DEPARTMENT OF TRANSPORTATION

FEDERAL AVIATION ADMINISTRATION

SCHEDULE OF BUDGETARY RESOURCES BY MAJOR FUND TYPE

For the year ended September 30, 2020 

 (Dollars in Thousands)

Unaudited

Grants-in-Aid 

for Airports

Relief for 

Airports

Facilities & 

Equipment

Research, Eng. 

& Development

Aviation 

Insurance 

Revolving Franchise Fund Operations

Expenditure 

Transfers 

between FAA 

Accounts

Other 

Funds

Combined 

Total 

BUDGETARY RESOURCES

Unobligated balance from prior year budget 

authority, net $ 1,179,964 $ – $ 2,188,970 $ 173,520 $ 2,271,141 $ 273,117 $ 386,129 $ – $ 20,842 $ 6,493,683 

Appropriations 10,400,000 – 3,045,000 192,669 – – 111,000 20,919,000 1,541 34,669,210 Contract authority 3,350,000 – – – – – – – – 3,350,000 Spending authority from offsetting 

collections 125 – 80,766 21,006 32,129 490,271 10,656,418 – – 11,280,715 

Total budgetary resources $ 14,930,089 $ – $ 5,314,736 $ 387,195 $ 2,303,270 $ 763,388 $ 11,153,547 $ 20,919,000 $ 22,383 $ 55,793,608 STATUS OF BUDGETARY RESOURCES

New obligations and upward adjustments $ 13,804,795 $ – $ 3,073,189 $ 209,768 $ 2,780 $ 533,307 $ 10,893,805 $ 20,919,000 $ 1,295 $ 49,437,939 Unobligated balance, end of year

Apportioned, unexpired accounts 1,106,717 – 2,158,167 172,473 18,622 230,081 176,738 – 19,547 3,882,345 Unapportioned, unexpired accounts 18,577 – 1,095 – 2,281,868 – 211 – 1,541 2,303,292 Unexpired unobligated balance, 

end of year 1,125,294 – 2,159,262 172,473 2,300,490 230,081 176,949 – 21,088 6,185,637 

Expired unobligated balance, end of year – – 82,285 4,954 – – 82,793 – – 170,032 

Unobligated balance, end of year (total) 1,125,294 – 2,241,547 177,427 2,300,490 230,081 259,742 – 21,088 6,355,669 

Total budgetary resources $ 14,930,089 $ – $ 5,314,736 $ 387,195 $ 2,303,270 $ 763,388 $ 11,153,547 $ 20,919,000 $ 22,383 $ 55,793,608 OUTLAYS, NET

Outlays, net (total) $ 6,896,534 $ – $ 2,807,921 $ 153,018 $ (29,788) $ 7,375 $ 161,828 $ 20,762,900 $ 1,806 $ 30,761,594 Distributed offsetting receipts – – – – – – – (10,400,000) (9,856) (10,409,856)

Agency outlays, net $ 6,896,534 $ – $ 2,807,921 $ 153,018 $ (29,788) $ 7,375 $ 161,828 $ 10,362,900 $ (8,050) $ 20,351,738
138 Fiscal Year 2021 | FAA Performance and Accountability Report

OTHER

INFORMATION

Mechanic using a tablet to record data during the 

pandemic. Photo by franckreporter/iStock Images.
Fiscal Year 2021 | FAA Performance and Accountability Report 139

Other Information

Summary of Financial Statement Audit and Management 

Assurances 

Financial Statement Audit Summary

Table 1 is a summary of the results of the independent audit of the FAA’s consolidated financial statements by the agency’s auditors 

in connection with the FY 2021 audit.

Table 1: Summary of Financial Statement Audit

Audit Opinion Unmodified

Restatement No

Material Weaknesses Beginning Balance New Resolved Consolidated Ending Balance

Total Material Weaknesses 0 0 0 0 0

Management Assurances Summary 

Table 2 is a summary of management assurances for FY 2021 related to the effectiveness of internal control over the FAA’s financial 

reporting and operations, and its conformance with financial management system requirements under Sections 2 and 4, respectively, 

of the Federal Managers’ Financial Integrity Act of 1982 (FMFIA). The last portion of Table 2 summarizes the FAA’s compliance with the 

Federal Financial Management Improvement Act of 1996 (FFMIA).

Table 2: Summary of Management Assurances

Effectiveness of Internal Control over Financial Reporting (FMFIA § 2)

Statement of Assurance Unmodified

Material Weaknesses Beginning Balance New Resolved Consolidated Reassessed Ending Balance

Total Material Weaknesses 0 0 0 0 0 0

Effectiveness of Internal Control over Operations (FMFIA § 2)

Statement of Assurance Unmodified

Material Weaknesses Beginning Balance New Resolved Consolidated Reassessed Ending Balance

Total Material Weaknesses 0 0 0 0 0 0

Conformance with Federal Financial Management System Requirements (FMFIA § 4)

Statement of Assurance Federal Systems conform to financial management system requirements

Non-Conformances Beginning Balance New Resolved Consolidated Reassessed Ending Balance

Total non-conformances 0 0 0 0 0 0

Compliance with Section 803(a) of the Federal Financial Management Improvement Act (FFMIA)

Agency Auditor

1. Federal Financial Management System Requirements No lack of compliance noted No lack of compliance noted

2. Applicable Federal Accounting Standards No lack of compliance noted No lack of compliance noted

3. U.S. Standard General Ledger at Transaction Level No lack of compliance noted No lack of compliance noted
140 Fiscal Year 2021 | FAA Performance and Accountability Report

Other Information

Payment Integrity

The Payment Integrity Information Act of 2019 (PIIA) requires 

agencies to identify programs and activities susceptible to 

significant improper payments. The purpose of the PIIA is 

to improve efforts to identify and reduce government-wide 

improper payments.

Office of Management and Budget (OMB) Circular A-123, 

Appendix C, Requirements for Payment Integrity Improvement

(M-21-19), dated March 5, 2021, provides guidance on the 

implementation of PIIA. OMB Circular A-123, Appendix C 

defines an improper payment as any payment that should not 

have been made or that was made in an incorrect amount 

under statutory, contractual, administrative, or other legally 

applicable requirements. Incorrect amounts are overpayments 

or underpayments that are made to eligible recipients including 

inappropriate denials of payment or service, any payment 

that does not account for credit for applicable discounts, 

payments for the incorrect amount, and duplicate payments. 

An improper payment also includes any payment that was made 

to an ineligible recipient or for an ineligible good or service, or 

payments for goods or services not received (except for such 

payments authorized by law).

In addition, when an agency’s review is unable to discern 

whether a payment was proper because of insufficient or lack 

of documentation, this payment must also be considered an 

improper payment.

On March 19, 2021, OMB issued a memorandum, Promoting 

Public Trust in the Federal Government through Effective 

Implementation of the American Rescue Plan Act and Stewardship 

of the Taxpayer Resources (M-21-20), that requires agencies to 

work with the Pandemic Response Accountability Committee 

(PRAC) and agencies’ inspectors general to strengthen payment 

integrity. The goal of collaborating is to minimize the risk 

of waste, fraud, and abuse and improve the overall award 

and administration of financial assistance programs with an 

increased focus on human-centered programs and services 

designed to achieve more equitable results.

On March 30, 2018, OMB issued a memorandum, 

Implementation of Internal Controls and Grant Expenditures for 

the Disaster-Related Appropriations (M-18-14), that requires 

agencies to manage disaster relief funds with the same 

discipline and rigor as programs that are traditionally designated 

as susceptible to significant improper payments under PIIA. For 

more detailed information on payment integrity efforts, see 

the Department of Transportation reporting at: https://www.

paymentaccuracy.gov/.

Federal Aviation Administration 

Process

The FAA’s process for complying with PIIA and OMB Circular 

A-123, Appendix C, consists of the following steps:

1) Review programs and activities to identify those 

susceptible to significant improper payments.

2) Obtain a statistically valid estimate of the annual amount 

of improper payments in programs and activities for those 

programs identified as susceptible to significant improper 

payments.

3) Implement a plan to reduce erroneous payments.

4) Report estimates of the annual amounts of improper 

payments in programs and activities, and progress in 

reducing occurrence of future improper payments.

For FY 2021 reporting, the FAA conducted detailed improper 

payment testing for the Disaster Relief Program repurposed for 

COVID-19 use. In addition, the agency completed a quantitative 

risk assessment for the CARES Act Grants-in-Aid for Airports 

Program. The results of this quantitative assessment did 

not exceed the statutory thresholds and is not considered 

susceptible to significant improper payments. 

Actions Taken to Address Auditor 

Recovery Recommendations

The DOT performed a department-wide payment recapture 

audit, which included the FAA’s programs and activities, and 

worked with the FAA’s Enterprise Services Center to initiate 

recovery of any FAA overpayments and identify payment 

process weaknesses. External auditors do not perform this 

work and we do not have corrective actions to address.

Since the overpayments identified in FY 2021 were immaterial 

amounts, DOT determined that it was not cost-effective to 

report them by each individual DOT agency (i.e., FAA). Instead, 

DOT will report results at the department level in the DOT’s 

FY 2021 Agency Financial Report, which will be published by 

November 15, 2021.
Fiscal Year 2021 141 | FAA Performance and Accountability Report

Other Information

Civil Monetary Penalty Inflation Adjustments

U.S. DEPARTMENT OF TRANSPORTATION

FEDERAL AVIATION ADMINISTRATION

Unaudited

The Federal Civil Penalties Inflation Adjustment Act of 2015, Public Law 114-74, requires agencies to make regular and consistent 

inflationary adjustments of civil monetary penalties to maintain their deterrent effect. Following are the civil penalties that the FAA 

may impose, the authority for imposing the penalty, the dates of inflation adjustments, and the current penalty level.

Statutory Authority Penalty

Year of 

Enactment

Latest year of 

adjustment 

(via statute or 

regulation)

Current Maximum 

Penalty or Penalty 

Range

Location for Penalty 

Update Details

49 U.S.C. 5123(a), 

subparagraph (1)

Violation of hazardous materials 

transportation law 1975 2021 $84,425 Federal Register; 86 Fed. Reg. 23,241 (May 3, 2021)

49 U.S.C. 5123(a), 

subparagraph (2)

Violation of hazardous materials 

transportation law resulting in death, 

serious illness, severe injury, or 

substantial property destruction

2005 2021 $196,992 Federal Register; 86 Fed. 

Reg. 23,241 (May 3, 2021)

49 U.S.C. 5123(a), 

subparagraph (3)

Violation of hazardous materials 

transportation law relating to training 2005 2021 $508–$84,425 Federal Register; 86 Fed. Reg. 23,241 (May 3, 2021)

49 U.S.C. 44704(d)(3) Knowing presentation of a 

nonconforming aircraft for issuance of 

an initial airworthiness certificate

2020 N/A $1,000,000 Federal Register; 86 Fed. 

Reg. 23,241 (May 3, 2021)

49 U.S.C. 44704(e)(4) Knowing failure to submit safety 

critical information or include certain 

such information in an airplane flight 

manual or flight crew operating manual

2020 N/A $1,000,000 Federal Register; 86 Fed. 

Reg. 23,241 (May 3, 2021)

49 U.S.C. 44802 note Operation of an unmanned aircraft or 

unmanned aircraft system equipped or 

armed with a dangerous weapon

2018 2021 $25,742 Federal Register; 86 Fed. 

Reg. 23,241 (May 3, 2021)

49 U.S.C. 46301(a)(1) Violation by a person other than an 

individual or small business concern 

under 49 U.S.C. 46301(a)(1)(A) or (B)

1958 2021 $35,188 Federal Register; 86 Fed. 

Reg. 23,241 (May 3, 2021)

49 U.S.C. 46301(a)(1) Violation by an airman 

serving as an airman under 

49 U.S.C. 46301(a)(1)(A) or (B) (but not 

covered by 46301(a)(5)(A) or (B))

1958 2021 $1,548 Federal Register; 86 Fed. 

Reg. 23,241 (May 3, 2021)

49 U.S.C. 46301(a)(1) Violation by an individual or 

small business concern under 

49 U.S.C. 46301(a)(1)(A) or (B) (but not 

covered in 49 U.S.C. 46301(a)(5))

1958 2021 $1,548 Federal Register; 86 Fed. 

Reg. 23,241 (May 3, 2021)

49 U.S.C. 46301(a)(3)

Violation of 49 U.S.C. 47107(b) (or any 

assurance made under such section) or 

49 U.S.C. 47133

1958 N/A

Increase above otherwise 

applicable maximum 

amount not to exceed 

3 times the amount of 

revenues that are used in 

violation of such section.

Federal Register; 86 Fed. 

Reg. 23,241 (May 3, 2021)

49 U.S.C. 

46301(a)(5)(A)

Violation by an individual or small 

business concern (except an 

airman serving as an airman) under 

49 U.S.C. 46301(a)(5)(A)(i) or (ii)

2003 2021 $14,074 Federal Register; 86 Fed. 

Reg. 23,241 (May 3, 2021)

Continued on next page.
142 Fiscal Year 2021 | FAA Performance and Accountability Report

Other Information

Statutory Authority Penalty

Year of 

Enactment

Latest year of 

adjustment 

(via statute or 

regulation)

Current Maximum 

Penalty or Penalty 

Range

Location for Penalty 

Update Details

49 U.S.C. 

46301(a)(5)(B)(i)

Violation by an individual or small 

business concern related to the 

transportation of hazardous materials

2003 2021 $14,074 Federal Register; 86 Fed. 

Reg. 23,241 (May 3, 2021)

49 U.S.C. 

46301(a)(5)(B)(ii)

Violation by an individual or small 

business concern related to the 

registration or recordation under 

49 U.S.C. chapter 441, of an aircraft 

not used to provide air transportation

2003 2021 $14,074 Federal Register; 86 Fed. 

Reg. 23,241 (May 3, 2021)

49 U.S.C. 

46301(a)(5)(B)(iii)

Violation by an individual or 

small business concern of 

49 U.S.C. 44718(d), relating to 

limitation on construction or 

establishment of landfills

2003 2021 $14,074 Federal Register; 86 Fed. 

Reg. 23,241 (May 3, 2021)

49 U.S.C. 

46301(a)(5)(B)(iv)

Violation by an individual or small 

business concern of 49 U.S.C. 44725, 

relating to the safe disposal of lifelimited aircraft parts

2003 2021 $14,074 Federal Register; 86 Fed. 

Reg. 23,241 (May 3, 2021)

49 U.S.C. 46301 note Individual who aims the beam of a laser 

pointer at an aircraft in the airspace 

jurisdiction of the United States, or at 

the flight path of such an aircraft

2016 2021 $26,929 Federal Register; 86 Fed. 

Reg. 23,241 (May 3, 2021)

49 U.S.C. 46301(b) Tampering with a smoke alarm device 1987 2021 $4,518 Federal Register; 86 Fed. 

Reg. 23,241 (May 3, 2021)

49 U.S.C. 46302 Knowingly providing false information 

about alleged violation involving the 

special aircraft jurisdiction of the 

United States

1984 2021 $24,539 Federal Register; 86 Fed. 

Reg. 23,241 (May 3, 2021)

49 U.S.C. 46318 Interference with cabin or flight crew 2000 2021 $36,948 Federal Register; 86 Fed. 

Reg. 23,241 (May 3, 2021)

49 U.S.C. 46319 Permanent closure of an airport 

without providing sufficient notice 2003 2021 $14,074 Federal Register; 86 Fed. Reg. 23,241 (May 3, 2021)

49 U.S.C. 46320 Operating an unmanned aircraft and 

in so doing knowingly or recklessly 

interfering with a wildfire suppression, 

law enforcement, or emergency 

response effort

2016 2021 $21,544 Federal Register; 86 Fed. 

Reg. 23,241 (May 3, 2021)

49 U.S.C. 47531 Violation of 49 U.S.C. 47528-47530, 

relating to the prohibition of operating 

certain aircraft not complying with 

stage 3 noise levels

1990 N/A

See 49 U.S.C. 

46301(a)(1)(A) and 

(a)(5)(A), above

Federal Register; 86 Fed. 

Reg. 23,241 (May 3, 2021)

51 U.S.C. 50917 Violation of a requirement of the 

Commercial Space Launch Act, as 

amended, a regulation issued under 

the Act, or any term or condition of a 

license or permit issued or transferred 

under the Act

1984 2021 $247,280 Federal Register; 86 Fed. 

Reg. 23,241 (May 3, 2021)
Fiscal Year 2021 | FAA Performance and Accountability Report 143

Other Information

Grants Programs

The following is a summary of the total number of federal 

grant and cooperative agreement awards and balances not 

closed out, but for which the period of performance has 

elapsed by two years or more prior to September 30, 2021 

(i.e., on or before September 30, 2019).

Category

2–3 

Years

>3–5 

Years

>5 

Years

Number of Grants/Cooperative 

Agreements with Zero Dollar Balances 22 79 73

Number of Grants/Cooperative 

Agreements with Undisbursed Balances 28 34 9

Total Amount of Undisbursed Balances

(Dollars in Thousands) $106 $217 $1 

In FY 2021, the FAA continued to review expired grants 

and made significant progress closing out grants. There are 

three key management challenges that lead to delays in grant 

closeouts. These challenges include:

 grant recipient has an audit or pending legal action;

 grant recipients’ untimely submission of closeout 

documentation to the FAA; and

 grants officer training for new FAA personnel.

The FAA continues to monitor grants to ensure that 

recipients are providing closeout documentation in a timely 

manner. Monitoring activities include review of closeout 

progress, financial, audit, and other periodic reports. The FAA 

also continues to emphasize closing out older grants.

Radio antennas at Daniel K. Inouye International Airport in Hawaii. Photo 

by Tremayne Cobb.
144 Fiscal Year 2021 | FAA Performance and Accountability Report

Other Information

Administrative Services 

Franchise Fund

Background

The Department of Transportation and Related Agencies 

Appropriation Act of 1997 authorized the FAA to establish 

an Administrative Services Franchise Fund (Franchise Fund). 

Through the Franchise Fund, the FAA is able to competitively 

provide a wide variety of support services to various government 

entities. This results in the consolidation and shared use of 

like functions and promotes economies of scale. All of these 

measures help the government use its resources more efficiently.

The FAA’s Franchise Fund has grown from $18 million in 1997 

to nearly $500 million in annual revenues in FY 2021, with 

over $1 billion in assets. The Franchise Fund is comprised of 

several service providers, through which it offers a number of 

services. These services include administrative services such 

as accounting, travel, duplication, multimedia, and information 

technology. Other services include logistics and materiel 

management, aircraft maintenance, management training, 

international aviation training, and acquisition support. The 

Franchise Fund’s major customers are programs within the 

FAA’s lines of business, other Department of Transportation 

(DOT) entities, non-DOT government agencies, and 

international government entities.

Description of Programs and Services

The Enterprise Services Center (ESC) is based at the Mike 

Monroney Aeronautical Center (MMAC) in Oklahoma City, 

Oklahoma. The ESC is a full service financial management 

provider and designated by the Office of Management and 

Budget (OMB) as one of four legacy shared service providers to 

provide financial management services and information systems 

security services to federal agencies. OMB memorandum 

M-19-16, Centralized Mission Support Capabilities for the Federal 

Government, established a process for designating agencies 

as Quality Services Management Offices and directs legacy 

designated providers, such as the ESC, to propose a joint 

business case with the Quality Services Management Office 

designated for financial management to accept any new 

customers, expand services to existing customers, or make 

investments in technology or services for these functions.

There are two major components of the ESC — financial services 

and information services. The efficiencies and economies of 

scale created by this integration make the ESC an attractive 

option to government customers seeking a provider of financial 

management services.

 Financial Services — Offering cost-effective ways to 

integrate and manage accounting needs, from transaction 

processing to financial statements, to reporting and 

analysis. ESC Financial Services helps with regulatory 

compliance, achieving clean audits, and keeping projects 

on-time.

 Information Services — Provides a wide array of platforms 

to manage information. Offers support in: Application 

Services, Help Desk Services, Data Center Services, 

Information System Security, Media Solutions, Office 

Automation Support, Project Management, National 

Wireless Program, and Telecommunication Services.

The FAA Logistics Center is also located at the MMAC in 

Oklahoma City, Oklahoma and provides comprehensive 

logistics support and a sophisticated level of maintenance 

and repair services to ensure the safety of the flying public, 

to satisfy the critical needs of the nation’s airspace system, 

and to meet related requirements. The FAA Logistics Center 

operates the FAA’s only distribution center. Services include 

materiel management (e.g., provisioning, cataloging, acquisition, 

inventory management, inventory supply), reliable and costeffective repair of replaceable units, life cycle and performance 

cost analysis, logistics automation, distribution services, 

disposal of items no longer required, and technical support to 

repair and maintain the nation’s airspace and related equipment. 

The Logistics Center also maintains the Department of 

Homeland Security’s (DHS) U.S. Customs and Border Protection 

border surveillance systems, including more than 80 mobile 

surveillance systems and fixed towers. It provides supply chain 

support, depot maintenance support, engineering, and other 

systems support to the DHS.

Flight Program Operations is also based at the MMAC. 

This service provider offers total aircraft support, including 

maintenance, quality assurance, and overall program 

management, for the FAA’s uniquely equipped flight inspection 

aircraft fleet. Flight Program Operations offers preventative 

services, aircraft repair, overhaul, and modification services, as 

well as reliability and maintainability studies. Flight Program 

Operations has the flexibility to provide either full or partial 

support, depending upon customer requirements, ranging from 

short-term preventative maintenance or one-time engineering 

tasks to more involved activities, such as a full complement of 

maintenance services, complete with quality assurance and 

engineering support.
Fiscal Year 2021 | FAA Performance and Accountability Report 145

Other Information

The FAA Leadership and Learning Institute, based in 

Washington, DC, provides non-technical training in support of 

the FAA mission. This Institute designs and delivers face-toface instructor-led training both onsite and at field locations, 

virtual instructor-led training, web based training, and mobile 

access. The curriculum of the FAA Leadership and Learning 

Institute emphasizes workforce development by providing FAA 

employees with tools to proactively address challenges, share 

knowledge, and collaborate to meet the mission of the FAA.

The International Training Division (ITD), an element of the FAA 

Academy, is located at the MMAC in Oklahoma City, Oklahoma. 

ITD delivers technical assistance and training to enhance 

international aviation safety and security while promoting 

U.S. aviation system technologies, products, and services 

overseas. The products and services of the ITD include training 

program management, instructional services, training design, 

development, and revision, technical training evaluations, and 

consulting services tailored to meet the specifically defined 

needs of the FAA and its international customers.

The Franchise Fund also houses a branch of acquisition services 

whose mission is to support the acquisition requirements of the 

other Franchise Fund service providers.

Corporate Services is the Franchise Fund’s program 

management activity that coordinates and supports the 

Franchise Fund’s operations.

Inter-Entity Cost

The FAA provides general and administrative support services, 

such as managerial, facilities, and security services to the 

Franchise Fund that support the Franchise Fund’s business type 

operations. Because these support services are provided to the 

Franchise Fund at no cost, the Franchise Fund in turn provides 

services to the FAA at a price less than full cost. The difference 

between the full cost and the costs billed to the FAA is the 

overhead rate that the Franchise Fund uses to recover these 

general and administrative costs, as appropriate, from non-FAA 

customers.

The estimated cost of the FAA general and administrative 

support services were $55 million in fiscal year 2021 and $57 

million in fiscal year 2020.

Reclassifications

Certain prior year amounts have been reclassified for 

consistency with the current year presentation.

Passengers in the jetway as 

they board a commercial 

airplane at Orlando Sanford 

International Airport, in 

Florida. Photo by Joni 

Hanebutt/Bigstock Images.
146 Fiscal Year 2021 | FAA Performance and Accountability Report

Other Information

U.S. DEPARTMENT OF TRANSPORTATION

FEDERAL AVIATION ADMINISTRATION

ADMINISTRATIVE SERVICES FRANCHISE FUND

COMBINED BALANCE SHEETS

As of September 30, 2021 and 2020

(Dollars in Thousands)

Unaudited

ASSETS 2021 2020

Intragovernmental

Fund balance with Treasury $ 399,395 $ 400,410 

Advances and prepayments 748 1,240 

Total intragovernmental 400,143 401,650 

Other than intragovernmental/with the public

Accounts receivable, net 29 16 

Inventory and related property, net 730,419 729,964 

General property, plant, and equipment, net 12,871 19,617 

Total other than intragovernmental/with the public 743,319 749,597 

Total assets $ 1,143,462 $ 1,151,247

LIABILITIES

Intragovernmental

Accounts payable $ 95 $ 300 

Advances from others and deferred revenue 294,549 310,486 

Other liabilities 3,166 2,945 

Total intragovernmental 297,810 313,731 

Other than intragovernmental/with the public

Accounts payable 25,697 25,946 

Federal employee benefits payable 289 265 

Advances from others and deferred revenue 335 20 

Other liabilities 19,612 19,212 

Total other than intragovernmental/with the public 45,933 45,443 

Total liabilities $ 343,743 $ 359,174

NET POSITION

Cumulative results of operations $ 799,719 $ 792,073 

Total net position 799,719 792,073 

Total liabilities and net position $ 1,143,462 $ 1,151,247
Fiscal Year 2021 | FAA Performance and Accountability Report 147

Other Information

U.S. DEPARTMENT OF TRANSPORTATION

FEDERAL AVIATION ADMINISTRATION

ADMINISTRATIVE SERVICES FRANCHISE FUND

CONSOLIDATED STATEMENTS OF NET COST

For the Years Ended September 30, 2021 and 2020

(Dollars in Thousands)

Unaudited

2021

Enterprise 

Services 

Center

Corp 

Services

Flight 

Program 

Operations

FAA 

Leadership 

& Learning 

Institute

International 

Training Acquisitions

FAA 

Logistics 

Center Total

Gross costs

Operating cost $ 162,109 $ (310) $ 54,715 $ 6,264 $ 850 $ 4,574 $ 268,868 $ 497,070 

Imputed cost (OPM) 4,734 72 959 63 – 220 4,213 10,261 

Less earned revenues

Operating revenue 155,288 – 53,767 6,078 700 3,706 271,006 490,545 

Operating profit/(loss) 

before gains/(losses) $ (11,555) $ 238 $ (1,907) $ (249) $ (150) $ (1,088) $ (2,075) $ (16,786)

Net gains/(losses) – – – – – – 14,173 14,173 

Total profit/(loss) $ (11,555) $ 238 $ (1,907) $ (249) $ (150) $ (1,088) $ 12,098 $ (2,613)

2020

Enterprise 

Services 

Center

Corp 

Services

Flight 

Program 

Operations

FAA 

Leadership 

& Learning 

Institute

International 

Training Acquisitions

FAA 

Logistics 

Center Total

Gross costs

Operating cost $ 163,991 $ (558) $ 56,481 $ 6,841 $ 1,115 $ 4,558 $ 273,709 $ 506,137 

Imputed cost (OPM) 4,345 62 973 30 – 216 3,943 9,569 

Less earned revenues

Operating revenue 158,294 – 52,249 6,655 812 3,278 273,292 494,580 

Operating profit/(loss) 

before gains/(losses) $ (10,042) $ 496 $ (5,205) $ (216) $ (303) $ (1,496) $ (4,360) $ (21,126)

Net gains/(losses) (136) – – – – – 40,937 40,801 

Total profit/(loss) $ (10,178) $ 496 $ (5,205) $ (216) $ (303) $ (1,496) $ 36,577 $ 19,675 
148 Fiscal Year 2021 | FAA Performance and Accountability Report

Other Information

U.S. DEPARTMENT OF TRANSPORTATION

FEDERAL AVIATION ADMINISTRATION

ADMINISTRATIVE SERVICES FRANCHISE FUND

COMBINED STATEMENTS OF CHANGES IN NET POSITION

For the Years Ended September 30, 2021 and 2020

(Dollars in Thousands)

Unaudited

2021 2020

Cumulative results of operations

Beginning balances $ 792,073 $ 763,592 

Transfers-in/out without reimbursement (2) (763)

Imputed financing 10,261 9,569 

Profit/(loss) (2,613) 19,675 

Net change in cumulative results of operations 7,646 28,481 

Cumulative results of operations - ending $ 799,719 $ 792,073 

Net position $ 799,719 $ 792,073 
Fiscal Year 2021 | FAA Performance and Accountability Report 149

Other Information

Summary of Inspector General’s Top Management and 

Performance Challenges

The Reports Consolidation Act of 2000 requires the Inspector 

General (IG) to identify and report annually on the most 

serious management and performance challenges that federal 

agencies face. The Department of Transportation (DOT) IG’s 

report, issued at the end of each October, highlights urgent 

issues facing the entire DOT, of which FAA is one component 

organization 

DOT’s FY 2022 Top Management 

Challenges report

On October 27, 2021 — 13 days before publication of this 

FAA FY 2021 PAR — the DOT IG issued its forward-looking 

report identifying the top management and performance 

challenge areas that DOT would be facing in FY 2022. 

The IG’s finalized report is available on the IG’s website 

at https://www.oig.dot.gov/ and on the FAA’s website at 

http://www.faa.gov/about/plans_reports. The IG identified nine 

challenge areas in its forward-looking FY 2022 report:

 Aviation Safety

 Surface Transportation Safety

 Air Traffic Control and Airspace Modernization

 Surface Transportation Infrastructure

 Contract and Grant Fund Stewardship

 Information Security

 Financial Management

 Innovation and the Future of Transportation

 Evolving Operations and Workforce Management

Of these nine challenge areas, eight were also identified as 

top management and performance challenges for the period 

covered by this PAR, FY 2021. Next year, FAA’s PAR will 

summarize the FAA’s FY 2022 actions and accomplishments 

toward addressing these challenges, as well as what remains 

for FY 2023 and beyond for each key challenge. In this FY 2021 

PAR, we present a summary of the agency’s accomplishments 

and actions taken in FY 2021 toward the challenges applicable 

to FY 2021.

DOT’s FY 2021 Top Management 

Challenges report

On October 21, 2020, the DOT IG issued its memorandum 

identifying the top management and performance challenges 

that DOT would be facing in FY 2021.The IG’s memorandum 

is provided next, and while it is titled “DOT’s Fiscal Year 

2021 Top Management Challenges,” the report addresses 

both management and performance challenges for the entire 

department. The pages immediately following contain a 

summary prepared by the FAA of the challenges specifically 

applicable to the FAA and the actions it took during FY 2021 to 

address those FAA-specific challenges. The FAA provides this 

summary in order to present a comprehensive perspective on 

the FAA’s FY 2021 performance activities and accomplishments 

towards the challenges that were communicated at the 

beginning of the fiscal year, and what remains for FY 2022 and 

beyond.

Air Traffic Controller 

working at Portland 

International Airport in 

Oregon. FAA photo.
150 Fiscal Year 2021 | FAA Performance and Accountability Report

Other Information

DOT Top Management Challenges (FY2021) www.oig.dot.gov 1

Memorandum

Date: October 21, 2020

Subject: INFORMATION: DOT’s Fiscal Year 2021 Top Management Challenges 

Report No. PT2021002

From: Howard R. “Skip” Elliott 

Acting Inspector General 

To: The Secretary 

Deputy Secretary

The United States transportation system is vital to our Nation’s economy and way of life, 

connecting Americans to workplaces, schools, goods and services, and each other. The 

Department of Transportation (DOT) works to ensure our Nation has the safest, most efficient, 

and modern transportation system in the world, one that improves our quality of life and 

increases the productivity of American workers and businesses. 

Our office supports the Department’s mission through audits and investigations that identify 

improvements to the management and execution of its transportation programs. Each year, 

as required by law, we report on DOT’s top management challenges to help the Department 

meet its strategic priorities across its wide-ranging transportation program areas. These 

priorities include enhancing safety, improving transportation infrastructure, fostering 

innovation, and promoting accountability. 

At the same time, we recognize that the Department faces the new and extraordinary 

task of meeting these priorities while also responding to the Coronavirus Disease 2019 

(COVID-19) global pandemic. The transportation industry has been one of the hardest hit 

by the pandemic, which has dealt sweeping and likely long-lasting impacts to all sectors, 

from aviation and public transit to infrastructure construction projects and more. In March 

2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act provided DOT with over 

$36 billion to prevent, prepare for, and respond to COVID-19. Implementing the act became 

an immediate priority and a new challenge for the Department. 

DOT rose to this challenge by quickly obligating CARES Act funding. As of September 28, 

2020, the Department reports that it has obligated more than 93 percent of these funds to our 

Nation’s airports, transit agencies, Amtrak, and other critical recipients. 

As we noted in our June 17, 2020, memorandum, we are committed to helping the 

Department maximize the efficacy of CARES Act funds, recognizing that the speed with 

which the funds had to be disbursed created new oversight challenges. Undoubtedly, the 

challenges surrounding COVID-19 and oversight of CARES Act requirements will influence the 

Department’s priorities and actions for years to come. Accordingly, in this year’s report, we 

U.S. DEPARTMENT OF TRANSPORTATION

OFFICE OF INSPECTOR GENERAL
Fiscal Year 2021 151 | FAA Performance and Accountability Report

Other Information

DOT Top Management Challenges (FY2021) www.oig.dot.gov 2

have included CARES Act and COVID-19 considerations in all eight of our top management 

challenges. 

For example, the safety of the traveling public remains DOT’s top priority, but the 

pandemic has added new dimensions to the Department’s efforts. In the area of aviation, 

the Department will need to improve oversight of aircraft certification processes and air 

carrier safety programs, while also reviewing and responding to numerous requests from 

the industry to update regulations and guidance in response to COVID-19. For surface 

transportation, DOT must enhance oversight to ensure compliance with vital safety 

regulations for highway, motor carrier, pipeline, and railroad programs. At the same time, the 

Department will need to address the economic impacts the pandemic may have on State and 

local funding for surface transportation safety programs. 

Responding to COVID-19 and the CARES Act also increases DOT’s existing challenges related 

to strengthening our Nation’s transportation infrastructure. For example, DOT continues its 

multibillion-dollar investment in efforts to modernize our aging air traffic control network 

and implement new, advanced capabilities. However, completing these efforts—and 

achieving their expected benefits—will likely face delays due to the monumental decline in air 

traffic resulting from COVID-19. In addition, the CARES Act has added an additional $26 billion 

to the Department’s typical $50 billion annual investment in highway, transit, and railroad 

infrastructure programs. While robust oversight is always critical to ensure that infrastructure 

projects adhere to Federal requirements, the additional CARES Act projects mean that 

States and other grantees must place increased emphasis on sound asset and performance 

management practices.

In addition, because the pandemic could have long-term effects on our transportation 

system, the Department will need to target some of its innovation priorities to address new 

and evolving needs. For example, DOT is currently working to oversee the safe integration of 

Unmanned Aircraft Systems (UAS) in the same airspace as manned aircraft. This challenge 

is now compounded by the fact that the COVID-19 emergency has increased the sense of 

urgency to approve expanded use of UAS into daily life, such as delivery of medical goods and 

supplies.

In light of these heightened challenges, it is more important than ever that the Department 

focus management attention on its goal of accountability, particularly with regard to efficient 

use of taxpayer funds. Chief among DOT’s challenges will be awarding pandemic relief 

and other DOT contracts and grants efficiently, effectively, and for intended purposes. The 

recent influx of new grant funding may also present financial management challenges. For 

example, DOT will now have to monitor significantly more grants and grantees to continue 

reducing improper payments and to comply with mandatory reporting requirements. DOT 

must also ensure it protects the integrity of its financial management information systems to 

effectively administer and oversee CARES ACT funds while maintaining focus on longstanding 

cybersecurity weaknesses.
152 Fiscal Year 2021 | FAA Performance and Accountability Report

Other Information

DOT Top Management Challenges (FY2021) www.oig.dot.gov 3

We considered several criteria to identify the Department’s top management challenges 

for fiscal year 2021, including safety impact, documented vulnerabilities, large dollar 

implications, and the Department’s ability to effect change. In the enclosed report, we 

identify and discuss the following challenge areas: 

• Aviation Safety

• Surface Transportation Safety

• Air Traffic Control and Airspace Modernization

• Surface Transportation Infrastructure

• Contract and Grant Fund Stewardship

• Information Security

• Financial Management

• Innovation and the Future of Transportation 

As always, we will continue to work closely with DOT officials to support the Department’s 

efforts to improve safety, enhance efficiency, and protect resources, including oversight of 

the funding provided through the CARES Act. We appreciate the Department’s commitment 

to prompt action in response to the challenges we have identified. This report and the 

Department’s response will be included in DOT’s Annual Financial Report, as required by law. 

If you have any questions regarding this report, please contact me at (202) 366-1959. You 

may also contact Barry J. DeWeese, Principal Assistant Inspector General for Auditing and 

Evaluation, at (202) 366-1302.

cc: DOT Audit Liaison, M-1
Fiscal Year 2021 | FAA Performance and Accountability Report 153

Other Information

Of the 16 key challenges identified by the Inspector 

General for FY 2021, DOT tasked the FAA with 

addressing the following 7 challenges:

 Improving FAA’s Oversight of Aircraft Certification 

Processes

 Enhancing Aviation Safety Oversight While 

Working in a Collaborative Environment

 Modernizing New Systems While Introducing New 

Capabilities

 Implementing New Performance Based Navigation 

(PBN) Flight Procedures and Delivering Benefits to 

Airspace Users

 Awarding Pandemic Relief and Other DOT 

Contracts and Grants Efficiently, Effectively, and 

for Intended Purposes

 Enhancing Contract and Grant Management 

and Oversight to Achieve Desired Results and 

Compliance with Requirements

 Ensuring the Safe Integration of UAS in the 

National Airspace System

After the Inspector General’s report was issued, the 

FAA coordinated with DOT to develop an “Action Plan” 

that listed actions and timelines for addressing each of 

the challenges. The FAA then developed an “Actions 

Taken” report that describes the progress the FAA 

made throughout FY 2021 in addressing each of the 

challenges. These Actions Taken reports, initial Action 

Plans, and the Inspector General’s comprehensive 

report identifying top management challenges for 

FY 2021 will be posted on FAA’s website at http://www.

faa.gov/about/plans_reports/ under the DOT IG Top 

Management Challenges section.

Improving FAA’s Oversight of Aircraft 

Certification Processes

Why this is a challenge

The expert reviews of the 737 MAX airplane certification and 

the FAA's internal analysis have highlighted a need to enhance 

the FAA’s oversight of the aircraft certification process, with 

a focus on safety management systems (SMS), delegation, 

human factors, and workforce improvements. Advancements 

in aircraft automation have contributed to an unprecedented 

level of safety in our domestic aviation system. However, these 

advancements reaffirm the importance of considering human 

factors and the interface between pilots and such systems in 

the certification process. This challenge is moving the FAA 

toward an integrated approach to aircraft certification that 

further improves safety.

Progress in meeting the challenge

Safety Management Systems (SMS)

 The FAA initiated rulemaking to mandate SMS for key 

aviation sectors, including design and manufacturing 

organizations. Until rulemaking is complete, the FAA will 

continue to foster and expand voluntary adoption of SMS in 

design and manufacturing.

 The FAA adopted two new voluntary SMS programs for 

design and manufacturing.

 The FAA worked with MITRE to develop a new SMS training 

course for Aircraft Certification Employees. The first course 

was held in May 2021.

Organization Designation Authorization (ODA)

 The FAA operationalized the Organization Designation 

Authorization (ODA) Office in April 2021. The office leads 

strategic efforts to achieve a consistent, risk-based approach 

to ODA program oversight, achieves performance efficiencies, 

and aligns ODA oversight policies to legislation. The 

office focuses on coordination between the FAA’s Aircraft 

Certification Service (AIR) and Flight Standards Service (FS).

System Safety and Human Factors

 The FAA commissioned the Human Factors Coordinating 

Group (HFCG) that will coordinate with the re-invigorated 

Center of Excellence for Human Factors and Automation 

to identify opportunities for workforce training and 

process enhancements. The HFCG has the expertise to 

establish parameters and content for education and training 

curriculum for the broad range of aircraft technologies 
154 Fiscal Year 2021 | FAA Performance and Accountability Report

Other Information

and human factors considerations associated with those 

technologies.

 The FAA had already established a System Safety 

Implementation team in June 2020. This team is developing 

a plan to enhance standards, policy, and guidance for 

system safety assessments (SSAs) utilized in the typecertification of aircraft. SSAs are critical for identifying the 

range of hazards resulting from aircraft system failures and 

for mitigating risks posed by such hazards.

 The FAA completed and submitted two statements of 

work to the Center of Excellence for Technical Training 

and Human Performance on human factors awareness 

training; human error review; and analysis of human error 

methodologies, frameworks, and taxonomies.

Integrated Project Management

 In June 2020, the FAA commissioned the Integrated 

Program Management Team comprising subject matter 

experts from FS and AIR to assess current practices and 

policies and to make recommendations for improving FAA 

oversight of the integration process between design and 

operations.

 AIR and FS have established joint monthly program reviews 

to ensure integration throughout the certification process. 

The monthly reviews have already proven to be beneficial 

in increasing awareness and integration between the two 

services. 

Enhancing Safety Oversight

 Under the Safety Oversight and Certification Aviation 

Rulemaking Committee (SOC ARC), the FAA created a 

Compliance Assurance System (CAS) working group to 

establish processes to provide confidence in the fulfillment 

of all applicable certification requirements for design 

approvals. The SOC ARC submitted recommendations 

on CAS to the FAA in spring 2021. The FAA is currently 

evaluating these recommendations.

Workforce Development

 The FAA updated the Aviation Safety Engineer 

competencies in 2020, and, in 2021, reviewed and 

updated the Aviation Safety Inspector competencies to 

emphasize the need for systems thinking and risk-based 

decision-making.

Enhancing Data Integration and Sharing

 The FAA initiated a proof-of-concept with a vendor to 

aggregate data and provide advanced analytic capability 

to the FAA workforce for the 737 MAX airplane. The 

FAA plans to use this data to make proactive continued 

operational safety decisions for the 737 MAX fleet.

 The FAA also completed a number of reviews to advance 

aviation safety data integration and sharing. The FAA made 

significant progress on aviation safety data documentation, 

including continued work on the documentation of aircraftlevel data ontology and taxonomy. The FAA also developed 

a data catalog playbook and data concept of operations that 

will be applied via the initiation of the Aircraft Stewardship 

Community of Practice.

What needs to be done

Safety Management Systems

 The FAA plans to issue the Notice of Proposed Rule Making 

for SMS applicable to 14 Code of Federal Regulations 

parts 21, 91, 135, and 145 by fall of 2022. The final rule is 

projected for 2024.

Organization Designation Authorization

 The FAA will issue a new policy in FY 2022 to address the 

requirements for FAA approval of ODA unit members, 

eliminating ODA holder interference with unit members 

and ensuring unrestricted communication.

 The FAA is also finalizing a policy to address the appropriate 

level of FAA ODA Office oversight based on the risks 

associated with each ODA’s authorized functions, size, and 

complexity. The FAA will incorporate this policy, along with 

the policy noted above, into FAA Order 8100.15, which is 

projected for completion in 2023.

 The FAA is prioritizing policy development to meet the 

provisions mandated by the 2020 Aircraft Certification, 

Safety, and Accountability Act. Once this policy 

development is complete, the FAA will assess the impact 

on FAA Order 8100.15 revision C and make updates as 

applicable before starting formal coordination. Updates 

to the order addressing Office of the Inspector General 

recommendation #3, requiring applicants to submit failure 

probability analysis and key assumptions in certification 

deliverables, are anticipated by March 2023.

System Safety Assessments and Human Factors

 The FAA plans to publish a Notice of Proposed Rule Making 

for System Safety Assessments by December 2021. This 

rule will be the baseline for any future Assessments and 

Human Factors assumption rulemaking and policy.

 The FAA has numerous initiatives in progress and has 

commissioned a number of internal and external groups to 

conduct research and develop recommendations to meet 
Fiscal Year 2021 | FAA Performance and Accountability Report 155

Other Information

the mandates in the Aircraft Certification, Safety, and 

Accountability Act of 2020 and various recommendations 

received from the Boeing 737 MAX investigations. The 

FAA is committed to completing these activities in a timely 

manner over the course of the next few years.

Integrated Project Management

 The Integrated Program Management Team will provide 

recommendations for policy and guidance updates 

by December 2021. The FAA also plans to initiate an 

integrated project management prototype between AIR and 

FS for three type certification projects in FY 2022.

 The FAA will continue the monthly program reviews 

initiated in FY 2021.

Enhancing Safety Oversight

 The FAA had published the FAA Integrated Oversight 

Philosophy in June 2017, with the objective to enhance the 

risk methodology for oversight; enable cross-functional 

data sharing; integrate oversight planning and activities; 

and expand the use of voluntary safety programs. Under 

the auspice of the Integrated Oversight Philosophy, the 

FAA plans to initiate a prototype with three companies who 

hold various approvals in 2022.

Workforce Development

 The FAA plans to finalize a program framework and 

structure for hiring, training, and continuing education for 

the AIR technical workforce by September 2022.

Enhancing Data Integration and Sharing

 The FAA will continue to enhance current data systems 

to promote data integration and sharing over the next 

few years. This includes developing robust data systems 

to assure feedback loops between operations and 

maintenance and design and manufacturing. These efforts 

will align with FAA Flight Plan 21, the agency's upcoming 

strategic plan, and Enterprise Information Management 

initiatives.

Enhancing Aviation Safety Oversight 

While Working in a Collaborative 

Environment

Why this is a challenge

FAA inspectors face challenges holding operators accountable 

for regulatory compliance.

Progress in meeting the challenge

Response to Allegiant Air Audit Recommendations

 The FAA initiated compliance actions at Allegiant Air that 

have improved safety for the flying public, are consistent 

with FAA’s Compliance Program, and are in accordance with 

Safety Assurance System policies.

 Recommendation 1: Revised FAA Order 8900.1 Volume 

10, Chapter 3, Section 1 to require managers to review 

and validate that known risks documented in the 

FAA Certificate Holder Assessment Tool are tracked 

until mitigated. This recommendation was closed on 

October 23, 2020.

 Recommendation 2: The FAA's Office of Aviation Safety 

(AVS) monitored compliance with Safety Assurance 

System training requirements. Safety Assurance System 

training is a mandatory training requirement for all 

inspectors. AVS has procedures in place to monitor the 

completion of mandatory training requirements. This 

recommendation was closed on November 5, 2020.

 Recommendation 3: FAA updated the policy contained 

in FAA Order 8900.1 Volume 10 and the guidance 

contained in the Certificate Holder Evaluation Process, 

a standard operation procedure. This recommendation 

was closed on November 5, 2020.

 Recommendations 4-6 & 9: The FAA’s Flight Standards 

Service described how actual or potential outcomes are 

part of the investigative judgements that influence the 

decision of the Flight Standards Service investigative 

personnel to take a compliance or enforcement action. 

The Flight Standards Service notes that the FAA’s 

action(s) remain focused on correcting the root cause 

of the non-compliance. The Flight Standards Service 

indicated how the actual or potential outcomes:

 Are part of the overall investigation;

 Provide insight into the root cause(s) of the event; and,

 Indicate other areas of noncompliance or potential 

areas of improvement to proactive and reactive risk 

controls. 
156 Fiscal Year 2021 | FAA Performance and Accountability Report

Other Information

 The Flight Standards Service developed and implemented 

a resolution process to ensure that disagreements in 

handling non-compliances are dealt with consistently, 

using the most appropriate processes and all relevant 

information. The Flight Standards Service updated Order 

8900.1, Volume 14 with resolution guidance.

 The FAA also revised inspector guidance to clarify how 

inspectors address recurring non-compliances as a factor 

in considering whether they should initiate compliance 

or enforcement actions. The FAA updated Order 8900.1, 

Volume 14 with this clarifying information and developed 

and implemented a process to incorporate historical 

compliance actions in the Safety Assurance System. This 

allows inspectors to track current and historical compliance 

actions. AVS also provided investigative personnel with 

information on how to determine an aviation personnel 

compliance history in Order 8900.1.

 Recommendation 4 was closed on January 13, 2021.

 Recommendation 5 was closed on November 5, 2020.

 Recommendation 6 was closed on December 1, 2020.

 Recommendation 9 was closed on December 2, 2020.

Response to Southwest Airlines Audit Recommendations

 The Southwest Airlines FAA Certificate Management Office 

did not perform in accordance with existing guidance by 

allowing 88 aircraft (the “Skyline” aircraft) to enter service 

through Southwest Airlines’ conformity process, which lacked 

a comprehensive conformity inspection for used aircraft. 

Regarding performance weight and balance, the Southwest 

Airlines Certificate Management Office, at times, did not 

perform in accordance with existing guidance. Once FAA 

leadership became aware of these issues, the agency took 

or oversaw various actions to address the safety matters 

articulated in the Office of the Inspector General draft report.

 Recommendations 2 & 3:

 Ensured that Level One of the on-the-job training 

included review of courses the Aviation Safety 

Inspectors had already attended, pertinent sections of 

FAA Order 8900.1, as well as reading other articles/

books/content related to Level One on-the-job 

training topics.

 Ensured that Level Two of the on-the-job training 

consisted of Policy/Program Offices/Branches 

conducting presentations and briefings on the 

related guidance and any changes/updates that have 

occurred.

 The Southwest Airlines Certificate Management 

Office formed a system analysis team with Southwest 

Airlines to collaboratively identify root causes 

associated with deviations in their aircraft weighing 

program. The team identified several root causes and 

then completed corrective actions to address those 

root causes. The team was closed on September 15, 

2020 following the completion of its work.

 Recommendation 2 was closed on February 1, 2021.

 Recommendation 3 was closed on March 30, 2021.

 Recommendations 4 & 5:

 Mitigated the immediate safety concern by issuing 

a Notice that required Designated Airworthiness 

Representatives to use FAA Form 8100.1, Aircraft 

Conformity Inspection Record. The Notice also 

requires the representative to forward the record to 

their Managing Specialist for inclusion into the aircraft 

records. This action creates greater clarity in how 

each Designated Airworthiness Representative makes 

airworthiness determinations.

 Enhanced Designee training by incorporating the 

requirements contained within the Notice into 

Designated Airworthiness Representative initial and 

recurrent training.

 Updated FAA Order 8130.2J to include the 

requirements outlined within the Notice.

 Recommendations 4 and 5 were closed on May 18, 

2021.

 Recommendation 6:

 Completed a compliance review of other U.S. 

Standard Airworthiness Certificates for transport 

category aircraft issued by the Designated 

Airworthiness Representatives involved in the 

Southwest Airlines "Skyline" project aircraft. The 

compliance review focused on aircraft currently 

operated by other U.S. air carriers.

 This recommendation was closed on February 1, 2021.

 Recommendation 7:

 Ensured Southwest Airlines complied with regulatory 

requirements that the 88 previously owned aircraft 

conform to U.S. aviation standards.

 This recommendation was closed on August 3, 2020.
Fiscal Year 2021 | FAA Performance and Accountability Report 157

Other Information

What needs to be done

Response to Allegiant Air Audit Recommendations

 Recommendation 7: AVS has revised its inspector guidance 

to require inspectors to determine that corrective actions 

taken by air carriers are implemented and have addressed 

known discrepancies prior to closing compliance actions. 

The Flight Standards Service has drafted a notice with 

additional clarifying information. The Notice is expected to 

be published by November 30, 2021.

 Recommendation 8: AVS will perform a comprehensive 

review of FAA's root cause analysis training to ensure it 

meets agency expectations. It will also modify training, as 

appropriate, based on the review, and require inspectors 

to complete the course(s) or offer inspectors access to 

industry-based training programs. AVS expects to complete 

this recommendation by December 31, 2022.

Response to Southwest Airlines Audit Recommendations

 Throughout much of 2020, due to the pandemic, inspectors 

at the Southwest Airlines Certificate Management Office 

had not been assigned onsite inspections to verify the 

performance weight and balance program at various 

locations throughout the carriers’ system. In lieu of onsite 

inspections, the Certificate Management Office leadership 

team met weekly (transitioning to bi-weekly toward the 

beginning of FY 2021) with Southwest Airlines to examine 

the carriers’ Safety Management System data over the past 

year to closely monitor the effectiveness of the weight and 

balance mitigations for errors while assessing the overall 

health of the program.

 Recommendation 1: By December 31, 2021 AVS will:

 Develop a plan to conduct intensive surveillance and 

review of the approved performance weight and balance 

program.

 Initiate a System Analysis Team with Southwest Airlines 

personnel working collaboratively with Southwest 

Airlines Certificate Management Office personnel to 

identify and address root causes of error.

 Review all employee concerns shared with the Transition 

Leadership Team related to this topic and ensure the 

actions outlined will adequately address those concerns.

 The Certificate Management Office is still monitoring the 

corrective actions in accordance with the Performance 

Weight and Balance recommendation. They are 

conducting bi-weekly update meetings with Southwest 

Airlines.

 Recommendation 8: AVS has accomplished the 

following actions and has requested the closure of this 

recommendation:

 Reinforced Aviation Safety Inspector knowledge 

of the process contained within the Designee 

Management System to provide feedback on Designated 

Airworthiness Representative performance to the 

Managing Specialist through the publication of the 

Notice referenced in Recommendations 4 and 5.

 Enhanced awareness of the ability of all Aviation Safety 

Inspectors to access the Designee Management System 

through dedicated communications with Air Carrier 

Safety Assurance leadership.

 During the deployment of Group 3 designees within 

Air Carrier Safety Assurance Offices, the Designee 

Management System deployment team created 

additional awareness on the ability to provide feedback 

to any Management Specialist on the performance of 

any designee.

 Recommendations 9 & 10: By December 31, 2021 AVS will:

 Strengthen existing policy and guidance in:

 Volume 10 Safety Assurance System Policy and 

Procedures

 Volume 17 Safety Management System

 AC 120-92 Safety Management Systems for Aviation 

Service Providers is currently being revised.

 Ensure instructor guide updates for Course 21000105 

(Safety Management System Practical Application 

Workshop) and 21000150 (Safety Management System 

Continued Operations Oversight), which provides 

training on 14 Code of Federal Regulations part 5, 

Subpart C Safety Risk Management applications.

 Recommendation 11: By June 30, 2022, AVS will: 

 Integrate an assessment of safety culture into each 

data collection tool. While the FAA has not developed 

a specific inspection for "safety culture," each data 

collection tool contains a requirement to evaluate 

"safety values and objectives." All data collection tools 

include an assessment question on employee "safety 

ownership." The question’s objective is to evaluate the 

extent to which management effectively communicates 

its company safety objectives to its employees.

 Develop a safety culture assessment tool.
158 Fiscal Year 2021 | FAA Performance and Accountability Report

Other Information

Modernizing New Systems While 

Introducing New Capabilities

Why this is a challenge

The En Route Automation Modernization (ERAM) system 

is a foundational NextGen system that will improve the 

efficiency of the nation’s airspace system. Technical challenges 

and schedule delays have hindered FAA’s efforts to replace 

ERAM’s original computer hardware and modernize its system 

software. The COVID-19 pandemic is also impacting ERAM 

progress.

Another key NextGen capability — Data Communications 

(DataComm) — was scheduled to be implemented by the end of 

2021. Due to the impacts of the 2019 government shutdown, 

latent air-to-ground interoperability issues, and the new 

challenge of COVID-19, that timeline has slipped to at least 

2023.

Progress in meeting the challenge

 Employing COVID-19 safety precautions and protocols, 

ERAM technology refresh 2 installations restarted at 

the key sites in February 2021, and are now complete. 

An in-service decision was obtained in June 2021, which 

allowed for installations to continue at the remaining 17 

ERAM operational locations.

 In February 2021, the FAA tested and released a 

software build to support ERAM Sustainment 3, ERAM 

Enhancements 2, and DataComm Initial Services.

 The FAA also generated a new strategic ERAM software 

release plan to minimize COVID-19 induced schedule 

impacts to DataComm Full Services, ERAM Sustainment 3, 

and ERAM Enhancements 2.

 In order to mitigate the risk of going below acceptable spare 

component levels, the FAA completed a mini-installation of 

a subset of tech refresh hardware at seven ERAM locations.

 The FAA deployed software that mitigated operational 

suitability issues associated with the ERAM technology 

refresh’s display configuration identified at three key sites. 

These operational suitability issues were associated with off 

angle viewing of colors and the larger size of the new 43-

inch diagonal display. The deployed software changed the 

color palette to improve off angle viewing and added display 

of information features that better utilized the 43-inch 

monitor footprint.

 The DataComm services are ready for activation at the 

remaining 17 air route traffic control centers once outside 

personnel are allowed back into the facilities to train the 

controllers and test the system. Planning for a restart 

commenced in April 2021. However, due to the most recent 

surge in COVID-19 cases, there will be additional impacts to 

the deployment schedule.

What needs to be done

 The ERAM Technology Refresh 2 program is on track to 

complete all installations at the remaining 17 operational 

locations by June 30, 2022.

 The next release of software in support of ERAM 

Sustainment 3 is on track for the March 2022 release to key 

sites and for ERAM Enhancements 2.

 Release of software for automated handoffs with 

NavCanada is on track for release to key sites in 

September 2022.

 For DataComm, once outside staff are allowed back into 

the facilities to train the controllers and test the system, 

installations at the remaining 17 operational locations will 

be completed. The June 30, 2022 milestone will continue 

to be dependent on access to facilities based on COVID-19 

protocols.

Implementing New Performance 

Based Navigation (PBN) Flight 

Procedures and Delivering Benefits 

to Airspace Users

Why this is a challenge

The FAA continues to modernize the nation’s airspace system 

through the multibillion-dollar NextGen program. The FAA 

still faces challenges with resolving key obstacles to PBN 

implementation, such as the lack of automated decision 

support tools for controllers, alignment with aircraft equipage, 

and the lengthy procedure amendment process. These 

challenges are being exacerbated by the ongoing impacts of 

the COVID-19 pandemic that has severely impacted FAA’s 

ability to engage subject matter experts and access air traffic 

control facilities.

Progress in meeting the challenge

 Collaborated with industry through the NextGen Advisory 

Committee and developed a Minimum Capabilities List to 

align aircraft avionics with PBN procedure deployment that 

was completed in March 2021.

 Introduced automation enhancements to the procedure 

amendment/development process and decision support 
Fiscal Year 2021 | FAA Performance and Accountability Report 159

Other Information

tools to help ensure investment in new/amended 

procedures aligned with FAA’s national strategy. These 

enhancements also supported the Instrument Flight 

Procedures Inventory Optimization process that was 

implemented in June 2021.

 Completed implementation of the Las Vegas Metroplex 

on February 25, 2021 and closed out the project on 

September 30, 2021. Las Vegas Metroplex implemented 45 

procedures at 4 project airports.

 The South-Central Florida Metroplex implemented 

130 procedures for 21 airports in two phases on 

April 22, 2021 and August 12, 2021. The project started the 

post-implementation analysis phase on August 13, 2021.

What needs to be done

 Refine sequencing tools at Denver International Airport 

and implement new sequencing tools at Los Angeles 

International Airport by August 31, 2022.

 Strengthen trajectory-based operations and PBN procedure 

integration to maximize benefits to users by July 31, 2022.

 Collaborate with industry to develop a five-year projection 

for most of the nation’s busiest airports to ensure better 

alignment between airspace infrastructure and projected 

fleet equipage with an estimated completion by August 31, 

2022.

 Invest in additional automation support tools to facilitate 

more efficient use of instrument flight procedure 

publication slots by September 30, 2022.

 Complete an Airspace Modernization Roadmap that 

describes our strategy for modernizing the nation’s airspace 

system with improved air traffic controller tools with an 

estimated completion by September 30, 2022.

Awarding Pandemic Relief and Other 

DOT Contracts and Grants Efficiently, 

Effectively, and for Intended Purposes

Why this is a challenge

FAA’s Office of Airports provided economic relief to airports 

suffering from the dramatic drop in passenger traffic during 

the pandemic by administering Coronavirus Aid, Relief, and 

Economic Security (CARES) Act Airport Grants. The top 

challenge was getting emergency relief funding to airports 

quickly in order for them to maintain smooth and safe 

operations.

Progress in meeting the challenge

 FAA administered CARES Act Airport Grants within a 

month of the enactment of the CARES Act.

 FAA created a website dedicated specifically for airport 

sponsors regarding their CARES Act Airport Grants 

frequently asked questions (https://www.faa.gov/airports/). 

Since the inception of the program, FAA has updated its 

FAQs three times, each time clarifying its requirements as 

the process matured.

 Initially, FAA had nine part-time employees with airport 

experience reviewing reimbursement requests and 

determining eligibility. The team met weekly to discuss 

issues. Over the past year, FAA hired three former FAA 

managers to concentrate full-time on reimbursement 

requests. This experienced team continually meets on a 

weekly basis with FAA management and compliance staff 

to discuss common issues and to deliberate on eligibility 

determinations. 

 FAA set up a dedicated email account for CARES Act 

Airport Grants questions and submissions that is monitored 

daily. Airport sponsors can ask questions and receive timely 

answers.

 FAA also awarded a contract to Ernst & Young accounting 

firm to provide a risk assessment and oversight of program 

controls for CARES Act Airport Grants.

What needs to be done

 In FY 2021, FAA began reviewing addenda to CARES Act 

Airport Grants for sponsors seeking to use funds on airport 

development projects. Because these projects differ from 

operations and debt service expenses, FAA must spend 

additional time reviewing these projects and expenses. 

FAA headquarters works with field staff to ensure these 

construction projects meet applicable requirements, similar 

to those required for an Airport Improvement Program 

project.

 Given that an airport sponsor has four years after it 

executes a CARES Act Airport Grant agreement to draw 

down funding, FAA will continue to review and approve 

expenses for several more years.

 Along with this funding comes oversight. FAA has been 

working with and will continue to work with auditors to 

ensure no waste, fraud, and abuse of federal funds occurs.
160 Fiscal Year 2021 | FAA Performance and Accountability Report

Other Information

Enhancing Contract and Grant 

Management and Oversight to 

Achieve Desired Results and 

Compliance with Requirements

Why this is a challenge

The additional CARES Act funding provided to the agency 

is presenting an additional challenge for FAA to maintain its 

focus on promoting efficiency and effectiveness in obligating 

funding through contracts while maximizing best value for 

taxpayers.

Progress in meeting the challenge

 FAA revised its Acquisition Management System (AMS) in 

January 2021 to clarify how proposal evaluations and fair 

and reasonable price determinations should be conducted 

and documented in the official contract file.

 FAA further revised its AMS in April 2021 to reinforce 

controls and standards for Independent Government Cost 

Estimates (IGCE), to include detailing standards to promote 

compliance and supportability within IGCEs; and reinforce 

reconciliation actions a program must take when an IGCE 

substantially varies from the potential contract award.

 Beginning in January 2021, FAA’s National Acquisition 

Evaluation Program amended its processes and checklists 

to account for changes to AMS for proposal evaluations 

and reinforce its oversight activities of records supporting 

contract awards.

What needs to be done

 FAA will continue to apply AMS standards for proposal 

evaluations, fair and reasonable price determinations, and 

IGCEs to all agency contract obligations, as applicable in 

FY 2022 and beyond.

 National Acquisition Evaluation Program evaluations for 

FY 2022 and beyond will continue to account for proposal 

evaluations and appropriate records management.

Ensuring the Safe Integration of 

Unmanned Aircraft Systems (UAS) 

in the National Airspace System

Why this is a challenge

A top Department of Transportation (DOT) priority is to 

guide the country into the future of transportation through 

innovation. Emerging technologies and innovative approaches 

to such areas as financing and project delivery will ultimately 

transform how DOT carries out its mission, shapes its 

workforce, and deploys resources. One immediate challenge is 

stewarding the fast pace and scope of emerging technologies 

in vehicle automation and UAS as they are integrated into the 

nation’s air transportation system. These technologies have 

the potential for long-term benefits but also pose new safety, 

oversight, and regulatory challenges.

Progress in meeting the challenge

UAS Integration Pilot Program (IPP)

 The IPP Final Report was developed and coordinated within 

FAA and with DOT’s Office of the Secretary of Transportation 

(OST). It details progress made, accomplishments, challenges, 

and lessons learned from the 3-year program. Currently, 

FAA’s Office of the Administrator is reviewing an OST-edited 

draft of the report.

BEYOND Program

 The BEYOND Program is focused on enabling UAS beyond 

visual line-of-sight operations, and collecting and utilizing 

data pertaining to community engagement best practices 

and the societal and economic benefits of UAS operations. 

The FAA has developed a comprehensive data analysis plan 

connecting data collection efforts, the lines of business 

requiring the data, and the policy and decision-making 

efforts for which the data will be used.

 The FAA worked with eight lead participants representing 

state, local and tribal governments, on community 

engagement plans to collect and address community 

sentiment toward UAS use, and explain UAS planned 

operations in their communities. FAA and the lead 

participants also developed societal and economic data 

plans to assess UAS uses and the FAA built quantitative and 

qualitative measures on the potential and actual societal 

and economic impacts of varying UAS operations.
Fiscal Year 2021 161 | FAA Performance and Accountability Report

Other Information

Rulemaking

 On December 28, 2020, the FAA issued the final rules for 

Remote Identification (ID) and Operations Over People; 

both were effective April 21, 2021. These rules are crucial 

to the agency’s UAS integration efforts of moving toward 

longer-term, more routine, and complex operations, 

including package delivery services and urban air mobility.

 On June 8, 2021, the FAA chartered a UAS Beyond 

Visual Line of Sight Aviation Rulemaking Committee. This 

committee is tasked with providing recommendations for 

safe, scalable, economically viable and environmentally 

advantageous beyond-visual-line-of-sight operations. The 

recommendations are due to the FAA by November 30, 

2021.

Enhance Outreach

The FAA initiated several programs to provide support to 

stakeholders, including:

 The UAS Support Center case management system to 

gather improved and more actionable data that will be used 

to inform targeted outreach initiatives.

 DroneZone Application: FAA successfully launched major 

updates to the application to implement UAS Remote 

ID requirements. We are also developing an application 

that community based organizations can use to request 

recognition by the FAA. An additional application is 

being developed for community based organizations 

and educational institutions that want to apply for FAARecognized Identification Areas in order to comply with the 

Remote ID rule. Both efforts are on schedule to deploy on 

time.

 College Training Initiative (CTI): Launched April 30, 2020, 

the newest college training initiative program was designed 

to prepare students for careers in UAS.

 150 requests to participate have been received since 

April 2020 (includes the number of schools currently 

participating).

 Of the 84 colleges and institutions currently 

participating in the program, 21 are minority serving 

institutions. 

 The FAA has held approximately 125 meetings, 

conferences, and webinars with interested colleges and 

universities, organizations/associations, industry and 

UAS educational service providers since April 2020.

 An online resource portal for the UAS-CTI is hosted by 

the National Center for Autonomous Technologies, a 

National Science Foundation Advanced Technological 

Education grant-funded center.

 Droning On Initiative: The FAA is meeting twice per month 

with public safety and recreational flyer stakeholders to 

share best practices and collaborate on targeted outreach 

initiatives. Topics focus on UAS safety culture and building 

UAS programs. The initiative Droning On After Dark is 

rolling out as part of Drone Safety Awareness Week to 

include special emphasis on UAS racing and input from UAS 

social media influencers.

 The Connected by Drones Initiative is a grass-roots 

approach for bringing governments together to discuss 

all things UAS. A vision for this group is to learn and 

understand what types of operations are happening in their 

jurisdictions and to share best practices. The first meeting 

of the group had 135 persons in attendance; a planning 

committee was established; and 6 meetings and webinars 

have occurred since, covering topics such as new FAA rules, 

the Public Aircraft Operations/Certificate of Authorization 

process, and public safety. An online resource portal for 

Connected by Drones is hosted by the National Center for 

Autonomous Technologies for sharing information.

What needs to be done

BEYOND Program

 The FAA will continue to work with lead participants on the 

following challenges:

 Current detect-and-avoid solutions cannot provide 

adequate detection at long ranges, do not meet size, 

weight, and power requirements for smaller UAS, and 

are cost-prohibitive.

 New Operations Over People/Operations Over Moving 

Vehicle regulations are slowing the advancement of 

operations.

 FAA policy for use, dissemination, and security remains 

unclear for public lead participant access to FAA Radar 

Data.

 Challenges navigating certification compliance. 

 FAA’s reluctance to provide clear guidance on its 

acceptance of industry standards impedes operations.

 Lead participants would like to see progress in updated 

FAA systems, policies, and procedures to enable larger 

UAS (above 55 lbs.), or optionally piloted aircraft which is 

a hybrid between a conventional piloted aircraft and an 

unmanned aerial vehicle.
162 Fiscal Year 2021 | FAA Performance and Accountability Report

Other Information

Rulemaking

 Remote ID Implementation

 By September 16, 2022: UAS manufacturers must 

comply with the final rule’s requirements for them.

 By September 16, 2023: All UAS pilots must meet the 

operating requirements of the Remote ID rule. For most 

operators, this will mean flying a standard Remote ID 

UAS, equipped with a broadcast module, or flying at an 

FAA-recognized identification area. 

 The FAA will receive/review recommendations for 

performance-based regulatory requirements to normalize 

safe, scalable, economically viable, and environmentally 

advantageous UAS beyond-visual-line-of-sight operations 

that are not under positive air traffic control. The FAA 

proposes taking recommendations, initiating rulemaking, 

and having concurrence on all major policy decisions by the 

end of FY 2022.
Fiscal Year 2021 | FAA Performance and Accountability Report 163

Other Information

List of Acronyms and Abbreviations

AAE The FAA Office of Audit and Evaluation

AAM Advanced Air Mobility

AATF Airport and Airway Trust Fund

ACR The FAA Office of Civil Rights

AFN The FAA Office of Finance and Management

AGC The FAA Office of the Chief Counsel

AGI The FAA Office of Government and Industry Affairs

AHR The FAA Office of Human Resource Management

AIP Airport Improvement Program 

AIR Aircraft Certification Service

AMS Acquisition Management System

ANG The FAA Office of NextGen

AOC The FAA Office of Communications

APL FAA Office of Policy, International Affairs and 

Environment

ARC Aviation Rulemaking Committee

ARP Office of Airports (FAA line of business) 

ARPA American Rescue Plan Act of 2021

ARTCC Air Route Traffic Control Center

ASH Office of Security and Hazardous Materials Safety (FAA 

line of business)

ASIAS Aviation Safety Information Analysis and Sharing

AST Office of Commercial Space Transportation (FAA line of 

business)

ATCT Air Traffic Control Tower

ATO Air Traffic Organization (FAA line of business)

AVS Aviation Safety Organization (FAA line of business)

AVSED Aviation and Space Education

BVLOS Beyond Visual Line-of-Sight Operations

CAASD Center for Advanced Aviation System Development

CAPSCA Collaborative Arrangement for the Prevention and 

Management of Public Health Events in Civil Aviation

CARES Coronavirus Aid, Relief, and Economic Security Act

CART Council Aviation Recovery Task Force

CAS Compliance Assurance System

CAST Commercial Aviation Safety Team

CEAR Certificate of Excellence in Accountability Reporting

CFO Chief Financial Officer

CLEEN Continuous Lower Energy, Emissions, and Noise 

Program

CORSIA Carbon Offsetting and Reduction Scheme for 

International Aviation

CRWG Crisis Response Working Group

CRRSA The Coronavirus Response and Relief Supplemental 

Appropriations Act, 2021

CSRS Civil Service Retirement System

CTI College Training Initiative

DAC Drone Advisory Committee

DataComm Data Communications 

DELPHI DOT’s Financial Management System

DHS U.S. Department of Homeland Security

DLRW Dynamic Launch/Reentry Windows

DOD U.S. Department of Defense

DOL U.S. Department of Labor

DOS Department of State

DOT U.S. Department of Transportation

DST Drone Safety Team

E Electronic

EB Executive Board

EMAS Engineered Material Arrestor System

ERAM En Route Automation Modernization

ESC Enterprise Services Center

F&E Facilities and Equipment

FAA Federal Aviation Administration

FAASTeam FAA Safety Team

FECA Federal Employees’ Compensation Act

FERS Federal Employees Retirement System

FFMIA Federal Financial Management Improvement Act of 

1996

FFRDC Federally Funded Research and Development Center

FMFIA Federal Managers’ Financial Integrity Act of 1982

Franchise 

Fund

Administrative Services Franchise Fund

FS Flight Standards Service
164 Fiscal Year 2021 | FAA Performance and Accountability Report

Other Information

FY Fiscal Year

GA General Aviation 

GAAP Generally Accepted Accounting Principles

GAJSC General Aviation Joint Steering Committee 

GPS Global Positioning System

GSA General Services Administration

HAZMAT Hazardous Materials

HFCG Human Factors Coordinating Group

HLCC High Level Conference on COVID-19

ICAO International Civil Aviation Organization

IG Inspector General

IGCE Independent Government Cost Estimates

IMT Incident Management Team

IPP Integration Pilot Program

IRS Internal Revenue Service

ISS International Space Station

IT Information Technology

ITD International Training Division

JRC Joint Resources Council

MMAC Mike Monroney Aeronautical Center

MITRE The MITRE Corporation

MRV Monitoring, Reporting, and Verification

MSI Minority Serving Institutions

NAC NextGen Advisory Committee

NASA National Aeronautics and Space Administration

NextGen Next Generation Air Transportation System

NOTAM Notices to Airmen

NTSB National Transportation Safety Board

OCI Oracle/Compusearch Integration

ODA Organization Designation Authorization

OIG Office of the Inspector General

OMB Office of Management and Budget

OPM Office of Personnel Management

OST DOT’s Office of the Secretary of Transportation

PAR Performance and Accountability Report

PBN Performance Based Navigation

PIIA Payment Integrity Information Act of 2019

PP&E Property, Plant, and Equipment

PRAC Pandemic Response Accountability Committee

PRISM Procurement Information System for Management 

(internet-based acquisition system integrated with 

DELPHI)

Radar Radio detection and ranging

RE&D Research, Engineering, and Development

Remote ID Remote Identification

RFI Request for Information

RIM Runway Incursion Mitigation

RPA Robotic Process Automation

RSA Runway Safety Area

SAVES Strategic Sourcing for the Acquisition of Various 

Equipment and Supplies

SC Steering Committee

SDI Space Data Integrator

SMS Safety Management Systems

SMTS Safety Management Tracking System

SOC ARC Safety Oversight and Certification Aviation Rulemaking 

Committee

SSAs System Safety Assessments

STEM Science, Technology, Engineering, and Math

SUAS Small Unmanned Aircraft Systems

TBLP Time-Based Launch/Reentry Procedures

Technical 

Center

William J. Hughes Technical Center

TFDM Terminal Flight Data Manager

TRACON Terminal Radar Approach Control

UAS Unmanned Aircraft Systems

UAS BVLOS 

ARC

Unmanned Aircraft Systems Beyond Visual Line-ofSight Operations Aviation Rulemaking Committee

UN United Nations

U.S.C. United States Code

USHST The U.S. Helicopter Safety Team

VERA Voluntary Early Retirement Authority 

VSIP Voluntary Separation Incentive Payments

WJHTC William J. Hughes Technical Center
WE WELCOME 

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Accountability Report. 

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Performance and Financial 

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