FEDERAL AVIATION ADMINISTRATION

Costing Methodology Report

Fiscal Year 2013

Prepared by Office of Financial Operations
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TABLE OF CONTENTS

Executive Summary...............................................................................................................................................................iii

Purpose and Scope of Report........................................................................................................................................iii

CAS Methodology Used....................................................................................................................................................iii

1 Introduction..................................................................................................................................................................... 5

1.1 CAS Design Objectives........................................................................................................................................ 5

1.2 CAS Design .............................................................................................................................................................. 6

1.3 Costing Terminology........................................................................................................................................... 7

1.4 Methods for Assigning Costs ........................................................................................................................... 8

2 Air Traffic Organization.............................................................................................................................................10

2.1 ATO Cost Targets/Services ............................................................................................................................10

2.2 ATO Cost Model...................................................................................................................................................11

2.3 ATO Cost Assignments .....................................................................................................................................14

2.4 ATO Multiple Service Assignments.............................................................................................................26

3 Aviation Safety ..............................................................................................................................................................28

3.1 AVS Cost Targets/Services .............................................................................................................................28

3.2 AVS Cost Model ...................................................................................................................................................28

3.3 AVS Cost Assignments......................................................................................................................................29

4 Airports............................................................................................................................................................................34

4.1 ARP Cost Targets/Services.............................................................................................................................34

4.2 ARP Cost Model...................................................................................................................................................34

4.3 ARP Cost Assignments .....................................................................................................................................35

5 FAA Corporate Overhead Assignments ..............................................................................................................38

5.1 FAA Headquarters Overhead.........................................................................................................................38

5.2 FAA Regional Overhead...................................................................................................................................39

6 Statement of Net Cost.................................................................................................................................................40

6.1 Major Program Assignments.........................................................................................................................40

6.2 Strategic Goal Assignments............................................................................................................................40

Appendix A: Acronym List................................................................................................................................................41

Appendix B: CAS Report Templates..............................................................................................................................43

ATO Cost of Service Report...........................................................................................................................................43

AVS Services Summary Report....................................................................................................................................44

ARP Cost Type Report.....................................................................................................................................................44
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EXECUTIVE SUMMARY

PURPOSE AND SCOPE OF REPORT

This report is intended for internal managerial accounting personnel and external users for the 

purpose of understanding (1) how the Federal Aviation Administration’s (FAA) Cost Accounting 

System (CAS) captures costs, and (2) how costs are assigned to the services provided by the Air 

Traffic Organization (ATO), Aviation Safety (AVS), and Airports (ARP). This document describes the 

configuration for data processing for Fiscal Year 2013.

CAS METHODOLOGY USED

Before discussing the methodology used to identify the cost of projects and services, one must 

understand the role a cost accounting system plays in a large organization like the FAA. A 

managerial cost accounting system is especially important for assessing operating performance 

from a financial perspective. A managerial cost accounting system should help its users:

• Determine the costs of specific services, projects, activities, etc. and the composition of, and 

changes in, those costs;

• Determine the efforts and accomplishments associated with projects and delivery of 

services and their changes over time and in relation to costs; and

• Measure the efficiency and effectiveness of the organization’s management of services, 

projects, assets, etc.

Effective cost accounting and cost management is supported by underlying processes and systems 

that generate data and information used to assign costs to projects and services, thus achieving the 

objectives described above. FAA collected and assigned costs to services using the following 

guiding principles:

• To the greatest extent possible, associate labor costs directly with specific services to 

reduce the amount of costs that need to be allocated among multiple services;

• Base overhead and general and administrative allocations on a non-econometric, cost 

accounting approach using best available data;

• Place costs into logical groupings that reflect distinct services provided to groups of users;

• Comply with Federal Accounting Standards Advisory Board (FASAB) Standards, and with 

relevant elements of the Chief Financial Officers Act and Office of Management and Budget 

guidelines for cost accounting.

There are essentially three main areas within which the above guidelines can be applied to the 

overall costing methodology used for the FAA’s CAS:

1. Source Data – Identifying the source systems for the appropriate cost and statistical data to 

be incorporated into the CAS.

2. Cost Targets – Identifying the cost objects or services to be costed.

3. Cost Assignments – Determining how the costs, from the source systems, will be assigned to

the identified services.

SOURCE DATA

The costing methodology uses actual costs incurred, derived from several source systems to 

determine the total cost of each project and service. Labor and non-labor costs are provided by 
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FAA’s financial system. Other data, including statistical information used to facilitate allocations, is 

provided by numerous other operational systems.

COST TARGETS

Each major FAA Line of Business (LOB) defined the products and services provided to its users. 

These services represent cost targets, used to measure costs for managerial cost accounting 

purposes.

COST ASSIGNMENTS

The cost assignments in this report are described based on how the costs are reported on the LOB’s 

managerial cost reports.

Costs are assigned to projects, which is the mechanism used to capture cost objects (e.g., a service). 

Costs are attributed to projects, which are then attributed to services. This attribution of costs is 

done using several methods, all recognized by the Federal Accounting Standards Advisory Board 

(FASAB).

In addition, adherence to the guidance previously described resulted in assignments based on 

rational application of business rules that allocate costs to all services that benefit without regard to 

its effect on users.

The costing methodology used in this report is not expected to remain static. Rather, it continues to 

evolve as better operational and financial information becomes available and as FAA management 

gains more experience with the cost and performance information provided by the CAS.
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1 INTRODUCTION

This report is intended for internal managerial accounting personnel and external users for the 

purpose of understanding (1) how the Federal Aviation Administration’s (FAA) Cost Accounting 

System (CAS) captures costs, and (2) how costs are assigned to the services provided by the Air 

Traffic Organization (ATO), Aviation Safety (AVS), and Airports (ARP). This document describes the 

configuration for data processing for Fiscal Year 2013.

This section provides a basic overview of the design objectives of the cost accounting system and its 

components, and defines a common framework for discussing the costing methodology used by the 

Federal Aviation Administration (FAA).

1.1 CAS DESIGN OBJECTIVES

The Federal Aviation Reauthorization Act of 1996, enacted in October 1996, directed the FAA to 

develop a cost accounting system. The Act also called for the FAA to adopt “overflight” fees for 

aircraft flights that fly in U.S.-controlled airspace, but neither take-off from, nor land in, the United 

States. 

To satisfy this statute, and to also develop a system capable of improving financial and operational 

performance, several general requirements were added, and collectively these remain as guiding 

principles for the cost accounting system design. They include:

• Use best available data to provide a transparent, full cost of services provided to aviation 

users;

• Measure and control the cost of resources consumed and output produced;

• Support management decisions and plans based on reliable cost information;

• Direct and control operations, processes, and projects;

• Measure and benchmark the performance of organizations and management in financial 

terms;

• To the greatest extent possible, associate labor costs directly with specific services to 

reduce the amount of costs that need to be allocated among multiple services;

• Place costs into homogeneous pools reflecting distinct services provided to groups of users; 

and

• Comply with Federal Accounting Standards Advisory Board (FASAB) Standards, and with 

relevant elements of the Chief Financial Officer’s Act and Office of Management and Budget 

guidelines for cost accounting.

In addition, CAS receives its data from various information systems which affects the design of the 

cost accounting system. These systems include the following:

 FAA Financial Systems - these sources include existing FAA systems and procedures that 

govern the collection, formatting, and processing of financial data that is interfaced into the 

CAS; and
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 FAA Operational Systems - these sources include existing operational systems and 

procedures that determine the collection, formatting, and processing of operational 

(statistical) data that is interfaced into the CAS.

FAA considered these policies and procedures during the detailed design phase of the CAS 

implementation. Consideration of these policies ensures that the CAS design is sufficiently flexible 

to meet the information capability and reporting requirements defined by internal users and 

external entities for financial and cost accounting systems.

1.2 CAS DESIGN

The costing methodology uses actual costs incurred, derived from several source systems to 

determine the total cost of each project and service. Labor and non-labor costs are provided by 

FAA’s financial system. Other data, including statistical information used to facilitate allocations, is 

provided by numerous other operational systems.

1.2.1 FINANCIAL ACCOUNTING SYSTEM

DELPHI is the core accounting and financial reporting system of the Department of Transportation 

and each of its constituent agencies, including FAA. DELPHI maintains general ledger balances, 

provides accounts payable and receivable, and other appropriation fund accounting capabilities.

FASAB No. 4 discusses cost accounting as it relates to financial (proprietary) accounting and 

budgetary accounting. DELPHI performs financial and budgetary accounting while CAS performs 

cost accounting. While FASAB recognizes a relationship between cost accounting and budgetary 

accounting, they do not state a requirement to include budgetary transactions in the cost 

accounting system. Therefore, only those transactions from DELPHI relevant to cost accounting are 

included in the CAS (e.g., revenues, expenses, gains, and losses).

1.2.2 COST ACCOUNTING SYSTEM (CAS)

There are essentially three major components of the CAS. These components are described below 

and depicted in Figure 1.

1. Current FAA Information Systems. These include the information systems that will provide 

financial and statistical data to the CAS. These systems contain different levels of detail that 

will be required to meet the reporting and internal control requirements of the CAS.

2. Front End Control System. The Front End Control System (FECS) performs accounting 

maintenance and includes the procedures and software programs that control the loading 

of data from current FAA information systems into the CAS. 

3. PeopleSoft Projects Application. PeopleSoft Projects (public sector version) is a 

commercial, off-the-shelf software application. This software product maintains the 

financial, statistical, and control data residing in the database, performs cost assignments, 

provides reporting capabilities, and provides application security.
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Figure 1

1.3 COSTING TERMINOLOGY

There are several sources of guidance that provide common definitions of terms and concepts for 

use in determining the cost of government services as well as alternative acceptable methods for 

assigning costs within a cost management system like the CAS.

The primary source is the Federal Accounting Standards Advisory Board (FASAB), which issues 

Statements of Federal Financial Accounting Standards (SFFAS) and concept statements. Each of 

these standards has varying relevance to the CAS. Most of these standards have a substantial 

impact on the accounting procedures and systems, which provide data to the CAS. SFFAS Number 4 

(typically referred to as FASAB No. 4) and its related amendments set forth broad standards for 

managerial cost accounting, which need to be incorporated in the design of cost accounting 

systems. FAA considered these standards and used them as the basis for the design of the cost 

accounting system.

The information contained in this report relies on consistent and uniform terminology for concepts, 

practices, and techniques. The following terms, some of which are defined by FASAB, provide a 

common framework to achieve this goal:
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Term & Definition Example

Direct Cost – The cost of resources that can be 

specifically identified with an output. (FASAB No. 4)

 Cost of an air traffic controller’s salary

Indirect Cost – The cost of resources that are jointly or 

commonly used to produce two or more types of outputs 

but are not specifically identifiable with any of the 

outputs. (FASAB No. 4)

 Cost of the FAA Administrator’s salary

 Cost of a human resources specialist’s salary

Project – For the purposes of the CAS, a project is a 

collective set of distinct activities that, when performed, 

represent a discrete product or service, an ongoing 

process step, or engineering project. Whatever the 

representation, projects serve as the primary “cost 

objects” in the CAS. 

Projects are used to capture the cost of:

 Developing a new radar system

 Maintaining a navigational device

 Preparing the agency’s budget

Cost Assignment – A process that identifies costs with 

activities, outputs, or other cost objects. In a broad 

sense, costs can be assigned to processes, activities, 

organizational divisions, products, and services. There 

are three methods of cost assignment: (a) directly tracing 

costs wherever economically feasible, (b) cause-andeffect, and (c) allocating costs on a reasonable and 

consistent basis. (FASAB No. 4)

 Spreading the cost of the FAA Administrator’s Office 

to all FAA services provided to users

 Spreading the cost of a line of business executive 

management team to the services that line of 

business provides to users

 Associating an engineering project with a particular 

service

Cost Pool – A collection of homogeneous costs that are 

to be assigned to cost objects.

 All costs incurred by the FAA Administrator’s Office; 

includes the cost of salaries, supplies, or any other 

cost incurred by the Administrator.

Basis – A measure that is used to distribute a pool of 

costs to pre-defined cost objects. This measure can be 

financial or statistical in nature.

 The cost of flight inspection can be allocated to each 

facility based on the number of hours flown to inspect 

each facility.

Cost Object – An activity output, or item whose cost is to 

be measured. In a broad sense, a cost object can be an 

organizational division, a function, task, product, service, 

or a customer. (FASAB No. 4)

 The engineering department’s overhead costs are 

assigned to engineering projects, which are the cost 

objects. 

Figure 2

1.4 METHODS FOR ASSIGNING COSTS

As previously stated, FASAB provides guidance as to acceptable cost accounting practices, 

particularly cost assignments. FAA uses each of the three types of cost assignment methods 

described by FASAB. Each method is described below with examples of its application. Please note, 

the examples provided are used to understand the different types of cost assignments and may not 

apply to FAA. 

 Direct Tracing. The assignment of costs to a chosen cost object. 

- Example 1: An employee completes a time sheet indicating the hours worked on a 

particular project (cost object). The payroll system uses this information to calculate 

the cost of that project based on that employee’s paid salary. This information is then 

provided as an input to the cost accounting system. 
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- Example 2: An employee takes a business trip in support of a specific project. On the 

employee’s expense report he or she charges the cost of the trip to the specific project 

code assigned to the project.

 Cause and Effect. A distribution of costs where the basis serves as an indicator as to 

changes in costs. 

- Example 1: Distributing building lease costs to operating organizations using square 

footage occupied as the basis.

- Example 2: Distributing training costs to cost objects using attendance as the basis.

 Allocation. The assignment of costs to multiple cost objects on a reasonable and consistent 

basis. 

- Example 1: Distributing the human resources department’s costs to the operating 

organizations using headcount as the basis. 

- Example 2: Distributing overhead costs to cost objects using labor cost as the basis.

The method of cost assignment is chosen based on cost-benefit and data source availability. The 

FAA selected assignments by considering the cost to implement a specific method relative to the 

expected benefits of alternative assignment methods.
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2 AIR TRAFFIC ORGANIZATION

The Air Traffic Organization (ATO) is an FAA line of business whose primary responsibility is to 

move air traffic safely and efficiently. ATO consists of controllers, technicians, engineers, and 

support personnel whose daily efforts keep the commercial and private aviation and the military

aircraft moving through the National Airspace System (NAS). 

There are two major functions within ATO that participate in the delivery of ATO services. These 

functions are described below:

 Air Traffic Control (ATC) - This function involves managing the safe and efficient flow of 

air traffic through U.S. controlled airspace. This is accomplished by a workforce of air traffic 

controllers, flight service specialists, and managers and staff working at air traffic control 

facilities located throughout the United States.

 Technical Operations (Tech Ops) – This function ensures the safe and efficient flow of air 

traffic through U.S. controlled airspace by installing, maintaining, and flight inspecting 

facilities. This is accomplished by a workforce of system specialists, flight inspection crews, 

engineering and project management personnel, managers and staff.

2.1 ATO COST TARGETS/SERVICES 

To organize the source data and provide effective cost information based on that data, a cost 

accounting system must have activity outputs, or cost objects, to measure the costs. The ATO line of 

business (LOB) defined four broad services, which represent cost objects for managerial cost 

accounting purposes. These services are defined as follows:

 Enroute - Air traffic control services provided to aircraft operating primarily on instrument 

flight rules flight plans in controlled airspace between their departure and destination 

terminal areas. Enroute services are provided at service delivery points (SDPs), referred to 

as Air Route Traffic Control Centers (ARTCCs), and Combined Enroute Radar Approach 

Control (CERAP) facilities.

 Oceanic - Air traffic control services provided to aircraft operating within international 

airspace where oceanic separation minima and procedures per International Civil Aviation 

Organization (ICAO) standards are applied. Oceanic services are provided at SDPs, referred 

to as ARTCCs and CERAP facilities.

 Terminal - Air traffic control services provided to aircraft arriving and departing airport 

facilities under Instrument Flight Rules or Visual Flight Rules. Terminal services are 

provided at SDPs referred to as Terminal Radar Approach Control (TRACON), Radar 

Approach Control (RAPCON), Airport Traffic Control Tower (ATCT) or CERAP facilities.

 Flight Services - Services provided to users of the National Airspace System (NAS), 

including pilot briefings, search and rescue coordination, aviation weather information, and 

other flight advisory services. Flight Services are provided at SDPs referred to as 

Automated Flight Service Stations (AFSS).
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2.2 ATO COST MODEL

The ATO cost model describes how costs are assigned at different levels of the Air Traffic 

Organization (ATO) using a hierarchical tree structure. The different levels in which costs are 

assigned are used as intermediate “roll-up” points that serve only to meet management reporting 

needs. The levels in the hierarchical structure include Project, Category, Capability, and Service. 

Generally, as an activity occurs, the costs of that activity are assigned to a specific project, referred 

to as the Project level in the cost model. Each project rolls up to a broader level referred to as the 

Category level, which then rolls up to the Capability level. Finally, the Capability is rolled up to the 

final cost object, the Service.

The following example shows how the cost model is used. The Tech Ops organization maintains a 

special type of long-range radar system, used to support only the Enroute service, with sites located 

around the country. The cost of maintenance technicians’ salaries who maintain those systems are 

collected in a project established in the CAS for only that type of long-range radar. This is the 

“Project” level. The cost of this project can then be aggregated to a level called “Category” which, in 

this case, is called the Long Range Radar category where the costs of other types of long range radar 

systems are added. These costs can then be aggregated again to another level called “Capability” 

which, in this case is the Surveillance capability, where the costs of other systems performing a 

surveillance function are added. Finally, the costs can be aggregated yet again to the ”Service” level 

where all costs incurred in support of a specific service, in this case the Enroute service, are 

combined to provide the total cost. Each level has unique elements within this shared hierarchy. 

Figure 3 depicts a conceptual view of the hierarchical structure just described. 
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Air Traffic 

Control

Traffic 

Management

Program 3 Program 3

Communication Surveillance ATC & Traffic 

Management

Nav/Landing Automation

ATO TREE CONCEPT

Services

Capability (Tech Ops) Capability (ATC)

Enroute Oceanic Terminal Flight Services

Infrastructure Weather

Mission Support

Category (Tech Ops)

Category 1 Category 2 Category 3

Projects (O&M) Projects (Engineering Services)

Management

Air Traffic 

Assistant

Program 1 Program 2 Program 1 Program 2

Support

Projects (ATC)

Figure 3

Services provided to external users are delivered from a facility managing contact with the 

customer. This facility is called a Service Delivery Point (SDP) and is associated with the Service 

that is being delivered. Figure 4 depicts a conceptual view of the relationship between the service 

and the SDP. To the extent practical, all costs associated with the structure depicted in Figure 3 are 

also identified with the SDP where service is provided to the user.
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Enroute Oceanic Terminal Flight Services

ARTCCs ARTCCs TRACONs AFSSs

CERAPs CERAPs RAPCONs

ATCTs

CERAPs

SDP CONCEPT

Services

SDPs SDPs SDPs SDPs

Figure 4

Some project costs cannot be associated with an SDP and therefore, are assigned at the service 

level. The Direct User Access Terminal Service (DUATS) is an example of a cost that cannot be 

associated with an SDP. This contractual service provides direct access to weather briefing, flight 

planning, and flight plan filing information to allow pilots to obtain a self-briefing and file a flight 

plan prior to flying. There are thousands of inquiries to the system at multiple SDPs each day and it 

is impractical to collect this much data for cost accounting purposes. 

When a particular cost element could not be associated with a project or SDP, it was assigned at the 

“service” level (or final cost object level) of the hierarchy. For each cost element discussed in this 

document, it is indicated whether it was assigned at the project, SDP, or service level.
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2.3 ATO COST ASSIGNMENTS

This section of the report discusses the methods of assigning ATO costs allowed by FASAB No. 4 and 

how the FAA employs those methods in the ATO cost model. Included is a detailed discussion of 

each major cost assignment performed in the model. The discussion covers the cost pool to be 

assigned, the method of assignment, the target of the assignment, and the basis used.

The discussion of the ATO assignments is organized based on how costs are reported on ATO’s Cost 

of Service report. See Appendix B for an example of this report. Costs are organized in the Cost of 

Service report according to the level in which the costs are controlled. Costs are controlled at the 

facility, service unit, ATO, or FAA level. See Figure 5 for an organizational view of these different 

levels of control.

Figure 5

FAA

ATO AVS ARP AST RCO

Level 1 - Facility

Information Technology Office

Management Services

Safety & Technical Traning

Joint Planning & Development

Program Management Org

System Operations Services

Numerous 

Facilities

Levels of Assignments

Level 4 - 

FAA

Level 3 - ATO 

(Staff Office 

Service Units)

Flight Service

Service Areas

ATCSCC

Chief Operating Officer

Mission Support Services

Level 2 - 

Service Unit

Numerous 

Facilities Service Areas

Numerous 

Facilities Service Areas

Enroute & Oceanic Services

Terminal Services

Technical Operations

Numerous 

Facilities
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2.3.1 LEVEL 1 – FACILITY ASSIGNMENTS

The following assignments are for costs that are controlled by a field facility. Examples of these 

facilities include ARTCC, ATCT, AFSS, TRACON, etc. Each facility is assigned an SDP and the SDP is 

associated with the service that is being delivered.

2.3.1.1 Air Traffic Control Direct Labor

Air Traffic Control direct labor costs include the compensation and benefits of personnel directly 

associated with providing ATC services. These services are typically provided by Air Traffic 

Controllers and first level supervisors. 

The cost of ATC direct labor is directly traced to projects, SDPs, and services using the actual labor 

hours recorded to direct ATC projects by the personnel at each facility.

2.3.1.2 Air Traffic Control Indirect Labor

Air Traffic Control indirect labor costs include the compensation and benefits of personnel that 

perform work common to many ATC activities (e.g., budgeting, human resources, leave, etc.).

The cost of ATC indirect labor is directly traced to projects, SDPs, and services using the actual labor 

hours recorded to indirect ATC projects by the personnel at each facility. Normally indirect costs 

are allocated to direct cost. However, because these costs are charged to a unique organizational 

identifier (cost center) and, in the case of ATC cost centers, they are related to a single service and 

SDP, we are able to directly trace these indirect costs.

2.3.1.3 Air Traffic Control Direct Non-Labor

Non-labor includes costs such as supplies and travel expenses. The ATC direct non-labor costs are 

the types of costs that are directly associated with a specific ATC activity.

The cost of ATC direct non-labor is directly traced to projects, SDPs, and services using the actual 

cost incurred by the personnel at each facility.

2.3.1.4 Air Traffic Control Indirect Non-Labor

Non-labor includes costs such as supplies and travel expenses. The ATC indirect non-labor costs 

are the types of costs that are common to many ATC activities (e.g., office supplies). 

The cost of ATC indirect non-labor is directly traced to projects, SDPs, and services using the actual 

cost incurred by the personnel at each facility. Normally indirect costs are allocated to direct cost. 

However, because these costs are charged to a unique organizational identifier (cost center) and, in 

the case of ATC cost centers, they are related to a single service and SDP, we are able to directly 

trace these indirect costs.

2.3.1.5 Air Traffic Control Academy Training

The FAA Academy, located in Oklahoma City, is a large training facility that provides agency-wide 

resident training services. The cost of ATC training at the FAA Academy includes the costs for 

course development and delivery, and the associated ATC employee travel and per diem costs.
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A fixed percentage allocation is performed in the CAS to assign these training costs attributable to 

the ATC organization to services.

The fixed percentages used to assign the cost to each service were determined based on historic 

values from a system which provided detailed travel and course information.

2.3.1.6 Air Traffic Control Contract Training

In addition to training at the FAA Academy, on-site training is provided under contract at select 

locations because of the specialized needs of controllers. 

A pro rata allocation is performed in the CAS to assign these training costs attributable to the ATC 

organization to projects, SDPs, and services.

The portion of the cost that is assigned to each project, SDP, and service is determined based on the 

actual amount of training hours invoiced by the training contractor at each facility.

2.3.1.7 Tech Ops Direct Labor

Tech Ops direct labor cost includes the compensation and benefits of personnel that are directly 

associated with providing operations and maintenance (O&M) of electronics and equipment used in 

direct support of the NAS.

The cost of Tech Ops direct labor is directly traced to SDPs and services using the actual labor hours 

recorded to direct Tech Ops projects by the personnel at each facility.

2.3.1.8 Tech Ops Direct Non-Labor

Tech Ops direct non-labor cost includes costs such as guard services, ground services, and 

transportation that are directly associated with the NAS facilities and equipment (F&E) used for 

ATC.

The cost of Tech Ops direct non-labor is directly traced to SDPs and services using the actual cost 

incurred by the personnel at each facility.

2.3.1.9 Tech Ops District Office Indirect

Tech Ops District Offices (DO) are responsible for the operations and maintenance of facilities and 

equipment to support ATC services. The Tech Ops DO indirect cost includes both indirect labor and 

non-labor costs that are common to many Tech Ops DO activities.

A pro rata allocation is performed in the CAS to assign the DO indirect costs to direct Tech Ops 

projects and SDPs.

The portion of the cost that is assigned to each project and SDP is determined based on the 

percentage of total costs that are directly traced to each Tech Ops DO project and SDP.

2.3.1.10 Tech Ops Academy Training

The FAA Academy, located in Oklahoma City, is a large training facility that provides agency-wide 

resident training services. The cost of Tech Ops training at the FAA Academy includes the costs for 

course development and delivery, and the associated Tech Ops employee travel and per diem costs. 
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A fixed percentage allocation is performed in the CAS to assign the training costs attributable to the 

Tech Ops organization to services. 

The fixed percentages used to assign the cost to each service were determined based on historic 

values from a system which provided detailed travel and course information. 

2.3.1.11 Telecommunications

Telecommunications cost is associated with telecommunications equipment and connectivity for 

NAS systems and equipment used to provide ATO services. It is important to point out that this 

assignment only addresses the cost of leased telecommunications lines. Owned lines are 

considered part of the real property assets to which they are attached and are capitalized and 

depreciated accordingly.

A pro rata allocation is performed in the CAS to assign telecommunications costs to projects related 

to facilities and/or SDPs that are connected via leased lines. Each leased line is mapped to either 

one or two project and SDP combinations which represent the connection points.

The portion of the costs that is assigned to each project and/or SDP is determined based on the cost 

of the leased lines per facility. An FAA system tracks and manages the cost of each leased line for 

the facilities it services and provides that information to the CAS.

In addition to the telecommunications cost described above, the Oceanic service uses unique 

communications services provided by Aeronautical Radio, Inc. (ARINC).

All ARINC telecommunications cost are assigned to the Oceanic service based on a fixed percentage. 

2.3.1.12 Telecommunications Support

Telecommunications support cost is associated with telecommunications equipment and 

connectivity for NAS systems and equipment used to provide ATO services, but cannot be directly 

assigned to a service. The cost of telecommunications to provide administrative support is a typical 

example of this cost because it is common to multiple services.

A pro rata allocation is performed in the CAS to assign telecommunications support costs to 

projects, SDPs, and services.

The portion of the costs that is assigned to each project, SDP, and service is determined based on 

the cost of leased lines per facility. An FAA system tracks and manages the cost of each leased line 

for the facilities it services and provides that information to the CAS.

2.3.1.13 Flight Inspection Services

Flight inspection cost includes both labor and non-labor costs to support the flight inspection 

function for NAS related equipment and procedures. This function inspects surveillance, 

navigational, landing, and automation equipment by flying within the range of the equipment to 

ensure that it is functioning properly. To perform this function, the FAA maintains a fleet of 

specialized aircraft as well as specially trained pilots and maintenance technicians. 
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A pro rata allocation is performed in the CAS to assign flight inspection costs to projects, SDPs, and 

services.

The portion of the cost that is assigned to each project, SDP, and service is determined based on the 

hours flown for inspection per facility. An FAA system tracks and manages flight inspection activity 

by facilities inspected and hours flown and provides that information to the CAS.

2.3.1.14 Logistics

The FAA Logistics Center is a large depot that is responsible for maintaining stocks and stores of 

spare parts for issuance to the field, performing facility refurbishment services, and providing onsite repair services. These costs incurred for the provision of ATC services are the majority of the 

logistics costs. In addition to the ATC related costs, the Logistics Center also supports the Regional 

Offices and other LOBs as a source of office supplies and other support equipment.

A pro rata allocation is performed in the CAS to assign the portion of costs from the Logistics Center 

incurred in support of ATO. The ATO portion of the costs is identified by the payment ATO makes 

to the Logistics Center to fund their operations and comparing that to the Logistics Center’s total 

funding. The costs are assigned to projects, SDPs, and services. 

The portion of the cost that is assigned to each project, SDP, and service is determined based on the 

value of spare parts issued to each facility as reported by FAA. An FAA system tracks and manages 

the value of the equipment that the Logistics Center issues to each facility in the field and provides 

that information to the CAS. 

2.3.1.15 Utilities

The FAA’s utility costs are significant due to its running of safety critical equipment 24 hours a day 

with full back-up power sources. Utility costs include electricity, gas, water, etc.

Utility costs are directly traced to projects, SDPs, and services using the actual amount of utility cost 

incurred at each facility. 

2.3.2 LEVEL 2 - SERVICE UNIT ASSIGNMENTS

Management control for the following costs exists at the service unit level (e.g., Enroute & Oceanic, 

Terminal, Tech Ops, and System Operations). Therefore, these costs are grouped together for 

reporting purposes. 

2.3.2.1 ATC and Tech Ops Workers’ Compensation

Workers Compensation (WC) is managed and administered by the Department of Labor (DOL). 

FAA’s total WC liability is made up of actual benefits paid to employees (referred to as an accrued 

liability), as well as an actuarial estimate reflecting future liabilities. The actuarial WC Liability 

amount includes estimates for death, disability, medical, and miscellaneous costs for compensation 

cases.

A pro rata allocation is performed in the CAS to assign WC costs attributable to ATO to projects, 

SDPs, and services. The portion of WC cost that is assigned to each project, SDP, and service is 
Page 19 of 44

determined based on a quarterly statement provided by DOL for workers’ compensation benefits 

paid for employees during each chargeback fiscal year, under 5 U.S.C; 47.

2.3.2.2 Direct Field Support

Each ATO capability (e.g., communication, infrastructure, surveillance, etc.) provides support for 

the activities with which it is associated. Although the project that provides this support is directly 

associated with the activities in the capability, it cannot be traced to a specific SDP. Using the radar 

example, the surveillance capability provides support by fixing a problem with a particular type of 

radar. However, this type of radar equipment may be used at multiple SDPs, which means the 

support project cannot be traced to a single SDP.

Therefore, a pro rata allocation is performed in the CAS to assign the direct field support costs to 

SDPs and services.

For each capability, the portion of the cost that is assigned to each SDP and service is determined 

based on the total cost of projects for that capability that are already assigned to SDPs and services.

2.3.2.3 Contract Weather

In order to provide timely and accurate weather information to controllers and pilots, weather 

personnel are on-site at each ARTCC. These individuals, working under contract, interpret weather 

readings and forecasts. 

An allocation is performed in the CAS to assign these costs to projects, all Enroute ARTCC SDPs, and 

the Enroute service. 

The cost is assigned evenly to each SDP. 

2.3.2.4 Contract Weather Observations

Certain ATCTs and TRACONs provide approach control services to smaller airports within their 

airspace. In order to accomplish this safely and to augment automated weather observation 

systems, contract weather observers, who report weather observations to the ATCT or TRACON, 

are located at these remote airports. 

A pro rata allocation is performed in the CAS to assign these costs to projects, the SDPs that receive 

the contract weather observation services, and services. 

The portion of the cost that is assigned to each project, SDP, and service is determined based on the 

amount each SDP is invoiced.

2.3.2.5 Contract Tower

Among all the terminal facilities, contract controllers rather than FAA employees staff a number of 

the smaller towers. These are referred to as contract towers. The contract towers are treated the 

same as any other Terminal facility in that they are assigned to an SDP. 

A pro rata allocation is performed in the CAS to assign the contract tower costs to projects and SDPs 

providing Terminal services under contract.
Page 20 of 44

The portion of the cost that is assigned to each project, SDP, and service is determined based on the 

contract amount for each SDP. 

2.3.2.6 Contract Flight Service

Contract flight service cost is the cost associated with air traffic control services provided under 

contract for flight service stations (AFSS) within the continental United States. 

All contract flight service costs are assigned to the Flight Services (FSS) service. The cost is 

assigned and remains at the service level because these costs are not tracked by SDP. 

2.3.2.7 Direct User Access Terminal Service

Direct User Access Terminal Service (DUATS) is a contract service associated with providing direct 

access to weather briefing, flight planning, and flight plan filing information to allow pilots to obtain 

a self-briefing and file a flight plan prior to flying.

All DUATS costs are assigned to the Flight Services (FSS) service. The cost is assigned and remains 

at the service level because these costs are not tracked by SDP. 

2.3.2.8 F&E Expenses

The FAA’s Facilities and Equipment (F&E) account provides funds necessary to establish, replace, 

relocate, or improve air navigation facilities and equipment, as well as other aviation systems, 

across the nation’s airspace. F&E Expenses are the investments in facilities and equipment that do 

not meet the requirements for capitalization and therefore expensed and charged to the accounting 

period in which the costs were incurred. The FAA Financial Manual describes the capitalization 

policy.

Several cost assignments are used to assign F&E expenses.

First, costs are directly traced to the project and service using project information found on the 

financial transaction.

If costs cannot be directly traced to a service, then projects are grouped by Capability and a pro rata 

allocation is performed in the CAS to assign the costs to services. The portion of the cost that is 

assigned to each project and service is determined based on the percentage of that capability’s total 

cost that is directly traced to each service.

Finally, certain costs cannot be directly traced nor associated with a capability. These costs include 

Leases, Technical Services Support Contracts (TSSC), NAS Infrastructure Support (Engineering 

Services) Contracts (NISC), and Other Miscellaneous Projects. F&E Program Support Leases are 

allocated pro rata to SDPs and services based on annual rent and facility information from the lease 

agreements. In all other cases, a fixed percentage allocation is performed in the CAS to assign the 

projects to the appropriate services. The fixed percentages used to assign the cost to each service 

were determined based on a year-end analysis of the actual costs traced to each service. 
Page 21 of 44

2.3.2.9 Depreciation & Capital Leases

Depreciation is defined as the proportionate amount of an asset’s acquisition cost expensed over its 

estimated useful life and assigned to the period during which it is in use. Depreciable assets include 

Personal Property (e.g., aircraft, equipment, furniture, etc.), Real Property (e.g., buildings, ATC 

towers, etc.), and Capital Leases. Capital leases are agreements for the rights to use property or 

equipment for a specified period of time and must meet specific criteria to be considered 

capitalized. The FAA Financial Manual describes the criteria and procedures related to 

capitalization and depreciation of assets. 

Depreciation costs, which include the cost of capital leases, are directly traced to projects, SDPs, and 

services using the asset identifier information on the accounting transaction.

If depreciation costs cannot be directly traced to a project, SDP, and service, a pro rata allocation is 

performed in the CAS to assign the costs to projects, and services.

The portion of the cost that is assigned to each project and service is determined based on 

depreciation costs that are directly traced to a project and service.

2.3.3 LEVEL 3 - ATO ASSIGNMENTS

The following assignments are for costs that are controllable by the ATO line of business.

2.3.3.1 ATC System Command Center

The Air Traffic Control System Command Center (ATCSCC) is part of a multipurpose facility that 

houses specialized systems that enable the FAA to better manage the flow of air traffic throughout 

the NAS. It provides traffic management and advisory services to air traffic control facilities. It has 

a dedicated controller workforce along with a full complement of operational, administrative, 

technical support and management personnel.

A pro rata allocation is performed in the CAS to assign the ATCSCC costs to projects, SDPs, and 

services. 

The portion of the cost that is assigned to each project, SDP, and service is determined based on the 

number of traffic management coordinators (TMCs) residing at each SDP.

2.3.3.2 Operations Control Centers (Atlantic, Mid-States, Pacific)

The National Operations Control Center (NOCC) is part of a multipurpose facility that houses 

specialized systems that enable FAA to better manage NAS services. Specifically, the NOCC provides 

centralized reporting of facility outage information for the entire NAS. It has a dedicated 

maintenance technician staff along with a full complement of operational, administrative, and 

management personnel. In addition, the NOCC has three “satellite” control centers: the Atlantic 

Operational Control Center (AOCC), the Mid-States Operation Control Center (MOCC), and the 

Pacific Operations Control Center (POCC).

A pro rata allocation is performed in the CAS to assign the NOCC costs to its satellite organizations: 

the AOCC, MOCC, and POCC.
Page 22 of 44

The portion of the cost that is assigned to each satellite OCC is determined based on the total 

personnel compensation and benefits cost for each organization. 

After the NOCC costs are allocated to the satellite OCCs, a pro rata allocation is performed in the CAS 

for each OCC to assign the “loaded” costs of the OCC to projects, SDPs within the service areas that 

the OCC supports, and services.

The portion of the OCCs cost that is assigned to each project, SDP, and service is determined based 

on the number of equipment sites assigned to each SDP.

NOCC

AOCC MOCC POCC

SDPs and 

Services within 

the Eastern 

Service Area

SDPs and 

Services within 

the Central 

Service Area

SDPs and 

Services within 

the Western 

Service Area

Operations Control Centers Assignments

Figure 6

2.3.3.3 National Network Control Center

The National Network Control Center (NNCC) is a major data network management system that 

enables the sharing of flight and other data between the ATC facilities. There are two NNCC “hubs,” 

one in Atlanta and the other in Salt Lake City. Limited NNCC-related equipment can also be found at 

other ATC facilities. The NNCC cost includes labor and non-labor costs of personnel operating the 

NNCC facilities as well as telecommunications costs for NAS systems in support of the NNCC 

facilities. 

A pro rata allocation is performed in the CAS to assign the NNCC costs to the NNCC project, selected 

SDPs with Traffic Management Unit (TMU) presence, and services. An SDP with TMU presence is 

one that has personnel on-site dedicated to providing traffic management. 

The portion of the cost that is assigned to each SDP and service is determined based on the number 

of handles per SDP. A handle is defined as a single aircraft departing, arriving, or transiting an ATC 

facility’s airspace.

2.3.3.4 Charting

The Tech Ops organization is responsible for developing, producing, and distributing aeronautical 

charts and maps, and approach procedures. Since the public consumes these maps and charts, this 
Page 23 of 44

organization is reimbursed for much of its costs. Charting costs only include the costs of these 

products that are for the FAA’s direct benefit. 

A pro rata allocation is performed in the CAS to assign the charting costs to a project, SDPs, and the 

Enroute and Terminal services.

The portion of the cost that is assigned to each SDP and service is determined based on the 

percentage of ATC personnel compensation and benefits. 

2.3.3.5 Service Area Indirect

ATO is made up of different types of Service Units – Staff Office Service Units and ATC/Tech Ops 

related Service Units. Each of the ATC/Tech Ops related Service Units has a regional component 

referred to as a Service Area. Each Service Area provides oversight and support for the services 

provided by the three regions within the respective Service Area. The cost to provide support to 

the regions is considered overhead, or indirect, because it benefits multiple SDPs and services.

A pro rata allocation is performed in the CAS to assign each Service Area’s indirect costs to the 

direct projects, SDPs, and services that they support. 

The portion of the cost that is assigned to each project, SDP, and service is determined based on the 

percentage of total direct cost that is assigned to each project, SDP, and service for that Service 

Area.

2.3.3.6 Service Unit Indirect

As described above, ATO is made up of different types of Service Units – Staff Office Service Units 

and ATC/Tech Ops related Service Units. The Service Unit indirect cost includes only the indirect 

costs associated with ATO’s ATC/Tech Ops related Service Units. The ATC related Service Units 

provide a specific service (e.g., Enroute & Oceanic, Terminal, System Operations, and Technical 

Operations) directly to the users. Each of ATO’s ATC/Tech Ops related Service Units contains a 

Headquarters component. The majority of the Service Unit’s Headquarters cost is considered 

overhead, or an indirect cost, because it is incurred to support the Service Unit.

A pro rata allocation is performed in the CAS to assign each Service Unit’s Headquarters’ indirect 

costs to the direct projects, SDPs, and services that they support. 

The portion of the cost that is assigned to each project, SDP, and service is determined based on the 

percentage of total direct cost that is assigned to each project, SDP, and service for that Service Unit.

2.3.3.7 ATO Indirect

As described above, ATO is made up of different types of Service Units. The ATO indirect cost 

includes only the indirect costs associated with ATO’s Staff Office Service Units. The Staff Office 

Service Units perform overhead related activities that provide support for ATO’s ATC/Tech Ops 

related Service Units. These ATO Staff Office Service Units include the Chief Operating Officer, 

information technology, management services, safety and technical training, joint planning and 

development, program management, and mission support services, The activities provided by 
Page 24 of 44

ATO’s Staff Office Service Units are considered indirect cost because they are common to the ATC 

related Service Units. 

A pro rata allocation is performed in the CAS to assign each Service Unit’s indirect costs to the 

projects, SDPs, and services that they support.

The portion of the cost that is assigned to each project, SDP, and service is determined based on the 

percentage of total direct cost that is assigned to each project, SDP, and service for that Service Unit.

2.3.4 LEVEL 4 - FAA ASSIGNMENTS

The following sections refer to ATO’s portion of cost that are controlled outside of ATO including 

corporate FAA overhead and organizational costs from other LOBs that benefit ATO. 

2.3.4.1 FAA Indirect

FAA Indirect costs include FAA headquarters and regional overhead. A portion of these costs are 

assigned to the direct projects and services within each LOB, including ATO. The FAA overhead 

assignments are described below in section 5 - FAA Corporate Overhead Assignments.

2.3.4.2 Medical 

Air traffic controllers receive regular medical exams as well as drug and alcohol tests. An 

organization within the FAA’s Office of Aviation Medicine (AAM), which resides within the Aviation 

Safety (AVS) line of business, funds, conducts, and manages these exams and tests.

A pro rata allocation is performed in the CAS to assign the medical cost to projects, SDPs, and ATO 

services.

The portion of the cost that is assigned to each project, SDP, and ATO service is determined based 

on the percentage of personnel compensation and benefits attributed to each SDP. 

2.3.4.3 Loss on Disposition of Asset

FAA enters various transactions in order to dispose of assets such as sale, exchange, disposal, or 

retirement which may result in financial losses.

A fixed percentage allocation is performed in the CAS to assign losses to ATO services.

The fixed percentages used to assign the cost to each ATO service were determined based on a 

year-end analysis of the actual costs traced to each service.

2.3.4.4 Employee Benefits Liability

FAA enters various transactions in order to recognize the appropriate level of unfunded liabilities 

for post-retirement benefits, ATC sick leave, accrued leave liability, and Federal Employees 

Compensation Act (FECA) costs.

2.3.4.4.1 Unfunded Benefit Liability

The FAA recognizes the full cost of pensions and other retirement benefits during an employee’s 

active years of service through a combination of costs financed by the FAA’s appropriations and 

imputed costs. Office of Personnel Management (OPM) actuaries determine pension cost factors by 
Page 25 of 44

calculating the value of pension benefits expected to be paid in the future and communicate these 

factors to the FAA. The difference between the costs paid by the FAA during the year and the full 

cost of pensions and other retirement benefits using the OPM’s costs factors is the imputed 

(unfunded) cost. The OPM also provides information regarding the full cost of health and life 

insurance benefits. 

The portion of unfunded benefit costs for air traffic controllers is directly traced to service and SDP 

based on the air traffic facility each employee is assigned.

However, technicians may be responsible for maintaining multiple types of equipment at multiple 

facilities. Therefore, a pro rata allocation is performed in the CAS to assign the portion of unfunded 

benefit costs for technicians to projects, SDPs, and services. 

The portion of the cost that is assigned to each project, SDP, and service is determined based on the 

technicians’ direct labor. 

2.3.4.4.2 Unfunded Liability for ATC Sick Leave

Under the terms of various bargaining unit agreements, employees have the option to receive a 

lump sum payment for a percentage of their accumulated sick leave as of their effective retirement 

date. The estimated unfunded liability is determined based on sick leave balances. 

A pro rata allocation is performed in the CAS to assign ATO’s portion of sick leave to projects, SDPs, 

and services.

The portion of cost for ATC sick leave that is assigned to each project, SDP, and service is 

determined based on the percentage of ATC service units’ personnel compensation and benefits 

costs attributable to each service. 

2.3.4.4.3 Accrued Leave Liability

Annual leave is accrued as it is earned and the accrual is reduced as leave is taken. The accrued 

annual leave account is adjusted bi-weekly to reflect the latest pay rates and unused hours of leave. 

Funding is 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. Increases or decreases in the accrued liability result in an expense. 

A pro rata allocation is performed in the CAS to assign the unfunded leave accrual to projects, SDPs, 

and services.

The portion of the cost that is assigned to each project, SDP, and service is determined based on the 

percentage of ATO personnel compensation and benefits. 

2.3.4.4.4 Actuarial Liability for Federal Employees Compensation Act (FECA)

The Federal Employees Compensation Act is administered by the Department of Labor (DOL) Office 

of Workers’ Compensation Programs and provides monetary compensation for Federal employees 

who are injured in the performance of duty. FAA accrues a liability for FECA compensation 

payments.
Page 26 of 44

A pro rata allocation is performed in the CAS to assign FECA costs attributable to ATO to projects, 

SDPs, and services. 

The portion of FECA cost that is assigned to each project, SDP, and service is determined based on a 

quarterly statement provided by DOL for workers’ compensation benefits paid for employees 

during each chargeback fiscal year, under 5 U.S.C; 47.

2.3.4.5 Environmental and Legal Liability 

2.3.4.5.1 Unfunded Liability for Environmental Remediation

FAA accrues a liability for the environmental remediation of known contaminated sites and the 

estimated environmental cost to decommission assets presently in service.

A fixed percentage allocation is performed in the CAS to assign the environmental remediation 

projects to services.

The fixed percentages used to assign the cost to each service were determined based on a year-end 

analysis of the actual costs traced to each service.

2.3.4.5.2 Unfunded Liability for Legal Claims

The FAA accrues a liability for asserted and pending legal claims reasonably possible of loss.

A fixed percentage allocation is performed in the CAS to assign the legal claims liability cost to each 

service.

The fixed percentages used to assign the cost to each service were determined based on a year-end 

analysis of the actual costs traced to each service.

2.4 ATO MULTIPLE SERVICE ASSIGNMENTS

Most costs are assigned to an SDP, which is the facility managing contact with the customer and is 

associated with the service being provided. However, some SDPs provide multiple services. As a 

result, special assignments are necessary to appropriately assign the cost of these particular SDPs 

to each of the services it provides. 

The following Enroute facilities also provide Oceanic service: New York, Oakland, Houston, 

Anchorage, and San Juan. Personnel and equipment are shared at these specific SDPs to provide 

both Enroute and Oceanic services. 

A fixed percentage allocation is performed in the CAS to assign a portion of the ATC and Tech Ops 

costs at each of the shared facilities to the Oceanic service.

The portion of Tech Ops cost that is assigned to the Oceanic service for each shared facility is 

determined based on the ratio of Oceanic “sectors” to total “sectors” at each of the shared ARTCCs. 

A sector is a region of airspace assigned to a single controller. The San Juan SDP is unique in that all 

of its shared costs are allocated using this basis (i.e., not only the Tech Ops costs).

The portion of ATC cost that is assigned to the Oceanic service for each shared facility (except for 

San Juan) is determined based on Oceanic on-position time as a percentage of the total on-position 
Page 27 of 44

time. At shared facilities where the timekeeping system allows tracking of on-position time at 

dedicated Oceanic positions (e.g., New York and Oakland), the actual percentages are used. At 

shared facilities where there are no dedicated Oceanic positions, the percentages were determined 

using a statistically valid analysis on a sample of historical sign-in, sign-out time records logged by 

controllers in the normal course of performing their duties.
Page 28 of 44

3 AVIATION SAFETY 

Aviation Safety (AVS) is an FAA line of business 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. In addition, Aviation Safety develops regulations and 

certificates all U.S. civil aviation operational and maintenance enterprises. 

3.1 AVS COST TARGETS/SERVICES

To organize the source data and provide effective cost information based on that data, a cost 

accounting system must have activity outputs, or cost objects, to measure the costs. The Aviation 

Safety Organization (AVS) line of business (LOB) defined eight broad services, which represent cost 

objects for managerial cost accounting purposes. These services are defined as follows:

• Aerospace Medicine – Medical programs and services provided to the aviation community 

including aerospace medical research, occupational health, and medical support services.

• Airworthiness Certification - Certification that the design, production quality, and 

airworthiness of aeronautical products, parts and appliances are deemed to meet 

established aviation safety standards.

• Designee – AVS services provided by a designee. A Designee is a representative of the FAA 

Administrator authorized by law to examine, test, and/or make inspections necessary to 

issue airman or aircraft certificates. However, a designee is not considered an employee of 

the U.S. Government, and is not federally protected for the work performed or the decisions 

made as a designee.

• Registration – Development, maintenance, and operation of national programs for the 

registration of United States civil aircraft and certification of airmen.

• Surveillance – Inspection of the physical, chemical, visual, functional attributes or 

characteristics of a product, person, facility, or operation to determine that a person, an 

item or a certain segment of an operation meets standards that are required for certification 

or approval by the FAA.

• Standards - Creation and amendment, as necessary, of the rules and regulations that 

provide the safety standards for people, organizations, and equipment operating in the U.S. 

civil aviation system through policy development, analysis, and rulemaking.

• Air Operator/Agency Certification – Certification of air operators and/or air agencies that 

is deemed to meet established aviation safety standards.

• Other Services – Other services provided by AVS including aviation research, and oversight 

of the unmanned aerial system, and unapproved parts.

Each of these broad services is made up of a series of projects representing additional levels of 

detail used to enhance AVS’ cost management capability. These projects are organized into a 

hierarchy (tree) that allows for intermediate reporting points.

3.2 AVS COST MODEL

The cost model describes how costs are assigned for the Aviation Safety line of business. The levels 

in the structure include Project and Service. Generally, as an activity occurs, the costs of that 
Page 29 of 44

activity are assigned to a specific project, referred to as the Project level in the cost model. Each 

project is associated with one of the broad services that AVS provides. The Service is the final cost 

object.

For example, consider the following activities: developing and issuing airworthiness directives, 

developing and issuing Federal Aviation Regulations, and training the workforce who develop and 

issue standards. The cost of each of these activities is assigned to a specific project. All of the 

projects in this example fall under the Standards service.

Aerospace 

Medicine

Airworthiness 

Certification Designees Registration Surveillance Standards

Air Operator/ 

Agency 

Certification

Other 

Services

Projects Projects Projects Projects Projects Projects Projects Projects

Project 1 Project 1 Project 1 Project 1 Project 1 Project 1 Project 1 Project 1

Project 2 Project 2 Project 2 Project 2 Project 2 Project 2 Project 2 Project 2 

Project 3 Project 3 Project 3 Project 3 Project 3 Project 3 Project 3 Project 3

AVS Sevices

AVS Cost Model

Figure 7

3.3 AVS COST ASSIGNMENTS

This section of the report discusses the methods of assigning costs allowed by FASAB No. 4 and how 

the FAA employs those methods in the cost model. Included is a detailed discussion of each major 

cost assignment performed in the model. The discussion covers the cost pool to be assigned, the 

method of assignment, the target of the assignment, and the basis used.

The discussion of the AVS assignments is organized based on how costs are reported on the AVS 

Services Summary report. See Appendix B for an example of this report.

3.3.1 AVS DIRECT LABOR

AVS direct labor costs include the compensation and benefits of personnel directly associated with 

providing AVS services. 

The cost of AVS direct labor is directly traced to projects using the actual labor hours recorded to 

direct AVS projects by AVS personnel.

3.3.2 AVS DIRECT NON-LABOR

Non-labor includes costs such as supplies and travel expenses. The AVS direct non-labor costs are 

the types of costs that are directly associated with a specific AVS activity.

The cost of AVS direct non-labor is directly traced to projects using the actual cost incurred by AVS 

personnel.
Page 30 of 44

3.3.3 AVS ALLOCATIONS

Certain costs cannot be directly traced to a service. Allocation steps were designed to assign these 

types of costs to the services they support in order to capture the full cost of each AVS service. The 

sections below describe AVS’ allocated costs.

3.3.3.1 FAA Corporate Overhead

FAA corporate overhead costs include FAA headquarters and regional overhead. A portion of these 

costs are assigned to the direct projects and services within each LOB, including AVS. The FAA 

overhead assignments are described below in section 5 - FAA Corporate Overhead Assignments.

In addition, AVS leases several office buildings which are centrally managed by Regions and Center 

Operations. 

A fixed basis allocation is performed in the CAS to assign the AVS leases cost to an AVS 

headquarters organization. The cost will then be included in the AVS headquarters overhead.

3.3.3.2 AVS Headquarters Overhead

AVS headquarters consists of offices that provide supporting activities that are common to the 

services provided by AVS. Typical examples of these indirect costs include general and 

administrative costs, budgeting, human resources, etc. This cost pool also includes the imputed 

cost for post-retirement benefits for employees in AVS headquarters offices, whereas this cost is 

reported separately by some LOBs.

A pro rata allocation is performed in the CAS to assign overhead cost associated with headquarters 

to direct projects.

The portion of the cost that is assigned to each project is determined based on the total cost that is 

directly assigned to each project.

3.3.3.3 AVS Regional Overhead

AVS is organized into geographical regions and each region has several field offices. The regional 

overhead consists of indirect costs that are incurred as the result of providing supporting activities 

that are common to the field offices in that region. Typical examples of these indirect costs include 

general and administrative costs. This cost pool also includes the imputed cost for post-retirement 

benefits for employees in AVS regional offices, whereas this cost is reported separately by some 

LOBs.

A pro rata allocation is performed in the CAS for each region to assign overhead cost associated 

with that regional office to direct projects.

The portion of the cost that is assigned to each project is determined based on the total cost that is 

directly assigned to each project within that particular region.

3.3.3.4 AVS Field Overhead

Field facilities are generally the offices in which direct services are provided. However, these 

offices still may incur indirect costs which are not directly related to the service being provided. 
Page 31 of 44

Typical examples of these indirect costs include general and administrative costs, office space, 

supplies, etc. This cost pool also includes the imputed cost for post-retirement benefits for 

employees in AVS field offices, whereas this cost is reported separately by some LOBs.

A pro rata allocation is performed in the CAS for each field office described above to assign 

overhead cost associated with that field office to direct projects.

The portion of the cost that is assigned to each project is determined based on the total cost that is 

directly assigned to each project within that particular field office.

AVS field overhead allocations were created for the following AVS field offices: Flight Standards 

District Offices (FSDO), International Field Offices (IFO), Aircraft Evaluation Groups (AEG), and 

Certificate Management Offices (CMO). The indirect costs associated with other AVS field offices 

such as Medical Field Offices (MFO), Manufacturing Inspection District Offices (MIDO), Aircraft 

Certification Offices (ACO), etc. are not allocated at this level of detail; rather, the indirect costs are 

included in the regional overhead allocations for their respective region. 

3.3.3.5 AVS Workers’ Compensation

Workers Compensation (WC) is managed and administered by the Department of Labor (DOL). 

FAA’s total WC liability is made up of actual benefits paid to employees (referred to as an accrued 

liability), as well as an actuarial estimate reflecting future liabilities. The actuarial WC Liability 

amount includes estimates for death, disability, medical, and miscellaneous costs for compensation 

cases. 

A pro rata allocation is performed in the CAS to assign WC costs associated with the AVS 

organization to the employee’s detailed organization and a single indirect project. The cost will 

then be pooled in the respective overhead step based on the detailed organization.

The portion of the cost that is assigned to each detailed organization is determined based on a 

quarterly statement provided by DOL for workers’ compensation benefits paid for employees 

during each chargeback fiscal year, under 5 U.S.C; 47.

3.3.3.6 AVS Leave

Employees who are absent from work record their time to a leave project in lieu of a standard labor 

project. At FAA, leave is costed when it is taken rather than when it is earned. Therefore, leave cost 

cannot be associated with direct projects.

A pro rata allocation is performed in the CAS to assign the cost of leave to direct projects.

The portion of the cost that is assigned to each project is determined based on the total cost of 

personnel compensation and benefits that is directly assigned to each project.

3.3.3.7 AVS Academy Training

The FAA Academy, located in Oklahoma City, is a large training facility that provides agency-wide 

resident training services. The cost of training at the FAA Academy includes the costs for course 

development and delivery, and the associated AVS employees’ travel and per diem costs. 
Page 32 of 44

A pro rata allocation is performed in the CAS to assign the training costs attributable to AVS to 

direct projects within AVS.

The portion of the Academy training cost that is assigned to each project is based on the total direct 

cost of training activities incurred by the organization. Organizations within AVS also develop and 

provide localized training for employees due to the specialized nature of their work. The cost of the 

localized training is directly assigned to projects in that organization and therefore used as the 

basis to assign the Academy training cost.

3.3.3.8 AVS Technical Training

In addition to the Academy training, organizations within AVS also develop and provide localized 

training for employees due to the specialized nature of their work. In most cases, specialized 

training is provided to train employees who work on a specific project and therefore, the training 

cost is directly assigned to that project. However, in some instances, technical training is common 

to multiple projects, making it an indirect cost. 

A pro rata allocation is performed in the CAS to assign the indirect technical training costs to direct 

projects.

The portion of the indirect technical training cost that is assigned to each project is based on the 

total direct cost of training activities incurred by the organization. 

3.3.3.9 AVS Special Projects

In addition to the allocations described above, AVS also defined a few special cost assignments. 

These allocations are designed to assign the cost of specific projects to the direct projects that 

benefit from the cost.

3.3.3.9.1 Special Projects to Aerospace Medicine

AVS identified specific Research, Engineering, & Development (RE&D) indirect projects that 

support the Aerospace Medicine service. 

A pro rata allocation is performed in the CAS to assign the cost described above to direct projects 

within the Aerospace Medicine service. Otherwise, the cost would be pooled as overhead and 

spread across all of AVS’ services.

The portion of this cost that is assigned to each project is based on the total direct costs charged to 

projects in the Aerospace Medicine service.

3.3.3.9.2 Special Projects to Designees

The hierarchy of projects that make up the Designee service is organized based on the AVS 

organization associated with the project. In addition, the Designee service includes a special 

oversight project that supports the designee projects associated with Flight Standards (AFS).

A pro rata allocation is performed in the CAS to assign the cost of the special oversight project to 

the direct projects owned by AFS, within the Designee service.
Page 33 of 44

The portion of this cost that is assigned to each project is based on the total direct costs charged to 

those projects owned by AFS, within the Designee service.

This special allocation is performed so that the full costs of the designee projects associated with 

AFS can be captured.

3.3.3.9.3 Special Projects to Flight Standards

The FLSASAM project is a direct project, within the Other Services service, that is used to provide 

support for the automated staffing allocation model. AVS identified that this project specifically 

benefits Flight Standards (AFS).

A pro rata allocation is performed in the CAS to assign the cost of the project described above to the 

direct projects attributable to AFS.

The portion of this cost that is assigned to each project is based on the total direct costs charged to 

those projects by AFS.

This special allocation is performed so that the cost of the FLSASAM project is assigned to the 

organization and its projects that benefit.
Page 34 of 44

4 AIRPORTS

The Airports (ARP) organization is an FAA line of business which provides leadership in planning 

and developing a safe and efficient national airport system, taking into account economics, 

environmental compatibility, local proprietary rights, and safeguarding the public investment. 

4.1 ARP COST TARGETS/SERVICES

To organize the source data and provide effective cost information based on that data, a cost 

accounting system must have activity outputs, or cost objects, to measure the costs. ARP defined 

several services, which represent cost objects for managerial cost accounting purposes. These 

services are defined as follows:

• Airspace Determination – Conducting aeronautical studies associated with the 

construction or alteration of airports and the evaluation of obstructions near airports.

• Airport Safety Certification – Certifying that airports meet established operational and 

safety standards. Two services were defined in order to differentiate between the Part 139 

and Non-Part 139 certifications. 

• Compliance – Assisting airport owners to meet their contractual obligations assumed when 

they accepted Federal grant funds or the transfer of Federal property for airport purposes. 

This also includes monitoring and investigating airports for compliance with these 

obligations as well as other applicable Federal laws.

• Development Planning – Providing guidance on airport planning issues and developing 

techniques, methods, and procedures for use in airport planning.

• Environmental – Evaluating environmental impacts of Airport Improvement Program 

(AIP) projects and determining reasonable alternatives to comply with the National 

Environmental Policy Act of 1969 (NEPA).

• Passenger Facility Charge (PFC) Implementation – Providing oversight and guidance for 

the collection and use of the Passenger Facility Charge (PFC), a fee collected for every 

enplaned passenger at commercial airports controlled by public agencies. 

• Airport Improvement Program (AIP) Implementation – Providing oversight and 

guidance for grants for the planning and development of public-use airports that are 

included in the National Plan of Integrated Airport Systems (NPIAS). Two services were 

defined in order to differentiate between primary and non-primary airports.

• Standards Development – Developing and issuing standards for airport design, 

construction, maintenance, operations, safety, and grant compliance.

• Airport Noise – Evaluating and measuring noise at airports and surrounding areas and 

determining exposure of individuals to noise that result from the operations of an airport.

4.2 ARP COST MODEL

The cost model describes how costs are assigned for the Airports line of business. The levels in the 

structure include Project and Service. Generally, as an activity occurs, the costs of that activity are 

assigned to a specific project, referred to as the Project level in the cost model. Each project is 

associated with one of the services that ARP provides. For ARP, the model is relatively simple 
Page 35 of 44

because there is generally a one to one relationship between project and service - the project 

represents the service being provided. The Service is the final cost object.

4.3 ARP COST ASSIGNMENTS

This section of the report discusses the methods of assigning ARP costs. Included is a detailed 

discussion of the cost assignment, including the cost pool to be assigned, the method of assignment, 

the target of the assignment, and the basis used.

The discussion of the ARP assignments is organized based on how costs are reported on ARP’s Cost 

Type report. See Appendix B for an example of this report. 

4.3.1 ARP DIRECT LABOR

ARP direct labor costs include the compensation and benefits of personnel directly associated with 

providing ARP services. 

The cost of ARP direct labor is directly traced to projects using the actual labor hours recorded to 

direct ARP projects by ARP personnel.

4.3.2 ARP DIRECT NON-LABOR

Non-labor includes costs such as supplies and travel expenses. The ARP direct non-labor costs are 

the types of costs that are directly associated with a specific ARP activity.

The cost of ARP direct non-labor is directly traced to projects using the actual cost incurred by ARP 

personnel.

4.3.3 ARP ALLOCATIONS

Certain costs cannot be directly traced to a service. Allocation steps were designed to assign these 

types of costs to the services they support in order to capture the full cost of each ARP service. The 

sections below describe ARP’s allocated costs.

4.3.3.1 ARP Leave

Employees whom are absent from work record their time to a leave project in lieu of a standard 

labor project. At FAA, leave is costed when it is taken rather than when it is earned. Therefore, 

leave cost cannot be associated with direct projects.

A pro rata allocation is performed in the CAS to assign the cost of leave to direct projects.

The portion of the cost that is assigned to each project is determined based on the total cost of 

personnel compensation and benefits that is directly assigned to each project.

4.3.3.2 ARP Academy Training

The FAA Academy, located in Oklahoma City, is a large training facility that provides agency-wide 

resident training services. The cost of training at the FAA Academy includes the costs for course 

development and delivery, and the associated ARP employees’ travel and per diem costs. 
Page 36 of 44

A pro rata allocation is performed in the CAS to assign the training costs attributable to ARP to 

direct projects within ARP.

The portion of the Academy training cost that is assigned to each project is based on the total cost 

of training activities incurred by the organization. Organizations within ARP also develop and 

provide localized training for employees due to the specialized nature of their work. The cost of the 

localized training is directly assigned to projects in that organization and therefore used to assign 

the Academy training cost.

4.3.3.3 ARP Workers’ Compensation

Workers Compensation (WC) is managed and administered by the Department of Labor (DOL). 

FAA’s total WC liability is made up of actual benefits paid to employees (referred to as an accrued 

liability), as well as an actuarial estimate reflecting future liabilities. The actuarial WC Liability 

amount includes estimates for death, disability, medical, and miscellaneous costs for compensation 

cases.

A pro rata allocation is performed in the CAS to assign WC costs associated with the ARP 

organization to the employee’s detailed organization and a single indirect project. The cost will 

then be pooled in the respective overhead step based on the detailed organization.

The portion of the cost that is assigned to each detailed organization is determined based on a 

quarterly statement provided by DOL for workers’ compensation benefits paid for employees 

during each chargeback fiscal year, under 5 U.S.C; 47.

4.3.3.4 ARP Headquarters Overhead

ARP headquarters consists of offices that provide supporting activities that are common to the 

services provided by ARP. Typical examples of these indirect costs include general and 

administrative costs, budgeting, human resources, etc. This cost pool also includes the imputed 

cost for post-retirement benefits for employees in ARP headquarters offices, whereas this cost is 

reported separately by some LOBs.

A pro rata allocation is performed in the CAS to assign overhead cost associated with headquarters 

offices to direct projects.

The portion of the cost that is assigned to each project is determined based on the total cost that is 

directly assigned to each project.

4.3.3.5 ARP Regional Overhead

ARP is organized into geographical regions and most of these regions have field offices. The 

regional overhead consists of indirect costs that are incurred as the result of providing supporting

activities that are common to the offices in that region. Typical examples of these indirect costs 

include general and administrative costs. This cost pool also includes the imputed cost for postretirement benefits for employees in ARP regional offices, whereas this cost is reported separately 

by some LOBs.
Page 37 of 44

A pro rata allocation is performed in the CAS for each region to assign overhead cost associated 

with that regional office to direct projects.

The portion of the cost that is assigned to each project is determined based on the total cost that is 

directly assigned to each project within that particular region.

4.3.3.6 ARP Field Overhead

The ARP field offices consist of Airport District Offices (ADO). The overhead cost at these field 

facilities consist of indirect cost incurred which are not directly related to the service being 

provided. Typical examples of these indirect costs include general and administrative costs, 

miscellaneous supplies, etc. This cost pool also includes the imputed cost for post-retirement 

benefits for employees in ARP field offices, whereas this cost is reported separately by some LOBs.

A pro rata allocation is performed in the CAS for each field office to assign overhead cost associated 

with that field office to direct projects.

The portion of the cost that is assigned to each project is determined based on the total cost that is 

directly assigned to each project within that particular field office.

4.3.3.7 FAA Corporate Overhead

FAA corporate overhead costs include FAA headquarters and regional overhead. A portion of these 

costs are assigned to the direct projects and services within each LOB, including ARP. The FAA 

overhead assignments are described below in section 5 - FAA Corporate Overhead Assignments.
Page 38 of 44

5 FAA CORPORATE OVERHEAD ASSIGNMENTS

This section of the report discusses the methods of assigning FAA corporate overhead costs. 

Included is a detailed discussion of the cost assignment, including the cost pool to be assigned, the 

method of assignment, the target of the assignment, and the basis used.

5.1 FAAHEADQUARTERS OVERHEAD

The FAA is organized such that a majority of its general and administrative (G&A) services are 

provided by centralized organizations, referred to as FAA staff offices. FAA headquarters overhead 

costs represent the indirect cost of FAA general and administrative services provided to the lines of 

business by personnel residing at FAA headquarters and the Aeronautical Center (AMC).

5.1.1 FAA STAFF OFFICES

FAA staff offices provide financial services; acquisition and business services; government, public 

and industry affairs; legal and policy services; as well as executive leadership. Note, other staff 

offices such as human resources and NextGen are described separately because a different basis is 

used to assign these costs.

A pro rata allocations is performed in the CAS to assign the FAA headquarters indirect costs to 

projects, service delivery points (SDPs), and services within each LOB and selected organizations 

within AMC. Note that not all LOBs track costs at a service and/or SDP level. In this case, costs are 

assigned at the project level.

The portion of the cost of the Administrator’s Office (AOA) and other Assistant Administrator’s 

Offices assigned to projects, SDPs, and services within each LOB is determined based on the 

percentage of total cost.

5.1.2 HUMAN RESOURCES MANAGEMENT

The Office of Human Resources Management provides support related to employment, 

compensation and benefits, learning and development, human capital planning, labor and employee 

relations, workplace environment, etc.

A pro rata allocations is performed in the CAS to assign the human resources indirect costs to 

projects, service delivery points (SDPs), and services within each LOB and selected organizations 

within AMC. Note that not all LOBs track costs at a service and/or SDP level. In this case, costs are 

assigned at the project level.

The portion of the human resources cost assigned to projects, SDPs, and services within each LOB is 

determined based on the percentage of personnel compensation and benefits cost.

5.1.3 NEXTGEN

The NextGen Office provides leadership in planning and developing the Next Generation Air 

Transportation System. This office coordinates NextGen initiatives, programs and policy 

development across the FAA. The William J. Hughes Technical Center, located in Atlantic City, NJ, 

supports the NextGen office and serves as the national scientific test base for the FAA. The 

Technical Center focuses on research and development.
Page 39 of 44

A pro rata allocation is performed in the CAS to assign the NextGen indirect cost to NextGen direct 

projects, SDPs, and services.

The portion of cost that is assigned to each project is determined based on the total cost that is 

directly assigned to each project.

5.1.4 AERONAUTICAL CENTER

The Mike Monroney Aeronautical Center in Oklahoma City, OK, provides logistics, enterprise 

business services, software design, training, course design, and acquisition services.

A pro rata allocation is performed to assign the AMC indirect costs to projects, SDPs, and services 

within each LOB, residing in the Aeronautical Center. Note that not all LOBs track costs at a service 

and/or SDP level. In this case, costs are assigned at the project level.

The portion of the AMC cost assigned to each LOB is based on the percentage of total cost assigned 

to each LOB. 

5.2 FAA REGIONAL OVERHEAD

As mentioned above, the FAA is organized such that a majority of its general and administrative 

(G&A) services are provided by centralized organizations. FAA regional overhead costs represent 

the indirect cost of FAA general and administrative services provided to the lines of business by 

personnel residing at FAA regional headquarters offices. 

A pro rata allocation is performed in the CAS to assign the FAA regional overhead costs to projects, 

SDPs, and services for LOBs with a regional component – ATO, AVS, ARP, and ASH. Note that AST 

and AMC do not receive an allocation because these organizations do not have a regional 

component. Also, note that not all LOBs track costs at a service and/or SDP level. In this case, costs 

are assigned at the project level.

The portion of the cost that is assigned to each project, SDP, and service is determined based on the 

total regional cost that is directly assigned to each project, SDP, and service.
Page 40 of 44

6 STATEMENT OF NET COST

In addition to managerial reporting, CAS generates a Statement of Net Cost consistent with the 

requirements in OMB Circular A-136, Financial Reporting Requirements. The Statement of Net Cost 

displays FAA’s net cost of operations, as a whole, by the major programs related to the major 

goal(s) and output(s) described in the FAA's strategic and performance plans, required by the 

Government Performance and Results Act (GPRA).

6.1 MAJOR PROGRAM ASSIGNMENTS

The major program assignments described in the previous sections of this document are also used 

to generate the Statement of Net Cost. 

6.2 STRATEGIC GOAL ASSIGNMENTS

Each project is assigned to a strategic goal, or a percentage split between multiple strategic goals, 

determined by the program/project owner when a project is established. Therefore, project 

revenues and expenses are directly traced to strategic goals. If a strategic goal cannot be 

determined it is classified as undefined.

A fixed percentage allocation is performed in the CAS to assign project revenues and expenses to 

strategic goals.

The fixed percentages used to assign the revenues and expenses to strategic goals are based on the 

percentages defined when the project was established. 

Then, a pro rata allocation is performed in the CAS for each major program to assign the revenues 

and expenses for undefined projects to strategic goals.

The portion of the revenues and expenses that are assigned to each strategic goal is determined 

based on the revenues and expenses that are directly assigned to strategic goals by each major 

program.
Page 41 of 44

APPENDIX A: ACRONYM LIST

Below is a list of acronyms used throughout this document.

AAM Office of Aviation Medicine

ACO Aircraft Certification Office

ADO Airports District Office

AEG Aircraft Evaluation Groups

AFS Flight Standards Service

AFSS Automated Flight Service Station

AIP Airport Improvement Program

AMC Mike Monroney Aeronautical Center

AOA Office of the Administrator

AOCC Atlantic Operations Control Center 

ARC Assistant Administrator for Regions and Center Operations

ARINC Aeronautical Radio, Inc.

ARP Associate Administrator for Airports

ARTCC Air Route Traffic Control Center 

ASH Assistant Administrator for Security and Hazmat

AST Associate Administrator for Commercial Space Transportation

ATC Air Traffic Control

ATCSCC Air Traffic Control System Command Center 

ATCT Airport Traffic Control Tower

ATO Air Traffic Organization

AVS Associate Administrator for Aviation Safety

CAS Cost Accounting System

CERAP Combined Enroute Radar Approach Control

CMO Certificate Management Office

DOL Department of Labor

DUATS Direct User Access Terminal Service

ENR Enroute Service

F&E Facilities and Equipment

FAA Federal Aviation Administration

FASAB Federal Accounting Standards Advisory Board

FECA Federal Employees Compensation Act

FECS Front-End Control System

FSDO Flight Standards District Office
Page 42 of 44

FSS Flight Services Service

G&A General & Administrative Expense

GPRA Government Performance and Results Act

ICAO International Civil Aviation Organization

IFO International Field Office

LDR Labor Distribution Reporting

LOB Line of Business

MFO Medical Field Office

MIDO Manufacturing Inspection District Office

MOCC Mid-States Operations Control Center 

NAS National Airspace System

NISC NAS Infrastructure Support Contract (Engineering Services Contract)

NNCC National Network Control Center 

NOCC National Operational Control Center

NPIAS National Plan of Integrated Airport Systems 

O&M Operations & Maintenance

OCC Operational Control Center

OCN Oceanic Service

PFC Passenger Facility Charge

POCC Pacific Operations Control Center 

RAPCON Radar Approach Control

RE&D Research, Engineering, & Development

SDP Service Delivery Point

SFFAS Statement of Federal Financial Accounting Standards

Tech Ops Technical Operations

TMC Traffic Management Coordinator

TMU Traffic Management Unit

TRACON Terminal Radar Approach Control

TSSC Technical Services Support Contract

WC Workers Compensation
Page 43 of 44

APPENDIX B: CAS REPORT TEMPLATES

ATO COST OF SERVICE REPORT

ENROUTE OCEANIC FLIGHT 

SERVICE TERMINAL TOTAL FYTD TOTAL

Level 1 - F acility ATC Direct Labor $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

ATC Indirect Labor $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

ATC Direct Non-Labor $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

ATC Indirect Non-Labor $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

ATC Contract Training $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

ATC Academy Training $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

Tech Ops Direct Labor $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

Tech Ops Direct Non-Labor $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

Tech Ops DO Indirect $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

Tech Ops Academy Training $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

Telecommunications $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

Telecommunications Support $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

Flight Inspection Services $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

Logistics $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

Utilities $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

Subtotal: $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

Level 2 - Service UnitATC Workers' Compensation $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

Tech Ops Workers' Compensation $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

Direct Field Support $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

Contract Weather $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

Contract Weather Observations $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

Contract Tower $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

Contract Flight Service $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

DUATS $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

F&E Expenses $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

Depreciation & Capital Leases $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

Subtotal: $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

Level 3 - A T O ATC System Command Center $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

Atlantic Operations Control Center $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

M id-States Operations Control Center $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

Pacific Operations Control Center $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

National Network Control Center $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

Charting $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

Service Area Indirect $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

Service Unit Indirect $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

ATO Indirect $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

Subtotal: $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

Level 4 - F A A FAA Regional Indirect $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

FAA Headquarters Indirect $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

M edical $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

Loss on Disposition of Asset $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

Employee Benefits Liability $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

Environmental and Legal Liability $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

Subtotal: $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

Grand Total: $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

Cost of Service Report

For The Year Ending September 30, 2013

Finance > Cost Accounting > ATO
Page 44 of 44

AVS SERVICES SUMMARY REPORT

ARP COST TYPE REPORT

CURRENT FYTD

LABOR NON-LABOR ALLOCATED TOTAL LABOR NON-LABOR ALLOCATED TOTAL

AERSPCMED AERSPCMED $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

AIRWORCRT AIRWORCRT $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

DESIGNEES DESIGNEES $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

OPRAGCYCRT OPRAGCYCRT $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

OTHERSERV OTHERSERV $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

REGISTRTN REGISTRTN $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

STANDARDS STANDARDS $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

SURVELNCE SURVELNCE $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

TOTAL $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX $ XXX,XXX

Organization: AVS

Grouping: AVS

AVS Services Summary

Finance > Cost Accounting > AVS

FY2013, END-OF-YEAR RUN

ARPHQTRS ARPREG Total

1 Labo r Labo r $ XXX,XXX $ XXX,XXX $ XXX,XXX

1 Subtotal $ XXX,XXX $ XXX,XXX $ XXX,XXX

2 N o n-Labo r T ravel $ XXX,XXX $ XXX,XXX $ XXX,XXX

R ent, Leases and Utilities $ XXX,XXX $ XXX,XXX $ XXX,XXX

Other Services $ XXX,XXX $ XXX,XXX $ XXX,XXX

A ll Other $ XXX,XXX $ XXX,XXX $ XXX,XXX

2 Subtotal $ XXX,XXX $ XXX,XXX $ XXX,XXX

3 A llo catio ns Leave $ XXX,XXX $ XXX,XXX $ XXX,XXX

A M A T raining fo r A R P $ XXX,XXX $ XXX,XXX $ XXX,XXX

A R P H eadquarters $ XXX,XXX $ XXX,XXX $ XXX,XXX

A R P R egio nal $ XXX,XXX $ XXX,XXX $ XXX,XXX

A D O Indirect $ XXX,XXX $ XXX,XXX $ XXX,XXX

F A A H eadquarters $ XXX,XXX $ XXX,XXX $ XXX,XXX

F A A R egio nal $ XXX,XXX $ XXX,XXX $ XXX,XXX

3 Subtotal $ XXX,XXX $ XXX,XXX $ XXX,XXX

Total $ XXX,XXX $ XXX,XXX $ XXX,XXX

Finance > Cost Accounting > ARP

FY2013, END-OF-YEAR RUN

Cost Type Report

Organization: ARP