FMM_2_12_9_GeneralAviationatReaganNationalAirport_05202009.pdf

TSA Financial Management Manual May 20, 2009

GENERAL AVIATION FEES AT RONALD REAGAN WASHINGTON NATIONAL

AIRPORT

1. PURPOSE

The purpose of this section is to provide instructions on the proper accounting and reporting of fees collected for General Aviation (GA) at Ronald Reagan Washington National Airport

(DCA) (GA@DCA).

After the terrorist attacks on September 11, 2001, the Federal Aviation Administration (FAA) immediately prohibited all aircraft operations within the U.S. airspace. This general prohibition was lifted on September 13, 2001, with the exception of flights in the Washington, D.C., metropolitan area. Thereafter, commercial airline flights were restored, but general aviation aircraft operations remained prohibited at DCA. On July 19, 2005, the Transportation Security Administration (TSA) issued an interim final rule (IFR) to restore general aviation operations at DCA.

Affected general aircraft operators must designate a security coordinator and adopt a DCA Access Standard Security Program (DASSP) to fly into and out of DCA. Moreover, as part of the DASSP, general aircraft operators must ensure that all flight crewmembers have undergone a fingerprint-based criminal history records check (CHRC). Upon complying with these requirements, general aircraft operators become eligible to apply to the FAA for a reservation, and to TSA for authorization, to operate specific flights into and out of DCA.

To receive authorization for a flight, general aircraft operators must have name-based threat assessments conducted by TSA on their flight crewmembers and passengers. Moreover, they must carry an Armed Security Officer (ASO) who has had a threat assessment conducted by TSA, as well as specialized training and authorization from TSA. The operators must have their last point of departure from a Fixed Base Operator (FBO) that holds a security program issued by TSA at an airport designated by TSA (referred to in the IFR as a ‘‘gateway airport’’). At each gateway airport, TSA will inspect the aircraft and will screen the passengers, their carry-on property, and property carried in the cargo hold of the aircraft, before it departs to DCA.

The general aircraft operator must reimburse TSA for any costs associated with carrying out this IFR. These costs include $15 per passenger and crew member for the threat assessments conducted for passengers and crewmembers whose information the general aircraft operator submits to TSA as part of the flight approval process, and $296 per round trip into and out of DCA for the additional screening costs of TSA personnel and equipment at DCA and the gateway airport.

ASO candidates must also reimburse TSA for costs incurred for their training and certification. ASO training consists of a mandatory two day training course available at each of the 21 Federal Air Marshal Service (FAMS) field offices; ASOs must also qualify using a firearm and ammunition approved by TSA. The cost of the ASO training program is $490, Part 2 - Chapter 12, Section 9

TSA Financial Management Manual May 20, 2009 which is the responsibility of the trainee or his/her sponsoring FBO or general aircraft operator.

2. POLICY REFERENCES

Vision 100 – Century of Aviation Reauthorization Act (Public Law Number 108-176) – requires the Secretary of the Department of Homeland Security (DHS) to develop a security plan to permit general aviation aircraft to resume operations into and out of DCA.

49 Code of Federal Regulations 1562 – establishes security procedures for general aircraft operators and gateway airport operators, and security requirements relating to crewmembers, passengers, and armed security officers onboard aircraft operating into or out of DCA.

Chief Financial Officers Act of 1990 (CFO Act), Public Law Number 101-576, Volume 104 Statute 2838 – requires agency CFOs to review on a biennial basis, fees and other charges imposed for services and things of value the agency provides, and make recommendations on revising the charges to reflect costs incurred by the agency in providing those services and things of value.

Debt Collection Improvement Act of 1996 (DCIA) – establishes a framework for improved federal debt collection government-wide by centralizing the management of delinquent obligations overdue by 180 days in the Department of the Treasury and providing agencies with more effective debt collection tools, such as centralized administrative offsets and administrative wage garnishments.

Office of Management and Budget (OMB) Circular A-25, Transmittal Memorandum #1, User Charges (July 8, 1993) – establishes Federal policy regarding fees assessed for Government services.

3. DEFINITIONS

Accountable Official – A U.S. Government employee or agent who is responsible for or has custody of government/public funds. The term includes certifying officers, disbursing officials and others who are responsible for or have custody of government funds (e.g., cashiers, collecting agents, imprest fund cashiers, etc.). An accountable official can be held financially liable for illegal or improper payments.

Accounts Receivable – An umbrella term for amounts owed the U.S. Government by an individual, organization, or other entity. A receivable should be recognized when a Federal entity establishes a claim to cash or other assets against other entities, either based on legal provisions, or goods or services provided. If the exact amount is unknown, a reasonable estimate should be made. [SFFAS 1, ¶41 as amended by SFFAS 7, ¶53.] o Receivables with the Public – These are claims by TSA against public and private entities, domestic or foreign individuals, and all organizations outside the U.S.

Government.

o Intragovernmental Receivables – These are claims by TSA against another Federal entity. Intragovernmental receivables are never considered delinquent because the

TSA Financial Management Manual May 20, 2009

U.S. Government does not assess interest, penalties, or administrative fees against itself.

Automated Clearing House (ACH) – A nationwide electronic funds transfer system governed by the National Automated Clearing House Association (NACHA) operating rules which provide for the interbank clearing of electronic payments for participating depository financial institutions. The ACH system connects banks to one another by way of the Federal Reserve Board or other ACH operators.

CA$HLINK II – An electronic system used to manage the collection of U.S. Government funds and to provide deposit information to Federal agencies. CA$HLINK II links Federal agencies, Financial Institutions, the Federal Reserve Banks, and Treasury fund managers through an electronic network.

Clearing Accounts – These are accounts established by Treasury to temporarily hold unidentified general and special accounts or trust fund collections that belong to the U.S.

Government until the funds are classified to the proper receipt or expenditure account. An “F” preceding the last four digits of the fund account symbol identifies the clearing account. As of April 1, 2009, clearing account balances greater than 60 days will be reversed in the TSA accounting system per Treasury regulations.

o Budget clearing account __F3875 is used to temporarily credit unclassified transactions from the public until the funds can be reclassified to the correct account.

o Undistributed intergovernmental payment account __F3885 is used to temporarily credit unclassified transactions between Federal agencies, including IPAC transactions.

Core Accounting System (CAS) – Customized version of Oracle Financials used by the U.S. Coast Guard and TSA.

Debt – This term refers to an amount of money, funds, or property that have been determined by an agency official to be due to the U.S. Government from any person, organization, or entity, except another Federal agency.

Delinquent Receivables – These are accounts receivable not paid by the date specified in the original dunning letter or repayment agreement.

Electronic Check Processing (ECP) – A Treasury system used to clear checks using both ACH electronic debits and check truncation (aka Check 21). ECP makes a decision on each check whether to truncate and image the check or create an ACH debit. Most consumer checks will be converted to ACH debits, while most corporate checks will be truncated. Truncation under Check 21 does not convert a check into an ACH debit as conversion does; truncation simply accelerates the settlement process through the use of digital images.

FINCEN – The U.S. Coast Guard Finance Center, which is the accounting service provider for TSA.

General Aviation – One of two categories of civil aviation. It refers to all flights other than military and scheduled airline flights, both private and commercial. General aviation

TSA Financial Management Manual May 20, 2009 flights range from gliders and powered parachutes to large, non-scheduled cargo jet flights.

Intra-Governmental Payment and Collection System (IPAC) – This system is one of the major components of the U.S. Treasury’s Government On-line Accounting Link System (GOALS II). IPAC’s primary purpose is to provide a standardized means of funds transfers between Federal agencies. The IPAC procedure is sometimes referred to as a “push/pull” funds transfer. The agency owing another agency funds “pushes” the payment to them; the collecting agency “pulls” in the funds.

Lockbox – A collection and processing service offered by financial institutions to accelerate the flow of funds to a Treasury General Account. The offered service includes collecting the mail from a specified post office box; sorting, totaling, and recording the payments; and making the deposits. The financial institution forwards copies of all collection documentation to FINCEN for posting into CAS.

Non-Delinquent Receivables – These are accounts receivable outstanding for 30 days or less.

Pay.gov – A portal developed by Treasury. Pay.gov enables individuals and businesses to securely and easily send electronic payments to the U.S. Government by debit/credit card or ACH debit of a saving or checking account.

Treasury – A general reference to the U.S. Department of Treasury and the various programs and/or systems employed by the U.S Department of Treasury.

4. RESPONSIBILITIES

A. The Transportation Threat Assessment and Credentialing Office (TTAC) is the TSA program office responsible for managing GA@DCA, which includes ensuring background checks are conducted on all flight crewmembers and threat assessments are conducted for all passengers and crewmembers for each round-trip flight into or out of DCA. TTAC notifies the TSA Office of Revenue monthly of background checks, threat assessments, and related fees.

B. The Office of Revenue forecasts the annual revenue from fees (with input from TTAC), instructs FINCEN on the correct recording of fee collections posted to CAS, and ensures delinquent receivables are collected or referred to Treasury.

C. The OFM Accounting Branch ensures the proper accounting of fees for general aviation at DCA and FAMS ASO training, and works with FINCEN to ensure the timely and accurate posting into CAS.

D. The OFM Financial Systems Branch manages the CAS.

E. The OFM Funds Control and Program Support Branch manages the accurate posting of Office of the Budget and Performance (OBP) issued allotments.

F. The OBP performs budget formulation and budget execution for TSA, including the timely allocation of budgetary authority to TSA program offices and activities when fees are collected.

TSA Financial Management Manual May 20, 2009

G. FINCEN prepares invoices and establishes accounts receivable for airport screening and threat assessments conducted by the GA@DCA program office (TTAC), posts the receipt of fees for GA@DCA and FAMS ASO training into CAS, and coordinates unresolved issues with the Office of Revenue and/or OFM Accounting Branch.

H. FAMS conducts ASO training and ensures the ASO threat assessment and training fees are remitted before accepting candidates for ASO training and before certifying them as an authorized ASO. FAMS notifies the Office of Revenue and FINCEN of all background checks and threat assessments conducted monthly.

5. PROCEDURES

Within TSA, the key processes to account for fees are as follows:

Budget formulation and appropriation of funds Establishing accounts receivable Collecting and posting fees Budget execution: apportionment, allotment, sub-allotment, and allocation of funds

A. Budget Formulation and Appropriation of Funds

(1) Establishing Fees: TSA charges three different fees related to general aviation flights into DCA:

(a) Threat assessments for crew and passengers of each DCA flight: TSA charges $15 per crewmember and passenger for name-based threat assessments conducted on each flight for each round-trip flight into or out of

DCA.

(b) Additional screening of crew, passengers, and aircraft for each DCA flight: TSA charges $148 per flight ($296 per round trip) for the cost of additional TSA screening personnel and equipment at DCA and the gateway airport.

(c) ASO training

(i) TSA charges $490 per trainee to conduct ASO training. Training topics include aviation operations, basic tactics, briefing and reporting procedures, surveillance and counter surveillance, ASO Program procedures, and basic defensive tactics.

(ii) Pursuant to the CFO Act and OMB Circular A–25, TSA reviews these fees at least every two years. All fees are adjusted as necessary to ensure TSA recovers its full cost.

(2) Forecasting the Annual Fee Revenue: The Office of Revenue forecasts the annual revenue from fees, with input from TTAC. The forecasted amount of collections is provided to the OBP for inclusion in the annual TSA budget request.

TSA Financial Management Manual May 20, 2009

(3) Recording Direct Appropriations: The GA@DCA and ASO training programs do not receive direct appropriations.

(4) Recording Anticipated Collections

(a) The OFM Funds Control and Program Support Branch records the anticipated non-Federal collections and apportionment for the anticipated fees based on the SF 132 – Apportionment and Reapportionment Schedule and supporting schedules provided by the OBP. This occurs for every SF 132 report approved by the OMB during the fiscal year. TSA offices may not incur obligations against these anticipated resources, because they are from non- Federal sources.

(b) Anticipated collections of annual revenue from GA@DCA fees are recorded.

The amount recorded is based on the forecast by the Office of Revenue included in the TSA budget request and reported on the SF 132. OBP notifies the OFM Funds Control and Program Support Branch of the amount to record as anticipated collections, and verifies the amounts posted to CAS are correct.

Budgetary Entry

To record anticipated collection of GA@DCA fees Account Description Debit Credit 4060 Anticipated Collections From Non-Federal Sources XX 4450 Unapportioned Authority XX

Proprietary Entry None1

(5) Recording Apportionment of Funds

(a) Monthly, the OFM Financial Systems Branch prepares an analysis of actual fee collections and provides it to OBP. In addition, the Office of Revenue notifies the OBP monthly of collections received.

(b) From this analysis, OBP prepares a quarterly apportionment request (SF 132) and submits it to OMB. OBP receives the OMB approved apportionment and provides it to the OFM Funds Control and Program Support Branch, which enters the new apportionment into CAS.

1 No proprietary entry is recorded for anticipated collections of non-federal revenue (receivables from the public) until actually received.

TSA Financial Management Manual May 20, 2009

Budgetary Entry

To record OMB apportionment to TSA Account Description Debit Credit 4450 Unapportioned Authority XX

Apportionments - Anticipated Resources – Programs Subject to Apportionment

XX

None

(c) Anticipated resources from non-Federal sources are not available for obligation, and may not be allocated to TSA staff or program offices until collected.

B. Establishing Accounts Receivable

(1) Recognition of Accounts Receivable

(a) ASO Training: ASO applicants accepted into the training program are also directed to the Pay.gov website to sign up for the ASO training class.

Applicants are not allowed to take the ASO training until payment is made;

therefore, no account receivable is recognized for ASO training.

(b) Individual Flights into DCA: For approved flights into or out of DCA, TSA conducts a name-based threat assessment on all crew and passengers, and performs additional screening of the aircraft upon travel to and from DCA.

Upon performance of these services, the program office notifies the Office of Revenue and FINCEN of the services provided and amounts due from each general aircraft operator. Accounts receivable are established and revenue is recognized at such time.

(2) Recording Receivables

(c) TTAC sends detailed information to the Office of Revenue and FINCEN when vetting or screening is performed. FINCEN establishes the account receivable and bills the general aircraft operator for services provided the previous month; the bill delineates between threat assessment charges and screening charges. The aircraft operator has 30 days from the date of the invoice to remit payment to TSA.

C. Collecting and Posting Fees

(1) Upon receipt, FINCEN posts deposits of fees to TSA’s budget clearing account “70F3875.” Note: Per Treasury regulations, as of April 1, 2009, all clearing account balances greater than 60 days will be reversed in the accounting system. On a daily basis, the Office of Revenue retrieves deposit information from the various Treasury systems (CA$HLINK, Pay.Gov, and ECP) and prepares a spreadsheet identifying the types of fees collected and the individual customer accounts for deposits received. FINCEN uses the spreadsheet provided by the

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Office of Revenue to reclassify payments originally posted to the budget clearing account, to the correct customer account. Receipts for fees related to GA@DCA and ASO training are credited to TAFS 70X0550.

To record the collection of governmental-type fees Account Description Debit Credit 4260 Actual Collections of “governmental-type” Fees XX

Anticipated Collections From Non-Federal Sources

XX

To record receipt of fees

Account Description Debit Credit 1010 Fund Balance with Treasury XX 5900 Other Revenue XX

(2) The Office of Revenue also notifies TTAC and OBP once fees have been collected. TTAC is notified to reflect payments received and verify the general aircraft operator’s adherence to the DASSP requirements; OBP is notified to allocate budget authority resulting from fees collected.

(3) If the aircraft operator does not remit timely payment, the Office of Revenue pursues collection; interest fees, penalty fees, and an additional administrative fee may be assessed accordingly. The Office of Revenue also notifies TTAC of the operator’s noncompliance with the requirements of the GA@DCA program.

Continued non-response by the general aircraft operator may result in suspending or revoking their authorization to operate flights into and out of DCA, as well as assessing civil penalties. Guidance on the treatment of delinquent accounts receivable can be found in FMM 2.6.4 Vendor Indebtedness and Accounts Receivable.

D. Budget Execution: Apportionment, Allotment, Sub-Allotment, and Allocation of

Funds

(1) The Anti-Deficiency Act prohibits an accountable official from authorizing an expenditure or obligation of funds in excess of amounts available in an appropriation, apportionment, allotment, or other agency subdivision of funds.

Allotments and sub-allotments are clearly subject to the provisions of the Anti- Deficiency Act. Although it is possible that agency allocations/allowances may not be subject to the Anti-Deficiency Act, TSA policy prohibits any commitments, obligations, and/or expenditures before budget authority is allocated by OBP.

(2) Based on the quarterly apportionment approved by OMB, the monthly notice from the Office of Revenue, and the monthly analysis of fee collections by the OFM http://topweb.tsa.dhs.gov/intraweb/assetlibrary/FMM_2.6.4_Vendor_Debts_and_AR.pdf http://topweb.tsa.dhs.gov/intraweb/assetlibrary/FMM_2.6.4_Vendor_Debts_and_AR.pdf

TSA Financial Management Manual May 20, 2009

Financial Systems Branch, OBP prepares monthly allotments and sub-allotments which are distributed to the TSA program offices. Allotments and sub-allotments are based on the previous month’s actual collections to date (e.g. the allotment for April 2007 would be based on actual collections through March 2007), not to exceed the latest OMB apportionment. OBP further distributes budget authority from the TSA program offices to Managing Unit segments via allocations/allowances.

(3) Since sub-allotments and allocations are considered agency subdivisions of funds, no specific USSGL accounts have been established by Treasury to report these subdivisions. Within CAS, sub-allotments are identified by the combination of the 8-digit CAS general ledger account plus the following accounting code data elements: Appropriation Code, Budget Year, Program/Project, Activity, Sub- Activity, and Funding Organization. TSA allocations/allowances in CAS are identified by the 8-digit CAS general ledger account plus the following accounting code data elements: Appropriation Code, Budget Year, Program/Project, Activity, Sub-Activity, Funding Organization and Managing Unit.

To record TSA allotment

Account Description Debit Credit 45900000 Apportionments Unavailable - Anticipated Resources XX 46100100 Allotments - Direct TSA XX

To record TSA sub-allotment

Account Description Debit Credit 46100100 Allotments - Direct TSA XX 46100200 Sub Allotments - Direct TSA XX

To record TSA allocation/allowance

Account Description Debit Credit 46100200 Sub Allotments - Direct TSA XX 46100000 Allotments - Realized Resources XX

None