FY 2014 4th Quarter Performance Report

How are we performing?

The FAA monitors performance for 40 measures, initiatives, and activities which highlight the agency's priority goals in performing our mission and advancing the FAA's new Strategic Initiatives. These goals have been designated as employee Organizational Success Increase (OSI) measures, executive Shared Short Term Incentive (Shared STI) measures, performance objectives in the Department of Transportation's Strategic Plan, and Agency Priority Goals submitted to the Administration.

We are currently overwhelmingly Green on 3 of our strategic goal areas, which focus on making aviation safer and smarter, delivering benefits through technology and infrastructure, and enhancing global leadership. Our fourth strategic goal area, empowering and innovating the FAA's people, has one measure that is currently on track to meet our goals, but is tentative on several key external milestones. Our efforts to mitigate the risks for that particular measure are described below.

Improve Financial Management Practices (Yellow):

Achievements:

Auditors are now in their peak phase of testing. We have prepared many year-end accruals, corrections, and adjustments. We are continuously responding to questions and requests from the auditors. To date, audit testing has identified no exceptions that collectively rise to a material level.

Challenges:

The combination of several relatively immaterial financial errors will very likely result in one or even two significant deficiencies in the audit. However, a significant deficiency is neither a material error nor the risk of a material error. It is a matter that warrants the attention of those in charge of governance. At this time, these matters would not rise to the more severe level of a material weakness and thus would not cause this measure to fail. Overall, many of the errors occurred as a result of the combined effect of many significant challenges unique to this fiscal year. These challenges began with reduced timeframes for conducting 1st quarter's tasks due to the government shut down and resulting extension of the Fiscal Year 2013 audit to mid-December; implementation of Treasury's new reporting system called the Global Treasury Advisory Services (GTAS); upgrade to Delphi's release 12; and our assuming the accounting function for Airport and Airway Trust Fund transactions from Treasury's Bureau of Fiscal Service.

Next Steps:

The pace of auditor requests will intensify until the audit is concluded.

Where are we going?

In Fiscal Year 2014, the Administrator developed a vision for the next five years of an aviation system that reflects the highest standards of safety and efficiency and is a model for the world. As we move forward in the execution of the Administrator's vision, the Agency will focus on novel and streamlined reporting mechanisms to ensure adequate focus is placed on the vision's key areas:

  • Laying the foundation for the National Airspace System (NAS) of the future by achieving prioritized NextGen benefits, enabling the safe and efficient integration of new user entrants including Unmanned Aircraft Systems (UAS) and Commercial Space flights, and deliver more efficient, streamlined air traffic management services;
  • Building on safety management principles to proactively address emerging safety risk by using consistent, data-informed approaches to make smarter, system-level, risk-based decisions;
  • Improving safety, air traffic efficiency, and environmental sustainability across the globe through an integrated, data-driven approach that shapes global standards, enhances collaboration and harmonization, and better targets FAA resources and efforts; and
  • Preparing FAA's human capital for the future, by identifying, recruiting, and training a workforce with the leadership, technical, and functional skills to ensure the U.S. has the world’s safest and most productive aviation sector.

Additional information about the FAA Strategic Initiatives can be found on the FAA Website.