Fund Retention

1. Fund Retention • Presented April 2003

2. Background • A goal established in the Center’s Balanced Scorecard is to recover costs from the end users of the --laboratories --buildings -- and space that are not funded under the appropriations.

3. Resulting Questions • Does the Technical Center have the ability to: --Charge for services --Retain the funds received for these services

4. Pertinent Authorities • OMB Circular A-25, User Fees • P.L. 108-7, Omnibus Appropriations Bill • 49 U.S.C. 106(I)(6), F.A.A. • 31 U.S.C. 1301(a), Intended use of appropriated funding • 31 U.S.C. 3302(b), Miscellaneous receipts

5. Pertinent Authorities • 31 U.S.C 1535 & 1536, Economy Act • F.A.A. Order 2500.35C, Reimbursable Agreements Covering Services and Material Provided by F.A.A. • Federal Aviation Acquisition Manual Bulletin FB 95-09, Interagency Agreements

6. Findings: Charging For Services • The Agency does have the authority to enter into agreements and to charge for services. • 31 U.S.C. 1535 & 1536 (Economy Act) Provides authority to Federal agencies for requesting and performing interagency reimbursable work under two conditions. -- Reimbursable work must be less expensive than that provided by commercial vendors -- More conveniently provided by Federal agencies than by commercial vendors. • OMB Circular A-25 (User Fees) A user charge will be assessed for special benefits derived beyond those received by the general public.

7. Findings: Charging For Services • OMB Circular A-25 (User Fees) When the imposition of user charges is prohibited or restricted by existing law, agencies will review activities periodically and recommend legislative changes when appropriate. • 49 U.S.C. 106 (I)(6): FAA-Contracts The Administrator is authorized to enter into and perform such contracts, leases, cooperative agreements, or other transactions as may be necessary to carry out the functions of the Administrator and the Administration. • F.A.A. Order 2500.35C & FB 95-09 (Reimbursable Order) Conditions that must be met to enter into agreements: --Nature of work is the same as that conducted under FAA legislative and appropriation authority --Program enhances the broad purpose and policies of the FAA --Performance of the program will not inhibit the conduct of FAA programs

8. Findings: Retention of funds • 31 U.S.C. 3302 (Miscellaneous Receipts) Reimbursements are “amounts collected from outside sources for commodities or services furnished. Unless a statute exists, reimbursements are to be treated as miscellaneous receipts and are to be deposited with the Treasury • OMB Circular A-25 (User Fees) Unless a statute provides otherwise, user charge collections will be credited to the general fund of the Treasury as miscellaneous receipts, as required by 31 U.S.C. 3302. Fees to be credited to accounts should also be consistent with the full-cost recovery guidelines Any fees in excess of full-cost recovery should be credited to the general fund of the Treasury as miscellaneous receipts.

9. Findings: Retention of funds • P.L. 108-7 Omnibus Appropriations (H.J. Res2) Does contain language allowing the crediting of appropriations. Operations:Provided further, That there may be credited to this appropriation funds received from States, counties, municipalities, foreign authorities, other public authorities, and private sources, for expenses incurred in the provision of agency services, including receipts for the maintenance and operation of air navigation facilities, and for issuance, renewal or modification of certificates, including airman, aircraft, and repair station certificates, or for tests related thereto, or for processing major repair or alteration forms.

10. Findings: Retention of funds • P.L. 108-7 Omnibus Appropriations (H.J. Res2) Facilities & Equipment: Provided, That there may be credited to this appropriation funds received from States, counties, municipalities, other public authorities, and private sources, for expenses incurred in the establishment and modernization of air navigation facilities. Research, Engineering, and Development: Provided, That there may be credited to this appropriation funds received from States, counties, municipalities, other public authorities, and private sources, for expenses incurred for research, engineering, and development.

11. Precedence: Retention of funds • 1992-Landing Fees Technical Center was allowed to cover its’ operating and maintenance costs of the air navigation systems at ACY by crediting back to the appropriation the collected landing fees. • 2003-Current TSA/Air Marshall Agreement --Charging for labor cost and non-labor costs --Labor includes Ops & F&E coded individuals --Crediting reimbursements back to the appropriation --Legal concurred that this is acceptable practice

12. Cautionary Notes • Impact Technical Center Line Items • Impact on ACT staffing • Impact on payroll • Potential conflict with OMB Circular A-25

13. Summary • The Center may enter into agreements • Precedence does exist for crediting appropriations • Reimbursements must be for costs only • Reimbursements credited to the appropriation making the expenditure • Any reimbursements over costs must be deposited into miscellaneous receipts • Use of reimbursable agreements is currently available • Guidance and Order are in place for use