FAA Regulations - Laserfiche WebLink

Home

AC 150/5300-4B 6/24/75 72. AIRPORT ACCOUNTS. Although the administration of a public airport is not exactly a proprietary function, it does offer facilities and services at a price. It is in the public interest to efficiently manage such properties, to control costs, to maximize use of assets, and to prudently plan for capital expansion and further development. This requires a carefully designed system for fiscal accounting, preferably a separate airport fund apart from the general fund which finances other activities of the airport owner. If this is not possible, establish separate airport accounts within the general fund a. Keep the fiscal data required for a small utility airport simple. The services of a professional accountant should be obtained in order to establish the record system,but the system itself should be simple enough to be maintained by available airport personnel. A Certified Public Accountant should audit the records at periodic intervals. b. In designing an accounting system for an airport the accountant may suggest various alternate arrangements, and it is important that the airport owner give careful consideration to the basic needs for effective management of airport resources. For example, a record system may be suggested which will accumulate all main- tenance and operating costs under groups or headings. These may be of various types: (1) By object of expense (salaries, supplies, contracts, utilities, etc.), or (2) By organizational responsibility (maintenance, fire protection, operations, etc.), or (3) By types of facility (total cost per square yard for paving, cost per cubic foot to heat buildings, etc.), or (4) By cost centers which are also centers of revenue recovery (terminal building, landing area, hangar area, etc.), or (5) By a combination of the above. c. Local conditions may dictate a preference for one of the above concepts in cost accounting. At most self-supporting airports the trend is toward the cost (and revenue) center concept exemplified by (4) above. In any event, the owner of a small utility airport should avoid the cumbersome and expensive bookkeeping system that would be required to account for each transaction in more than one of these ways. For instance, an expenditure of $100 to repair some paving should not have to be recorded as a paving expense and as a maintenance expense and as an expense of the landing area. Page 84 Chap 13 Par 72 •