Aviation Security: TSA's Revised Cost Comparison Provides a More Reasonable Basis for Comparing the Costs of Private-Sector and TSA Screeners Page: 3 of 12
This text is part of the collection entitled: Government Accountability Office Reports and was provided to UNT Digital Library by the UNT Libraries Government Documents Department.
Extracted Text
The following text was automatically extracted from the image on this page using optical character recognition software:
for estimating and managing program costs, and GAO's Standards for
Internal Control in the Federal Government.5 We did not independently
verify TSA's analysis for the revised cost comparisons. We performed this
work from September 2010 through February 2011 in accordance with
generally accepted government auditing standards. Those standards
require that we plan and complete work to obtain sufficient, appropriate
evidence to provide a reasonable basis for our findings and conclusions
based on our review objectives. We believe that the evidence obtained
provides a reasonable basis for our findings and conclusions.
We reported in January 2009, among other things, that TSA had
underestimated costs to the government for screeners at non-SPP airports
because the agency did not include all of the costs associated with
passenger and baggage screening services at these airports, such as
workers' compensation and general liability insurance, and certain
retirement benefits to be paid by the Office of Personnel Management to
TSA retirees at non-SPP airports. Further, TSA did not reflect the revenue
received by the government from corporate income taxes paid by SPP
contractors. The omission of these factors reduced the reliability of TSA's
2009 cost estimate by increasing the costs for private-contractor screeners
relative to federal screeners. According to Statement of Federal Financial
Accounting Standards No. 4, Managerial Cost Accounting Concepts and
Standards, the full cost of programs is to be reported to assist Congress
and executives in making informed decisions on program resources and to
ensure that programs get expected and efficient results.
We believe TSA has made progress in addressing three of seven limitations
related to cost we identified in our January 2009 report and now has a
more reasonable basis for comparing the cost of SPP and non-SPP
airports. Specifically, TSA's updated cost analysis includes:
5Statement of Federal Financial Accounting Standards No. 4, Managerial Cost Accounting
Concepts and Standards; GAO, Cost Assessment Guide: Best Practices for Estimating
and Managing Program Costs, GAO-07-1134SP (Washington, D.C.: July 2007); OMB
Circular A-94, Guidelines and Discount Rates for Benefit-Cost Analysis of Federal
Programs; GAO, Standards for Internal Control in the Federal Government, GAO-AIMD-
00-21.3-1 (Washington, D.C.: November 1999); and OMB Circular A-76, Performance of
Commercial Activities.GAO-11-375R TSA's Updated SPP Cost Analysis
Page 3
Upcoming Pages
Here’s what’s next.
Search Inside
This text can be searched. Note: Results may vary based on the legibility of text within the document.
Tools / Downloads
Get a copy of this page or view the extracted text.
Citing and Sharing
Basic information for referencing this web page. We also provide extended guidance on usage rights, references, copying or embedding.
Reference the current page of this Text.
United States. Government Accountability Office. Aviation Security: TSA's Revised Cost Comparison Provides a More Reasonable Basis for Comparing the Costs of Private-Sector and TSA Screeners, text, March 4, 2011; Washington D.C.. (https://digital.library.unt.edu/ark:/67531/metadc297371/m1/3/: accessed April 24, 2024), University of North Texas Libraries, UNT Digital Library, https://digital.library.unt.edu; crediting UNT Libraries Government Documents Department.