786 

14 CFR Ch. I (1–1–24 Edition) 

§ 158.65 

(3) The PFC level for each project; 

and 

(4) Each project’s current schedule. 
(b) The report shall be provided on or 

before the last day of the calendar 
month following the calendar quarter 
or other period agreed by the public 
agency and collecting carrier. 

(c) For medium and large hub air-

ports, the public agency must provide 
to the FAA, by July 1 of each year, an 
estimate of PFC revenue to be col-
lected for each airport in the following 
fiscal year. 

[Doc. No. 26385, 56 FR 24278, May 29, 1991, as 
amended by Amdt. 158–2, 65 FR 34542, May 30, 
2000; Amdt. 158–4, 72 FR 28851, May 23, 2007] 

§ 158.65 Reporting requirements: Col-

lecting air carriers. 

(a) Each air carrier collecting PFCs 

for a public agency must provide quar-
terly reports to the public agency un-
less otherwise agreed by the collecting 
air carrier and public agency, providing 
an accounting of funds collected and 
funds remitted. 

(1) Unless otherwise agreed by the 

collecting air carrier and public agen-
cy, reports must state: 

(i) The collecting air carrier and air-

port involved, 

(ii) The total PFC revenue collected, 
(iii) The total PFC revenue refunded 

to passengers, 

(iv) The collected revenue withheld 

for reimbursement of expenses under 
§ 158.53, and 

(v) The dates and amounts of each re-

mittance for the quarter. 

(2) The report must be filed by the 

last day of the month following the 
calendar quarter or other period agreed 
by the collecting carrier and public 
agency for which funds were collected. 

(b) A covered air carrier must provide 

the FAA with: 

(1) A copy of its quarterly report by 

the established schedule under para-
graph (a) of this section; and 

(2) A monthly PFC account state-

ment delivered not later than the fifth 
day of the following month. This 
monthly statement must include: 

(i) The balance in the account on the 

first day of the month, 

(ii) The total funds deposited during 

the month, 

(iii) The total funds disbursed during 

the month, and 

(iv) The closing balance in the ac-

count. 

[Doc. No. FAA–2006–23730, 72 FR 28851, May 
23, 2007] 

§ 158.67 Recordkeeping and auditing: 

Public agency. 

(a) Each public agency shall keep any 

unliquidated PFC revenue remitted to 
it by collecting carriers on deposit in 
an interest bearing account or in other 
interest bearing instruments used by 
the public agency’s airport capital 
fund. Interest earned on such PFC rev-
enue shall be used, in addition to the 
principal, to pay the allowable costs of 
PFC-funded projects. PFC revenue may 
only be commingled with other public 
agency airport capital funds in deposits 
or interest bearing instruments. 

(b) Each public agency shall establish 

and maintain for each approved appli-
cation a separate accounting record. 
The accounting record shall identify 
the PFC revenue received from the col-
lecting carriers, interest earned on 
such revenue, the amounts used on 
each project, and the amount reserved 
for currently approved projects. 

(c) At least annually during the pe-

riod the PFC is collected, held or used, 
each public agency shall provide for an 
audit of its PFC account. The audit 
shall be performed by an accredited 
independent public accountant and 
may be of limited scope. The account-
ant shall express an opinion of the fair-
ness and reasonableness of the public 
agency’s procedures for receiving, hold-
ing, and using PFC revenue. The ac-
countant shall also express an opinion 
on whether the quarterly report re-
quired under § 158.63 fairly represents 
the net transactions within the PFC 
account. The audit may be— 

(1) Performed specifically for the 

PFC account; or 

(2) Conducted as part of an audit 

under Office of Management and Budg-
et Circular A–133 (the Single Audit Act 
of 1984, Pub. L. 98–502, and the Single 
Audit Act Amendments of 1996, Pub. L. 
104–156) provided the auditor specifi-
cally addresses the PFC. 

(3) Upon request, a copy of the audit 

shall be provided to each collecting 
carrier that remitted PFC revenue to 

787 

Federal Aviation Administration, DOT 

§ 158.85 

the public agency in the period covered 
by the audit and to the Administrator. 

[Doc. No. 26385, 56 FR 24278, May 29, 1991, as 
amended by Amdt. 158–4, 72 FR 28851, May 23, 
2007] 

§ 158.69 Recordkeeping and auditing: 

Collecting carriers. 

(a) Collecting carriers shall establish 

and maintain for each public agency 
for which they collect a PFC an ac-
counting record of PFC revenue col-
lected, remitted, refunded and com-
pensation retained under § 158.53(a) of 
this part. The accounting record shall 
identify the airport at which the pas-
sengers were enplaned. 

(b) Each collecting carrier that col-

lects more than 50,000 PFC’s annually 
shall provide for an audit at least an-
nually of its PFC account. 

(1) The audit shall be performed by 

an accredited independent public ac-
countant and may be of limited scope. 
The accountant shall express an opin-
ion on the fairness and reasonableness 
of the carrier’s procedures for col-
lecting, holding, and dispersing PFC 
revenue. The opinion shall also address 
whether the quarterly reports required 
under § 158.65 fairly represent the net 
transactions in the PFC account. 

(2) For the purposes of an audit under 

this section, collection is defined as 
the point when agents or other inter-
mediaries remit PFC revenue to the 
carrier. 

(3) Upon request, a copy of the audit 

shall be provided to each public agency 
for which a PFC is collected. 

§ 158.71 Federal oversight. 

(a) The Administrator may periodi-

cally audit and/or review the use of 
PFC revenue by a public agency. The 
purpose of the audit or review is to en-
sure that the public agency is in com-
pliance with the requirements of this 
part and 49 U.S.C. 40117. 

(b) The Administrator may periodi-

cally audit and/or review the collection 
and remittance by the collecting car-
riers of PFC revenue. The purpose of 
the audit or review is to ensure col-
lecting carriers are in compliance with 
the requirements of this part and 49 
U.S.C. 40117. 

(c) Public agencies and carriers shall 

allow any authorized representative of 

the Administrator, the Secretary of 
Transportation, or the Comptroller 
General of the U.S., access to any of its 
books, documents, papers, and records 
pertinent to PFC’s 

[Doc. No. 26385, 56 FR 24278, May 29, 1991, as 
amended by Amdt. 158–2, 65 FR 34543, May 30, 
2000] 

Subpart E—Termination 

§ 158.81 General. 

This subpart contains the procedures 

for termination of PFCs or loss of Fed-
eral airport grant funds for violations 
of this part or 49 U.S.C. 40117. This sub-
part does not address the cir-
cumstances under which the authority 
to collect PFCs may be terminated for 
violations of 49 U.S.C. 47523 through 
47528. 

[Doc. No. FAA–2006–23730, 72 FR 28851, May 
23, 2007] 

§ 158.83 Informal resolution. 

The Administrator shall undertake 

informal resolution with the public 
agency or any other affected party if, 
after review under § 158.71, the Admin-
istrator cannot determine that PFC 
revenue is being used for the approved 
projects in accordance with the terms 
of the Administrator’s approval to im-
pose a PFC for those projects or with 49 
U.S.C. 40117. 

[Doc. No. 26385, 56 FR 24278, May 29, 1991, as 
amended by Amdt. 158–2, 65 FR 34543, May 30, 
2000] 

§ 158.85 Termination of authority to 

impose PFC’s. 

(a) The FAA begins proceedings to 

terminate the public agency’s author-
ity to impose a PFC only if the Admin-
istrator determines that informal reso-
lution is not successful. 

(b) The Administrator publishes a no-

tice of proposed termination in the 
F

EDERAL

R

EGISTER

and supplies a copy 

to the public agency. This notice will 
state the scope of the proposed termi-
nation, the basis for the proposed ac-
tion and the date for filing written 
comments or objections by all inter-
ested parties. This notice will also 
identify any corrective actions the 
public agency can take to avoid further