12/28/15

 

8900.1 CHG 174

VOLUME 12  INTERNATIONAL Aviation

CHAPTER 13  STANDARDIZED Billing For Fees Collected Under Part 187

Section 2  Instructions for Flight Standards Service Offices

12-707    PURPOSE. These instructions apply to all Flight Standards Service (AFS) offices or units that are required to assess charges for services and approvals performed outside the United States that are billable under the provisions of Title 14 of the Code of Federal Regulations (14 CFR) part 187.

NOTE:  Title 49 of the United States Code (49 U.S.C.) § 40102(a)(46) defines the United States as “… the States of the United States, the District of Columbia, and the territories and possessions of the United States, including the territorial waters and the overlying airspace.”

12-708    CHARGEABLE EVENTS.

A.    Events Outlined in Advisory Circular (AC) 187-1, Flight Standards Service Schedule of Charges Outside the United States (current edition).

Indicates new/changed information.
1)    Charges in AC 187-1 are divided into three types:
a)    Transportation and subsistence charges.
b)    Airman certification.
c)    Air agencies (fixed charges for approvals or authorization for airmen or designees and hourly rates for agencies).
2)    Of these three areas, two are charged in two different methods:
a)    Fixed charges are set in part   187 for airmen.
b)    Hourly charges are set in part  187 for air agencies.

B.    Fixed Charges.

1)    Fixed charges are for services provided to either airmen or designees when those services are conducted outside of the United States.
a)    Charges for airmen or designees should be assessed for each authorization conducted. If there are multiple authorizations conducted in a single event, all of the charges should be applied.
b)     For example, if an airman is given an authorization to take the test for the Airframe and Powerplant (A&P) certificates, the airman should be assessed for each of the authorizations (General, Airframe, and Powerplant).
2)    If transportation and subsistence were incurred to provide this service, those actual costs should also be assessed.
a)    Proportional transportation and subsistence are assessed when services are rendered to multiple airmen and/or air agencies when services provided to them were completed on the same trip.
b)    When proportional transportation and subsistence charges cannot be assessed in advance because the number of applicants is unknown, inspectors should:

1.    Charge the appropriate fixed fee charges for services rendered.

2.    Notify all parties that they will be billed for transportation and subsistence upon return to the office and completion of the Single Trip—Multiple Agency Site Visit Form.

C.    Hourly Charges. Hourly rates are assessed to agencies for services provided in relation to certifications/inspections as outlined in AC 187-1 for each inspector work/travel hour.

1)    All transportation and subsistence costs are charged to agencies in association with certification/inspection and renewal of their certificates.
2)    Proportional transportation and subsistence costs are assessed when services are rendered to multiple airmen and/or air agencies when services provided to them were completed on the same trip.

D.    Proportional Charges for Transportation and Subsistence.

1)    Proportional charges for transportation and subsistence will be divided between each of the airmen, designees, and agencies visited in any single trip.
a)    Charges for lodging and meals and incidental expenses (M&IE) will be divided by the number of hours spent at/with each agency or airman/designee.
b)    Other expenses (e.g., taxis, automated teller machines (ATM), tolls, international fees) associated with traveling will be divided equally by the number of agencies or airmen/designees visited.
Indicates new/changed information.
2)    Proportional charges are calculated using the Multiple Air Agency Onsite Accounting Form found on the International Programs and Policy Division (AFS-50) SharePoint Web site at https://avssp.faa.gov/avs/afs50/187billing/SitePages/Home.aspx. The Master accounting forms will be found in the quick launch (left side of home page).

12-709    BILLING PROCEDURES.

A.    Airman/Designee Billing.

1)    Walk-In, or No Associated Transportation and Subsistence Cost.
a)    Outside of the United States, transportation and subsistence will be assessed to applicants in addition to the fixed charges published in AC 187-1.

NOTE:  United States Embassies and U.S. military installations located outside the United States are “outside the United States” under the definition of 49 U.S.C. § 40102(a)(46) (see paragraph 12-707). Applicants for Federal Aviation Administration (FAA) services from United States Embassies or U.S. military installations located outside the United States will pay the appropriate fee.

Indicates new/changed information.
b)    Charges are assessed for each authorization or approval granted and added together, determining total due, and are logged on the Airman Master Accounting Form (see Figure 12-15B, Locating the Airman Master Accounting Form (UPDATE)).

Figure 12-15B.  Locating the Airman Master Accounting Form (UPDATE)

Figure 12-15B. Locating the Airman Master Accounting Form (UPDATE)

2)    Charges with Transportation and Subsistence.
a)    If travel was solely in support of the individual, then assess all charges appropriate for the services provided and add all associated transportation and subsistence cost to the Airman Master Accounting Form to ascertain the total due.
b)    If the travel conducted was also in support of other airmen and/or agencies, see subparagraph 12-709C for instructions on calculating proportional charges. Once that is done, proceed with collection of charges as below.
3)    Collection of Charges. All fees collected from an individual or single air agency should be properly mailed to, or processed through, the International Field Office (IFO) using a credit card online at www.pay.gov. An inspector should never take payment in either cash or check from any entity. The Airman and Air Agency Master Accounting Form must be completed for each entity charged. Once payment is received, a receipt of funds and authorization or certificate should be sent by the receiving office. See Figure 12-17, Example Billing Letter for Air Agencies, and Figure 12-17A, Example Billing Letter for Air Agencies, for sample letters.

B.    Agency Billing.

1)    Offsite/Office Work.
Indicates new/changed information.
a)    All inspector hours expended in support of certification/renewal or inspection of air agencies/entities are recorded on the SharePoint Single-Trip Accounting Form specific to that agency. Each time an individual inspector works on any billable task for a specific agency, the time expended must be added to the agency’s specific Air Agency Master Accounting Form (see Figure 12-15C, Locating the Air Agency Master Accounting Form).
b)    Each entry will be a new entry with the specific job task accomplished and any comments the inspector would like to add. To add a new entry, click on the blue icon next to “insert item” and a new line will drop down. All accumulated time is automatically filled to the master accounting form at the bottom of the page, assuring accurate calculations for billing. This requirement continues throughout the billing cycle until all tasks are completed and the company is billed.

Figure 12-15C.  Locating the Air Agency Master Accounting Form

Indicates new/changed information.

Locating the Air Agency Master Accounting Form

2)    Onsite.
a)    Upon completion of an onsite certification or renewal inspection, all participating inspectors will enter their billable hours and associated transportation and subsistence costs into the single trip accounting form for that particular agency on the IFO/International Field Unit (IFU) SharePoint site. If travel was in support of multiple individuals or agencies, then see subparagraph 12-709C to establish individual agency proportional costs. Upon completion of all associated renewal functions, proceed with the agency billing process in subparagraph 12-709D.
b)    For an inspection without renewal, all inspector hours and associated transportation and subsistence costs for inspector work associated with maintaining a certificate or certification/renewal will be recorded on the single trip accounting form on the IFO/IFU SharePoint site. Each individual should record his or her time and transportation and subsistence costs. The sheet will remain open until final billing. If travel was in support of multiple individuals or agencies, then see subparagraph 12-709C to establish the entities’ individual proportional costs. After the onsite fees have been established on the multiple sheets, the amounts will be transferred manually to the “On Site Billable Hours” portion of the Master Accounting Form.

NOTE:  All amounts entered into the “On Site Billable Hours” sections are automatically transferred to the Master Accounting Form.

Indicates new/changed information.
c)    For single trip, single air agency, the On Site Billable Hours section will be completed for each day of the inspection.

C.    Multiple Sites/Individuals Visited. Inspectors traveling on a single trip to multiple air agencies and/or airmen are required to enter their travel costs and time into the Single Trip - Multiple Air Agency On-Site Accounting Form. This form automatically determines the proportional billing for each agency and/or individual inspected during the trip.

Indicates new/changed information.
1)    The team lead or principal inspector (PI) for a trip initiates the Single Trip - Multiple Air Agency On-Site Accounting Form and adds the agency designator and/or airman to that form.

NOTE:  If there are more than four inspectors traveling together in support of an agency or airman, all inspectors will complete individual multiple site visits accounting forms to calculate their respective proportional charges for those agencies or individuals visited.

Indicates new/changed information.
2)    Once the Single Trip - Multiple Air Agency On-Site Accounting Form is initiated, the inspectors add their associated travel costs and the billable hours spent participating on the various work functions from their individual travel vouchers.
3)    Once this form is complete, the cost information will be manually transferred to the appropriate airman- or air agency-specific Master Accounting Form.
4)    The accounting form can support up to four traveling inspectors.
5)    If both an individual airman and an air agency have received services, then select the “airman” radio button in the first section, and continue with the air agencies designators in the second section. Up to 12 entities can be included for 1 trip.
6)    If the inspector has issued authorizations to several airmen, this form can take into account the entire number of airmen as bulk airmen and will proportionally divide the costs for each entity.
7)    The amount shown in the line item for each airman and air agency represents the travel and subsistence cost, and will have to be manually transferred at this time to the airman and/or air agency Master Accounting forms.
Indicates new/changed information.

D.    Preparation of Agency Billing. Agency billing will be accomplished by completing the Single Visit Air Agency Accounting Form for the agency and providing a letter with the totals broken out.

Indicates new/changed information.

E.    The Airman Master Accounting Form and the Air Agency Master Accounting Form. These forms will be used every time an airman or agency is charged by the FAA. By assuring all charges are logged into these two forms, management at the national level is able to assess what each office is collecting and what travel funds are being used, allowing for more accurate accounting in the future.

F. The Single Trip - Multiple Air Agency On-Site Accounting Form. This form is used for only one purpose. It allows the inspector to divide the expenses and time used proportionately between a multiple number of air agencies and airmen. Once this form is complete, all totals must be transcribed into one of the other two Master Accounting forms, as appropriate.

Indicates new/changed information.

NOTE:  Additional explanations and work instructions for completing these three forms will be found on the AFS-50 Part 187 Billing Activities SharePoint Site located at https://avssp.faa.gov/avs/afs50/187billing/SitePages/Home.aspx.

Figure 12-17.  Example Billing Letter for Air Agencies

[FAA Letterhead]

Mr. Accountable Manager

Repair Station Information

Address

City, County, Country

Postal Code

FAA Cert:     ABCY123D

Dear Mr. ________,

The Federal Aviation Administration has completed an [add appropriate language here for work function completed (e.g., inspection of your repair station facility for the renewal of your Air Agency Certificate)].

The total charge for the renewal of the repair station approval came to exactly U.S. $9,983.22. This total corresponds to the following cost:

In Office Time

On Site Time

Travel Cost

Lodging/Meals

Other Exp.

$1,152.00

$3,456.00

$2,754.25

$2,515.74

$105.23

Please send payment in the form of a check, money order, or draft drawn on a U.S. bank and made payable to the Federal Aviation Administration.

We are also pleased to inform you that we now have the ability to accept payment by credit card. We accept MasterCard, Visa, Discover, and American Express. If you wish to make payment by credit card, please contact this office.

We recommend using Recorded Deliver for submission of your checks.

Until the payment is received, we will be unable to send the new certificate to you.

Yours Sincerely,

[Your name]

Principal Maintenance Inspector

Enc: Accounting Form

Figure 12-17A.  Example Billing Letter for Airmen/Designees

[FAA Letterhead]

Mr. Airman/Designee

Address

City, County, Country

Postal Code

FAA Cert/Desg #

Dear Mr. ________,

The Federal Aviation Administration has completed an [add appropriate language here for work function completed (e.g., renewal of your designation, testing authorization for inspection authorization)].

The total charge for these services and associated travel comes to exactly U.S. $1,409.22. This total corresponds to the following costs:

Fixed Cost

Travel Cost

Lodging/Meals

Other Exp.

3@$72 = $216.00

$749.28

$402.70

$41.24

Please send payment in the form of a check, money order, or draft drawn on a U.S. bank and made payable to the Federal Aviation Administration.

We also have the ability to accept payment by credit card. We accept MasterCard, Visa, Discover, and American Express. If you wish to make payment by credit card, please contact this office.

We recommend using Recorded Deliver for submission of your checks.

Until the payment is received, we will be unable to send the new certificate to you.

Yours sincerely,

[Your name]

Principal Maintenance Inspector

Enc: Accounting Form

RESERVED.  Paragraphs 12-710 through 12-714.