TABLE OF CONTENTS

FOREWORD                                                                                                                                                       iii                           

MESSAGE FROM THE SECRETARY                                                                                                            v

MESSAGE FROM THE CHIEF FINANCIAL OFFICER                                                                               vii

THE DEPARTMENT OF TRANSPORTATION AT A GLANCE                                                             1

History and Legislation                                                                                                                      1

Mission                                                                                                                                                 1

Operating Administrations                                                                                                                 1

Departmental Organization Chart                                                                                                      2

Financial Resources                                                                                                                            3

HIGHLIGHTS                                                                                                                                                      4

Overview of Highlights                                                                                                                       4

Presidential Management Agenda Highlights                                                                                4                              

President’s Management Agenda Scorecard                                                                                  6

Federal Highway Administration                                                                                                      10

Federal Aviation Administration                                                                                                       10

Federal Transit Administration                                                                                                          10

United States Coast Guard                                                                                                                 11

Transportation Security Administration                                                                                          11

Federal Railroad Administration                                                                                                        11

National Highway Traffic Safety Administration                                                                           12

Federal Motor Carrier Safety Administration                                                                                  12

Maritime Administration                                                                                                                     13

Office of the Secretary                                                                                                                        13

Research and Special Programs Administration                                                                             14

Office of the Inspector General                                                                                                          14

Bureau of Transportation Statistics                                                                                                  15

Surface Transportation Board                                                                                                           15

Saint Lawrence Seaway Development Corporation                                                                       15

MANAGEMENT DISCUSSION AND ANALYSIS                                                                                       17

Introduction                                                                                                                                          17

How We Select Our Performance Goals and Measures                                                                17

How DOT Works to Achieve Strategic and Organizational Goals                                              18

PERFORMANCE REPORT                                                                                                                              19

Safety                                                                                                                                                     21

Highway Safety                                                                                                                    22

Aviation Safety                                                                                                                    25

Maritime Safety                                                                                                                    28

Rail Safety                                                                                                                             29

Transit Safety                                                                                                                       29

Pipeline Safety                                                                                                                      30

Hazardous Materials Safety                                                                                               31

Homeland and National Security                                                                                                      33

Aviation Security                                                                                                                 34

Coastal and Seaport Security                                                                                             36

Strategic Mobility                                                                                                                38

Drug and Migrant Interdiction                                                                                          39

Mobility and Economic Growth                                                                                                         41

Highway Infrastructure Condition                                                                                    43

Highway Congestion                                                                                                          44

Transit Ridership                                                                                                                 45

Aviation Delay                                                                                                                     46

Maritime Navigation                                                                                                            48

Transportation Accessibility                                                                                             49

International Air Service                                                                                                     50

Human and Natural Environment                                                                                                    51

Fishery Protection                                                                                                               52

Wetland Protection and Recovery                                                                                    52

DOT Facility Cleanup                                                                                                          52

Mobile Source Emissions                                                                                                   54

Oil and Pipeline Spills                                                                                                          54

Aircraft Noise Exposure                                                                                                      55

Organizational Excellence                                                                                                                56

Strategic Management of Human Capital                                                                        57

Competitive Sourcing                                                                                                          58

Financial and Procurement Performance                                                                          58

Citizen-Centered Government                                                                                           62

Budget and Performance Integration                                                                                65

PERFORMANCE DATA COMPLETENESS AND RELIABILITY                                                            66

DOT PROGRAM EVALUATIONS                                                                                                                68

MANAGEMENT CONTROLS                                                                                                                          75

Federal Manager’s Financial Integrity Act                                                                                      75

Federal Financial Management Improvement Act                                                                          76                           

Consolidated Financial Statements                                                                                                   77

Limitations of the Consolidated Financial Statements                                                                   77                                                                                           

FINANCIAL MANAGEMENT AND ANALYSIS                                                                                          79                    

                Analysis of Financial Statements                                                                                                     79

Total Consolidated Statements of Net Cost                                                                                    79

Assets                                                                                                                                                   79

Liabilities and Net Position                                                                                                                79

Program Costs                                                                                                                                      80

Loans                                                                                                                                                     80

Intra-Departmental Eliminations                                                                                                        80

Transportation Equity Act for the 21^st Century                                                                              80

Stewardship                                                                                                                                          80

FUTURE STEPS                                                                                                                                                 83

INSPECTOR GENERAL AUDIT REPORTS                                                                                                 85

INSPECTOR GENERAL TOP MANAGEMENT CHALLENGES                                                              105

EXHIBIT                                                                                                                                                               149        

Performance Measure Completeness and Reliability (Detail)                                                                      149                                         

ACRONYMS                                                                                                                                                       151                                                                                        

ACKNOWLEDGEMENTS                                                                                                                                154

PRINCIPAL FINANCIAL STATEMENTS                                                                                                     155