The objective of this audit will be to determine the efficiency and effectiveness of using MSAs and how well they are managed in terms of their cost, schedule, and performance.
Amtrak (the company) contracted with the independent certified public accounting firm of Ernst & Young LLP to audit its consolidated financial statements as of September 30,2013 and 2012, and for the years then ended, and to provide a report on internal control over financial reporting and compliance with laws and regulations and other matters.
An investigation of suspected fraudulent fuel activity on company issued fuel cards revealed that an Amtrak employee made $9,927 in fuel purchases while on leave. The employee was purchasing fuel for personal vehicles. During the investigation, the employee voluntarily separated from Amtrak. The employee was charged with two counts of larceny, two counts of credit card fraud and two counts of conspiracy in Suffolk County Massachusetts. He pled guilty to one count each of larceny, credit card fraud and conspiracy and was sentenced to 2 years in jail, sentence suspended.
We had 17 ongoing audits addressing 6 focus areas of our Annual Audit Plan as of December 31, 2014. As of December 31, 2015 we had 55 active investigations focusing on significant allegations of suspected fraud, waste, and misconduct in the following areas.
The objective of our audit will be to review the extent to which best practices are being adopted into the project management office's structure, as well as operation policies and practices.