IG Letter to House Oversight & Gov Reform Cmte, 12-19-2012
This letter responds to your December 5, 2012, request for information on the Amtrak Office of Inspector General (OIG) high-priority recommendations for improving efficiency at Amtrak, and our annual work plan. Information on high-priority recommendations is described below and our work plan is available at Annual Audit, Inspection, and Evaluation Plan, Fiscal Year 2013.
ACELA CAR PURCHASE: Questioned Costs Identified in Price Proposal
On February 27, 2012, Amtrak received a price proposal to deliver 40 Acela coach cars. Given the high dollar value and Amtrak’s plan to award a sole-source contract, we initiated a review of the price proposal to determine whether it was based on well-supported and reasonable cost and pricing data.
Amtrak Improvement Initiatives: Sustained Attention and Effective Implementation Keys to Success
Thank you for the opportunity to discuss some of our recent report recommendations and the actions that Amtrak has taken in response. Over the last 2½ years, we have issued 39 reports on a wide variety of Amtrak programs and activities (see appendix).
ANNUAL AUDIT, INSPECTION, AND EVALUATION PLAN, FISCAL YEAR 2013
I am pleased to present the Amtrak Office of Inspector General’s Fiscal Year 2013 Annual Audit, Inspection, and Evaluation Plan. This year promises to be another challenging and demanding one as we work to accomplish our core mission of conducting independent and objective audits, inspections, and evaluations, to promote economy, efficiency, and effectiveness in Amtrak’s programs and operations; and to prevent and detect fraud, waste, abuse, and mismanagement.
ANNUAL FINANCIAL STATEMENT AUDITS: Observations for Improving Oversight of the Independent Public Accountant
Our objectives were to (1) gain an understanding of the company’s contract solicitation, administration, facilitation, and oversight activities as they relate to the IPA; and (2) identify best practices for the Audit and Finance Committee’s and management’s consideration in overseeing the IPA and the audit process.
RAILROAD SAFETY: Amtrak is Not Adequately Addressing Rising Drug and Alcohol Use by Employees in Safety-Sensitive Positions
We initiated this evaluation to determine whether Amtrak is ensuring that its HOS employees are complying with federal regulations governing the use of drugs and alcohol. Specifically, we evaluated (1) the extent to which Amtrak’s random testing shows that HOS employees are using drugs and alcohol, and (2) whether Amtrak is exercising due diligence in controlling the use of drugs and alcohol by these employees.