jurisdiction: US

text: b" \xc2\xa0 \xc2\xa0 \xc2\xa0\n\n\n\n\nM\nMemo\n orandu\n um\n\nT\nTo: Gordon\xc2\xa0H\n Hutchinson\n n,\xc2\xa0Acting\xc2\xa0Chief\xc2\xa0Financcial\xc2\xa0Officer\n\xc2\xa0 \xc2\xa0 \xc2\xa0\nF\nFrom: David\xc2\xa0R..\xc2\xa0Warren\xc2\xa0\n\xc2\xa0 \xc2\xa0 Assistantt\xc2\xa0Inspector\xc2\xa0General,\xc2\xa0A\n Audits\xc2\xa0\xc2\xa0\xc2\xa0\xc2\xa0\xc2\xa0\xc2\xa0\xc2\xa0\xc2\xa0\xc2\xa0\xc2\xa0 \xc2\xa0\xc2\xa0\xc2\xa0\xc2\xa0\xc2\xa0\xc2\xa0\xc2\xa0\xc2\xa0\xc2\xa0\n\nD\nDate: February\n y\xc2\xa016,\xc2\xa02012\n\nS\nSubject: Amtrak\xc2\xa0In\n nvoice\xc2\xa0Revieew:\xc2\xa0Inaccuraate\xc2\xa0Invoices\xc2\xa0W\n Were\xc2\xa0Paid,\xc2\xa0B\n But\xc2\xa0Progresss\xc2\xa0is\xc2\xa0\xc2\xa0\n Being\xc2\xa0Maade\xc2\xa0to\xc2\xa0Improve\xc2\xa0the\xc2\xa0Invoice\xe2\x80\x90Review\xc2\xa0P Process\xc2\xa0(Auddit\xc2\xa0Report\xc2\xa0N\n No.\xc2\xa0\xc2\xa0\n OIG\xe2\x80\x90A\xe2\x80\x902012\xe2\x80\x90005)\xc2\xa0\xc2\xa0\n\n\n\nEEnclosed\xc2\xa0is\xc2\xa0our\xc2\xa0final\xc2\xa0reeport\xc2\xa0entitleed,\xc2\xa0Amtrak\xc2\xa0Invoice\xc2\xa0Revview:\xc2\xa0Inaccurrate\xc2\xa0Invoicess\xc2\xa0Were\xc2\xa0\nPPaid,\xc2\xa0But\xc2\xa0Prrogress\xc2\xa0is\xc2\xa0Beiing\xc2\xa0Made\xc2\xa0too\xc2\xa0Improve\xc2\xa0thee\xc2\xa0Invoice\xe2\x80\x90Reeview\xc2\xa0Processs.\xc2\xa0This\xc2\xa0repo\n ort\xc2\xa0\npprovides\xc2\xa0thhe\xc2\xa0results\xc2\xa0off\xc2\xa0our\xc2\xa0audit\xc2\xa0o of\xc2\xa0charges\xc2\xa0iincurred\xc2\xa0by y\xc2\xa0CSX\xc2\xa0Trannsportation,,\xc2\xa0Inc.\xc2\xa0for\xc2\xa0\nAAmtrak\xc2\xa0traiins\xc2\xa0operatin ng\xc2\xa0over\xc2\xa0its\xc2\xa0ttracks.\xc2\xa0CSX X\xc2\xa0billed\xc2\xa0appproximately y\xc2\xa0$118\xc2\xa0million\xc2\xa0for\xc2\xa0\nooperating\xc2\xa0AAmtrak\xc2\xa0train ns\xc2\xa0over\xc2\xa0its\xc2\xa0rrail\xc2\xa0lines\xc2\xa0fro\n om\xc2\xa0June\xc2\xa019999\xc2\xa0through h\xc2\xa0March\xc2\xa020008.\xc2\xa0This\xc2\xa0\nrreport\xc2\xa0conta ains\xc2\xa0a\xc2\xa0recom\n mmendatio on\xc2\xa0that\xc2\xa0you\xc2\xa0collect\xc2\xa0the\xc2\xa0 $736,126\xc2\xa0in n\xc2\xa0overpaym ments\xc2\xa0\nwwe\xc2\xa0identifieed.\xc2\xa0We\xc2\xa0cond ducted\xc2\xa0this\xc2\xa0audit\xc2\xa0beca ause\xc2\xa0of\xc2\xa0prevviously\xc2\xa0idenntified\xc2\xa0conttrol\xc2\xa0\nwweaknessess\xc2\xa0and\xc2\xa0the\xc2\xa0sig gnificant\xc2\xa0ammount\xc2\xa0of\xc2\xa0m money\xc2\xa0Amtrrak\xc2\xa0expend ds\xc2\xa0to\xc2\xa0use\xc2\xa0CSSX\xc2\xa0\nttracks.\xc2\xa0This\xc2\xa0report\xc2\xa0is\xc2\xa0ppart\xc2\xa0of\xc2\xa0a\xc2\xa0seriies\xc2\xa0of\xc2\xa0Officee\xc2\xa0of\xc2\xa0Inspecttor\xc2\xa0Generall\xc2\xa0(OIG)\xc2\xa0auddits\xc2\xa0of\xc2\xa0\nAAmtrak\xe2\x80\x99s\xc2\xa0payments\xc2\xa0to o\xc2\xa0host\xc2\xa0railro\n oads.\xc2\xa0\n\xc2\xa0\nTThe\xc2\xa0objectivves\xc2\xa0of\xc2\xa0this\xc2\xa0a\n audit\xc2\xa0were\xc2\xa0tto\xc2\xa0(1)\xc2\xa0determine\xc2\xa0wheth her\xc2\xa0CSX\xc2\xa0co\n omplied\xc2\xa0witth\xc2\xa0the\xc2\xa0\nooperating\xc2\xa0agreement\xc2\xa0w when\xc2\xa0invoiccing\xc2\xa0Amtra ak\xc2\xa0for\xc2\xa0chargges\xc2\xa0incurredd\xc2\xa0for\xc2\xa0Amtraak\xc2\xa0\nttrains\xc2\xa0operaating\xc2\xa0over\xc2\xa0its\xc2\xa0tracks\xc2\xa0fro om\xc2\xa0June\xc2\xa01999\xc2\xa0through h\xc2\xa0March\xc2\xa020008,\xc2\xa0and\xc2\xa0(2)\xc2\xa0pprovide\xc2\xa0\naan\xc2\xa0update\xc2\xa0o on\xc2\xa0Amtrak\xe2\x80\x99s\xc2\xa0progress\xc2\xa0iin\xc2\xa0improvin ng\xc2\xa0its\xc2\xa0contrrols\xc2\xa0and\xc2\xa0pro\n ocesses\xc2\xa0in\xc2\xa0itts\xc2\xa0\nrreview\xc2\xa0of\xc2\xa0mmonthly\xc2\xa0inv voices.\xc2\xa0Whille\xc2\xa0on\xe2\x80\x90time\xe2\x80\x90p performancce\xc2\xa0incentivees\xc2\xa0are\xc2\xa0incluuded\xc2\xa0on\xc2\xa0\ntthe\xc2\xa0same\xc2\xa0innvoice,\xc2\xa0they\xc2\xa0are\xc2\xa0not\xc2\xa0thee\xc2\xa0subject\xc2\xa0of\xc2\xa0this\xc2\xa0review w.\xc2\xa0\xc2\xa0\n\xc2\xa0\nYYour\xc2\xa0respon nse\xc2\xa0to\xc2\xa0our\xc2\xa0d\n draft\xc2\xa0reportt\xc2\xa0can\xc2\xa0be\xc2\xa0fou und\xc2\xa0in\xc2\xa0Appeendix\xc2\xa0III\xc2\xa0inn\xc2\xa0the\xc2\xa0report.\xc2\xa0\n\xc2\xa0\n\x0c ii\n\nWe\xc2\xa0appreciate\xc2\xa0the\xc2\xa0courtesies\xc2\xa0and\xc2\xa0cooperation\xc2\xa0of\xc2\xa0Amtrak\xc2\xa0representatives\xc2\xa0during\xc2\xa0the\xc2\xa0\ncourse\xc2\xa0of\xc2\xa0this\xc2\xa0review.\xc2\xa0If\xc2\xa0you\xc2\xa0or\xc2\xa0your\xc2\xa0staff\xc2\xa0have\xc2\xa0any\xc2\xa0questions,\xc2\xa0please\xc2\xa0contact\xc2\xa0me\xc2\xa0\n(David.Warren@amtrakoig.gov,\xc2\xa0202.906.4742)\xc2\xa0or\xc2\xa0Dan\xc2\xa0Krueger,\xc2\xa0Senior\xc2\xa0Director\xc2\xa0\n(Daniel.Krueger@amtrakoig.gov,\xc2\xa0312.382.5303).\xc2\xa0\n\xc2\xa0\ncc:\xc2\xa0 DJ\xc2\xa0Stadtler,\xc2\xa0Acting\xc2\xa0Vice\xc2\xa0President,\xc2\xa0Operations\xc2\xa0\n Paul\xc2\xa0Vilter,\xc2\xa0Assistant\xc2\xa0Vice\xc2\xa0President,\xc2\xa0Host\xc2\xa0Railroads\xc2\xa0\n\xc2\xa0 William\xc2\xa0Herrmann,\xc2\xa0Managing\xc2\xa0Deputy\xc2\xa0General\xc2\xa0Counsel\xc2\xa0\n Jessica\xc2\xa0Scritchfield,\xc2\xa0Senior\xc2\xa0Director,\xc2\xa0Internal\xc2\xa0Controls/Audit\xc2\xa0\nEnclosure\xc2\xa0\xc2\xa0\n\x0cAM\n MTRA\n AK IN\n NVOICE REVI\n R IEW::\nInaccurate\n e Invoice\n es Were\n e Paid, But Pro\n ogress iss Being\n g Made tto\nImp\n prove th\n he Invoic\n ce-Reviiew Process\n\n\n\t\n\t\n\t\n\t\n\t\n\t Audit Re 012-005 | Februa\n eport No. OIG-A-20 ary 16, 20\n 012\n\t\n\t\n\t\n\t\n\t\n\t\n\t\n\t\n\t\n\t\n\t\n\t\n\t\n\t\n\t\n\t\n\t\n\t\n\x0c \xc2\xa0 \xc2\xa0 \xc2\xa0\n\n\n\n\nMem\n moran\n ndum\n\nTo: Gordon\xc2\xa0Hutchin\n nson,\xc2\xa0Acting\xc2\xa0Chief\xc2\xa0Fin\n nancial\xc2\xa0Officer\xc2\xa0\n\xc2\xa0 \xc2\xa0 \xc2\xa0\nFrom: Davidd\xc2\xa0R.\xc2\xa0Warren n\xc2\xa0\n\xc2\xa0 \xc2\xa0 Assisstant\xc2\xa0Inspecctor\xc2\xa0Genera\n al,\xc2\xa0Audits\xc2\xa0\xc2\xa0\xc2\xa0\xc2\xa0 \xc2\xa0\xc2\xa0\xc2\xa0\xc2\xa0\xc2\xa0\xc2\xa0\xc2\xa0\xc2\xa0\xc2\xa0\xc2\xa0\xc2\xa0\xc2\xa0\xc2\xa0\xc2\xa0\xc2\xa0\n\nDate: Febru\n uary\xc2\xa016,\xc2\xa0201\n 12\n\nSubject: Amtraak\xc2\xa0Invoice\xc2\xa0R\n Review:\xc2\xa0Inacccurate\xc2\xa0Invoi ces\xc2\xa0Were\xc2\xa0Paaid,\xc2\xa0But\xc2\xa0Proggress\xc2\xa0is\xc2\xa0\xc2\xa0\n Being\n g\xc2\xa0Made\xc2\xa0to\xc2\xa0Immprove\xc2\xa0the\xc2\xa0In\n nvoice\xe2\x80\x90Revieew\xc2\xa0Process\xc2\xa0(A Audit\xc2\xa0Repo ort\xc2\xa0No.\xc2\xa0\xc2\xa0\n OIG\xe2\x80\x90AA\xe2\x80\x902012\xe2\x80\x90005 5)\xc2\xa0\n\n\n\nThe\xc2\xa0Am mtrak\xc2\xa0Office\xc2\xa0of\xc2\xa0Inspecto or\xc2\xa0General\xc2\xa0((OIG)\xc2\xa0cond ducted\xc2\xa0this\xc2\xa0audit\xc2\xa0becau use\xc2\xa0of\xc2\xa0\nprevioussly\xc2\xa0identifieed\xc2\xa0control\xc2\xa0w weaknessess\xc2\xa0and\xc2\xa0the\xc2\xa0siignificant\xc2\xa0am mount\xc2\xa0of\xc2\xa0m\n money\xc2\xa0Amttrak\xc2\xa0\nexpendss\xc2\xa0to\xc2\xa0use\xc2\xa0CSX X\xc2\xa0tracks.\xc2\xa0Un nder\xc2\xa0an\xc2\xa0opeerating\xc2\xa0agreeement\xc2\xa0witth\xc2\xa0CSX\xc2\xa0Tran nsportationn,\xc2\xa0\nInc.,\xc2\xa0Ammtrak\xc2\xa0pays\xc2\xa0C CSX\xc2\xa0for\xc2\xa0cha arges\xc2\xa0incurrred\xc2\xa0by\xc2\xa0CSX X\xc2\xa0when\xc2\xa0Am mtrak\xc2\xa0trains\xc2\xa0operate\xc2\xa0ovver\xc2\xa0\nits\xc2\xa0tracks.\xc2\xa0This\xc2\xa0repoort\xc2\xa0is\xc2\xa0part\xc2\xa0o\n of\xc2\xa0a\xc2\xa0series\xc2\xa0off\xc2\xa0OIG\xc2\xa0auditts\xc2\xa0of\xc2\xa0Amtraak\xe2\x80\x99s\xc2\xa0paymennts\xc2\xa0to\xc2\xa0host\xc2\xa0\nrailroads.\xc2\xa0\n\xc2\xa0\nThe\xc2\xa0objeectives\xc2\xa0of\xc2\xa0th\n his\xc2\xa0audit\xc2\xa0weere\xc2\xa0to\xc2\xa0(1)\xc2\xa0deetermine\xc2\xa0w whether\xc2\xa0CSX X\xc2\xa0complied\xc2\xa0with\xc2\xa0the\xc2\xa0\noperatinng\xc2\xa0agreement\xc2\xa0when\xc2\xa0inv voicing\xc2\xa0Am mtrak\xc2\xa0for\xc2\xa0ch\n harges\xc2\xa0incurred\xc2\xa0for\xc2\xa0Am mtrak\xc2\xa0trainss\xc2\xa0\noperatinng\xc2\xa0over\xc2\xa0its\xc2\xa0ttracks\xc2\xa0fromm\xc2\xa0June\xc2\xa01999\xc2\xa0through\xc2\xa0M March\xc2\xa02008,\xc2\xa0aand\xc2\xa0(2)\xc2\xa0proovide\xc2\xa0an\xc2\xa0uppdate\xc2\xa0\non\xc2\xa0Amtrrak\xe2\x80\x99s\xc2\xa0progreess\xc2\xa0in\xc2\xa0imprroving\xc2\xa0its\xc2\xa0co ontrols\xc2\xa0and\n d\xc2\xa0processes\xc2\xa0in\xc2\xa0its\xc2\xa0review\n w\xc2\xa0of\xc2\xa0month hly\xc2\xa0\ninvoicess.\xc2\xa0For\xc2\xa0a\xc2\xa0deta\n ailed\xc2\xa0discusssion\xc2\xa0of\xc2\xa0ourr\xc2\xa0audit\xc2\xa0scop pe\xc2\xa0and\xc2\xa0meth hodology,\xc2\xa0ssee\xc2\xa0Append dix\xc2\xa0I.\xc2\xa0\n\xc2\xa0\n\xc2\xa0\n\x0c 2\n Amtrak Office of Inspector General\n Amtrak Invoice Review: Inaccurate Invoices Were Paid, But Progress\n is Being Made to Improve the Invoice-Review Process\n Audit Report No. OIG-A-2012-005, February 16, 2012\n\nSUMMARY OF RESULTS\n\xc2\xa0\nCSX\xc2\xa0invoice\xc2\xa0charges\xc2\xa0generally\xc2\xa0complied\xc2\xa0with\xc2\xa0the\xc2\xa0operating\xc2\xa0agreement\xc2\xa0for\xc2\xa0use\xc2\xa0of\xc2\xa0tracks\xc2\xa0\nand\xc2\xa0facilities\xc2\xa0and\xc2\xa0the\xc2\xa0provision\xc2\xa0of\xc2\xa0services\xc2\xa0provided\xc2\xa0to\xc2\xa0Amtrak.\xc2\xa0However,\xc2\xa0in\xc2\xa0seven\xc2\xa0of\xc2\xa0\nthe\xc2\xa013\xc2\xa0cost\xc2\xa0components\xc2\xa0selected\xc2\xa0for\xc2\xa0review,\xc2\xa0we\xc2\xa0found\xc2\xa0that\xc2\xa0invoice\xc2\xa0amounts\xc2\xa0contained\xc2\xa0\nerrors\xc2\xa0because\xc2\xa0they\xc2\xa0were\xc2\xa0not\xc2\xa0calculated\xc2\xa0in\xc2\xa0accordance\xc2\xa0with\xc2\xa0the\xc2\xa0operating\xc2\xa0agreement\xc2\xa0or\xc2\xa0\nwere\xc2\xa0unsupported.\xc2\xa0Sample\xc2\xa0CSX\xc2\xa0invoices\xc2\xa0for\xc2\xa0the\xc2\xa0106\xe2\x80\x90month\xc2\xa0audit\xc2\xa0period\xc2\xa0(June\xc2\xa01999\xc2\xa0\nthrough\xc2\xa0March\xc2\xa02008)\xc2\xa0disclosed\xc2\xa0CSX\xc2\xa0overbilling\xc2\xa0of\xc2\xa0$736,126,\xc2\xa0approximately\xc2\xa01\xc2\xa0percent1\xc2\xa0of\xc2\xa0\nthe\xc2\xa0more\xc2\xa0than\xc2\xa0$66\xc2\xa0million\xc2\xa0paid\xc2\xa0for\xc2\xa0services\xc2\xa0during\xc2\xa0the\xc2\xa0sample\xc2\xa0months.\xc2\xa0\n\xc2\xa0\nThe\xc2\xa0billing\xc2\xa0errors\xc2\xa0went\xc2\xa0undetected\xc2\xa0because,\xc2\xa0as\xc2\xa0previously\xc2\xa0reported,2\xc2\xa0Amtrak\xc2\xa0did\xc2\xa0not\xc2\xa0\nhave\xc2\xa0in\xc2\xa0place\xc2\xa0an\xc2\xa0adequate\xc2\xa0review\xc2\xa0process\xc2\xa0during\xc2\xa0that\xc2\xa0period.\xc2\xa0Amtrak\xc2\xa0is,\xc2\xa0however,\xc2\xa0\nmaking\xc2\xa0progress\xc2\xa0in\xc2\xa0developing\xc2\xa0its\xc2\xa0capabilities\xc2\xa0for\xc2\xa0reviewing\xc2\xa0host\xc2\xa0railroad\xc2\xa0invoices\xc2\xa0and\xc2\xa0\naddressing\xc2\xa0our\xc2\xa0prior\xc2\xa0recommendations.\xc2\xa0For\xc2\xa0example,\xc2\xa0Amtrak\xc2\xa0established\xc2\xa0the\xc2\xa0Host\xc2\xa0\nRailroad\xc2\xa0Invoice\xc2\xa0Administration\xc2\xa0group,\xc2\xa0which\xc2\xa0is\xc2\xa0reviewing\xc2\xa0select\xc2\xa0invoices\xc2\xa0using\xc2\xa0a\xc2\xa0\nlimited\xc2\xa0set\xc2\xa0of\xc2\xa0factors.\xc2\xa0The\xc2\xa0Law\xc2\xa0Department\xc2\xa0is\xc2\xa0also\xc2\xa0working\xc2\xa0to\xc2\xa0negotiate\xc2\xa0settlements\xc2\xa0on\xc2\xa0\noverpayments\xc2\xa0that\xc2\xa0we\xc2\xa0previously\xc2\xa0identified.\xc2\xa0Amtrak\xc2\xa0plans\xc2\xa0to\xc2\xa0further\xc2\xa0improve\xc2\xa0the\xc2\xa0\ninvoice\xc2\xa0review\xc2\xa0process\xc2\xa0through\xc2\xa0several\xc2\xa0initiatives,\xc2\xa0including\xc2\xa0developing\xc2\xa0policies\xc2\xa0and\xc2\xa0\nprocedures\xc2\xa0for\xc2\xa0reviewing\xc2\xa0all\xc2\xa0invoices,\xc2\xa0creating\xc2\xa0job\xc2\xa0aids\xc2\xa0to\xc2\xa0facilitate\xc2\xa0invoice\xc2\xa0processing,\xc2\xa0\nand\xc2\xa0collecting\xc2\xa0outstanding\xc2\xa0overpayments\xc2\xa0identified\xc2\xa0in\xc2\xa0prior\xc2\xa0audit\xc2\xa0reports.\xc2\xa0While\xc2\xa0\nAmtrak\xc2\xa0continues\xc2\xa0to\xc2\xa0make\xc2\xa0progress\xc2\xa0in\xc2\xa0developing\xc2\xa0policies\xc2\xa0and\xc2\xa0procedures,\xc2\xa0training,\xc2\xa0\nand\xc2\xa0invoice\xc2\xa0reviews,\xc2\xa0the\xc2\xa0company\xc2\xa0has\xc2\xa0not\xc2\xa0yet\xc2\xa0implemented\xc2\xa0all\xc2\xa0of\xc2\xa0our\xc2\xa0\nrecommendations.\xc2\xa0\n\xc2\xa0\nOver\xc2\xa0time,\xc2\xa0our\xc2\xa0office\xc2\xa0has\xc2\xa0identified\xc2\xa0approximately\xc2\xa0$37\xc2\xa0million\xc2\xa0in\xc2\xa0overpayments\xc2\xa0and\xc2\xa0\npotential\xc2\xa0recoveries\xc2\xa0for\xc2\xa0audit\xc2\xa0periods\xc2\xa0ranging\xc2\xa0between\xc2\xa01993\xc2\xa0and\xc2\xa02008,\xc2\xa0including\xc2\xa0over\xc2\xa0\n$700,000\xc2\xa0identified\xc2\xa0in\xc2\xa0this\xc2\xa0report.\xc2\xa0The\xc2\xa0$37\xc2\xa0million\xc2\xa0includes\xc2\xa0at\xc2\xa0least\xc2\xa0$5.7\xc2\xa0million\xc2\xa0in\xc2\xa0\noverpayments\xc2\xa0that\xc2\xa0have\xc2\xa0already\xc2\xa0been\xc2\xa0collected.\xc2\xa0\n\xc2\xa0\n\n\n\n1\xc2\xa0The\xc2\xa01\xc2\xa0percent\xc2\xa0is\xc2\xa0a\xc2\xa0net\xc2\xa0amount.\xc2\xa0While\xc2\xa0errors\xc2\xa0in\xc2\xa0favor\xc2\xa0of\xc2\xa0Amtrak\xc2\xa0and\xc2\xa0CSX\xc2\xa0resulted\xc2\xa0in\xc2\xa0a\xc2\xa0net\xc2\xa0amount\xc2\xa0due\xc2\xa0\nAmtrak\xc2\xa0of\xc2\xa0$736,126,\xc2\xa0we\xc2\xa0identified\xc2\xa0over\xc2\xa0$1.4\xc2\xa0million\xc2\xa0in\xc2\xa0total\xc2\xa0invoice\xc2\xa0errors.\xc2\xa0For\xc2\xa0example,\xc2\xa0invoice\xc2\xa0errors\xc2\xa0in\xc2\xa0\nthe\xc2\xa0calculation\xc2\xa0of\xc2\xa0incremental\xc2\xa0track\xc2\xa0maintenance\xc2\xa0and\xc2\xa0other\xc2\xa0train\xc2\xa0costs\xc2\xa0resulted\xc2\xa0in\xc2\xa0overpayments\xc2\xa0of\xc2\xa0\n$139,124;\xc2\xa0however,\xc2\xa0this\xc2\xa0amount\xc2\xa0includes\xc2\xa0an\xc2\xa0overstated\xc2\xa0amount\xc2\xa0of\xc2\xa0$462,500\xc2\xa0and\xc2\xa0an\xc2\xa0understated\xc2\xa0amount\xc2\xa0of\xc2\xa0\n$323,376\xc2\xa0(almost\xc2\xa0$800,000\xc2\xa0in\xc2\xa0total\xc2\xa0errors).\n2\n On\xe2\x80\x90Time\xe2\x80\x90Performance\xc2\xa0Incentives:\xc2\xa0Inaccurate\xc2\xa0Invoices\xc2\xa0were\xc2\xa0Paid\xc2\xa0Due\xc2\xa0to\xc2\xa0Longstanding\xc2\xa0Weaknesses\xc2\xa0in\xc2\xa0Amtrak\xe2\x80\x99s\xc2\xa0\nInvoice\xe2\x80\x90Review\xc2\xa0Process\xc2\xa0(OIG\xc2\xa0Audit\xc2\xa0Report\xc2\xa0403\xe2\x80\x902010,\xc2\xa0April\xc2\xa021,\xc2\xa02011).\n\x0c 3\n Amtrak Office of Inspector General\n Amtrak Invoice Review: Inaccurate Invoices Were Paid, But Progress\n is Being Made to Improve the Invoice-Review Process\n Audit Report No. OIG-A-2012-005, February 16, 2012\n\nWe\xc2\xa0are\xc2\xa0encouraged\xc2\xa0by\xc2\xa0the\xc2\xa0progress\xc2\xa0that\xc2\xa0has\xc2\xa0been\xc2\xa0made\xc2\xa0and\xc2\xa0the\xc2\xa0plans\xc2\xa0that\xc2\xa0are\xc2\xa0in\xc2\xa0place\xc2\xa0\nfor\xc2\xa0further\xc2\xa0action.\xc2\xa0Accordingly,\xc2\xa0we\xc2\xa0are\xc2\xa0not\xc2\xa0making\xc2\xa0any\xc2\xa0new\xc2\xa0recommendations\xc2\xa0for\xc2\xa0\nimproving\xc2\xa0invoice\xe2\x80\x90review\xc2\xa0capabilities\xc2\xa0at\xc2\xa0this\xc2\xa0time.\xc2\xa0However,\xc2\xa0we\xc2\xa0do\xc2\xa0recommend\xc2\xa0that\xc2\xa0\nAmtrak\xe2\x80\x99s\xc2\xa0Chief\xc2\xa0Financial\xc2\xa0Officer\xc2\xa0take\xc2\xa0action\xc2\xa0to\xc2\xa0recover\xc2\xa0the\xc2\xa0$736,126\xc2\xa0that\xc2\xa0Amtrak\xc2\xa0\noverpaid\xc2\xa0CSX.\xc2\xa0\n\xc2\xa0\nIn\xc2\xa0commenting\xc2\xa0on\xc2\xa0a\xc2\xa0draft\xc2\xa0of\xc2\xa0this\xc2\xa0report,\xc2\xa0Amtrak\xe2\x80\x99s\xc2\xa0Acting\xc2\xa0Chief\xc2\xa0Financial\xc2\xa0Officer\xc2\xa0stated\xc2\xa0\nthat\xc2\xa0management\xc2\xa0concurred\xc2\xa0with\xc2\xa0the\xc2\xa0recommendation\xc2\xa0to\xc2\xa0take\xc2\xa0action\xc2\xa0to\xc2\xa0recover\xc2\xa0\namounts\xc2\xa0with\xc2\xa0respect\xc2\xa0to\xc2\xa0overpayments\xc2\xa0made\xc2\xa0to\xc2\xa0CSX.\xc2\xa0He\xc2\xa0stated\xc2\xa0the\xc2\xa0company\xc2\xa0will\xc2\xa0\nreview\xc2\xa0and\xc2\xa0analyze\xc2\xa0our\xc2\xa0records\xc2\xa0on\xc2\xa0which\xc2\xa0the\xc2\xa0findings\xc2\xa0were\xc2\xa0based,\xc2\xa0and\xc2\xa0have\xc2\xa0the\xc2\xa0\nManaging\xc2\xa0Deputy\xc2\xa0General\xc2\xa0Counsel,\xc2\xa0on\xc2\xa0behalf\xc2\xa0of\xc2\xa0Amtrak\xe2\x80\x99s\xc2\xa0Transportation\xc2\xa0and\xc2\xa0Finance\xc2\xa0\ndepartments,\xc2\xa0pursue\xc2\xa0any\xc2\xa0amounts\xc2\xa0that\xc2\xa0are\xc2\xa0recoverable\xc2\xa0under\xc2\xa0the\xc2\xa0law\xc2\xa0and\xc2\xa0within\xc2\xa0the\xc2\xa0\nterms\xc2\xa0of\xc2\xa0the\xc2\xa0agreement.\xc2\xa0\n\n\nOPERATING AGREEMENTS\n\xc2\xa0\nThe\xc2\xa0Rail\xc2\xa0Passenger\xc2\xa0Service\xc2\xa0Act\xc2\xa0of\xc2\xa01970\xc2\xa0created\xc2\xa0the\xc2\xa0National\xc2\xa0Railroad\xc2\xa0Passenger\xc2\xa0\nCorporation,\xc2\xa0commonly\xc2\xa0known\xc2\xa0as\xc2\xa0Amtrak,\xc2\xa0to\xc2\xa0operate\xc2\xa0a\xc2\xa0national\xc2\xa0rail\xc2\xa0passenger\xc2\xa0system.\xc2\xa0\nThe\xc2\xa0act\xc2\xa0allowed\xc2\xa0Amtrak\xc2\xa0to\xc2\xa0contract\xc2\xa0with\xc2\xa0host\xc2\xa0railroads,\xc2\xa0such\xc2\xa0as\xc2\xa0CSX,\xc2\xa0\xe2\x80\x9cfor\xc2\xa0the\xc2\xa0use\xc2\xa0of\xc2\xa0\ntracks\xc2\xa0and\xc2\xa0other\xc2\xa0facilities\xc2\xa0and\xc2\xa0the\xc2\xa0provision\xc2\xa0of\xc2\xa0services\xc2\xa0on\xc2\xa0such\xc2\xa0terms\xc2\xa0and\xc2\xa0conditions\xc2\xa0as\xc2\xa0\nthe\xc2\xa0parties\xc2\xa0may\xc2\xa0agree.\xe2\x80\x9d\xc2\xa0\xc2\xa0\n\xc2\xa0\nOperating\xc2\xa0agreements\xc2\xa0were\xc2\xa0developed\xc2\xa0between\xc2\xa0Amtrak\xc2\xa0and\xc2\xa0host\xc2\xa0railroads\xc2\xa0to\xc2\xa0serve\xc2\xa0as\xc2\xa0a\xc2\xa0\nbasis\xc2\xa0for\xc2\xa0determining\xc2\xa0costs\xc2\xa0associated\xc2\xa0with\xc2\xa0the\xc2\xa0services,\xc2\xa0equipment,\xc2\xa0and\xc2\xa0facilities\xc2\xa0\nprovided\xc2\xa0to\xc2\xa0Amtrak.\xc2\xa0Effective\xc2\xa0June\xc2\xa01,\xc2\xa01999,\xc2\xa0Amtrak\xc2\xa0entered\xc2\xa0into\xc2\xa0an\xc2\xa0operating\xc2\xa0\nagreement\xc2\xa0with\xc2\xa0CSX.\xc2\xa0The\xc2\xa0agreement\xc2\xa0was\xc2\xa0further\xc2\xa0amended\xc2\xa0through\xc2\xa0amendment\xc2\xa0\nagreement\xc2\xa0changes.\xc2\xa0The\xc2\xa0agreement\xc2\xa0authorizes\xc2\xa0CSX\xc2\xa0to\xc2\xa0submit\xc2\xa0monthly\xc2\xa0invoices\xc2\xa0for\xc2\xa0the\xc2\xa0\nservices\xc2\xa0provided\xc2\xa0to\xc2\xa0Amtrak.\xc2\xa0Each\xc2\xa0month,\xc2\xa0CSX\xc2\xa0submits\xc2\xa0a\xc2\xa0statement\xc2\xa0of\xc2\xa0charges\xc2\xa0to\xc2\xa0\nAmtrak.\xc2\xa0The\xc2\xa0operating\xc2\xa0agreement\xc2\xa0lists\xc2\xa0in\xc2\xa0summary\xc2\xa0form\xc2\xa0the\xc2\xa0authorized\xc2\xa0cost\xc2\xa0\ncomponents\xc2\xa0that\xc2\xa0make\xc2\xa0up\xc2\xa0the\xc2\xa0monthly\xc2\xa0invoices\xc2\xa0to\xc2\xa0Amtrak\xc2\xa0(see\xc2\xa0Appendix\xc2\xa0II).\xc2\xa0\xc2\xa0\n\xc2\xa0\nThese\xc2\xa0cost\xc2\xa0components\xc2\xa0could\xc2\xa0be\xc2\xa0periodically\xc2\xa0adjusted\xc2\xa0through\xc2\xa0amendments.\xc2\xa0Some\xc2\xa0cost\xc2\xa0\ncomponents\xc2\xa0are\xc2\xa0based\xc2\xa0on\xc2\xa0a\xc2\xa0predetermined\xc2\xa0flat\xc2\xa0rate\xc2\xa0(such\xc2\xa0as\xc2\xa0per\xc2\xa0hour,\xc2\xa0per\xc2\xa0month,\xc2\xa0or\xc2\xa0per\xc2\xa0\ntrain\xc2\xa0mile).\xc2\xa0Others\xc2\xa0are\xc2\xa0based\xc2\xa0on\xc2\xa0actual\xc2\xa0expenses\xc2\xa0incurred.\xc2\xa0One\xc2\xa0cost\xc2\xa0component\xc2\xa0is\xc2\xa0for\xc2\xa0\nmonthly\xc2\xa0invoice\xc2\xa0preparation\xc2\xa0and\xc2\xa0supporting\xc2\xa0documentation.\xc2\xa0Amtrak\xc2\xa0paid\xc2\xa0CSX\xc2\xa0an\xc2\xa0\naverage\xc2\xa0of\xc2\xa0about\xc2\xa0$100,000\xc2\xa0per\xc2\xa0month\xc2\xa0(over\xc2\xa0$10\xc2\xa0million)\xc2\xa0for\xc2\xa0general\xc2\xa0administration,\xc2\xa0\n\x0c 4\n Amtrak Office of Inspector General\n Amtrak Invoice Review: Inaccurate Invoices Were Paid, But Progress\n is Being Made to Improve the Invoice-Review Process\n Audit Report No. OIG-A-2012-005, February 16, 2012\n\n accounting,\xc2\xa0and\xc2\xa0transportation\xc2\xa0supervision\xc2\xa0services\xc2\xa0during\xc2\xa0the\xc2\xa0audit\xc2\xa0period.\xc2\xa0A\xc2\xa0portion\xc2\xa0\n of\xc2\xa0this\xc2\xa0was\xc2\xa0for\xc2\xa0preparing\xc2\xa0monthly\xc2\xa0invoices.\xc2\xa0During\xc2\xa0the\xc2\xa0audit\xc2\xa0period,\xc2\xa0the\xc2\xa0Amtrak\xc2\xa0group\xc2\xa0\n responsible\xc2\xa0for\xc2\xa0reviewing\xc2\xa0and\xc2\xa0approving\xc2\xa0payment\xc2\xa0of\xc2\xa0monthly\xc2\xa0CSX\xc2\xa0invoices\xc2\xa0reported\xc2\xa0to\xc2\xa0\n the\xc2\xa0Vice\xc2\xa0President\xc2\xa0for\xc2\xa0Transportation.\xc2\xa0In\xc2\xa0October\xc2\xa02010,\xc2\xa0this\xc2\xa0group\xe2\x80\x94now\xc2\xa0called\xc2\xa0the\xc2\xa0Host\xc2\xa0\n Railroad\xc2\xa0Invoice\xc2\xa0Administration\xc2\xa0group\xe2\x80\x94was\xc2\xa0moved,\xc2\xa0and\xc2\xa0now\xc2\xa0reports\xc2\xa0to\xc2\xa0the\xc2\xa0Chief\xc2\xa0\n Financial\xc2\xa0Officer.\xc2\xa0\n\n \xc2\xa0\n INVOICE CHARGES GENERALLY COMPLIED WITH\n OPERATING AGREEMENT, BUT ERRORS FOUND IN OVER\n HALF OF COST COMPONENTS REVIEWED\n CSX\xc2\xa0invoice\xc2\xa0charges\xc2\xa0to\xc2\xa0Amtrak\xc2\xa0generally\xc2\xa0complied\xc2\xa0with\xc2\xa0the\xc2\xa0operating\xc2\xa0agreement\xc2\xa0for\xc2\xa0\n use\xc2\xa0of\xc2\xa0tracks\xc2\xa0and\xc2\xa0facilities\xc2\xa0and\xc2\xa0the\xc2\xa0provision\xc2\xa0of\xc2\xa0services\xc2\xa0provided\xc2\xa0to\xc2\xa0Amtrak.\xc2\xa0We\xc2\xa0\n reviewed\xc2\xa013\xc2\xa0of\xc2\xa0the\xc2\xa032\xc2\xa0cost\xc2\xa0components\xc2\xa0in\xc2\xa0the\xc2\xa0operating\xc2\xa0agreements\xc2\xa0and\xc2\xa0found\xc2\xa0errors\xc2\xa0in\xc2\xa0\n the\xc2\xa0charges\xc2\xa0associated\xc2\xa0with\xc2\xa0seven,\xc2\xa0as\xc2\xa0shown\xc2\xa0in\xc2\xa0Table\xc2\xa01.\xc2\xa0The\xc2\xa0highest\xc2\xa0dollar\xc2\xa0amounts\xc2\xa0\n associated\xc2\xa0with\xc2\xa0the\xc2\xa0errors\xc2\xa0were\xc2\xa0in\xc2\xa0the\xc2\xa0components\xc2\xa0of\xc2\xa0special\xc2\xa0trains,\xc2\xa0additional\xc2\xa0light\xc2\xa0\n density\xc2\xa0line\xc2\xa0costs,\xc2\xa0incremental\xc2\xa0track\xc2\xa0maintenance,\xc2\xa0and\xc2\xa0other\xc2\xa0train\xc2\xa0costs.\xc2\xa0The\xc2\xa0other\xc2\xa0\n components\xc2\xa0had\xc2\xa0only\xc2\xa0minor\xc2\xa0error\xc2\xa0amounts.\xc2\xa0\xc2\xa0\n \xc2\xa0\n Table 1. OIG Analysis of Sample CSX Invoices,\n June 1999\xe2\x80\x93March 2008\n Amtrak-paid Percentage\n Number of Amount for of Total\n Months Sample Overpaid Paid\nCost Component Sampled Months Amount Amount\n1. Special Trains 54 $1,674,284 $360,560 22\n2. Additional Light Density Line Costs 72 2,108,090 151,007 7\n3. Incremental Track Maintenance and\n 106 58,155,465 139,124 0\n4. Other Train Costsa\n5. Station Utilities 106 1,638,805 52,535 3\n6. Business Expense and Travel 6 73,742 28,006 38\n7. Transportation of CSX Employees 81 2,905,000 4,894 0\n Total $66,555,386 $736,126 1\na\n Incremental track maintenance and other train costs were reviewed together and the results were combined\n for these two cost components.\nSource: OIG analysis of CSX and Amtrak data, June 1999 through March 2008\n\x0c 5\n Amtrak Office of Inspector General\n Amtrak Invoice Review: Inaccurate Invoices Were Paid, But Progress\n is Being Made to Improve the Invoice-Review Process\n Audit Report No. OIG-A-2012-005, February 16, 2012\n\nThe\xc2\xa0following\xc2\xa0sections\xc2\xa0discuss\xc2\xa0the\xc2\xa0errors\xc2\xa0found\xc2\xa0in\xc2\xa0these\xc2\xa0seven\xc2\xa0components\xc2\xa0in\xc2\xa0more\xc2\xa0\ndetail.\xc2\xa0\n\nSpecial Trains\n\nCSX\xc2\xa0invoices\xc2\xa0contained\xc2\xa0errors\xc2\xa0of\xc2\xa0$179,636\xc2\xa0and\xc2\xa0unsupported\xc2\xa0charges\xc2\xa0of\xc2\xa0$180,924\xc2\xa0for\xc2\xa0\nspecial\xc2\xa0trains\xc2\xa0operating\xc2\xa0over\xc2\xa0CSX\xc2\xa0tracks\xc2\xa0for\xc2\xa0a\xc2\xa0total\xc2\xa0questioned\xc2\xa0amount\xc2\xa0of\xc2\xa0$360,560.\xc2\xa0A\xc2\xa0\nspecial\xc2\xa0train\xc2\xa0is\xc2\xa0a\xc2\xa0non\xe2\x80\x90regularly\xe2\x80\x90scheduled\xc2\xa0Amtrak\xc2\xa0train.\xc2\xa0An\xc2\xa0example\xc2\xa0is\xc2\xa0a\xc2\xa0passenger\xc2\xa0train\xc2\xa0\n run\xc2\xa0added\xc2\xa0for\xc2\xa0a\xc2\xa0sporting\xc2\xa0event\xc2\xa0such\xc2\xa0as\xc2\xa0the\xc2\xa0Super\xc2\xa0\n Special Trains\n $ per train mile Bowl.\xc2\xa0According\xc2\xa0to\xc2\xa0the\xc2\xa0operating\xc2\xa0agreement,\xc2\xa0\n Amtrak\xc2\xa0shall\xc2\xa0pay\xc2\xa0CSX\xc2\xa0$ per\xc2\xa0train\xc2\xa0mile\xc2\xa0for\xc2\xa0\n Amtrak shall pay CSX for each mile a\n non-regularly-scheduled Amtrak train is each\xc2\xa0mile\xc2\xa0an\xc2\xa0Amtrak\xc2\xa0special\xc2\xa0train\xc2\xa0is\xc2\xa0operated.\xc2\xa0\n operated on rail lines. \xc2\xa0\n Source: Amtrak/CSX Operating Agreement\n\n\n\n\nAmtrak\xc2\xa0paid\xc2\xa0over\xc2\xa0$2\xc2\xa0million\xc2\xa0to\xc2\xa0CSX\xc2\xa0during\xc2\xa0this\xc2\xa0period\xc2\xa0for\xc2\xa0special\xc2\xa0trains.\xc2\xa0We\xc2\xa0selected\xc2\xa0a\xc2\xa0\nsample\xc2\xa0of\xc2\xa054\xc2\xa0months\xc2\xa0during\xc2\xa0which\xc2\xa0CSX\xc2\xa0invoices\xc2\xa0included\xc2\xa0charges\xc2\xa0of\xc2\xa0$1,674,284\xc2\xa0\n(70\xc2\xa0percent\xc2\xa0of\xc2\xa0the\xc2\xa0total\xc2\xa0paid)\xc2\xa0for\xc2\xa0special\xc2\xa0trains.\xc2\xa0Some\xc2\xa0invoices\xc2\xa0were\xc2\xa0overstated\xc2\xa0due\xc2\xa0to\xc2\xa0the\xc2\xa0\nuse\xc2\xa0of\xc2\xa0incorrect\xc2\xa0train\xc2\xa0miles\xc2\xa0traveled\xc2\xa0and\xc2\xa0rates\xc2\xa0other\xc2\xa0than\xc2\xa0those\xc2\xa0permitted\xc2\xa0by\xc2\xa0the\xc2\xa0\noperating\xc2\xa0agreement.\xc2\xa0\xc2\xa0\n\xc2\xa0\nFor\xc2\xa0example,\xc2\xa0CSX\xc2\xa0used\xc2\xa0an\xc2\xa0incorrect\xc2\xa0number\xc2\xa0of\xc2\xa0train\xc2\xa0miles\xc2\xa0traveled\xc2\xa0to\xc2\xa0calculate\xc2\xa0the\xc2\xa0\ninvoice\xc2\xa0amount\xc2\xa0due\xc2\xa0for\xc2\xa0a\xc2\xa0special\xc2\xa0train\xc2\xa0trip\xc2\xa0between\xc2\xa0Albany,\xc2\xa0NY,\xc2\xa0and\xc2\xa0Springfield,\xc2\xa0MA.\xc2\xa0\nFor\xc2\xa0the\xc2\xa0audit\xc2\xa0period,\xc2\xa0CSX\xe2\x80\x99s\xc2\xa0invoices\xc2\xa0included\xc2\xa028\xc2\xa0special\xc2\xa0train\xc2\xa0trips\xc2\xa0between\xc2\xa0these\xc2\xa0two\xc2\xa0\npoints,\xc2\xa0originating\xc2\xa0in\xc2\xa0Albany.\xc2\xa0CSX\xc2\xa0calculated\xc2\xa0the\xc2\xa0invoice\xc2\xa0amount\xc2\xa0based\xc2\xa0on\xc2\xa0264\xc2\xa0train\xc2\xa0\nmiles.\xc2\xa0We\xc2\xa0used\xc2\xa0the\xc2\xa0Amtrak\xc2\xa0system\xc2\xa0timetable\xc2\xa0to\xc2\xa0determine\xc2\xa0that\xc2\xa0the\xc2\xa0actual\xc2\xa0distance\xc2\xa0for\xc2\xa0\nround\xe2\x80\x90trip\xc2\xa0travel\xc2\xa0between\xc2\xa0these\xc2\xa0two\xc2\xa0points\xc2\xa0is\xc2\xa0202\xc2\xa0train\xc2\xa0miles.\xc2\xa0The\xc2\xa0invoices\xc2\xa0also\xc2\xa0included\xc2\xa0\n45\xc2\xa0special\xc2\xa0train\xc2\xa0trips\xc2\xa0between\xc2\xa0Albany\xc2\xa0and\xc2\xa0Boston.\xc2\xa0CSX\xc2\xa0calculated\xc2\xa0the\xc2\xa0invoice\xc2\xa0amount\xc2\xa0\nbased\xc2\xa0on\xc2\xa0231\xc2\xa0train\xc2\xa0miles,\xc2\xa0while\xc2\xa0our\xc2\xa0calculated\xc2\xa0amount\xc2\xa0was\xc2\xa0based\xc2\xa0on\xc2\xa0199\xc2\xa0train\xc2\xa0miles.\xc2\xa0\nThese\xc2\xa0two\xc2\xa0mileage\xc2\xa0errors\xc2\xa0resulted\xc2\xa0in\xc2\xa0overpayments\xc2\xa0of\xc2\xa0approximately\xc2\xa0$16,000.\xc2\xa0\xc2\xa0\n\xc2\xa0\nFurther,\xc2\xa0CSX\xc2\xa0did\xc2\xa0not\xc2\xa0provide\xc2\xa0sufficient\xc2\xa0documentation\xc2\xa0to\xc2\xa0support\xc2\xa0over\xc2\xa0$180,000\xc2\xa0in\xc2\xa0\ncharges\xc2\xa0for\xc2\xa0the\xc2\xa0sample\xc2\xa0invoices.\xc2\xa0For\xc2\xa0example,\xc2\xa0CSX\xc2\xa0did\xc2\xa0not\xc2\xa0provide\xc2\xa0scheduled\xc2\xa0and\xc2\xa0\xc2\xa0\n\x0c 6\n Amtrak Office of Inspector General\n Amtrak Invoice Review: Inaccurate Invoices Were Paid, But Progress\n is Being Made to Improve the Invoice-Review Process\n Audit Report No. OIG-A-2012-005, February 16, 2012\n\nactual\xc2\xa0departure\xc2\xa0and\xc2\xa0arrival\xc2\xa0times\xc2\xa0for\xc2\xa0special\xc2\xa0train\xc2\xa0incentive\xc2\xa0charges.3\xc2\xa0Without\xc2\xa0this\xc2\xa0\ninformation,\xc2\xa0we\xc2\xa0could\xc2\xa0not\xc2\xa0verify\xc2\xa0the\xc2\xa0on\xe2\x80\x90time\xe2\x80\x90performance\xc2\xa0incentives\xc2\xa0claimed\xc2\xa0for\xc2\xa0the\xc2\xa0\nspecial\xc2\xa0trains.\xc2\xa0In\xc2\xa0September\xc2\xa02010,\xc2\xa0we\xc2\xa0requested\xc2\xa0the\xc2\xa0supporting\xc2\xa0documentation\xc2\xa0from\xc2\xa0\nCSX\xc2\xa0for\xc2\xa0the\xc2\xa0amount\xc2\xa0invoiced;\xc2\xa0however,\xc2\xa0CSX\xc2\xa0officials\xc2\xa0stated\xc2\xa0that\xc2\xa0the\xc2\xa0information\xc2\xa0\nrequested\xc2\xa0was\xc2\xa0voluminous,\xc2\xa0complex\xc2\xa0to\xc2\xa0retrieve,\xc2\xa0and\xc2\xa0may\xc2\xa0not\xc2\xa0be\xc2\xa0available\xc2\xa0at\xc2\xa0all\xc2\xa0due\xc2\xa0to\xc2\xa0\nits\xc2\xa0age.\xc2\xa0To\xc2\xa0date,\xc2\xa0CSX\xc2\xa0has\xc2\xa0not\xc2\xa0provided\xc2\xa0us\xc2\xa0with\xc2\xa0all\xc2\xa0documents\xc2\xa0necessary\xc2\xa0for\xc2\xa0us\xc2\xa0to\xc2\xa0\nevaluate\xc2\xa0these\xc2\xa0charges.\xc2\xa0\n\nAdditional Light Density Line Costs\n\nCSX\xc2\xa0invoices\xc2\xa0contained\xc2\xa0errors\xc2\xa0of\xc2\xa0$151,007\xc2\xa0for\xc2\xa0additional\xc2\xa0light\xc2\xa0density\xc2\xa0line\xc2\xa0costs.\xc2\xa0\nAccording\xc2\xa0to\xc2\xa0the\xc2\xa0operating\xc2\xa0agreement,\xc2\xa0these\xc2\xa0are\xc2\xa0additional\xc2\xa0costs\xc2\xa0the\xc2\xa0railroad\xc2\xa0would\xc2\xa0not\xc2\xa0\nhave\xc2\xa0incurred\xc2\xa0had\xc2\xa0Amtrak\xc2\xa0not\xc2\xa0used\xc2\xa0this\xc2\xa0track;\xc2\xa0for\xc2\xa0example,\xc2\xa0signal\xc2\xa0costs,\xc2\xa0required\xc2\xa0\nadditional\xc2\xa0track\xc2\xa0inspections,\xc2\xa0and\xc2\xa0all\xc2\xa0other\xc2\xa0costs\xc2\xa0associated\xc2\xa0with\xc2\xa0three\xc2\xa0specific\xc2\xa0segments\xc2\xa0\nalong\xc2\xa0CSX\xc2\xa0routes.\xc2\xa0The\xc2\xa0three\xc2\xa0route\xc2\xa0segments\xc2\xa0are\xc2\xa0detailed\xc2\xa0in\xc2\xa0appendix\xc2\xa0IV\xc2\xa0of\xc2\xa0the\xc2\xa0operating\xc2\xa0\nagreement\xc2\xa0and\xc2\xa0include\xc2\xa0the\xc2\xa0routes\xc2\xa0detailed\xc2\xa0in\xc2\xa0the\xc2\xa0box\xc2\xa0below.\xc2\xa0According\xc2\xa0to\xc2\xa0the\xc2\xa0\nagreement,\xc2\xa0Amtrak\xc2\xa0shall\xc2\xa0pay\xc2\xa0CSX\xc2\xa0$ \xc2\xa0per\xc2\xa0train\xc2\xa0mile\xc2\xa0for\xc2\xa0Amtrak\xc2\xa0trains\xc2\xa0operated\xc2\xa0on\xc2\xa0\nthese\xc2\xa0three\xc2\xa0route\xc2\xa0segments.\xc2\xa0\n\nAmtrak\xc2\xa0paid\xc2\xa0over\xc2\xa0$3\xc2\xa0million\xc2\xa0for\xc2\xa0the\xc2\xa0\n106\xe2\x80\x90month\xc2\xa0audit\xc2\xa0period\xc2\xa0for\xc2\xa0additional\xc2\xa0 Additional Light Density Line Costs\n $ per train mile\nlight\xc2\xa0density\xc2\xa0line\xc2\xa0costs.\xc2\xa0We\xc2\xa0selected\xc2\xa0a\xc2\xa0\nsample\xc2\xa0of\xc2\xa072\xc2\xa0months\xc2\xa0of\xc2\xa0additional\xc2\xa0 Additional signal costs, track inspections, and all\n other costs associated with the following routes:\nlight\xc2\xa0density\xc2\xa0line\xc2\xa0charges\xc2\xa0totaling\xc2\xa0\n$2,108,090\xc2\xa0(68\xc2\xa0percent\xc2\xa0of\xc2\xa0the\xc2\xa0total\xc2\xa0 \xef\x83\x98 Raleigh, NC\xe2\x80\x93Columbia, SC (203 miles)\npaid).\xc2\xa0CSX\xc2\xa0invoices\xc2\xa0were\xc2\xa0overstated\xc2\xa0 \xef\x83\x98 Maynard, IN\xe2\x80\x93Ames, IN (123 miles)\n \xef\x83\x98 Clifton Forge, VA\xe2\x80\x93Orange, VA (126 miles)\ndue\xc2\xa0to\xc2\xa0an\xc2\xa0apparent\xc2\xa0oversight\xc2\xa0error\xc2\xa0and\xc2\xa0\nthe\xc2\xa0use\xc2\xa0of\xc2\xa0incorrect\xc2\xa0numbers\xc2\xa0of\xc2\xa0train\xc2\xa0 Source: Amtrak/CSX Operating Agreement\n\nmiles.\xc2\xa0\n\xc2\xa0\nSpecifically,\xc2\xa0from\xc2\xa0December\xc2\xa02004\xc2\xa0through\xc2\xa0January\xc2\xa02006,\xc2\xa0CSX\xc2\xa0billed\xc2\xa0Amtrak\xc2\xa0in\xc2\xa0error\xc2\xa0for\xc2\xa0\nthe\xc2\xa0segment\xc2\xa0between\xc2\xa0Clifton\xc2\xa0Forge\xc2\xa0and\xc2\xa0Orange.\xc2\xa0An\xc2\xa0agreement\xc2\xa0among\xc2\xa0Amtrak,\xc2\xa0\nBuckingham\xc2\xa0Branch\xc2\xa0Railroad\xc2\xa0and\xc2\xa0CSX\xc2\xa0dated\xc2\xa0December\xc2\xa021,\xc2\xa02004,\xc2\xa0directed\xc2\xa0CSX\xc2\xa0to\xc2\xa0stop\xc2\xa0\n\n\n3\xc2\xa0Appendix\xc2\xa0V\xc2\xa0of\xc2\xa0the\xc2\xa0operating\xc2\xa0agreement\xe2\x80\x93Performance\xc2\xa0Payments\xc2\xa0and\xc2\xa0Penalties\xe2\x80\x94states\xc2\xa0\xe2\x80\x9cif\xc2\xa0a\xc2\xa0special\xc2\xa0train\xc2\xa0\narrives\xc2\xa0at\xc2\xa0its\xc2\xa0scheduled\xc2\xa0final\xc2\xa0destination\xc2\xa0on\xc2\xa0or\xc2\xa0before\xc2\xa0its\xc2\xa0scheduled\xc2\xa0arrival\xc2\xa0time,\xc2\xa0plus\xc2\xa0a\xc2\xa0 minute\xc2\xa0\ntolerance\xc2\xa0and\xc2\xa0the\xc2\xa0amount\xc2\xa0of\xc2\xa0time\xc2\xa0the\xc2\xa0train\xc2\xa0departed\xc2\xa0late\xc2\xa0from\xc2\xa0origin\xc2\xa0on\xc2\xa0[CSX],\xc2\xa0Amtrak\xc2\xa0will\xc2\xa0pay\xc2\xa0[CSX]\xc2\xa0\n$ for\xc2\xa0each\xc2\xa0train\xc2\xa0mile\xc2\xa0operated\xc2\xa0by\xc2\xa0the\xc2\xa0special\xc2\xa0train\xc2\xa0on\xc2\xa0Rail\xc2\xa0Lines\xc2\xa0of\xc2\xa0[CSX].\xe2\x80\x9d\n\x0c 7\n Amtrak Office of Inspector General\n Amtrak Invoice Review: Inaccurate Invoices Were Paid, But Progress\n is Being Made to Improve the Invoice-Review Process\n Audit Report No. OIG-A-2012-005, February 16, 2012\n\nbilling\xc2\xa0Amtrak\xc2\xa0for\xc2\xa0this\xc2\xa0segment\xc2\xa0because\xc2\xa0the\xc2\xa0segment\xc2\xa0was\xc2\xa0leased\xc2\xa0by\xc2\xa0CSX\xc2\xa0to\xc2\xa0\nBuckingham,\xc2\xa0and\xc2\xa0Amtrak\xc2\xa0paid\xc2\xa0the\xc2\xa0costs\xc2\xa0directly\xc2\xa0to\xc2\xa0Buckingham.\xc2\xa0However,\xc2\xa0CSX\xc2\xa0\ncontinued\xc2\xa0to\xc2\xa0include\xc2\xa0these\xc2\xa0costs\xc2\xa0on\xc2\xa0its\xc2\xa0monthly\xc2\xa0invoices\xc2\xa0for\xc2\xa0more\xc2\xa0than\xc2\xa01\xc2\xa0year,\xc2\xa0and\xc2\xa0\nAmtrak\xe2\x80\x99s\xc2\xa0review\xc2\xa0process\xc2\xa0did\xc2\xa0not\xc2\xa0detect\xc2\xa0the\xc2\xa0error.\xc2\xa0As\xc2\xa0a\xc2\xa0result,\xc2\xa0Amtrak\xc2\xa0made\xc2\xa0duplicate\xc2\xa0\npayments\xc2\xa0to\xc2\xa0CSX\xc2\xa0for\xc2\xa0this\xc2\xa0segment.\xc2\xa0\n\xc2\xa0\nAdditionally,\xc2\xa0CSX\xc2\xa0used\xc2\xa0the\xc2\xa0incorrect\xc2\xa0number\xc2\xa0of\xc2\xa0train\xc2\xa0miles\xc2\xa0traveled\xc2\xa0to\xc2\xa0calculate\xc2\xa0the\xc2\xa0\ninvoice\xc2\xa0amount\xc2\xa0due.\xc2\xa0During\xc2\xa0this\xc2\xa0period,\xc2\xa0CSX\xc2\xa0used\xc2\xa0246.5\xc2\xa0train\xc2\xa0miles\xc2\xa0to\xc2\xa0calculate\xc2\xa0the\xc2\xa0\namount\xc2\xa0due\xc2\xa0for\xc2\xa0the\xc2\xa0trip\xc2\xa0from\xc2\xa0Raleigh\xc2\xa0to\xc2\xa0Columbia.\xc2\xa0We\xc2\xa0used\xc2\xa0the\xc2\xa0operating\xc2\xa0agreement\xc2\xa0\ninformation\xc2\xa0and\xc2\xa0determined\xc2\xa0that\xc2\xa0the\xc2\xa0invoice\xc2\xa0should\xc2\xa0have\xc2\xa0been\xc2\xa0based\xc2\xa0on\xc2\xa0203\xc2\xa0train\xc2\xa0miles.\xc2\xa0\xc2\xa0\n\xc2\xa0\nThese\xc2\xa0two\xc2\xa0errors\xc2\xa0caused\xc2\xa0an\xc2\xa0overpayment\xc2\xa0of\xc2\xa0$122,449\xc2\xa0to\xc2\xa0CSX.\xc2\xa0\n\nIncremental Track Maintenance and Other System Train Costs\n\nCSX\xc2\xa0invoices\xc2\xa0contained\xc2\xa0errors\xc2\xa0in\xc2\xa0the\xc2\xa0calculation\xc2\xa0of\xc2\xa0incremental\xc2\xa0track\xc2\xa0maintenance\xc2\xa0(ITM)\xc2\xa0\nand\xc2\xa0other\xc2\xa0system\xc2\xa0train\xc2\xa0costs\xc2\xa0(OTC),\xc2\xa0both\xc2\xa0overstated\xc2\xa0and\xc2\xa0understated\xc2\xa0errors,\xc2\xa0resulting\xc2\xa0in\xc2\xa0\na\xc2\xa0net\xc2\xa0overpayment\xc2\xa0of\xc2\xa0$139,124.\xc2\xa0ITM\xc2\xa0is\xc2\xa0an\xc2\xa0agreed\xe2\x80\x90upon\xc2\xa0rate\xc2\xa0paid\xc2\xa0to\xc2\xa0CSX\xc2\xa0to\xc2\xa0maintain\xc2\xa0its\xc2\xa0\nrail\xc2\xa0lines\xc2\xa0in\xc2\xa0a\xc2\xa0reasonable\xc2\xa0condition\xc2\xa0to\xc2\xa0allow\xc2\xa0the\xc2\xa0operation\xc2\xa0of\xc2\xa0Amtrak\xc2\xa0passenger\xc2\xa0trains.\xc2\xa0\nAccording\xc2\xa0to\xc2\xa0the\xc2\xa0operating\xc2\xa0agreement,\xc2\xa0these\xc2\xa0costs\xc2\xa0are\xc2\xa0incurred\xc2\xa0based\xc2\xa0on\xc2\xa0the\xc2\xa0actual\xc2\xa0\nnumber\xc2\xa0of\xc2\xa0train\xc2\xa0miles\xc2\xa0Amtrak\xc2\xa0trains\xc2\xa0travel\xc2\xa0over\xc2\xa0CSX\xc2\xa0tracks.\xc2\xa0Amtrak\xc2\xa0agreed\xc2\xa0to\xc2\xa0pay\xc2\xa0CSX\xc2\xa0\n$ \xc2\xa0per\xc2\xa0train\xc2\xa0mile\xc2\xa0for\xc2\xa0ITM.\xc2\xa0\n\xc2\xa0\n In\xc2\xa0addition,\xc2\xa0Amtrak\xc2\xa0agreed\xc2\xa0to\xc2\xa0\n Incremental Track Maintenance pay\xc2\xa0CSX\xc2\xa0a\xc2\xa0flat\xc2\xa0rate\xc2\xa0of\xc2\xa0$\n $ per train mile\n Amtrak shall pay CSX for the incremental cost of per\xc2\xa0train\xc2\xa0mile\xc2\xa0for\xc2\xa0incremental\xc2\xa0\n maintaining rail lines of CSX in connection with the costs\xc2\xa0not\xc2\xa0specifically\xc2\xa0included\xc2\xa0\n operation of Amtrak passenger service.\n in\xc2\xa0the\xc2\xa0agreement.\xc2\xa0\n Other System Train Costs \xc2\xa0\n $ per train mile\n These\xc2\xa0rates\xc2\xa0remained\xc2\xa0in\xc2\xa0effect\xc2\xa0\n Amtrak shall pay CSX in lieu of all CSX claims for all\n categories or amounts of incremental system costs not throughout\xc2\xa0the\xc2\xa0audit\xc2\xa0period.\xc2\xa0\n specifically included herein. \xc2\xa0\n Source: Amtrak/CSX Operating Agreement Amtrak\xc2\xa0paid\xc2\xa0almost\xc2\xa0$53\xc2\xa0million\xc2\xa0for\xc2\xa0\n ITM\xc2\xa0and\xc2\xa0over\xc2\xa0$5\xc2\xa0million\xc2\xa0for\xc2\xa0OTC,\xc2\xa0for\xc2\xa0\na\xc2\xa0total\xc2\xa0payment\xc2\xa0of\xc2\xa0$58\xc2\xa0million\xc2\xa0during\xc2\xa0the\xc2\xa0audit\xc2\xa0period.\xc2\xa0As\xc2\xa0mentioned,\xc2\xa0CSX\xc2\xa0invoices\xc2\xa0\nwere\xc2\xa0overstated\xc2\xa0by\xc2\xa0a\xc2\xa0net\xc2\xa0amount\xc2\xa0of\xc2\xa0$139,124.\xc2\xa0Both\xc2\xa0ITM\xc2\xa0and\xc2\xa0OTC\xc2\xa0were\xc2\xa0reviewed\xc2\xa0\ntogether\xc2\xa0and\xc2\xa0the\xc2\xa0net\xc2\xa0amount\xc2\xa0due\xc2\xa0Amtrak\xc2\xa0includes\xc2\xa0an\xc2\xa0overstated\xc2\xa0amount\xc2\xa0of\xc2\xa0$462,500\xc2\xa0\n\x0c 8\n Amtrak Office of Inspector General\n Amtrak Invoice Review: Inaccurate Invoices Were Paid, But Progress\n is Being Made to Improve the Invoice-Review Process\n Audit Report No. OIG-A-2012-005, February 16, 2012\n\nand\xc2\xa0an\xc2\xa0understated\xc2\xa0amount\xc2\xa0of\xc2\xa0$323,376.\xc2\xa0While\xc2\xa0the\xc2\xa0error\xc2\xa0rate\xc2\xa0of\xc2\xa0less\xc2\xa0than\xc2\xa01\xc2\xa0percent\xc2\xa0is\xc2\xa0\nminimal,\xc2\xa0invoices\xc2\xa0for\xc2\xa0105\xc2\xa0of\xc2\xa0the\xc2\xa0106\xc2\xa0months\xc2\xa0contained\xc2\xa0ITM\xc2\xa0and\xc2\xa0OTC\xc2\xa0billing\xc2\xa0errors.\xc2\xa0\xc2\xa0\n\nThe\xc2\xa0invoices\xc2\xa0were\xc2\xa0overstated\xc2\xa0for\xc2\xa0the\xc2\xa0following\xc2\xa0reasons:\xc2\xa0\n\xc2\xa0\n\xef\x82\xb7 CSX\xc2\xa0claimed\xc2\xa0ITM\xc2\xa0and\xc2\xa0OTC\xc2\xa0for\xc2\xa0scheduled\xc2\xa0trains\xc2\xa0that\xc2\xa0were\xc2\xa0annulled\xc2\xa0or\xc2\xa0\n terminated4\xc2\xa0or\xc2\xa0that\xc2\xa0would\xc2\xa0have\xc2\xa0run\xc2\xa0on\xc2\xa0routes\xc2\xa0that\xc2\xa0were\xc2\xa0eliminated.\xc2\xa0This\xc2\xa0\n happened\xc2\xa0because\xc2\xa0CSX\xc2\xa0billed\xc2\xa0for\xc2\xa0the\xc2\xa0full\xc2\xa0month\xc2\xa0and\xc2\xa0did\xc2\xa0not\xc2\xa0take\xc2\xa0into\xc2\xa0account\xc2\xa0\n certain\xc2\xa0days\xc2\xa0of\xc2\xa0the\xc2\xa0month\xc2\xa0that\xc2\xa0the\xc2\xa0train\xc2\xa0did\xc2\xa0not\xc2\xa0run.\xc2\xa0\xc2\xa0\n\xef\x82\xb7 CSX\xc2\xa0used\xc2\xa0the\xc2\xa0trip\xc2\xa0performance\xc2\xa0rate5\xc2\xa0instead\xc2\xa0of\xc2\xa0the\xc2\xa0number\xc2\xa0of\xc2\xa0train\xc2\xa0miles\xc2\xa0to\xc2\xa0\n calculate\xc2\xa0ITM\xc2\xa0and\xc2\xa0OTC\xc2\xa0from\xc2\xa0October\xc2\xa0through\xc2\xa0December\xc2\xa02000\xc2\xa0for\xc2\xa0Trains\xc2\xa0268,\xc2\xa0\n 295,\xc2\xa0and\xc2\xa0297.\xc2\xa0\xc2\xa0\n\xef\x82\xb7 CSX\xc2\xa0claimed\xc2\xa0erroneous\xc2\xa0dollar\xc2\xa0amounts\xc2\xa0with\xc2\xa0no\xc2\xa0justification\xc2\xa0or\xc2\xa0details\xc2\xa0to\xc2\xa0\n support\xc2\xa0the\xc2\xa0charges.\xc2\xa0For\xc2\xa0example,\xc2\xa0CSX\xc2\xa0invoices\xc2\xa0contained\xc2\xa0erroneous\xc2\xa0amounts\xc2\xa0\n for\xc2\xa0Train\xc2\xa091\xc2\xa0from\xc2\xa0August\xc2\xa02004\xc2\xa0through\xc2\xa0April\xc2\xa02005,\xc2\xa0resulting\xc2\xa0in\xc2\xa0overpayments.\xc2\xa0\n\xef\x82\xb7 CSX\xc2\xa0used\xc2\xa0the\xc2\xa0incorrect\xc2\xa0number\xc2\xa0of\xc2\xa0train\xc2\xa0miles\xc2\xa0to\xc2\xa0calculate\xc2\xa0ITM\xc2\xa0and\xc2\xa0OTC.\xc2\xa0For\xc2\xa0\n example,\xc2\xa0according\xc2\xa0to\xc2\xa0the\xc2\xa0operating\xc2\xa0agreement,\xc2\xa0the\xc2\xa0invoice\xc2\xa0for\xc2\xa0ITM\xc2\xa0for\xc2\xa0train\xc2\xa0\n routes\xc2\xa0between\xc2\xa0Orlando\xc2\xa0and\xc2\xa0Jacksonville\xc2\xa0should\xc2\xa0have\xc2\xa0been\xc2\xa0calculated\xc2\xa0based\xc2\xa0\n on\xc2\xa0148\xc2\xa0miles\xc2\xa0as\xc2\xa0of\xc2\xa0October\xc2\xa02002\xc2\xa0and\xc2\xa0169\xc2\xa0miles\xc2\xa0as\xc2\xa0of\xc2\xa0December\xc2\xa02004.\xc2\xa0CSX\xc2\xa0used\xc2\xa0\n 195\xc2\xa0miles\xc2\xa0to\xc2\xa0calculate\xc2\xa0the\xc2\xa0invoice\xc2\xa0from\xc2\xa0November\xc2\xa02002\xc2\xa0through\xc2\xa0November\xc2\xa0\n 2004\xc2\xa0and\xc2\xa0January\xc2\xa02005,\xc2\xa0181\xc2\xa0miles\xc2\xa0in\xc2\xa0December\xc2\xa02004\xc2\xa0and\xc2\xa0February\xc2\xa02005,\xc2\xa0and\xc2\xa0\n 188\xc2\xa0miles\xc2\xa0from\xc2\xa0April\xc2\xa02005\xc2\xa0through\xc2\xa0August\xc2\xa02005.\xc2\xa0\xc2\xa0\n\n\nStation Utilities\n\nAmtrak\xc2\xa0made\xc2\xa0duplicate\xc2\xa0payments\xc2\xa0for\xc2\xa0the\xc2\xa0same\xc2\xa0service,\xc2\xa0including\xc2\xa0payments\xc2\xa0to\xc2\xa0both\xc2\xa0\nCSX\xc2\xa0and\xc2\xa0other\xc2\xa0utility\xc2\xa0providers\xc2\xa0for\xc2\xa0some\xc2\xa0station\xc2\xa0utility\xe2\x80\x90related\xc2\xa0invoices.6\xc2\xa0Duplicate\xc2\xa0\n\n\n4\xc2\xa0An\xc2\xa0annulled\xc2\xa0train\xc2\xa0refers\xc2\xa0to\xc2\xa0a\xc2\xa0scheduled\xc2\xa0train\xc2\xa0that\xc2\xa0did\xc2\xa0not\xc2\xa0run\xc2\xa0on\xc2\xa0a\xc2\xa0scheduled\xc2\xa0date\xc2\xa0and\xc2\xa0was\xc2\xa0canceled\xc2\xa0prior\xc2\xa0\nto\xc2\xa0its\xc2\xa0scheduled\xc2\xa0departure.\xc2\xa0A\xc2\xa0terminated\xc2\xa0train\xc2\xa0refers\xc2\xa0to\xc2\xa0a\xc2\xa0train\xc2\xa0that\xc2\xa0is\xc2\xa0terminated\xc2\xa0short\xc2\xa0of\xc2\xa0its\xc2\xa0final\xc2\xa0\ndestination\xc2\xa0after\xc2\xa0departing\xc2\xa0as\xc2\xa0scheduled.\xc2\xa0Trains\xc2\xa0are\xc2\xa0annulled\xc2\xa0and\xc2\xa0terminated\xc2\xa0for\xc2\xa0reasons\xc2\xa0such\xc2\xa0as\xc2\xa0train\xc2\xa0\ncrews\xc2\xa0not\xc2\xa0being\xc2\xa0available,\xc2\xa0inclement\xc2\xa0weather,\xc2\xa0and\xc2\xa0track\xe2\x80\x90related\xc2\xa0issues.\n5\xc2\xa0The\xc2\xa0trip\xc2\xa0performance\xc2\xa0rate\xc2\xa0is\xc2\xa0the\xc2\xa0rate\xc2\xa0used\xc2\xa0to\xc2\xa0calculate\xc2\xa0the\xc2\xa0on\xe2\x80\x90time\xe2\x80\x90performance\xc2\xa0incentives\xc2\xa0only;\xc2\xa0it\xc2\xa0has\xc2\xa0no\xc2\xa0\n\nrelevance\xc2\xa0to\xc2\xa0ITM\xc2\xa0or\xc2\xa0OTC.\n6\xc2\xa0Station\xc2\xa0utilities\xc2\xa0include\xc2\xa0payments\xc2\xa0for\xc2\xa0electricity,\xc2\xa0water,\xc2\xa0heat,\xc2\xa0and\xc2\xa0telephone.\xc2\xa0Amtrak\xc2\xa0may\xc2\xa0be\xc2\xa0responsible\xc2\xa0\n\nfor\xc2\xa0monthly\xc2\xa0payment\xc2\xa0of\xc2\xa0some\xc2\xa0or\xc2\xa0all\xc2\xa0of\xc2\xa0these\xc2\xa0services,\xc2\xa0depending\xc2\xa0on\xc2\xa0their\xc2\xa0use\xc2\xa0and\xc2\xa0the\xc2\xa0ownership\xc2\xa0of\xc2\xa0the\xc2\xa0\nindividual\xc2\xa0station.\n\x0c 9\n Amtrak Office of Inspector General\n Amtrak Invoice Review: Inaccurate Invoices Were Paid, But Progress\n is Being Made to Improve the Invoice-Review Process\n Audit Report No. OIG-A-2012-005, February 16, 2012\n\npayments\xc2\xa0in\xc2\xa0addition\xc2\xa0to\xc2\xa0incorrect\xc2\xa0invoice\xc2\xa0amounts\xc2\xa0resulted\xc2\xa0in\xc2\xa0net\xc2\xa0overpayments\xc2\xa0of\xc2\xa0\n$52,535.\xc2\xa0According\xc2\xa0to\xc2\xa0the\xc2\xa0operating\xc2\xa0agreement,\xc2\xa0Amtrak\xc2\xa0shall\xc2\xa0pay\xc2\xa0CSX\xc2\xa0a\xc2\xa0certain\xc2\xa0amount\xc2\xa0\nper\xc2\xa0month,\xc2\xa0as\xc2\xa0detailed\xc2\xa0in\xc2\xa0appendix\xc2\xa0IV\xc2\xa0of\xc2\xa0the\xc2\xa0agreement,\xc2\xa0for\xc2\xa0utilities\xc2\xa0supplied\xc2\xa0to\xc2\xa0stations\xc2\xa0\nused\xc2\xa0in\xc2\xa0Amtrak\xc2\xa0service.\xc2\xa0The\xc2\xa0agreement\xc2\xa0also\xc2\xa0states\xc2\xa0that\xc2\xa0the\xc2\xa0amount\xc2\xa0of\xc2\xa0the\xc2\xa0payment\xc2\xa0shall\xc2\xa0\nbe\xc2\xa0appropriately\xc2\xa0adjusted\xc2\xa0when\xc2\xa0Amtrak\xc2\xa0takes\xc2\xa0over\xc2\xa0direct\xc2\xa0payment\xc2\xa0of\xc2\xa0utility\xc2\xa0charges.\xc2\xa0\n\xc2\xa0\nDuring\xc2\xa0the\xc2\xa0audit\xc2\xa0period,\xc2\xa0CSX\xc2\xa0billed\xc2\xa0Amtrak\xc2\xa0for\xc2\xa0station\xc2\xa0utilities\xc2\xa0at\xc2\xa025\xc2\xa0stations.\xc2\xa0Of\xc2\xa0these,\xc2\xa0\nthere\xc2\xa0were\xc2\xa0two\xc2\xa0at\xc2\xa0which\xc2\xa0Amtrak\xc2\xa0had\xc2\xa0taken\xc2\xa0over\xc2\xa0direct\xc2\xa0payment\xc2\xa0of\xc2\xa0utility\xc2\xa0charges;\xc2\xa0\nhowever,\xc2\xa0the\xc2\xa0invoice\xc2\xa0from\xc2\xa0CSX\xc2\xa0was\xc2\xa0not\xc2\xa0adjusted.\xc2\xa0\n\xc2\xa0\nSpecifically,\xc2\xa0CSX\xe2\x80\x99s\xc2\xa0invoices\xc2\xa0for\xc2\xa0the\xc2\xa0audit\xc2\xa0period\xc2\xa0included\xc2\xa0charges\xc2\xa0for\xc2\xa0electricity\xc2\xa0at\xc2\xa0the\xc2\xa0\nSebring,\xc2\xa0FL,\xc2\xa0station.\xc2\xa0Amtrak\xc2\xa0started\xc2\xa0paying\xc2\xa0Progress\xc2\xa0Energy\xc2\xa0for\xc2\xa0the\xc2\xa0same\xc2\xa0electric\xc2\xa0\nservices\xc2\xa0at\xc2\xa0Sebring\xc2\xa0in\xc2\xa01993.\xc2\xa0Sebring\xc2\xa0should\xc2\xa0not\xc2\xa0have\xc2\xa0been\xc2\xa0included\xc2\xa0in\xc2\xa0the\xc2\xa0June\xc2\xa01999\xc2\xa0\noperating\xc2\xa0agreement\xc2\xa0under\xc2\xa0the\xc2\xa0station\xc2\xa0utilities\xc2\xa0cost\xc2\xa0component.\xc2\xa0This\xc2\xa0error\xc2\xa0resulted\xc2\xa0in\xc2\xa0\noverpayments\xc2\xa0totaling\xc2\xa0$56,445\xc2\xa0during\xc2\xa0the\xc2\xa0audit\xc2\xa0period.\xc2\xa0Table\xc2\xa02\xc2\xa0provides\xc2\xa0details\xc2\xa0of\xc2\xa0the\xc2\xa0\nduplicate\xc2\xa0payments.\xc2\xa0\n\xc2\xa0\n Table 2. Station Utilities: Duplicate Payments,\n June 1999\xe2\x80\x93March 2008\n \t Sebring, FL Birmingham, AL\n\n Monthly Payment to CSX $417a $500a\n\n Services Electricity Electricity and Water\n\n Dates of Duplicate\n Payments June 1999\xe2\x80\x93March 2008b June 1999\xe2\x80\x93October 2004\n QUESTIONED COSTS $56,445 $14,119\n a\n Adjusted annually based on the most recent Association of American Railroads index.\n b\n The audit period ended in March 2008; however, it is possible that this error extended beyond\n this date.\n Source: OIG analysis of CSX and Amtrak data, June 1999 through March 2008\n\xc2\xa0\nFurther,\xc2\xa0CSX\xe2\x80\x99s\xc2\xa0invoices\xc2\xa0included\xc2\xa0charges\xc2\xa0for\xc2\xa0both\xc2\xa0electric\xc2\xa0and\xc2\xa0water\xc2\xa0services\xc2\xa0at\xc2\xa0the\xc2\xa0\nBirmingham\xc2\xa0station.\xc2\xa0Amtrak\xc2\xa0took\xc2\xa0over\xc2\xa0direct\xc2\xa0payment\xc2\xa0of\xc2\xa0these\xc2\xa0charges\xc2\xa0in\xc2\xa0December\xc2\xa0\n2002,\xc2\xa0but\xc2\xa0Birmingham\xc2\xa0was\xc2\xa0not\xc2\xa0removed\xc2\xa0from\xc2\xa0CSX\xe2\x80\x99s\xc2\xa0invoice\xc2\xa0until\xc2\xa0November\xc2\xa02004.\xc2\xa0No\xc2\xa0\nadjustments\xc2\xa0were\xc2\xa0made\xc2\xa0to\xc2\xa0credit\xc2\xa0Amtrak\xc2\xa0for\xc2\xa0the\xc2\xa02\xc2\xa0years\xc2\xa0of\xc2\xa0overpayments,\xc2\xa0which\xc2\xa0totaled\xc2\xa0\n$14,119.\xc2\xa0The\xc2\xa0errors\xc2\xa0were\xc2\xa0not\xc2\xa0detected\xc2\xa0by\xc2\xa0Amtrak\xe2\x80\x99s\xc2\xa0invoice\xe2\x80\x90review\xc2\xa0process.\xc2\xa0\n\xc2\xa0\n\x0c 10\n Amtrak Office of Inspector General\n Amtrak Invoice Review: Inaccurate Invoices Were Paid, But Progress\n is Being Made to Improve the Invoice-Review Process\n Audit Report No. OIG-A-2012-005, February 16, 2012\n\nAlong\xc2\xa0with\xc2\xa0these\xc2\xa0overpayments,\xc2\xa0CSX\xe2\x80\x99s\xc2\xa0flat\xe2\x80\x90rate\xc2\xa0invoice\xc2\xa0amounts\xc2\xa0for\xc2\xa0station\xc2\xa0utilities\xc2\xa0\nwere\xc2\xa0not\xc2\xa0always\xc2\xa0billed\xc2\xa0in\xc2\xa0accordance\xc2\xa0with\xc2\xa0the\xc2\xa0most\xc2\xa0recent\xc2\xa0amendment.\xc2\xa0The\xc2\xa0flat\xe2\x80\x90rate\xc2\xa0\ncost\xc2\xa0components\xc2\xa0on\xc2\xa0the\xc2\xa0amendments\xc2\xa0are\xc2\xa0adjusted\xc2\xa0annually\xc2\xa0for\xc2\xa0inflation\xc2\xa0based\xc2\xa0on\xc2\xa0an\xc2\xa0\nindex.7\xc2\xa0CSX\xc2\xa0used\xc2\xa0incorrect\xc2\xa0station\xc2\xa0utility\xc2\xa0amounts\xc2\xa0because\xc2\xa0it\xc2\xa0did\xc2\xa0not\xc2\xa0invoice\xc2\xa0Amtrak\xc2\xa0for\xc2\xa0\nutilities\xc2\xa0based\xc2\xa0on\xc2\xa0properly\xc2\xa0indexed\xc2\xa0amounts\xc2\xa0shown\xc2\xa0in\xc2\xa0the\xc2\xa0amendments.\xc2\xa0The\xc2\xa0errors\xc2\xa0\nresulted\xc2\xa0in\xc2\xa0underpayments\xc2\xa0of\xc2\xa0$18,029.\xc2\xa0\n\nBusiness Expense and Travel\n\nCSX\xc2\xa0invoices\xc2\xa0contained\xc2\xa0$28,006\xc2\xa0in\xc2\xa0questionable\xc2\xa0and\xc2\xa0unsupported\xc2\xa0business\xc2\xa0and\xc2\xa0travel\xc2\xa0\nexpenses.\xc2\xa0In\xc2\xa0accordance\xc2\xa0with\xc2\xa0appendix\xc2\xa0IV\xc2\xa0of\xc2\xa0the\xc2\xa0operating\xc2\xa0agreement,\xc2\xa0Amtrak\xc2\xa0pays\xc2\xa0\nCSX\xc2\xa0an\xc2\xa0agreed\xe2\x80\x90upon\xc2\xa0amount\xc2\xa0per\xc2\xa0month\xc2\xa0for\xc2\xa0the\xc2\xa0wages\xc2\xa0and\xc2\xa0fringe\xc2\xa0benefits\xc2\xa0of\xc2\xa0general\xc2\xa0\nadministration,\xc2\xa0accounting,\xc2\xa0and\xc2\xa0transportation\xc2\xa0supervision\xc2\xa0personnel.\xc2\xa0In\xc2\xa0addition,\xc2\xa0\nAmtrak\xc2\xa0pays\xc2\xa0CSX\xc2\xa0for\xc2\xa0its\xc2\xa0supplies,\xc2\xa0materials,\xc2\xa0and\xc2\xa0other\xc2\xa0related\xc2\xa0business\xc2\xa0expenses.\xc2\xa0The\xc2\xa0\nbusiness\xc2\xa0expenses\xc2\xa0are\xc2\xa0billed\xc2\xa0based\xc2\xa0on\xc2\xa0actual\xc2\xa0costs\xc2\xa0incurred.\xc2\xa0\n\xc2\xa0\nIn\xc2\xa0July\xc2\xa02010,\xc2\xa0a\xc2\xa0senior\xc2\xa0director\xc2\xa0from\xc2\xa0\n General Administration, Accounting, and\nAmtrak\xe2\x80\x99s\xc2\xa0Host\xc2\xa0Railroads\xc2\xa0 Transportation Supervision Personnel\nDepartment\xc2\xa0provided\xc2\xa0an\xc2\xa0\n Director, Passenger Services\ninterpretation\xc2\xa0of\xc2\xa0the\xc2\xa0agreement,\xc2\xa0 Assistant Director, Passenger Services\nstating\xc2\xa0that\xc2\xa0the\xc2\xa0intent\xc2\xa0of\xc2\xa0the\xc2\xa0parties\xc2\xa0 Assistant Director, Passenger Operations\nis\xc2\xa0that\xc2\xa0business\xc2\xa0and\xc2\xa0travel\xc2\xa0expenses\xc2\xa0 Manager, Passenger Operations\n Assistant Manager, Passenger Operations (4 positions)\nwould\xc2\xa0be\xc2\xa0reimbursed\xc2\xa0only\xc2\xa0for\xc2\xa0those\xc2\xa0 Manager, Administration\nemployees\xc2\xa0who\xc2\xa0hold\xc2\xa0one\xc2\xa0of\xc2\xa0the\xc2\xa0 Manager, Accounting\npositions\xc2\xa0listed\xc2\xa0in\xc2\xa0appendix\xc2\xa0IV\xc2\xa0of\xc2\xa0 Source: Operating Agreement Appendix IV, Amendment Agreement\nthe\xc2\xa0operating\xc2\xa0agreement\xc2\xa0(see\xc2\xa0box).\xc2\xa0 Change CSX-028 effective April 1, 2004.\n\n\xc2\xa0\nWe\xc2\xa0selected\xc2\xa0a\xc2\xa0sample\xc2\xa0of\xc2\xa0business\xc2\xa0and\xc2\xa0travel\xc2\xa0expenses\xc2\xa0for\xc2\xa06\xc2\xa0separate\xc2\xa0months,\xc2\xa0ranging\xc2\xa0\nfrom\xc2\xa0August\xc2\xa02005\xc2\xa0through\xc2\xa0April\xc2\xa02007,\xc2\xa0and\xc2\xa0totaling\xc2\xa0$73,742.\xc2\xa0Upon\xc2\xa0request,\xc2\xa0CSX\xc2\xa0\nprovided\xc2\xa0documentation\xc2\xa0to\xc2\xa0support\xc2\xa0the\xc2\xa0business\xc2\xa0and\xc2\xa0travel\xc2\xa0expenses.\xc2\xa0\n\n\xc2\xa0\n\xc2\xa0\n\n\n7\xc2\xa0Certain\xc2\xa0cost\xc2\xa0components\xc2\xa0are\xc2\xa0subject\xc2\xa0to\xc2\xa0annual\xc2\xa0price\xe2\x80\x90level\xc2\xa0adjustments.\xc2\xa0Components\xc2\xa0are\xc2\xa0adjusted\xc2\xa0\nbeginning\xc2\xa0April\xc2\xa01\xc2\xa0of\xc2\xa0each\xc2\xa0year\xc2\xa0based\xc2\xa0on\xc2\xa0the\xc2\xa0relationship\xc2\xa0of\xc2\xa0the\xc2\xa0most\xc2\xa0recent\xc2\xa0quarter\xe2\x80\x99s\xc2\xa0Association\xc2\xa0of\xc2\xa0\nAmerican\xc2\xa0Railroads\xc2\xa0Quarterly\xc2\xa0Indices\xc2\xa0of\xc2\xa0Chargeout\xc2\xa0Prices\xc2\xa0and\xc2\xa0Wage\xc2\xa0rates.\n\x0c 11\n Amtrak Office of Inspector General\n Amtrak Invoice Review: Inaccurate Invoices Were Paid, But Progress\n is Being Made to Improve the Invoice-Review Process\n Audit Report No. OIG-A-2012-005, February 16, 2012\n\nOf\xc2\xa0the\xc2\xa0total\xc2\xa0$73,742\xc2\xa0paid\xc2\xa0for\xc2\xa0the\xc2\xa0sample\xc2\xa0months,\xc2\xa0$28,006\xc2\xa0(38\xc2\xa0percent)\xc2\xa0constituted\xc2\xa0\noverpayments\xc2\xa0and\xc2\xa0unsupported\xc2\xa0charges,\xc2\xa0for\xc2\xa0the\xc2\xa0following\xc2\xa0reasons:\xc2\xa0\n\xc2\xa0\n\xef\x82\xb7 insufficient\xc2\xa0documentation\xc2\xa0to\xc2\xa0support\xc2\xa0the\xc2\xa0claims\xc2\xa0in\xc2\xa077\xc2\xa0percent\xc2\xa0of\xc2\xa0the\xc2\xa0charges;\xc2\xa0\n\xef\x82\xb7 business\xc2\xa0and\xc2\xa0travel\xc2\xa0expenses\xc2\xa0reimbursed\xc2\xa0to\xc2\xa0employees\xc2\xa0not\xc2\xa0listed\xc2\xa0as\xc2\xa0occupying\xc2\xa0one\xc2\xa0\n of\xc2\xa0the\xc2\xa0positions\xc2\xa0for\xc2\xa0which\xc2\xa0billing\xc2\xa0is\xc2\xa0allowed\xc2\xa0under\xc2\xa0the\xc2\xa0agreement,\xc2\xa0in\xc2\xa0addition\xc2\xa0to\xc2\xa0\n other\xc2\xa0questionable\xc2\xa0purchases\xc2\xa0in\xc2\xa018\xc2\xa0percent\xc2\xa0of\xc2\xa0the\xc2\xa0charges;\xc2\xa0and\xc2\xa0\xc2\xa0\n\xef\x82\xb7 insufficient\xc2\xa0evidence\xc2\xa0to\xc2\xa0support\xc2\xa0the\xc2\xa0business\xc2\xa0purpose\xc2\xa0of\xc2\xa0the\xc2\xa0expense\xc2\xa0in\xc2\xa05\xc2\xa0percent\xc2\xa0of\xc2\xa0\n the\xc2\xa0charges.\xc2\xa0For\xc2\xa0example,\xc2\xa0in\xc2\xa0July\xc2\xa02005,\xc2\xa0CSX\xc2\xa0purchased\xc2\xa0a\xc2\xa0stalker\xc2\xa0sport\xc2\xa0radar\xc2\xa0gun\xc2\xa0for\xc2\xa0\n $1,083\xc2\xa0and\xc2\xa0charged\xc2\xa0it\xc2\xa0to\xc2\xa0Amtrak\xc2\xa0under\xc2\xa0business\xc2\xa0and\xc2\xa0travel\xc2\xa0expenses.\xc2\xa0A\xc2\xa0receipt\xc2\xa0was\xc2\xa0\n provided,\xc2\xa0but\xc2\xa0no\xc2\xa0justification\xc2\xa0was\xc2\xa0given\xc2\xa0for\xc2\xa0the\xc2\xa0Amtrak\xe2\x80\x90related\xc2\xa0business\xc2\xa0purpose\xc2\xa0of\xc2\xa0\n this\xc2\xa0expense;\xc2\xa0therefore,\xc2\xa0we\xc2\xa0questioned\xc2\xa0the\xc2\xa0purchase.\xc2\xa0\n\nTransportation of CSX Employees\n\nAmtrak\xc2\xa0did\xc2\xa0not\xc2\xa0collect\xc2\xa0$4,894\xc2\xa0in\xc2\xa0costs\xc2\xa0attributable\xc2\xa0to\xc2\xa0the\xc2\xa0transportation\xc2\xa0of\xc2\xa0CSX\xc2\xa0\nemployees.\xc2\xa0Additionally,\xc2\xa0we\xc2\xa0determined\xc2\xa0that\xc2\xa0Amtrak\xc2\xa0was\xc2\xa0not\xc2\xa0properly\xc2\xa0capturing\xc2\xa0all\xc2\xa0of\xc2\xa0\nthe\xc2\xa0transportation\xc2\xa0charges\xc2\xa0due\xc2\xa0to\xc2\xa0a\xc2\xa0system\xc2\xa0error.\xc2\xa0The\xc2\xa0operating\xc2\xa0agreement\xc2\xa0directs\xc2\xa0CSX\xc2\xa0\nto\xc2\xa0pay\xc2\xa0Amtrak\xc2\xa0for\xc2\xa0the\xc2\xa0actual\xc2\xa0expenses\xc2\xa0of\xc2\xa0transporting\xc2\xa0CSX\xc2\xa0employees\xc2\xa0on\xc2\xa0Amtrak\xc2\xa0trains\xc2\xa0\nwhile\xc2\xa0engaged\xc2\xa0in\xc2\xa0CSX\xc2\xa0company\xc2\xa0business.\xc2\xa0These\xc2\xa0payments\xc2\xa0are\xc2\xa0shown\xc2\xa0on\xc2\xa0the\xc2\xa0invoices\xc2\xa0\nsubmitted\xc2\xa0to\xc2\xa0Amtrak\xc2\xa0as\xc2\xa0credits.\xc2\xa0\n\xc2\xa0\nCSX\xc2\xa0credited\xc2\xa0Amtrak\xc2\xa0almost\xc2\xa0$4\xc2\xa0million\xc2\xa0during\xc2\xa0the\xc2\xa0audit\xc2\xa0period\xc2\xa0for\xc2\xa0the\xc2\xa0transportation\xc2\xa0of\xc2\xa0\nCSX\xc2\xa0employees.\xc2\xa0We\xc2\xa0reviewed\xc2\xa081\xc2\xa0months\xc2\xa0in\xc2\xa0which\xc2\xa0CSX\xc2\xa0invoices\xc2\xa0included\xc2\xa0credits\xc2\xa0of\xc2\xa0\n$2,905,000\xc2\xa0(76\xc2\xa0percent\xc2\xa0of\xc2\xa0the\xc2\xa0total\xc2\xa0paid).\xc2\xa0CSX\xc2\xa0credited\xc2\xa0the\xc2\xa0invoice\xc2\xa0a\xc2\xa0flat\xe2\x80\x90rate\xc2\xa0amount\xc2\xa0\neach\xc2\xa0month\xc2\xa0and\xc2\xa0then\xc2\xa0in\xc2\xa0June\xc2\xa0of\xc2\xa0each\xc2\xa0year\xc2\xa0made\xc2\xa0an\xc2\xa0adjustment\xc2\xa0based\xc2\xa0on\xc2\xa0actual\xc2\xa0\ntransportation\xc2\xa0expenses.\xc2\xa0During\xc2\xa0our\xc2\xa0comparison\xc2\xa0of\xc2\xa0flat\xe2\x80\x90rate\xc2\xa0credits\xc2\xa0and\xc2\xa0annual\xc2\xa0\nadjustments\xc2\xa0for\xc2\xa0transportation\xc2\xa0of\xc2\xa0CSX\xc2\xa0employees,\xc2\xa0we\xc2\xa0identified\xc2\xa0three\xc2\xa0errors,\xc2\xa0both\xc2\xa0\nfavorable\xc2\xa0and\xc2\xa0unfavorable\xc2\xa0to\xc2\xa0Amtrak.\xc2\xa0For\xc2\xa0the\xc2\xa0months\xc2\xa0reviewed,\xc2\xa0discrepancies\xc2\xa0between\xc2\xa0\nthe\xc2\xa0flat\xe2\x80\x90rate\xc2\xa0amount\xc2\xa0credited\xc2\xa0and\xc2\xa0the\xc2\xa0actual\xc2\xa0expenses\xc2\xa0resulted\xc2\xa0in\xc2\xa0a\xc2\xa0net\xc2\xa0amount\xc2\xa0due\xc2\xa0\nAmtrak\xc2\xa0of\xc2\xa0$4,894.\xc2\xa0\n\xc2\xa0\nOur\xc2\xa0sample\xc2\xa0of\xc2\xa0actual\xc2\xa0tickets\xc2\xa0for\xc2\xa02\xc2\xa0months\xc2\xa0revealed\xc2\xa0that\xc2\xa0CSX\xc2\xa0did\xc2\xa0not\xc2\xa0reimburse\xc2\xa0Amtrak\xc2\xa0\nfor\xc2\xa0all\xc2\xa0transportation\xc2\xa0incurred.\xc2\xa0In\xc2\xa0response\xc2\xa0to\xc2\xa0our\xc2\xa0inquiries,\xc2\xa0Amtrak\xe2\x80\x99s\xc2\xa0Finance\xc2\xa0and\xc2\xa0\xc2\xa0\n\xc2\xa0\n\x0c 12\n Amtrak Office of Inspector General\n Amtrak Invoice Review: Inaccurate Invoices Were Paid, But Progress\n is Being Made to Improve the Invoice-Review Process\n Audit Report No. OIG-A-2012-005, February 16, 2012\n\nInformation\xc2\xa0Technology\xc2\xa0(IT)\xc2\xa0departments\xc2\xa0determined\xc2\xa0that\xc2\xa0there\xc2\xa0was\xc2\xa0a\xc2\xa0system\xc2\xa0error8\xc2\xa0\nand\xc2\xa0that\xc2\xa0the\xc2\xa0proper\xc2\xa0charges\xc2\xa0were\xc2\xa0not\xc2\xa0allocated\xc2\xa0for\xc2\xa0all\xc2\xa0transportation\xc2\xa0of\xc2\xa0CSX\xc2\xa0employees.\xc2\xa0\nAccording\xc2\xa0to\xc2\xa0a\xc2\xa0manager\xc2\xa0in\xc2\xa0accounts\xc2\xa0receivables\xc2\xa0in\xc2\xa0July\xc2\xa02009,\xc2\xa0the\xc2\xa0process\xc2\xa0had\xc2\xa0been\xc2\xa0\ncorrected\xc2\xa0for\xc2\xa0all\xc2\xa0future\xc2\xa0railroad\xc2\xa0orders.\xc2\xa0We\xc2\xa0recommended\xc2\xa0that\xc2\xa0Finance\xc2\xa0expand\xc2\xa0its\xc2\xa0\nanalysis\xc2\xa0back\xc2\xa0to\xc2\xa0December\xc2\xa02007\xc2\xa0to\xc2\xa0determine\xc2\xa0if\xc2\xa0additional\xc2\xa0monies\xc2\xa0are\xc2\xa0due\xc2\xa0Amtrak.\xc2\xa0The\xc2\xa0\nFinance\xc2\xa0Department\xc2\xa0identified\xc2\xa0$17,421\xc2\xa0that\xc2\xa0was\xc2\xa0due\xc2\xa0Amtrak,\xc2\xa0and\xc2\xa0Amtrak\xc2\xa0submitted\xc2\xa0a\xc2\xa0\nsupplemental\xc2\xa0invoice\xc2\xa0to\xc2\xa0CSX\xc2\xa0for\xc2\xa0this\xc2\xa0amount\xc2\xa0on\xc2\xa0July\xc2\xa014,\xc2\xa02009.\xc2\xa0CSX\xc2\xa0credited\xc2\xa0Amtrak\xc2\xa0the\xc2\xa0\nfull\xc2\xa0amount.\xc2\xa0\n\nStatus of Overpayment Amounts Identified\n\nDuring\xc2\xa0the\xc2\xa0course\xc2\xa0of\xc2\xa0this\xc2\xa0review,\xc2\xa0we\xc2\xa0presented\xc2\xa0the\xc2\xa0results\xc2\xa0and\xc2\xa0corresponded\xc2\xa0with\xc2\xa0CSX\xc2\xa0\nemployees\xc2\xa0to\xc2\xa0obtain\xc2\xa0additional\xc2\xa0information\xc2\xa0relating\xc2\xa0to\xc2\xa0the\xc2\xa0audit\xc2\xa0exceptions\xc2\xa0identified.\xc2\xa0\nTable\xc2\xa03\xc2\xa0presents\xc2\xa0a\xc2\xa0summary\xc2\xa0of\xc2\xa0their\xc2\xa0general\xc2\xa0agreement\xc2\xa0with\xc2\xa0our\xc2\xa0audit\xc2\xa0results\xc2\xa0based\xc2\xa0on\xc2\xa0\ne\xe2\x80\x90mail\xc2\xa0correspondence.\xc2\xa0\n\n\n\n\n8\xc2\xa0The\xc2\xa0system\xc2\xa0error\xc2\xa0identified\xc2\xa0by\xc2\xa0the\xc2\xa0IT\xc2\xa0Department\xc2\xa0involved\xc2\xa0multi\xe2\x80\x90rider\xc2\xa0reservations.\xc2\xa0According\xc2\xa0to\xc2\xa0a\xc2\xa0\nsystems\xc2\xa0developer\xc2\xa0in\xc2\xa0the\xc2\xa0department,\xc2\xa0when\xc2\xa0upgrades\xc2\xa0were\xc2\xa0made\xc2\xa0to\xc2\xa0multi\xe2\x80\x90rider\xc2\xa0reservations,\xc2\xa0the\xc2\xa0system\xc2\xa0\nwould\xc2\xa0pick\xc2\xa0up\xc2\xa0the\xc2\xa0first\xc2\xa0fare\xc2\xa0for\xc2\xa0the\xc2\xa0first\xc2\xa0rider\xc2\xa0and\xc2\xa0allocate\xc2\xa0the\xc2\xa0amount\xc2\xa0of\xc2\xa0the\xc2\xa0upgrade\xc2\xa0to\xc2\xa0the\xc2\xa0second\xc2\xa0rider.\xc2\xa0\nThe\xc2\xa0system\xc2\xa0should\xc2\xa0have\xc2\xa0added\xc2\xa0the\xc2\xa0two\xc2\xa0total\xc2\xa0fares\xc2\xa0together.\xc2\xa0This\xc2\xa0error\xc2\xa0did\xc2\xa0not\xc2\xa0occur\xc2\xa0for\xc2\xa0transportation\xc2\xa0of\xc2\xa0\nemployees\xc2\xa0of\xc2\xa0other\xc2\xa0host\xc2\xa0railroads.\n\x0c 13\n Amtrak Office of Inspector General\n Amtrak Invoice Review: Inaccurate Invoices Were Paid, But Progress\n is Being Made to Improve the Invoice-Review Process\n Audit Report No. OIG-A-2012-005, February 16, 2012\n\n Table 3. Progress Report of CSX Agreement with Overpaid Amounts,\n June 1999\xe2\x80\x93March 2008\nCost Component Overpaid CSX Agreed\n Amount Amount Outstanding Status/Comments\nSpecial Trains $360,560 $ 0 $ 360,560 This finding was not presented to\n CSX. In September 2010 we\n requested additional supporting\n documentation to complete our\n review. In May 2011, CSX provided\n some, but not all, supporting\n documents requested. Based on our\n review, $360,560 was overpaid.\nAdditional Light 151,007 151,007 0 Agreed per 5/5/2011 e-mail\nDensity Line Costs\nIncremental Track 139,124 139,124 0 Agreed per 5/5/2011 e-mail\nMaintenance and\nOther Train Costs\nStation Utilities 52,535 52,535 0 Agreed per 5/5/2011 e-mail\nBusiness Expense 28,006 21,783 6,223 Agreed per 5/5/2011 e-mail\nand Travel\nTransportation of 4,894 4,894 0 Agreed per 5/5/2011 e-mail\nCSX Employees\n Total $736,126 $369,343 $366,783\nSource: OIG analysis of CSX and Amtrak data, June 1999 through March 2008, and e-mail correspondence between\nAmtrak OIG and CSX during the review period, covering April 2008 through May 2011\n\n\n\nPROGRESS BEING MADE TO DEVELOP A PROCESS FOR\nTHOROUGHLY REVIEWING INVOICES\nWeaknesses\xc2\xa0in\xc2\xa0the\xc2\xa0invoice\xe2\x80\x90review\xc2\xa0process\xc2\xa0have\xc2\xa0been\xc2\xa0long\xe2\x80\x90standing,\xc2\xa0but\xc2\xa0over\xc2\xa0the\xc2\xa0last\xc2\xa0\nyear,\xc2\xa0Amtrak\xc2\xa0has\xc2\xa0made\xc2\xa0progress\xc2\xa0in\xc2\xa0addressing\xc2\xa0the\xc2\xa0issue.\xc2\xa0Weaknesses\xc2\xa0in\xc2\xa0oversight\xc2\xa0and\xc2\xa0\ncontrols\xc2\xa0for\xc2\xa0reviewing\xc2\xa0invoices\xc2\xa0were\xc2\xa0the\xc2\xa0main\xc2\xa0cause\xc2\xa0of\xc2\xa0overpayments\xc2\xa0to\xc2\xa0CSX.\xc2\xa0In\xc2\xa0August\xc2\xa0\n2008,\xc2\xa0we\xc2\xa0pointed\xc2\xa0out9\xc2\xa0that\xc2\xa0Amtrak\xe2\x80\x99s\xc2\xa0management\xc2\xa0controls\xc2\xa0over\xc2\xa0the\xc2\xa0review\xc2\xa0of\xc2\xa0invoices\xc2\xa0\nwere\xc2\xa0inadequate\xc2\xa0and\xc2\xa0ineffective,\xc2\xa0and\xc2\xa0that\xc2\xa0host\xc2\xa0railroads\xc2\xa0had\xc2\xa0consistently\xc2\xa0overbilled\xc2\xa0\nAmtrak.\xc2\xa0We\xc2\xa0made\xc2\xa0recommendations\xc2\xa0to\xc2\xa0improve\xc2\xa0Amtrak\xe2\x80\x99s\xc2\xa0invoice\xe2\x80\x90review\xc2\xa0process.\xc2\xa0\nSince\xc2\xa0March\xc2\xa02010,\xc2\xa0we\xc2\xa0have\xc2\xa0issued\xc2\xa0three\xc2\xa0additional\xc2\xa0reports\xc2\xa0that\xc2\xa0found\xc2\xa0that\xc2\xa0Amtrak\xc2\xa0\n\n\n\n\n\xc2\xa0Host\xc2\xa0Railroad\xc2\xa0Contract\xc2\xa0Administration\xc2\xa0and\xc2\xa0Operations\xc2\xa0Management\xc2\xa0Controls\xc2\xa0(OIG\xc2\xa0Audit\xc2\xa0Report\xc2\xa0401\xe2\x80\x902008,\xc2\xa0\n9\n\nAugust\xc2\xa021,\xc2\xa02008).\n\x0c 14\n Amtrak Office of Inspector General\n Amtrak Invoice Review: Inaccurate Invoices Were Paid, But Progress\n is Being Made to Improve the Invoice-Review Process\n Audit Report No. OIG-A-2012-005, February 16, 2012\n\noverpaid\xc2\xa0three\xc2\xa0host\xc2\xa0railroads\xc2\xa0for\xc2\xa0on\xe2\x80\x90time\xe2\x80\x90performance\xc2\xa0(OTP)\xc2\xa0incentives.10\xc2\xa0In\xc2\xa0all\xc2\xa0three\xc2\xa0\nreports,\xc2\xa0we\xc2\xa0concluded\xc2\xa0that\xc2\xa0the\xc2\xa0company\xc2\xa0had\xc2\xa0not\xc2\xa0taken\xc2\xa0adequate\xc2\xa0steps\xc2\xa0to\xc2\xa0improve\xc2\xa0its\xc2\xa0\nmanagement\xc2\xa0controls\xc2\xa0and\xc2\xa0review\xc2\xa0process\xc2\xa0for\xc2\xa0these\xc2\xa0invoices.\xc2\xa0In\xc2\xa0response\xc2\xa0to\xc2\xa0the\xc2\xa0March\xc2\xa0\n2010\xc2\xa0report,\xc2\xa0Amtrak\xc2\xa0agreed\xc2\xa0to\xc2\xa0apply\xc2\xa0additional\xc2\xa0resources\xc2\xa0and\xc2\xa0establish\xc2\xa0a\xc2\xa0process\xc2\xa0to\xc2\xa0\nthoroughly\xc2\xa0review\xc2\xa0invoices\xc2\xa0for\xc2\xa0OTP\xc2\xa0incentives\xc2\xa0and\xc2\xa0other\xc2\xa0costs\xc2\xa0before\xc2\xa0making\xc2\xa0\npayments.\xc2\xa0It\xc2\xa0also\xc2\xa0provided\xc2\xa0us\xc2\xa0with\xc2\xa0a\xc2\xa0plan\xc2\xa0showing\xc2\xa0tasks\xc2\xa0to\xc2\xa0be\xc2\xa0completed,\xc2\xa0with\xc2\xa0\nmilestone\xc2\xa0dates.\xc2\xa0The\xc2\xa0invoice\xe2\x80\x90review\xc2\xa0process\xc2\xa0was\xc2\xa0to\xc2\xa0be\xc2\xa0completed\xc2\xa0by\xc2\xa0December\xc2\xa031,\xc2\xa02010,\xc2\xa0\nbut\xc2\xa0the\xc2\xa0original\xc2\xa0milestone\xc2\xa0dates\xc2\xa0were\xc2\xa0not\xc2\xa0met.\xc2\xa0Amtrak\xc2\xa0revised\xc2\xa0its\xc2\xa0goal\xc2\xa0and\xc2\xa0expected\xc2\xa0\nimprovements\xc2\xa0to\xc2\xa0the\xc2\xa0invoice\xe2\x80\x90review\xc2\xa0process\xc2\xa0to\xc2\xa0be\xc2\xa0complete\xc2\xa0by\xc2\xa0the\xc2\xa0end\xc2\xa0of\xc2\xa0December\xc2\xa0\n2011.\xc2\xa0However,\xc2\xa0that\xc2\xa0goal\xc2\xa0was\xc2\xa0also\xc2\xa0not\xc2\xa0met.\xc2\xa0\n\xc2\xa0\nThese\xc2\xa0missed\xc2\xa0milestones\xc2\xa0are\xc2\xa0not\xc2\xa0without\xc2\xa0other\xc2\xa0progress.\xc2\xa0Over\xc2\xa0the\xc2\xa0last\xc2\xa0year,\xc2\xa0Amtrak\xc2\xa0has\xc2\xa0\nmade\xc2\xa0progress\xc2\xa0in\xc2\xa0addressing\xc2\xa0our\xc2\xa0recommendations.\xc2\xa0The\xc2\xa0Law\xc2\xa0Department\xc2\xa0is\xc2\xa0actively\xc2\xa0\nworking\xc2\xa0to\xc2\xa0negotiate\xc2\xa0settlements\xc2\xa0on\xc2\xa0overpayments\xc2\xa0we\xc2\xa0identified.\xc2\xa0The\xc2\xa0Host\xc2\xa0Railroad\xc2\xa0\nInvoice\xc2\xa0Administration\xc2\xa0group\xc2\xa0was\xc2\xa0established\xc2\xa0and\xc2\xa0has\xc2\xa0started\xc2\xa0reviewing\xc2\xa0selected\xc2\xa0\ninvoices\xc2\xa0using\xc2\xa0a\xc2\xa0limited\xc2\xa0set\xc2\xa0of\xc2\xa0factors,\xc2\xa0which\xc2\xa0are\xc2\xa0documented\xc2\xa0in\xc2\xa0eTrax.11\xc2\xa0In\xc2\xa0at\xc2\xa0least\xc2\xa0one\xc2\xa0\ncase,\xc2\xa0the\xc2\xa0group\xc2\xa0has\xc2\xa0withheld\xc2\xa0payment\xc2\xa0on\xc2\xa0an\xc2\xa0invoice\xc2\xa0where\xc2\xa0errors\xc2\xa0were\xc2\xa0identified.\xc2\xa0Also,\xc2\xa0\naccording\xc2\xa0to\xc2\xa0a\xc2\xa0senior\xc2\xa0director\xc2\xa0in\xc2\xa0the\xc2\xa0Finance\xc2\xa0Department,\xc2\xa0a\xc2\xa0policy\xc2\xa0and\xc2\xa0procedures\xc2\xa0\nmanual\xc2\xa0for\xc2\xa0the\xc2\xa0Host\xc2\xa0Railroad\xc2\xa0Invoice\xc2\xa0Administration\xc2\xa0group\xc2\xa0is\xc2\xa0currently\xc2\xa0being\xc2\xa0drafted.\xc2\xa0\nFurther,\xc2\xa0Finance\xc2\xa0Department\xc2\xa0officials\xc2\xa0continue\xc2\xa0to\xc2\xa0work\xc2\xa0with\xc2\xa0the\xc2\xa0IT\xc2\xa0Department\xc2\xa0to\xc2\xa0\ndevelop\xc2\xa0reports\xc2\xa0to\xc2\xa0facilitate\xc2\xa0the\xc2\xa0review\xc2\xa0and\xc2\xa0have\xc2\xa0met\xc2\xa0with\xc2\xa0us\xc2\xa0to\xc2\xa0discuss\xc2\xa0business\xc2\xa0\npractices\xc2\xa0for\xc2\xa0reviewing\xc2\xa0invoices.\xc2\xa0Additional\xc2\xa0activities\xc2\xa0include\xc2\xa0creating\xc2\xa0an\xc2\xa0e\xe2\x80\x90mail\xc2\xa0box\xc2\xa0for\xc2\xa0\nstreamlined\xc2\xa0routing\xc2\xa0of\xc2\xa0communications,\xc2\xa0invoices,\xc2\xa0and\xc2\xa0supporting\xc2\xa0documentation;\xc2\xa0and\xc2\xa0\ndeveloping\xc2\xa0a\xc2\xa0monthly\xc2\xa0invoice\xe2\x80\x90review\xc2\xa0checklist\xc2\xa0detailing\xc2\xa0invoice\xe2\x80\x90review\xc2\xa0procedures.\xc2\xa0\n\xc2\xa0\nTo\xc2\xa0fully\xc2\xa0address\xc2\xa0our\xc2\xa0prior\xc2\xa0recommendations,\xc2\xa0Amtrak\xc2\xa0has\xc2\xa0committed\xc2\xa0to\xc2\xa0improving\xc2\xa0its\xc2\xa0\nprocess\xc2\xa0to\xc2\xa0perform\xc2\xa0complete\xc2\xa0and\xc2\xa0thorough\xc2\xa0reviews\xc2\xa0of\xc2\xa0all\xc2\xa0host\xc2\xa0railroad\xc2\xa0invoices\xc2\xa0prior\xc2\xa0to\xc2\xa0\napproving\xc2\xa0them\xc2\xa0for\xc2\xa0payment.\xc2\xa0Specifically,\xc2\xa0Amtrak\xc2\xa0plans\xc2\xa0to\xc2\xa0develop\xc2\xa0policies\xc2\xa0and\xc2\xa0\nprocedures\xc2\xa0for\xc2\xa0reviewing\xc2\xa0all\xc2\xa0invoices,\xc2\xa0create\xc2\xa0job\xc2\xa0aids\xc2\xa0detailing\xc2\xa0audit\xc2\xa0procedures\xc2\xa0and\xc2\xa0\nrequired\xc2\xa0supporting\xc2\xa0documentation\xc2\xa0to\xc2\xa0facilitate\xc2\xa0invoice\xc2\xa0processing,\xc2\xa0level\xc2\xa0out\xc2\xa0\n\n\n10\xc2\xa0CSX\xc2\xa0On\xe2\x80\x90Time\xe2\x80\x90Performance\xc2\xa0Incentives:\xc2\xa0Inaccurate\xc2\xa0Invoices\xc2\xa0and\xc2\xa0Lack\xc2\xa0of\xc2\xa0Amtrak\xc2\xa0Management\xc2\xa0Review\xc2\xa0Lead\xc2\xa0to\xc2\xa0\nOverpayment\xc2\xa0(OIG\xc2\xa0Audit\xc2\xa0Report\xc2\xa0406\xe2\x80\x902005,\xc2\xa0March\xc2\xa030,\xc2\xa02010);\xc2\xa0BNSF\xc2\xa0On\xe2\x80\x90Time\xe2\x80\x90Performance\xc2\xa0Incentives:\xc2\xa0\nInaccurate\xc2\xa0Invoices\xc2\xa0and\xc2\xa0Lack\xc2\xa0of\xc2\xa0Amtrak\xc2\xa0Management\xc2\xa0Review\xc2\xa0Lead\xc2\xa0to\xc2\xa0Overpayments\xc2\xa0(OIG\xc2\xa0Audit\xc2\xa0Report\xc2\xa0407\xe2\x80\x90\n2003,\xc2\xa0September\xc2\xa024,\xc2\xa02010);\xc2\xa0and\xc2\xa0On\xe2\x80\x90Time\xe2\x80\x90Performance\xc2\xa0Incentives:\xc2\xa0Inaccurate\xc2\xa0Invoices\xc2\xa0were\xc2\xa0Paid\xc2\xa0Due\xc2\xa0to\xc2\xa0\nLongstanding\xc2\xa0Weaknesses\xc2\xa0in\xc2\xa0Amtrak\xe2\x80\x99s\xc2\xa0Invoice\xe2\x80\x90Review\xc2\xa0Process\xc2\xa0(OIG\xc2\xa0Audit\xc2\xa0Report\xc2\xa0403\xe2\x80\x902010,\xc2\xa0April\xc2\xa021,\xc2\xa02011).\n11\xc2\xa0eTrax\xc2\xa0is\xc2\xa0a\xc2\xa0software\xc2\xa0system,\xc2\xa0used\xc2\xa0by\xc2\xa0Amtrak,\xc2\xa0to\xc2\xa0document\xc2\xa0the\xc2\xa0receipt,\xc2\xa0approval,\xc2\xa0and\xc2\xa0payment\xc2\xa0of\xc2\xa0\n\ninvoices.\n\x0c 15\n Amtrak Office of Inspector General\n Amtrak Invoice Review: Inaccurate Invoices Were Paid, But Progress\n is Being Made to Improve the Invoice-Review Process\n Audit Report No. OIG-A-2012-005, February 16, 2012\n\nresponsibilities\xc2\xa0among\xc2\xa0Host\xc2\xa0Railroad\xc2\xa0Invoice\xc2\xa0Administration\xc2\xa0officers,\xc2\xa0cross\xe2\x80\x90train\xc2\xa0\nofficers,\xc2\xa0develop\xc2\xa0a\xc2\xa0training\xc2\xa0program,\xc2\xa0and\xc2\xa0take\xc2\xa0action\xc2\xa0to\xc2\xa0collect\xc2\xa0the\xc2\xa0outstanding\xc2\xa0\noverpayments\xc2\xa0identified\xc2\xa0in\xc2\xa0prior\xc2\xa0audit\xc2\xa0reports.\xc2\xa0The\xc2\xa0senior\xc2\xa0director\xc2\xa0informed\xc2\xa0us\xc2\xa0that\xc2\xa0a\xc2\xa0\nmajor\xc2\xa0hurdle\xc2\xa0that\xc2\xa0Amtrak\xc2\xa0deals\xc2\xa0with\xc2\xa0is\xc2\xa0that\xc2\xa0the\xc2\xa0contract\xc2\xa0agreement\xc2\xa0and\xc2\xa0amendment\xc2\xa0\nagreement\xc2\xa0changes\xc2\xa0are\xc2\xa0not\xc2\xa0up\xc2\xa0to\xc2\xa0date.\xc2\xa0\xc2\xa0\n\xc2\xa0\nOver\xc2\xa0time,\xc2\xa0we\xc2\xa0have\xc2\xa0identified\xc2\xa0approximately\xc2\xa0$37\xc2\xa0million\xc2\xa0in\xc2\xa0overpayments\xc2\xa0and\xc2\xa0potential\xc2\xa0\nrecoveries\xc2\xa0for\xc2\xa0audit\xc2\xa0periods\xc2\xa0ranging\xc2\xa0between\xc2\xa01993\xc2\xa0and\xc2\xa02008,\xc2\xa0including\xc2\xa0over\xc2\xa0$700,000\xc2\xa0in\xc2\xa0\nthis\xc2\xa0report.\xc2\xa0The\xc2\xa0$37\xc2\xa0million\xc2\xa0includes\xc2\xa0at\xc2\xa0least\xc2\xa0$5.7\xc2\xa0million\xc2\xa0in\xc2\xa0overpayments\xc2\xa0that\xc2\xa0have\xc2\xa0\nalready\xc2\xa0been\xc2\xa0collected.\xc2\xa0This\xc2\xa0significant\xc2\xa0amount\xc2\xa0of\xc2\xa0overpayments\xc2\xa0affects\xc2\xa0Amtrak\xe2\x80\x99s\xc2\xa0cash\xc2\xa0\nflow\xc2\xa0and\xc2\xa0ability\xc2\xa0to\xc2\xa0effectively\xc2\xa0manage\xc2\xa0its\xc2\xa0activities.\xc2\xa0Further,\xc2\xa0these\xc2\xa0funds,\xc2\xa0had\xc2\xa0they\xc2\xa0been\xc2\xa0\navailable,\xc2\xa0might\xc2\xa0have\xc2\xa0been\xc2\xa0used\xc2\xa0in\xc2\xa0other\xc2\xa0areas\xc2\xa0or\xc2\xa0to\xc2\xa0reduce\xc2\xa0reliance\xc2\xa0on\xc2\xa0federal\xc2\xa0\nsubsidies.\xc2\xa0\n\n\nCONCLUSIONS\nAmtrak\xc2\xa0made\xc2\xa0over\xc2\xa0$700,000\xc2\xa0in\xc2\xa0overpayments\xc2\xa0on\xc2\xa0invoices\xc2\xa0reviewed\xc2\xa0during\xc2\xa0this\xc2\xa0audit.\xc2\xa0\nThis\xc2\xa0occurred\xc2\xa0due\xc2\xa0to\xc2\xa0weaknesses\xc2\xa0in\xc2\xa0the\xc2\xa0invoice\xe2\x80\x90review\xc2\xa0process.\xc2\xa0However,\xc2\xa0over\xc2\xa0the\xc2\xa0last\xc2\xa0\nyear,\xc2\xa0Amtrak\xc2\xa0has\xc2\xa0made\xc2\xa0progress\xc2\xa0in\xc2\xa0improving\xc2\xa0its\xc2\xa0capabilities\xc2\xa0for\xc2\xa0reviewing\xc2\xa0host\xc2\xa0\nrailroad\xc2\xa0invoices.\xc2\xa0Until\xc2\xa0these\xc2\xa0process\xc2\xa0improvements\xc2\xa0are\xc2\xa0completed\xc2\xa0and\xc2\xa0successfully\xc2\xa0\nimplemented,\xc2\xa0the\xc2\xa0company\xc2\xa0remains\xc2\xa0at\xc2\xa0risk\xc2\xa0of\xc2\xa0making\xc2\xa0overpayments\xc2\xa0that\xc2\xa0negatively\xc2\xa0\nimpact\xc2\xa0its\xc2\xa0cash\xc2\xa0flow\xc2\xa0and\xc2\xa0that\xc2\xa0cause\xc2\xa0the\xc2\xa0company\xc2\xa0time\xc2\xa0and\xc2\xa0resources\xc2\xa0to\xc2\xa0recover.\xc2\xa0\nConsequently,\xc2\xa0Amtrak\xe2\x80\x99s\xc2\xa0continued\xc2\xa0focus\xc2\xa0on\xc2\xa0improving\xc2\xa0and\xc2\xa0developing\xc2\xa0its\xc2\xa0full\xc2\xa0\ncapabilities\xc2\xa0remains\xc2\xa0key.\xc2\xa0We\xc2\xa0are\xc2\xa0encouraged\xc2\xa0by\xc2\xa0the\xc2\xa0progress\xc2\xa0that\xc2\xa0has\xc2\xa0been\xc2\xa0made\xc2\xa0and\xc2\xa0\nthe\xc2\xa0plans\xc2\xa0that\xc2\xa0are\xc2\xa0in\xc2\xa0place\xc2\xa0for\xc2\xa0further\xc2\xa0actions.\xc2\xa0Accordingly,\xc2\xa0we\xc2\xa0are\xc2\xa0not\xc2\xa0making\xc2\xa0any\xc2\xa0new\xc2\xa0\nrecommendations\xc2\xa0for\xc2\xa0improving\xc2\xa0invoice\xe2\x80\x90review\xc2\xa0capabilities\xc2\xa0at\xc2\xa0this\xc2\xa0time.\xc2\xa0We\xc2\xa0will\xc2\xa0\ncontinue\xc2\xa0to\xc2\xa0monitor\xc2\xa0Amtrak\xe2\x80\x99s\xc2\xa0progress\xc2\xa0in\xc2\xa0this\xc2\xa0area.\xc2\xa0\n\x0c 16\n Amtrak Office of Inspector General\n Amtrak Invoice Review: Inaccurate Invoices Were Paid, But Progress\n is Being Made to Improve the Invoice-Review Process\n Audit Report No. OIG-A-2012-005, February 16, 2012\n\n\n\nRECOMMENDATION\nWe\xc2\xa0recommend\xc2\xa0that\xc2\xa0Amtrak\xe2\x80\x99s\xc2\xa0Chief\xc2\xa0Financial\xc2\xa0Officer\xc2\xa0take\xc2\xa0action\xc2\xa0to\xc2\xa0recover\xc2\xa0the\xc2\xa0\n$736,126\xc2\xa0that\xc2\xa0Amtrak\xc2\xa0overpaid\xc2\xa0CSX\xc2\xa0Transportation,\xc2\xa0Inc.\xc2\xa0\n\n\n\n\nMANAGEMENT COMMENTS AND OIG RESPONSE\nIn\xc2\xa0commenting\xc2\xa0on\xc2\xa0a\xc2\xa0draft\xc2\xa0of\xc2\xa0this\xc2\xa0report,\xc2\xa0Amtrak\xe2\x80\x99s\xc2\xa0Acting\xc2\xa0Chief\xc2\xa0Financial\xc2\xa0Officer\xc2\xa0\nconcurred\xc2\xa0with\xc2\xa0our\xc2\xa0recommendation\xc2\xa0and\xc2\xa0committed\xc2\xa0to\xc2\xa0tasking\xc2\xa0the\xc2\xa0Managing\xc2\xa0Deputy\xc2\xa0\nGeneral\xc2\xa0Counsel,\xc2\xa0on\xc2\xa0behalf\xc2\xa0of\xc2\xa0Amtrak\xe2\x80\x99s\xc2\xa0Transportation\xc2\xa0and\xc2\xa0Finance\xc2\xa0departments,\xc2\xa0with\xc2\xa0\npursuing\xc2\xa0any\xc2\xa0amounts\xc2\xa0that\xc2\xa0are\xc2\xa0recoverable\xc2\xa0under\xc2\xa0the\xc2\xa0law\xc2\xa0and\xc2\xa0within\xc2\xa0the\xc2\xa0terms\xc2\xa0of\xc2\xa0the\xc2\xa0\noperating\xc2\xa0agreement\xc2\xa0between\xc2\xa0Amtrak\xc2\xa0and\xc2\xa0CSX.\xc2\xa0We\xc2\xa0support\xc2\xa0this\xc2\xa0approach.\xc2\xa0\n\xc2\xa0\nAmtrak\xe2\x80\x99s\xc2\xa0letter\xc2\xa0commenting\xc2\xa0on\xc2\xa0the\xc2\xa0draft\xc2\xa0report\xc2\xa0is\xc2\xa0reprinted\xc2\xa0as\xc2\xa0Appendix\xc2\xa0III.\xc2\xa0\xc2\xa0\n\xc2\xa0\n\xc2\xa0\n\xc2\xa0\n\xc2\xa0\n\x0c 17\n Amtrak Office of Inspector General\n Amtrak Invoice Review: Inaccurate Invoices Were Paid, But Progress\n is Being Made to Improve the Invoice-Review Process\n Audit Report No. OIG-A-2012-005, February 16, 2012\n\n Appendix I\n\n\n SCOPE AND METHODOLOGY\n \xc2\xa0\nThis\xc2\xa0report\xc2\xa0provides\xc2\xa0the\xc2\xa0results\xc2\xa0of\xc2\xa0an\xc2\xa0Amtrak\xc2\xa0OIG\xc2\xa0review\xc2\xa0to\xc2\xa0(1)\xc2\xa0determine\xc2\xa0whether\xc2\xa0CSX\xc2\xa0\nTransportation,\xc2\xa0Inc.\xc2\xa0complied\xc2\xa0with\xc2\xa0its\xc2\xa0operating\xc2\xa0agreement\xc2\xa0with\xc2\xa0Amtrak\xc2\xa0when\xc2\xa0\ninvoicing\xc2\xa0Amtrak\xc2\xa0for\xc2\xa0charges\xc2\xa0incurred\xc2\xa0for\xc2\xa0Amtrak\xc2\xa0trains\xc2\xa0operating\xc2\xa0over\xc2\xa0its\xc2\xa0tracks\xc2\xa0from\xc2\xa0\nJune\xc2\xa01999\xc2\xa0through\xc2\xa0March\xc2\xa02008;\xc2\xa0and\xc2\xa0(2)\xc2\xa0provide\xc2\xa0an\xc2\xa0update\xc2\xa0on\xc2\xa0Amtrak\xe2\x80\x99s\xc2\xa0progress\xc2\xa0in\xc2\xa0\nimproving\xc2\xa0its\xc2\xa0controls\xc2\xa0and\xc2\xa0processes\xc2\xa0in\xc2\xa0its\xc2\xa0review\xc2\xa0of\xc2\xa0monthly\xc2\xa0invoices.\xc2\xa0We\xc2\xa0conducted\xc2\xa0\nthis\xc2\xa0audit\xc2\xa0between\xc2\xa0April\xc2\xa02008\xc2\xa0and\xc2\xa0December\xc2\xa02011\xc2\xa0in\xc2\xa0Chicago\xc2\xa0and\xc2\xa0Washington,\xc2\xa0D.C.\xc2\xa0\n\xc2\xa0\xc2\xa0\nTo\xc2\xa0determine\xc2\xa0whether\xc2\xa0CSX\xc2\xa0complied\xc2\xa0with\xc2\xa0the\xc2\xa0operating\xc2\xa0agreement\xc2\xa0when\xc2\xa0invoicing\xc2\xa0\nAmtrak\xc2\xa0for\xc2\xa0charges\xc2\xa0incurred\xc2\xa0for\xc2\xa0Amtrak\xc2\xa0trains\xc2\xa0operating\xc2\xa0over\xc2\xa0its\xc2\xa0tracks,\xc2\xa0we\xc2\xa0conducted\xc2\xa0\na\xc2\xa0risk\xc2\xa0analysis\xc2\xa0of\xc2\xa0the\xc2\xa032\xc2\xa0contract\xc2\xa0cost\xc2\xa0components\xc2\xa0and\xc2\xa0selected\xc2\xa013\xc2\xa0for\xc2\xa0review,\xc2\xa0along\xc2\xa0with\xc2\xa0\nother\xc2\xa0items,\xc2\xa0and\xc2\xa0reviewed\xc2\xa0the\xc2\xa0operating\xc2\xa0agreement\xc2\xa0and\xc2\xa0its\xc2\xa0amendments,\xc2\xa0focusing\xc2\xa0on\xc2\xa0\nsections\xc2\xa0relating\xc2\xa0to\xc2\xa0the\xc2\xa0billable\xc2\xa0cost\xc2\xa0components\xc2\xa0of\xc2\xa0each\xc2\xa0item\xc2\xa0selected\xc2\xa0for\xc2\xa0audit.\xc2\xa0We\xc2\xa0also\xc2\xa0\nobtained\xc2\xa0and\xc2\xa0reviewed\xc2\xa0the\xc2\xa0relevant\xc2\xa0monthly\xc2\xa0invoices\xc2\xa0for\xc2\xa0payments\xc2\xa0related\xc2\xa0to\xc2\xa0the\xc2\xa0items\xc2\xa0\nand\xc2\xa0the\xc2\xa0documentation\xc2\xa0to\xc2\xa0support\xc2\xa0the\xc2\xa0invoices\xc2\xa0submitted\xc2\xa0to\xc2\xa0Amtrak,\xc2\xa0compared\xc2\xa0the\xc2\xa0\namounts\xc2\xa0invoiced\xc2\xa0with\xc2\xa0relevant\xc2\xa0supporting\xc2\xa0documentation,\xc2\xa0reviewed\xc2\xa0relevant\xc2\xa0invoice\xc2\xa0\nadjustments,\xc2\xa0and\xc2\xa0calculated\xc2\xa0the\xc2\xa0overbilled\xc2\xa0and/or\xc2\xa0underbilled\xc2\xa0amounts\xc2\xa0resulting\xc2\xa0from\xc2\xa0\ninaccurate\xc2\xa0invoices.\xc2\xa0Further,\xc2\xa0we\xc2\xa0communicated\xc2\xa0with\xc2\xa0Amtrak\xe2\x80\x99s\xc2\xa0Host\xc2\xa0Railroad\xc2\xa0Contract\xc2\xa0\ngroups\xc2\xa0for\xc2\xa0interpretation\xc2\xa0of\xc2\xa0agreement\xc2\xa0provisions,\xc2\xa0communicated\xc2\xa0with\xc2\xa0CSX\xc2\xa0to\xc2\xa0obtain\xc2\xa0\nclarification\xc2\xa0on\xc2\xa0invoice\xc2\xa0items\xc2\xa0and\xc2\xa0supporting\xc2\xa0documentation,\xc2\xa0and\xc2\xa0reviewed\xc2\xa0our\xc2\xa0prior\xc2\xa0\naudit\xc2\xa0reports\xc2\xa0regarding\xc2\xa0weaknesses\xc2\xa0in\xc2\xa0Amtrak\xe2\x80\x99s\xc2\xa0invoice\xe2\x80\x90review\xc2\xa0process.\xc2\xa0\n\xc2\xa0\nWe\xc2\xa0completed\xc2\xa0a\xc2\xa0risk\xc2\xa0assessment\xc2\xa0of\xc2\xa0the\xc2\xa032\xc2\xa0cost\xc2\xa0components\xc2\xa0included\xc2\xa0in\xc2\xa0CSX\xe2\x80\x99s\xc2\xa0monthly\xc2\xa0\ninvoices\xc2\xa0to\xc2\xa0Amtrak.\xc2\xa0In\xc2\xa0designing\xc2\xa0the\xc2\xa0judgmental\xc2\xa0sample\xc2\xa0for\xc2\xa0review,\xc2\xa0we\xc2\xa0considered\xc2\xa0risk\xc2\xa0\nfactors\xc2\xa0including\xc2\xa0the\xc2\xa0amount\xc2\xa0billed,\xc2\xa0the\xc2\xa0potential\xc2\xa0for\xc2\xa0recovery,\xc2\xa0management\xc2\xa0interest,\xc2\xa0\nand\xc2\xa0operational\xc2\xa0changes.\xc2\xa0The\xc2\xa0level\xc2\xa0of\xc2\xa0risk\xc2\xa0determined\xc2\xa0for\xc2\xa0each\xc2\xa0cost\xc2\xa0component\xc2\xa0was\xc2\xa0\nbased\xc2\xa0on\xc2\xa0information\xc2\xa0from\xc2\xa0the\xc2\xa0CSX\xc2\xa0invoices\xc2\xa0and\xc2\xa0auditor\xc2\xa0judgment.\xc2\xa0This\xc2\xa0sample\xc2\xa0design\xc2\xa0\nwas\xc2\xa0chosen\xc2\xa0because\xc2\xa0it\xc2\xa0incorporates\xc2\xa0the\xc2\xa0high\xc2\xa0dollar\xc2\xa0amounts\xc2\xa0billed\xc2\xa0and\xc2\xa0other\xc2\xa0factors,\xc2\xa0\nsuch\xc2\xa0as\xc2\xa0potential\xc2\xa0recovery,\xc2\xa0management\xc2\xa0interest,\xc2\xa0and\xc2\xa0operational\xc2\xa0changes.\xc2\xa0The\xc2\xa0sample\xc2\xa0\nresults\xc2\xa0are\xc2\xa0not\xc2\xa0projectable\xc2\xa0to\xc2\xa0the\xc2\xa0population\xc2\xa0as\xc2\xa0a\xc2\xa0whole.\xc2\xa0\xc2\xa0\n\xc2\xa0\n\xc2\xa0\n\xc2\xa0\n\xc2\xa0\n\x0c 18\n Amtrak Office of Inspector General\n Amtrak Invoice Review: Inaccurate Invoices Were Paid, But Progress\n is Being Made to Improve the Invoice-Review Process\n Audit Report No. OIG-A-2012-005, February 16, 2012\n\nThe\xc2\xa0cost\xc2\xa0components\xc2\xa0included\xc2\xa0in\xc2\xa0our\xc2\xa0sample\xc2\xa0were\xc2\xa0the\xc2\xa0following:\xc2\xa0\n\n1. \xc2\xa0Train\xc2\xa0and\xc2\xa0engine\xc2\xa0crews\xc2\xa0\xc2\xa0\n2. \xc2\xa0Diesel\xc2\xa0fuel12\xc2\xa0\xc2\xa0\n3. \xc2\xa0Train\xc2\xa0bulletin\xc2\xa0printers\xc2\xa0\xc2\xa0\n4. \xc2\xa0Routine\xc2\xa0(yard)\xc2\xa0switching\xc2\xa0\xc2\xa0\n5. \xc2\xa0Station\xc2\xa0utilities\xc2\xa0\xc2\xa0\n6. \xc2\xa0Incremental\xc2\xa0track\xc2\xa0maintenance\xc2\xa0\xc2\xa0\n7. \xc2\xa0General\xc2\xa0administration\xc2\xa0(business\xc2\xa0expense\xc2\xa0and\xc2\xa0travel)\xc2\xa0\n8. \xc2\xa0Clearing\xc2\xa0wrecks\xc2\xa0\xc2\xa0\n9. \xc2\xa0Other\xc2\xa0system\xc2\xa0train\xc2\xa0costs\xc2\xa0\xc2\xa0\n10. \xc2\xa0Light\xc2\xa0density\xc2\xa0line\xc2\xa0costs\xc2\xa0\xc2\xa0\n11. \xc2\xa0Special\xc2\xa0trains\xc2\xa0\xc2\xa0\n12. \xc2\xa0Transportation\xc2\xa0of\xc2\xa0CSX\xc2\xa0employees\xc2\xa0\xc2\xa0\n13. \xc2\xa0Livingston\xc2\xa0Avenue\xc2\xa0Bridge\xc2\xa0\n\nFor\xc2\xa08\xc2\xa0of\xc2\xa0the\xc2\xa013\xc2\xa0cost\xc2\xa0components\xc2\xa0selected,\xc2\xa0we\xc2\xa0reviewed\xc2\xa0invoiced\xc2\xa0amounts\xc2\xa0for\xc2\xa0the\xc2\xa0entire\xc2\xa0\naudit\xc2\xa0period.\xc2\xa0For\xc2\xa0the\xc2\xa0general\xc2\xa0administration\xc2\xa0component,\xc2\xa0we\xc2\xa0reviewed\xc2\xa0flat\xe2\x80\x90rate\xc2\xa0general\xc2\xa0\nadministration\xc2\xa0costs\xc2\xa0for\xc2\xa0the\xc2\xa0entire\xc2\xa0audit\xc2\xa0period;\xc2\xa0however,\xc2\xa0we\xc2\xa0judgmentally\xc2\xa0selected\xc2\xa02\xc2\xa0\nmonths\xc2\xa0from\xc2\xa0each\xc2\xa0year\xc2\xa0from\xc2\xa02005\xc2\xa0to\xc2\xa02007\xc2\xa0for\xc2\xa0a\xc2\xa0total\xc2\xa0sample\xc2\xa0size\xc2\xa0of\xc2\xa06\xc2\xa0months.\xc2\xa0These\xc2\xa0\nmonths\xc2\xa0were\xc2\xa0selected\xc2\xa0to\xc2\xa0ensure\xc2\xa0availability\xc2\xa0of\xc2\xa0supporting\xc2\xa0documentation.\xc2\xa0For\xc2\xa0the\xc2\xa0other\xc2\xa0\nfour\xc2\xa0cost\xc2\xa0components,\xc2\xa0we\xc2\xa0judgmentally\xc2\xa0selected\xc2\xa0sample\xc2\xa0months\xc2\xa0for\xc2\xa0detailed\xc2\xa0testing\xc2\xa0\nbased\xc2\xa0on\xc2\xa0the\xc2\xa0amount\xc2\xa0billed\xc2\xa0and\xc2\xa0the\xc2\xa0time\xc2\xa0period\xc2\xa0to\xc2\xa0ensure\xc2\xa0coverage\xc2\xa0of\xc2\xa0the\xc2\xa0audit\xc2\xa0period.\xc2\xa0\xc2\xa0\n\xc2\xa0\nIn\xc2\xa0addition\xc2\xa0to\xc2\xa0these\xc2\xa0items,\xc2\xa0we\xc2\xa0reviewed\xc2\xa0authorization\xc2\xa0notices,13\xc2\xa0which\xc2\xa0are\xc2\xa0not\xc2\xa0part\xc2\xa0of\xc2\xa0\nthe\xc2\xa032\xc2\xa0cost\xc2\xa0components\xc2\xa0but\xc2\xa0are\xc2\xa0included\xc2\xa0on\xc2\xa0the\xc2\xa0monthly\xc2\xa0invoices\xc2\xa0from\xc2\xa0CSX\xc2\xa0to\xc2\xa0Amtrak.\xc2\xa0\nPrior\xe2\x80\x90period\xc2\xa0adjustments\xc2\xa0and\xc2\xa0exception\xc2\xa0notices14\xc2\xa0were\xc2\xa0also\xc2\xa0reviewed.\xc2\xa0The\xc2\xa0audited\xc2\xa0\namount\xc2\xa0totaled\xc2\xa0over\xc2\xa0$85\xc2\xa0million,\xc2\xa0which\xc2\xa0is\xc2\xa072\xc2\xa0percent\xc2\xa0of\xc2\xa0the\xc2\xa0approximately\xc2\xa0$118\xc2\xa0million\xc2\xa0\nbilled\xc2\xa0to\xc2\xa0Amtrak\xc2\xa0by\xc2\xa0CSX\xc2\xa0between\xc2\xa0June\xc2\xa01,\xc2\xa01999\xc2\xa0and\xc2\xa0March\xc2\xa031,\xc2\xa02008.\xc2\xa0We\xc2\xa0did\xc2\xa0not\xc2\xa0review\xc2\xa0\non\xe2\x80\x90time\xe2\x80\x90performance\xc2\xa0incentives\xc2\xa0as\xc2\xa0part\xc2\xa0of\xc2\xa0this\xc2\xa0audit.\xc2\xa0\xc2\xa0\n\xc2\xa0\n\n\n12\xc2\xa0Diesel\xc2\xa0fuel\xc2\xa0invoices\xc2\xa0included\xc2\xa0charges\xc2\xa0for\xc2\xa0fuel\xc2\xa0at\xc2\xa0Hialeah,\xc2\xa0Russell,\xc2\xa0and\xc2\xa0other\xc2\xa0locations.\xc2\xa0\xc2\xa0\n13\xc2\xa0Authorization\xc2\xa0notices\xc2\xa0are\xc2\xa0pre\xe2\x80\x90authorized\xc2\xa0payments\xc2\xa0to\xc2\xa0CSX\xc2\xa0for\xc2\xa0Amtrak\xe2\x80\x90requested\xc2\xa0work\xc2\xa0or\xc2\xa0services\xc2\xa0\nperformed\xc2\xa0along\xc2\xa0the\xc2\xa0route.\xc2\xa0Examples\xc2\xa0include\xc2\xa0station\xc2\xa0maintenance,\xc2\xa0flagging,\xc2\xa0train\xc2\xa0re\xe2\x80\x90fueling,\xc2\xa0track\xc2\xa0work,\xc2\xa0\nand\xc2\xa0other\xc2\xa0engineering\xc2\xa0projects.\xc2\xa0\n14\xc2\xa0Exception\xc2\xa0notices\xc2\xa0are\xc2\xa0adjustments\xc2\xa0made\xc2\xa0to\xc2\xa0the\xc2\xa0current\xe2\x80\x90period\xc2\xa0invoice\xc2\xa0amounts\xc2\xa0by\xc2\xa0Amtrak\xc2\xa0management\xc2\xa0\n\nprior\xc2\xa0to\xc2\xa0payment.\xc2\xa0\n\x0c 19\n Amtrak Office of Inspector General\n Amtrak Invoice Review: Inaccurate Invoices Were Paid, But Progress\n is Being Made to Improve the Invoice-Review Process\n Audit Report No. OIG-A-2012-005, February 16, 2012\n\nTo\xc2\xa0update\xc2\xa0Amtrak\xe2\x80\x99s\xc2\xa0progress\xc2\xa0in\xc2\xa0improving\xc2\xa0its\xc2\xa0controls\xc2\xa0and\xc2\xa0process\xc2\xa0for\xc2\xa0performing\xc2\xa0its\xc2\xa0\nmonthly\xc2\xa0invoice\xc2\xa0reviews,\xc2\xa0we\xc2\xa0(1)\xc2\xa0reviewed\xc2\xa0Amtrak\xe2\x80\x99s\xc2\xa0responses\xc2\xa0to\xc2\xa0our\xc2\xa0prior\xc2\xa0audit\xc2\xa0report\xc2\xa0\nrecommendations\xc2\xa0regarding\xc2\xa0its\xc2\xa0invoice\xe2\x80\x90review\xc2\xa0process,\xc2\xa0and\xc2\xa0(2)\xc2\xa0communicated\xc2\xa0with\xc2\xa0a\xc2\xa0\nsenior\xc2\xa0director\xc2\xa0in\xc2\xa0the\xc2\xa0Finance\xc2\xa0Department\xc2\xa0to\xc2\xa0obtain\xc2\xa0an\xc2\xa0update\xc2\xa0on\xc2\xa0progress\xc2\xa0made\xc2\xa0in\xc2\xa0\nreviewing\xc2\xa0the\xc2\xa0bills\xc2\xa0before\xc2\xa0payment.\xc2\xa0\n\xc2\xa0\nOur\xc2\xa0work\xc2\xa0was\xc2\xa0performed\xc2\xa0in\xc2\xa0accordance\xc2\xa0with\xc2\xa0generally\xc2\xa0accepted\xc2\xa0government\xc2\xa0auditing\xc2\xa0\nstandards.\xc2\xa0Those\xc2\xa0standards\xc2\xa0require\xc2\xa0that\xc2\xa0we\xc2\xa0plan\xc2\xa0and\xc2\xa0perform\xc2\xa0the\xc2\xa0audit\xc2\xa0to\xc2\xa0obtain\xc2\xa0\nsufficient,\xc2\xa0appropriate\xc2\xa0evidence\xc2\xa0to\xc2\xa0provide\xc2\xa0a\xc2\xa0reasonable\xc2\xa0basis\xc2\xa0for\xc2\xa0our\xc2\xa0findings\xc2\xa0and\xc2\xa0\nconclusions\xc2\xa0based\xc2\xa0on\xc2\xa0our\xc2\xa0audit\xc2\xa0objectives.\xc2\xa0We\xc2\xa0believe\xc2\xa0that\xc2\xa0the\xc2\xa0evidence\xc2\xa0obtained\xc2\xa0\nprovides\xc2\xa0a\xc2\xa0reasonable\xc2\xa0basis\xc2\xa0for\xc2\xa0our\xc2\xa0findings\xc2\xa0and\xc2\xa0conclusions\xc2\xa0based\xc2\xa0on\xc2\xa0our\xc2\xa0audit\xc2\xa0\nobjectives.\xc2\xa0\xc2\xa0\n\xc2\xa0\n \xc2\xa0\nInternal Controls\n\xc2\xa0\nAs\xc2\xa0discussed\xc2\xa0in\xc2\xa0the\xc2\xa0report,\xc2\xa0we\xc2\xa0updated\xc2\xa0Amtrak\xe2\x80\x99s\xc2\xa0progress\xc2\xa0in\xc2\xa0improving\xc2\xa0its\xc2\xa0controls\xc2\xa0and\xc2\xa0\nprocesses\xc2\xa0in\xc2\xa0its\xc2\xa0review\xc2\xa0of\xc2\xa0monthly\xc2\xa0invoices.\xc2\xa0However,\xc2\xa0we\xc2\xa0did\xc2\xa0not\xc2\xa0review\xc2\xa0CSX\xe2\x80\x99s\xc2\xa0internal\xc2\xa0\ncontrol\xc2\xa0structure;\xc2\xa0rather,\xc2\xa0we\xc2\xa0performed\xc2\xa0and\xc2\xa0relied\xc2\xa0on\xc2\xa0substantive\xc2\xa0testing\xc2\xa0to\xc2\xa0determine\xc2\xa0\nthe\xc2\xa0dollar\xc2\xa0amount\xc2\xa0attributable\xc2\xa0to\xc2\xa0errors\xc2\xa0invoiced\xc2\xa0by\xc2\xa0CSX.\xc2\xa0In\xc2\xa0addition,\xc2\xa0we\xc2\xa0did\xc2\xa0not\xc2\xa0assess\xc2\xa0\nAmtrak\xe2\x80\x99s\xc2\xa0internal\xc2\xa0controls\xc2\xa0in\xc2\xa0its\xc2\xa0monthly\xc2\xa0invoice\xc2\xa0reviews;\xc2\xa0however,\xc2\xa0our\xc2\xa0analysis\xc2\xa0\nindicated\xc2\xa0that\xc2\xa0weaknesses\xc2\xa0still\xc2\xa0exist.\xc2\xa0\n \xc2\xa0\n \xc2\xa0\nComputer-Processed Data\n\xc2\xa0\nTo\xc2\xa0achieve\xc2\xa0the\xc2\xa0assignment\xe2\x80\x99s\xc2\xa0objective,\xc2\xa0we\xc2\xa0used\xc2\xa0computer\xe2\x80\x90processed\xc2\xa0data\xc2\xa0contained\xc2\xa0in\xc2\xa0\nAmtrak\xe2\x80\x99s\xc2\xa0electronic\xc2\xa0records\xc2\xa0of\xc2\xa0CSX\xc2\xa0invoices.\xc2\xa0To\xc2\xa0test\xc2\xa0the\xc2\xa0validity\xc2\xa0of\xc2\xa0the\xc2\xa0data,\xc2\xa0we\xc2\xa0\ncompared\xc2\xa0Amtrak\xe2\x80\x99s\xc2\xa0electronic\xc2\xa0data\xc2\xa0to\xc2\xa0CSX\xe2\x80\x99s\xc2\xa0hard\xe2\x80\x90copy\xc2\xa0invoices.\xc2\xa0We\xc2\xa0then\xc2\xa0compared\xc2\xa0the\xc2\xa0\ntotal\xc2\xa0amount\xc2\xa0paid\xc2\xa0on\xc2\xa0the\xc2\xa0electronic\xc2\xa0invoices\xc2\xa0against\xc2\xa0the\xc2\xa0total\xc2\xa0amount\xc2\xa0paid\xc2\xa0in\xc2\xa0Amtrak\xe2\x80\x99s\xc2\xa0\naccounts\xe2\x80\x90payable\xc2\xa0system\xc2\xa0for\xc2\xa0all\xc2\xa0106\xc2\xa0sample\xc2\xa0months.\xc2\xa0The\xc2\xa0data\xc2\xa0in\xc2\xa0the\xc2\xa0accounts\xc2\xa0payable\xc2\xa0\nsystem\xc2\xa0were\xc2\xa0not\xc2\xa0verified,\xc2\xa0but\xc2\xa0we\xc2\xa0consider\xc2\xa0the\xc2\xa0data\xc2\xa0sufficiently\xc2\xa0reliable\xc2\xa0for\xc2\xa0purposes\xc2\xa0of\xc2\xa0\nthe\xc2\xa0audit\xc2\xa0objectives.\xc2\xa0Based\xc2\xa0on\xc2\xa0these\xc2\xa0tests,\xc2\xa0we\xc2\xa0conclude\xc2\xa0that\xc2\xa0the\xc2\xa0data\xc2\xa0are\xc2\xa0sufficiently\xc2\xa0\nreliable\xc2\xa0to\xc2\xa0be\xc2\xa0used\xc2\xa0in\xc2\xa0meeting\xc2\xa0the\xc2\xa0assignment\xe2\x80\x99s\xc2\xa0objectives.\xc2\xa0\n\xc2\xa0\n\xc2\xa0\n\x0c 20\n Amtrak Office of Inspector General\n Amtrak Invoice Review: Inaccurate Invoices Were Paid, But Progress\n is Being Made to Improve the Invoice-Review Process\n Audit Report No. OIG-A-2012-005, February 16, 2012\n\n\nPrior Audit Reports\n\xc2\xa0\nOur\xc2\xa0review\xc2\xa0of\xc2\xa0prior\xc2\xa0OIG\xc2\xa0reports\xc2\xa0found\xc2\xa0previously\xe2\x80\x90identified\xc2\xa0control\xc2\xa0weaknesses\xc2\xa0and\xc2\xa0\nsignificant\xc2\xa0dollar\xc2\xa0amounts\xc2\xa0associated\xc2\xa0with\xc2\xa0Amtrak\xe2\x80\x99s\xc2\xa0payments\xc2\xa0to\xc2\xa0host\xc2\xa0railroads.\xc2\xa0This\xc2\xa0\nreport\xc2\xa0is\xc2\xa0part\xc2\xa0of\xc2\xa0a\xc2\xa0series\xc2\xa0of\xc2\xa0OIG\xc2\xa0audits\xc2\xa0of\xc2\xa0Amtrak\xe2\x80\x99s\xc2\xa0host\xc2\xa0railroad\xc2\xa0payments.\xc2\xa0Since\xc2\xa02010,\xc2\xa0\nwe\xc2\xa0have\xc2\xa0issued\xc2\xa0the\xc2\xa0following\xc2\xa0related\xc2\xa0audit\xc2\xa0reports:\xc2\xa0\n\xc2\xa0\nOn\xe2\x80\x90Time\xe2\x80\x90Performance\xc2\xa0Incentives:\xc2\xa0Inaccurate\xc2\xa0Invoices\xc2\xa0were\xc2\xa0Paid\xc2\xa0Due\xc2\xa0to\xc2\xa0Longstanding\xc2\xa0\nWeaknesses\xc2\xa0in\xc2\xa0Amtrak\xe2\x80\x99s\xc2\xa0Invoice\xe2\x80\x90Review\xc2\xa0Process\xc2\xa0(Amtrak\xc2\xa0OIG\xc2\xa0Audit\xc2\xa0Report\xc2\xa0403\xe2\x80\x902010,\xc2\xa0\xc2\xa0\nApril\xc2\xa021,\xc2\xa02011).\xc2\xa0Over\xc2\xa0$500,000\xc2\xa0in\xc2\xa0overpayments\xc2\xa0found.\xc2\xa0\n\xc2\xa0\nBNSF\xc2\xa0[Burlington\xc2\xa0Northern\xc2\xa0Santa\xc2\xa0Fe\xc2\xa0Railway]\xc2\xa0On\xe2\x80\x90Time\xe2\x80\x90Performance\xc2\xa0Incentives:\xc2\xa0Inaccurate\xc2\xa0\nInvoices\xc2\xa0and\xc2\xa0Lack\xc2\xa0of\xc2\xa0Amtrak\xc2\xa0Management\xc2\xa0Review\xc2\xa0Lead\xc2\xa0to\xc2\xa0Overpayments\xc2\xa0(Amtrak\xc2\xa0OIG\xc2\xa0Audit\xc2\xa0\nReport\xc2\xa0407\xe2\x80\x902003,\xc2\xa0September\xc2\xa024,\xc2\xa02010).\xc2\xa0Over\xc2\xa0$1\xc2\xa0million\xc2\xa0in\xc2\xa0overpayments\xc2\xa0found.\xc2\xa0\n\xc2\xa0\nCSX\xc2\xa0On\xe2\x80\x90Time\xe2\x80\x90Performance\xc2\xa0Incentives:\xc2\xa0Inaccurate\xc2\xa0Invoices\xc2\xa0and\xc2\xa0Lack\xc2\xa0of\xc2\xa0Amtrak\xc2\xa0Management\xc2\xa0\nReview\xc2\xa0Lead\xc2\xa0to\xc2\xa0Overpayments\xc2\xa0(Amtrak\xc2\xa0OIG\xc2\xa0Audit\xc2\xa0Report\xc2\xa0406\xe2\x80\x902005,\xc2\xa0March\xc2\xa030,\xc2\xa02010).\xc2\xa0Over\xc2\xa0\n$20\xc2\xa0million\xc2\xa0in\xc2\xa0overpayments\xc2\xa0found.\xc2\xa0\n \xc2\xa0\n\x0c 21\n Amtrak Office of Inspector General\n Amtrak Invoice Review: Inaccurate Invoices Were Paid, But Progress\n is Being Made to Improve the Invoice-Review Process\n Audit Report No. OIG-A-2012-005, February 16, 2012\n\n Appendix II\n\n\n COST COMPONENTS FROM APPENDICES III AND IV\n OF THE AMTRAK/CSX OPERATING AGREEMENT\n EFFECTIVE JUNE 1, 1999\n\nAppendix III Price\nItem # Description Method\n1\n2\n3\n4\n5\n6\n7\n8\n9\n10\n11\n12\n13\n14\n15\n16\n17\n18\n\n19\n\n20\n21\n22\n23\n24\n25\n26\n27\n28\n29\n30\n31\n\n32\nSource: June 1999 Amtrak/CSX Operating Agreement\n\x0c 22\n Amtrak Office\n e of Inspecto\n or General\nAmtrak In\n nvoice Review: Inaccu urate Invoicees Were Paaid, But Progress\n is\n s Being Mad de to Improve the Invo oice-Revieww Process\n Audit Repo\n ort No. OIG-A\n A-2012-005, February 16, 2012\n\n Ap\n ppendix III\n\n\n COMMMENTS FROM AAMTRAK K\xe2\x80\x99S\n ACTING\n A CHIEF FINANC\n CIAL OFFICER\n\x0c 23\n Amtrak Office of Inspector General\n Amtrak Invoice Review: Inaccurate Invoices Were Paid, But Progress\n is Being Made to Improve the Invoice-Review Process\n Audit Report No. OIG-A-2012-005, February 16, 2012\n\n\n Appendix IV\n\n\n ABBREVIATIONS\n\nAL\xc2\xa0 \xc2\xa0 Alabama\xc2\xa0\n\nCSX\xc2\xa0 \xc2\xa0 CSX\xc2\xa0Transportation,\xc2\xa0Inc.\xc2\xa0\n\nFL\xc2\xa0 \xc2\xa0 Florida\xc2\xa0\n\nIN\xc2\xa0 \xc2\xa0 Indiana\xc2\xa0\n\nIT\xc2\xa0 \xc2\xa0 Information\xc2\xa0Technology\xc2\xa0\n\nITM\xc2\xa0 \xc2\xa0 incremental\xc2\xa0track\xc2\xa0maintenance\xc2\xa0\n\nMA\xc2\xa0 \xc2\xa0 Massachusetts\xc2\xa0\n\nNC\xc2\xa0 \xc2\xa0 North\xc2\xa0Carolina\xc2\xa0\n\nNY\xc2\xa0 \xc2\xa0 New\xc2\xa0York\xc2\xa0\n\nOIG\xc2\xa0 \xc2\xa0 Office\xc2\xa0of\xc2\xa0Inspector\xc2\xa0General\xc2\xa0\n\nOTC\xc2\xa0 \xc2\xa0 other\xc2\xa0system\xc2\xa0train\xc2\xa0costs\xc2\xa0\n\nOTP\xc2\xa0 \xc2\xa0 on\xc2\xa0time\xc2\xa0performance\xc2\xa0\n\nVA\xc2\xa0 \xc2\xa0 Virginia\xc2\xa0\n\x0c 24\n Amtrak Office of Inspector General\n Amtrak Invoice Review: Inaccurate Invoices Were Paid, But Progress\n is Being Made to Improve the Invoice-Review Process\n Audit Report No. OIG-A-2012-005, February 16, 2012\n\n Appendix V\n\n\n OIG TEAM MEMBERS\nDavid\xc2\xa0Warren\xc2\xa0 \xc2\xa0 Assistant\xc2\xa0Inspector\xc2\xa0General,\xc2\xa0Audits\xc2\xa0\n\nDan\xc2\xa0Krueger\xc2\xa0\xc2\xa0 \xc2\xa0 Senior\xc2\xa0Director,\xc2\xa0Audits\xc2\xa0\n\nJana\xc2\xa0Brodsky\xc2\xa0\xc2\xa0 \xc2\xa0 Senior\xc2\xa0Auditor\xc2\xa0\n\nSatish\xc2\xa0Parikh\xc2\xa0\xc2\xa0 \xc2\xa0 Senior\xc2\xa0Auditor\xc2\xa0\n\nRaymond\xc2\xa0Zhang\xc2\xa0 \xc2\xa0 Senior\xc2\xa0Auditor\n\x0c 25\n Amtrak Office of Inspector General\n Amtrak Invoice Review: Inaccurate Invoices Were Paid, But Progress\n is Being Made to Improve the Invoice-Review Process\n Audit Report No. OIG-A-2012-005, February 16, 2012\n\n\n OIG MISSION AND CONTACT INFORMATION\n\nAmtrak OIG\xe2\x80\x99s Mission The Amtrak OIG\xe2\x80\x99s mission is to\n\n \xef\x82\xa7 conduct and supervise independent and objective audits,\n inspections, evaluations, and investigations relating to\n agency programs and operations;\n\n \xef\x82\xa7 promote economy, effectiveness, and efficiency within\n Amtrak;\n\n \xef\x82\xa7 prevent and detect fraud, waste, and abuse in Amtrak\xe2\x80\x99s\n programs and operations;\n\n \xef\x82\xa7 review security and safety policies and programs; and\n\n \xef\x82\xa7 review and make recommendations regarding existing\n and proposed legislation and regulations relating to\n Amtrak's programs and operations.\n\nObtaining Copies of OIG Available at our website: www.amtrakoig.gov.\nReports and Testimony\nTo Report Fraud, Waste, Report suspicious or illegal activities to the OIG Hotline\nand Abuse (you can remain anonymous):\n\n Web: www.amtrakoig.gov/hotline\n Phone: 800-468-5469\nCongressional and E. Bret Coulson, Senior Director\nPublic Affairs Congressional and Public Affairs\n Mail: Amtrak OIG\n 10 G Street, N.E., 3W-300\n Washington, D.C. 20002\n Phone: 202.906.4134\n Email: bret.coulson@amtrakoig.gov\n\x0c"


type: contracts

jurisdiction: EU

text:
 28.11.2013
 DE
 Amtsblatt der Europäischen Union
 L 318/27
 BESCHLUSS DES GEMEINSAMEN EWR-AUSSCHUSSES
 Nr. 125/2013
 vom 14. Juni 2013
 zur Änderung von Anhang XIII (Verkehr) des EWR-Abkommens
 DER GEMEINSAME EWR-AUSSCHUSS —
 gestützt auf das Abkommen über den Europäischen Wirtschaftsraum (im Folgenden „EWR-Abkommen“), insbesondere auf Artikel 98,
 in Erwägung nachstehender Gründe:
 (1)
 Die Verordnung (EU) Nr. 1077/2012 der Kommission vom 16. November 2012 über eine gemeinsame Sicherheitsmethode für die Überwachung durch die nationalen Sicherheitsbehörden nach Erteilung einer Sicherheitsbescheinigung oder Sicherheitsgenehmigung (1) ist in das EWR-Abkommen aufzunehmen.
 (2)
 Die Verordnung (EU) Nr. 1078/2012 der Kommission vom 16. November 2012 über eine gemeinsame Sicherheitsmethode für die Kontrolle, die von Eisenbahnunternehmen und Fahrwegbetreibern, denen eine Sicherheitsbescheinigung beziehungsweise Sicherheitsgenehmigung erteilt wurde, sowie von den für die Instandhaltung zuständigen Stellen anzuwenden ist (2), ist in das EWR-Abkommen aufzunehmen.
 (3)
 Anhang XIII des EWR-Abkommens sollte daher entsprechend geändert werden —
 HAT FOLGENDEN BESCHLUSS ERLASSEN:
 Artikel 1
 In Anhang XIII des EWR-Abkommens werden nach Nummer 42eg (Verordnung (EU) Nr. 445/2011 der Kommission) folgende Nummern eingefügt:
 „42eh.
 32012 R 1077: Verordnung (EU) Nr. 1077/2012 der Kommission vom 16. November 2012 über eine gemeinsame Sicherheitsmethode für die Überwachung durch die nationalen Sicherheitsbehörden nach Erteilung einer Sicherheitsbescheinigung oder Sicherheitsgenehmigung (ABl. L 320 vom 17.11.2012, S. 3).
 42ei.
 32012 R 1078: Verordnung (EU) Nr. 1078/2012 der Kommission vom 16. November 2012 über eine gemeinsame Sicherheitsmethode für die Kontrolle, die von Eisenbahnunternehmen und Fahrwegbetreibern, denen eine Sicherheitsbescheinigung beziehungsweise Sicherheitsgenehmigung erteilt wurde, sowie von den für die Instandhaltung zuständigen Stellen anzuwenden ist (ABl. L 320 vom 17.11.2012, S. 8)“.
 Artikel 2
 Der Wortlaut der Verordnungen (EU) Nr. 1077/2012 und (EU) Nr. 1078/2012 in isländischer und norwegischer Sprache, der in der EWR-Beilage des Amtsblatts der Europäischen Union veröffentlicht wird, ist verbindlich.
 Artikel 3
 Dieser Beschluss tritt am 15. Juni 2013 in Kraft, sofern alle Mitteilungen nach Artikel 103 Absatz 1 des EWR-Abkommens vorliegen (3).
 Artikel 4
 Dieser Beschluss wird im EWR-Abschnitt und in der EWR-Beilage des Amtsblatts der Europäischen Union veröffentlicht.
 Geschehen zu Brüssel am 14. Juni 2013.
 Für den Gemeinsamen EWR-Ausschuss
 Der Vorsitzende
 Gianluca GRIPPA
 (1) ABl. L 320 vom 17.11.2012, S. 3.
 (2) ABl. L 320 vom 17.11.2012, S. 8.
 (3) Ein Bestehen verfassungsrechtlicher Anforderungen wurde nicht mitgeteilt.