Examination of the United States Railway Association's Financial Statements and Other Matters Concerning Its Operations

CED-77-64: Published: Jul 8, 1977. Publicly Released: Jul 8, 1977.

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Although the financial statements of the United States Railway Association (USRA) for the period ended June 30, 1976 generally present the financial position of the association fairly, misstatements were discovered in several accounts.

The equipment, prepaid expenses, accounts receivable, loans receivable, leasehold improvements, accrued travel expenses, and contract holdback accounts were found to be misstated as of June 30, 1976. Although the net effect of the misstatements is not material when compared with the size of the investment of the U.S. Government balance, several of the misstatements were material with respect to individual account balances. The USRA has taken corrective action on all of the items. With regard to the operations of the association, documentation for administrative expenses was inadequate; internal audit activities were limited; and recommendations made in a previous GAO report with regard to procurement and financial disclosure policies had been only partially implemented.

Recommendation for Executive Action

  1. Status: Closed

    Comments: Please call 202/512-6100 for additional information.

    Recommendation: The Chairman of the Board of the Association should: conduct a comprehensive inventory of furniture and equipment during the next year and as often as necessary thereafter; strengthen internal controls over relocation expenses; provide broader internal audit coverage of its financial and management operations and implement systematic followup procedures; and fully implement prior GAO recommendations concerning procurement and financial disclosure.

    Agency Affected:

 

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