oversight

Engagement Memo-Controls Over Reimbursable Ancillary Services

Published by the Amtrak Office of the Inspector General on 2018-11-06.

Below is a raw (and likely hideous) rendition of the original report. (PDF)

Memorandum
 To:            William N. Feidt
                Executive Vice President/Chief Financial Officer

 From:          Stephen Lord
                Assistant Inspector General, Audits

 Date:          November 6, 2018

 Subject:       Engagement Memo—Controls Over Reimbursable Ancillary Services
                (Project code 003-2019)

We are initiating an audit of the company’s processes for providing reimbursable
ancillary services, such as the maintenance, engineering, and capital improvement
services provided to freight and commuter operators on a reimbursable cost basis. Our
objective will be to assess the extent to which the company is effectively and efficiently
managing these services, including the process and controls related to identifying the
full cost of and billing for these services. Our scope will include reviewing the services
provided in fiscal years 2016, 2017, and 2018. We may expand our scope or modify our
objective during the audit.

During the audit, we plan to analyze documents and data related to the coding,
processing and tracking of reimbursable services. We will request documents as our
work progresses. We also will work to minimize the impact of the audit by coordinating
interviews of company officials and other work with staff in advance.

Our work will be performed in accordance with generally accepted government
auditing standards. Our interactions with the company will be consistent with P/I2.1.3,
which sets forth the relationship between our office and the company. In particular,
section 7.0 of the policy discusses coordination between company officials and our
office of audits. To view this policy, see
http://wiki.corp.nrpc/display/APIM20/2.0+Inspector+General.

We request that your office arrange an entrance conference for us with the appropriate
company officials at the earliest possible date. We will keep you advised of the status of
our work and any material changes in our objective, should they occur.

                      10 G Street, NE, 3W-300, Washington D.C., 20002
                        202.906.4600 / Fraud Hotline 800.468.5469
                                     www.amtrakoig.gov
Dorian Herring will be the audit manager for this engagement and will report to Anne
Keenaghan, Senior Director – Audits. If you have any questions, please contact me at
(202) 906-4600 (stephen.lord@amtrakoig.gov); Jason Venner, Deputy Assistant Inspector
General – Audits at (202) 906-4405 (jason.venner@amtrakoig.gov); or Anne Keenaghan
at (215) 349-2743 (anne.keenaghan@amtrakoig.gov).


cc: Eleanor Acheson, Executive Vice President/General Counsel & Corporate Secretary
    Stephen Gardner, Executive Vice President/Chief Commercial Officer
    Tim Griffin, Executive Vice President/Chief Marketing Officer
    Ken Hylander, Executive Vice President/Chief Safety Officer
    Scot Naparstek, Executive Vice President/Chief Operating Officer
    DJ Stadtler, Executive Vice President/Chief Administration Officer
    Christian Zacariassen, Executive Vice President/Chief Information Officer
    Mark Richards, Senior Director, Risk Management and Controls
    Mark Benedict, Director, Risk Management and Controls




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