Financial Activities of Missouri River Basin Integrated Projects for Fiscal Year 1969

Published by the Government Accountability Office on 1971-02-25.

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

                              UNITED STATES GENERAL ACCWNTING             OFFICE


                                                                                FE5 2 5 1976

                  Dear General    Clarke:

                       We have completed a review of certain       financial      activities
                  of the Missouri River Basin Integrated      Projects     consisting       of
                  the six main-stem projects  of the Corps plus those projects               of
                  the Bureau of Reclamation within the Missouri River Basin that
                  have been integrated  for power operations.        The overall       results
                  of our review will be covered in p separate report to the

                        During our review at the Corps' Quaha District           Office,   we
                  noted several problem areas which we believe           should be brought
                  to your attention    for appropriate      corrective  action.    These
                  matters--not    to be included in our report to the Congress--were
                  discussed with division      and district     office officials    and are
                  summarized below.


                         The &aha District       Office included interest         during construc-
                  tion on fee simple land costs in the base for computing deprecia-
                  tion and amortization       although Engineering       Regulation      37-2-10
                  states (chapter       8, page 69) that such interest         will not be subject     .
                  to depreciation       or amortization.       However, another section of the
                  regulation    (chapter    2, page 26 1 appears to conflict          with the above
                  requirement     since it specifies      that upon the retirement          of fee
                  simple land the interest         during construction      will not be trans-
                  ferred from plant but will be amortized over the life of the
                  project.     Division    and district    officials    of the Corps agreed
                  that    there is a need for clarification.of          these regulations.

                        We were advised by staff members of the Federal Power Com-
                  mission that interest    during construction       related   to fee simple
                  land costs should be included      in the amortization       base as has
                  been done by the Qnaha District      Office.      We recommend that the
                  Corps' regulations    be clarified   concerning      the accounting   treat-
                  ment of interest   during construction       on fee simple land costs.

                                            50TH   ANNIVERSARY   19il-   1971
    -._  ---- --ssez
    TITLE       OF       REPORT

                                                                                                                                       Qattam2d lnstructPonQ             for Phffl use of tllilpl form %n?
                                                                                                                               contetmd in Chepter 7 of ths ReporPNlanuarl.
                Review of Certain         inancial      Activities       of
                                             Integrated         Projects                                                          I%% dorm la to bs usledby %%QPst%ntdbectora,
                Missouri   River    Basi                                                                                       regionel         mafleg:crs,        and     comper%ble      offlclals   ti
                for Fiscal     Year 196 - Corps of Engineers                                                                   deefgnate the lnBhal ePxterm1 and lntemol dlsblbu-
                                                                                                                               tlon of reports aignsd by offlcimle other then the
                (Civil   Functions)      C e 08553 - LIIC                                                                      Comgtroller   General or dhlslon    dtsectotEL Approval
                                                                                                                               to relseae e report end the related tmnnmitt.s! letter5
                                                                                                                               ie ale0 Imdicated on this EOPrn.
                                                                                                                                   After Q report $8 aigmed, the orlglnel of thio fomgn,
                                                                                                                                accompankd      by B copy of the report, shauld be sent
---                                                                                                                             to the Accounting and Auditing Policy Staff. A copy
 DATE           IL9UEO                                                                                                          of the  form   shoauk! be filed In the master report
 NAME           OF   OFFICIAL        ?(DW    WHO91        fdI@PdlAQURIKt      rPBIF’0R-f       l@J PFZEPARIO                  TITLE
                     Wilbur          D. Campbell                                                                          1                     Assistant               Director

4-l                       Chief      of Engineers

       2                  Secretary           of      the       Army

       2                  Secretary           of Defense                                                                  ) 215 North  17th                       Street
                                                                                                                          ' Omaha, Nebraska                          68102
       1                  Chief,        Army Audit                 Agency
-     ----I
                                                                                                                  1           Commissioner,                      Bureau        of Reclamation --

                                                                                                                  1           Information                     Officer
                     ..-Accounting      and Auditing           Policy Staff
                         - .---
                        omEe?On         OF ORPCINATONQ             DIVIatOm
                      h$r. A. T. Samuelson                                                                                    Attention:                  Kenneth            A. Mann
                     - mwi ANT QIRECTQR  OR                     CQMPAlPAEQLE               OPPICIAL                       I

            2         Mr.
                       -._.-.W. D.-._ Campbell
                         MANAOER      OF    ORIBIMA+IWQ            WBDlONAL           OFPICE
      *6              Mr. S. D. McElyea
--                    -

-.-~I-               Directolt       Transportation           Division

                 _ Director,         Cl&ns      Division

                         Distribution                to       be made by the                          Denver   Regional               Office.