UNITED STATES GENERAL ACCWNTING OFFICE CIVIL DlWSlON 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 Congress. 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. DEPRECIATION AND AMORTIZATION 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 $8 aigmed, the orlglnel of thio fomgn, accompankd by B copy of the report, shauld be sent --- to the Accounting and Auditing Policy Staff. A copy DATE IL9UEO of the form shoauk! be filed In the master report folder. NAME OF OFFICIAL ?(DW WHO91 fdI@PdlAQURIKt rPBIF’0R-f l@J PFZEPARIO TITLE 1 Wilbur D. Campbell 1 Assistant Director Orig. 4-l Chief of Engineers 2 Secretary of the Army 2 Secretary of Defense ) 215 North 17th Street ' Omaha, Nebraska 68102 1 Chief, Army Audit Agency - ----I 1 Commissioner, Bureau of Reclamation -- 1 Information Officer ..-Accounting and Auditing Policy Staff - .--- omEe?On OF ORPCINATONQ DIVIatOm h$r. A. T. Samuelson Attention: Kenneth A. Mann - mwi ANT QIRECTQR OR CQMPAlPAEQLE OPPICIAL I ---I 2 Mr. -._.-.W. D.-._ Campbell MANAOER OF ORIBIMA+IWQ WBDlONAL OFPICE *6 Mr. S. D. McElyea -- - -.-~I- Directolt Transportation Division -_.--_ -_-_--_ AEMAAKJ I _ Director, Cl&ns Division Distribution to be made by the Denver Regional Office.
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)