Authors: U.S. General Accounting Office (GAO)

Date of Publication:  December 1990

Sponsoring Agency:  U.S. General Accounting Office (GAO)

Performing Organization:  U.S. General Accounting Office (GAO)

Report No: GAO/RCED-91-47

Abstract:

We found internal control weaknesses in the financial management of FRA’s civil penalty program that undermined compliance with federal standards for settlement, collection, accounting, and recordkeeping.
Additionally, FRA’s actions did not comply with its own internal standard operating procedures and policies. Specific problems included the following:
 

• OCC did not keep adequate records of railroad correspondence in numerous cases and was therefore unable to readily determine which railroads had and had not responded to notifications of safety violations and potential civil penalty assessments.
• OFS did not establish accounts receivable for millions of dollars in civil penalty payments because OCC staff did not follow required procedures, resulting in a loss of control over government receipts.
• OCC did not process and OFS did not deposit some receipts in a timely manner, leading to a loss of revenues due to foregone interest earned on deposits.
• OCC frequently did not enforce provisions for charging interest and administrative costs for overdue civil penalty payments. As a result, the federal government lost potential revenues.
• OCC was not timely in settling railroad violation cases and collecting civil penalties, resulting in increased federal government borrowing.

No. of Pages:  16