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CED-78-137 [i] (1978-07-27)

handle is hein.gao/gaobaaxsc0001 and id is 1 raw text is: DOCUMENT NEE~hE 06753 - fB21271391 the Alaska [ailroad: Its Management is Being Improved, Its Future N*eds To Be Decided. CED-78-137; E-1146E6. July 27, 1978. 60 pp. + 2 appendices (13 pp.) Report to the Conqress; by Elmer B. Staats, Comptrcller General. Issue Area: Transportation Systems and iclicies: Railroad Freight Transportation System (24U7). Contact: Community and Economic DevelcFment Div. budqet inction: Commerce and Transportation: Ground Transportation (404). Organization Concerned: Federal Railrcad Administration: Alaska Railroad; Department of Transportation. Conqwessional Relevance: House Cossittee an Interstate ard Foreiqn Commuerce; Senate Ccmmittee cm Ccauerce, Science, and Iransport4tion; Congress. Autnority: Economy Act of 1932 (40 U.S.C. 303(t)). budget and Accountinq Procedures Act of 1950 (31 L.S.C. 66a). Alaska Native Cliims Settlement Act (P.L. 92-203). Railroad aevitalizatior. and Begulatory Befczm Act of 1916. Federal Property and Administrative Services Act of 1949. 43 U.S.C 975. 28 U.S.C. 4515. 5 U.S.C. 5584. 41 U.S.C. 2!2(c). -I C.F.R. 1. =4 C.F.R. 102. =49 C.F.E. 1320, Rxecutive Crder 11107. CMB Circular A-25. 0MB Circular A-09. F.P.N. Letter 630-22. DOT Order 4200.10. B-114E66 (1956). F.I.E. (PED 10 1-7). The Federal Government has owned and operated t,'e Alaska Railroad (APR) since 1923. The AR has Flayee an important role in developing Alaska and ir meeting Latictal defense needs; it has become an integral and essential Fart of Alaska's transportation system. The ervircEment in %hich the ASR now operates has changed considerably since 1923, hcwever, and competing transsortation modes have grcwn rapidly. indinqs/conclusions: Because it operates in a competitive environcent, the ability of the ARE to attract cvtczers is essential. The railroad had management veaknesses, including: no overall marketing ilan, a tariff structure which did not insure that it could meet costs and reinvestment needs, and unreasonably low real estate rental rates, The ARE did not have an adequate system of internal controls; as a rcault, the potential foL improper financial transactions existed; Ectential operatinq revenues were lost; and prcrerty and materials were not adequately protected. Financial management proc4dur*s and practices were inadequate, resulting in imaccuraLe and unreliable accounting data. Pay scales were unrwascmatly bigh in relation to other Federal agencies in Alaska. Becommerdations: The Secretary of Transportation should direct the General Manaqer of the ARE to: periodicall make a systematic assesment of transportation needs in its service aiea, develcp a plan for actively marketing its services, determine the actual ccst of

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