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B-202129 1 (1981-06-10)

handle is hein.gao/gaobabkbc0001 and id is 1 raw text is: 



     /    'COMPTROLLER GENERAL OF THE UNITED STATES
       [ , ..:'.. : / iWASHINGTON       D.C. 20548



 B-202129                                    June 10, 1981
-CED1-183



The Honorable John D. Dingell
Chairman, Committee on Energy
   and Commerce
 House of Representatives

 Dear Mr. Chairman:
       Ov1
 Te Zroposed Conrail Private Sector Ownership Act of 1981
 pH.R. 355f_? which we understand is being considered by your
 committee, provides in section 202(a) that the Comptroller General
 would be a member of the United States Railway Association's Board
 of Directors. The two other board members would be the Secretary
 of Transportation and a chairman selected by the outgoing chairman
 and the other board members. As a member of this Board of Direc-
 tors, the Comptroller General would participate in a wide range of
 executive decisions directly affecting Government transportation
 policies and program expenditures. Under the bill, the Associa-
 tion would, as in the past, monitor Conrail's activities and per-
 formance and disburse Federal funds to Conrail. It would also
 make various determinations on Conrail's compliance with the bill's
 requirements. Noncompliance could result in Federal funds for Con-
 rail being terminated.

      The Comptroller General's participation in executive decisions
 as an Association board member could create a conflict of interest
 or the appearance of a conflict of interest because of the General
 Accounting Office's responsibilities to review and evaluate both
 Conrail's and the Association's policies and activities. We have
 been quite active in this area in the past, having issued 15 re-
 ports concerning Conrail activities and 6 on Association activi-
 ties (see enclosure). Under the Government Corporation Control Act
 (31 U.S.C. 850), we are required to audit Association financial
 statements.

      We have consistently opposed legislation giving the
 Comptroller General executive authority over programs he audits
 on behalf of the Congress. The conflict inherent in acting under
 both an executive and audit capacity as to the same issues and
 transactions is obvious and hardly needs elaboration. Irrespective
 of our utmost,care the Congress will have effectively lost the
 ability to obtain fully objective audit and review information
 from the General Accounting Office on certain transportation
 matters should the bill remain unchanged. We therefore, strongly


(990511)

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