IMPROVED CONTROLS NEEDED OVER FEDERAL FINANCIAL ASSISTANCE TO RAILROADS
Before 1976 direct Federal assistance to U.S. railroads was in response to specific crises in the Midwest and Northeast regions with more than $825 million provided in loans, loan guarantees and grants. Available Federal assistance increased dramatically with passage of the Railroad Revitalization and Regulatory Reform Act of 1976 which authorized about $1.6 billion in direct assistance available nationwide. Administrative and auditing procedures of assistance to date have been examined with numerous recommendations on pre-award procedures, accounting and monitoring of future grants. While it did not find any indication that railroads used Federal funds for purposes other than intended by legislation, it did question the timing of such usage in the light of other working capital. GAO agrees that the goal of continuing essential rail services was met, but stated that FRA monitoring did not assure that this was achieved at lowest possible cost to the Government.
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Supplemental Notes:
- The report consists of GAO recommendations to FRA/DOT and the United States Railway Association.
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Corporate Authors:
U.S. General Accounting Office
441 G Street, NW
Washington, DC United States 20548 - Publication Date: 1976-11-15
Media Info
- Features: Appendices;
- Pagination: 58 p.
Subject/Index Terms
- TRT Terms: Abandonment; Accounting; Bankruptcy; Financing; Government funding; Subsidies
- Identifier Terms: Central Railroad of New Jersey; Conrail; Erie Lackawanna Railway; Penn Central Transportation Company; Railroad Revitalization and Regulatory Reform Act of 1976
- Geographic Terms: Northeastern United States
- Old TRIS Terms: Reading company; Regional rail reorganization act; United states railway association
- Subject Areas: Finance; Railroads;
Filing Info
- Accession Number: 00149911
- Record Type: Publication
- Source Agency: U.S. General Accounting Office
- Report/Paper Numbers: CED-76-161
- Files: TRIS
- Created Date: May 11 1977 12:00AM