Summary: An audit of the financial statements of the United States Railway Association (USRA) for the period July 1, 1975, through June 30, 1976, demonstrated that there were several areas where the need for corrective action was indicated.
USRA had not reconciled its bank statements regularly, nor followed up on checks outstanding for an undue amount of time, nor stamped supporting documentation to indicate that a payment had been made. These practices weaken control over cash disbursements. The Comptroller advised that additional personnel had been assigned to his office so that these problems could be corrected. A new cashier for the petty cash fund has been appointed, and a revised order on petty cash procedures has been issued in order to prevent the recurrence of petty cash fund activities deficiencies. Payment of traffic fines by USRA is an unauthorized expenditure of appropriated funds and should be discontinued. Tests of accounting records revealed that many errors could have been avoided if accounts were regularly reviewed. Routine analysis and closer supervision would help to avoid the recurrence of many errors in the accounting codes and amounts charged to incorrect accounts for travel and representation expenses.
