Suburban Station wrote:SouthernRailway wrote:If I understand correct, Amtrak's accounting is non-GAAP and it allocates costs to LD trains and the NEC as it sees fit (i.e., Amtrak does its accounting any way it wants).
If that's true, why can't Amtrak just allocate more sleeping car revenues to dining service and eliminate any dining losses by just allocating more sleeping car revenues to it?
I believe Amtrak follows gaap accounting but gaap doesn't cover cost allocations which are useful for mgmt decisions (and in this case legal requirements) but not for the financial wealth of the company. Most companies have internal reporting mechanisms related to its businesses separate from its financial statements.
I find it interesting that, because those in the railfan community find it a scapegoat, that Amtrak Financial Statements do not conform with GAAP is widely circulated beyond special interest sites such as here and even into trade media. Case in point is this Mark Singer column appearing in Railway Age:
https://www.railwayage.com/passenger/do ... o-clothes/" onclick="window.open(this.href);return false;
Fair Use:
In essence, despite ignoring GAAP by playing a “shell game” with PRIIA revenues and National Network funding to subsidize the Northeast Corridor, due to the lack of accountability, oversight and transparency by Amtrak’s Board of Directors, we do not have the details to know to what extent Amtrak is now “flying at night in the fog and rain on instruments, with the instruments turned off.” If so, Congress should demand Amtrak to immediately open its books for a comprehensive audit by a reputable third-party accounting firm; to open up its dark vault how it allocates costs, funding and revenues.
Amtrak Financial Statements do conform with Generally Accepted Accounting Principles (GAAP) and an Independent Auditor, presently Ernst & Young, has expressed an Opinion that such Statements fairly state the Income (loss) and Financial Position of Amtrak. Because these Statements and Opinion Letter are copy protected, they nevertheless are at the Amtrak website. All I can say is "go fish"; here's the path to the "fishing hole":
Home/About Amtrak/Reports and Documents/View All Reports and Documents/Annual Reports and Consolidated Financial Statements
For comparison, ring up an Annual Report (often a copy of the 10-K filed with the SEC) of a publicly held industrial concern of your choice. Carefully note that the Opinion Letter is quite similar to Amtrak's, except for the Amtrak "going concern" warning, which is better known as "no funding, no Amtrak".
Responsibility Accounting, as Mr. 1617 JFK Blvd (BTW volks, that's the street address of Suburban Station in Phila) notes, is the purview of management so long as such does not result in a material misstatement of the Company's financial condition.
