to furnish on a daily basis the information Further, the Treasurer's office has been Internal Auditor We understand that the Internal Auditor has been performing both external and internal auditing functions, i.e., he has audited the records of outside contractors as they pertain to the Authority and has performed audits of certain areas within the Authority. At the present time he reports primarily to the Comptroller and may, if he deems it necessary, report directly to the General Manager. We feel that ideally the Internal Auditor should report directly to the Board of Directors. However, as an alternative, the present organizational set-up ff having the Internal Auditor report to the Comptroller can be adequate providing it is always understood that the Internal Auditor may report directly to the Board at his discretion. We also, recommend that inasmuch as the Internal Auditor already reports to the Comptroller on most matters, he should also submit copies of his reports to the Treasurer and General Manager for information. Other (1) At the present time, we understand that the Authority's accounting manual is in the process of being revised. This is to be commended, as this manual will aid immensely, and should be updated on a current basis. (2) At the time of our audit, a separate payroll bank account had Anot been established. Currently a separate account is being used. However, amounts transferred to the account to cover the payroll are approximations and do not equal the amount of the payroll. We recommend that such an account be utilized on an imprest basis, with deposits being made in the exact amount of the payroll. (3) A valuable tool to management is a monthly cash flow analysis, setting forth the cash requirements and the approximate dates required. This analysis should be prepared by the Treasurer and should provide a guideline for determining cash available for investment and for forecasting when large amounts of cash are needed (through sale of investments or otherwise) to meet payroll, contract payments, etc. The foregoing comments are submitted as constructive suggestions We appreciate the opportunity to present these comments and recommendations for your consideration, and are prepared to discuss them further at your convenience. to assist you in strengthening controls and procedures. November 24, 1975 Question 1. GAO Hearing Submit for the record your analysis of the costs of dividing bus and rail management along with other documents submitted to the Board regarding this recommendation. The cost of a separate bus and rail organization is dependent on specific organizational arrangement contemplated by the Metro Board of Directors. The organization can vary from complete separation, with the bus and rail organizations maintaining a completely separate organizational structure to separating the activities to bus and rail, but maintaining integrated common services such as plant maintenance and communication maintenance. The detailed costing must thus wait until the Board's direction has been clearly expressed. November 24, 1975 Request (continued) Page Question 10. GAO Hearing On November 18, 1975 General Graham stated that: "There is not Please reconcile for the records the General Manager's statement with the Cresap Report, Appendiz A with regard to the Toronto, Pittsburgh and Philadelphia properties. "The three properties cited (Toronto, Pittsburgh, Philadelphia) confirm the General Manager's testimony that bus and rail transit operations are not organizationally separated. The three properties do separate operations from development or construction, as does WMATA. (In SEPTA, the railroad operations refer to commuter railroads, properly separated from rail transit.)" |