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The foregoing colinents are submitted as constructive suggestions to assist you in strengthening controls and procedures. We appreciate the opportunity to present these comments and recommendations for your consideration, and are prepared to discuss them further at your convenience.

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November 24, 1975

GAO Hearing

Question 1.

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 organ

izational 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

GAO Hearing

Question 10.

On November 18, 1975 General Graham stated that: "There is not
a single case in established transit property where these functions
(bus and rail management) have been separately organizationally,"

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 rail

roads, properly separated from rail transit.)"

November 24, 1975 Request

GAO

Hearing

Question 4:

Submit for the record your reconciliation of the problem in reconciling individual contract costs with the total cost noted on page 7 of the GAO's May 8, 1975 report to Senator Byrd.

See attached.

GAO Rene 4 4

Distribution

Trecember 9, 1975

otro's Semi-annual Report

in a letter to Congressman Thomas M. Rees, GAI recommended a change in format to WATA's external reporting system. The recommendation included basic guidelines which the Authority will 1c0r, orzio in its ci-andjal art.

Programa Control has the responsibility for preparing this Seml-annual Report and is requesting the following offices to

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You will be contacted shortly to discuss your input prior to submitting the formalized data requested. str. Tom sligh will be the coordinator for Program control lexi.-1201).

DONALD R. O'HEARN

Slig's

Coralj?. 'learn
Director, PROG

Attachment
Distribution

ENSG Keyes

Budg Recker
Cuis Waddel
PLAG Pitt

ARCH

= Mevorah Cowdy

OPHT Wood cc: DECO, Reading (3), PROG X Tsligh/ bre/PROG/Dec 9 75

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