Summary: The General Accounting Office has reviewed the steps taken by the Department of the Interior and The Alaska Railroad to secure congressional approval for the proposed acquisition of two new river barges for use by a lessee-operator. This matter came to our attention during an examination of selected Railroad activities pursuant to a request by a member of the Congress. Our review was made pursuant to the Budget and Accounting Act, 1921 (31 U.S.C. 53), and the Accounting and Auditing Act of 1950 (31 U.S.C. 67). In performing our review, which was directed to an evaluation of those matters which appeared to be in need of attention, we examined pertinent records and interviewed responsible officials of the Department and the Railroad. Our review was conducted at the Department's office in Washington, D.C., and the Railroad's office in Anchorage, Alaska. The Railroad is directed by a general manager who is under the general supervision of the Assistant Secretary for Public Land Management. The Department's Division of Budget is responsible for the initiation and development of budgetary reporting policy and procedural requirements, including implementation, preparation, and issuance of instructions to the bureaus and offices of the Department pertaining to these functions.
Our review showed that the Railroad, without adequately informing the Congress, purchased a river barge costing $105,000 in February 1964 with nonprogrammed reserve moneys which, according to the Railroad, are for the purpose of providing for minor unforeseen capital expenditures from the Railroad's revolving fund. The Railroad had been specifically instructed by the Congress to furnish details of the proposed acquisition for congressional consideration. The Railroad's revolving fund budget for fiscal year 1965 included $150,000 for the purchase of a second barge; however, the nature of the proposed transaction was obscured in presenting the budget to the Congress by identifying the barge as nonoperating equipment. In our opinion, the proposals for acquiring the barges were not adequately presented for congressional review because of weaknesses in the preparation and review of Railroad budgets by the Department and the Railroad.
