Amtrak 2014 Annual Report Download - page 2

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Memorandum
To: Jeffrey R. Moreland
Chairman, Audit and Finance Committee, Amtrak Board of Directors
Gerald Sokol, Jr.
Executive Vice President and Chief Financial Officer
From: Tom Howard
Inspector General
Date: February 4, 2016
Subject: Governance: Quality Control Review of the Independent Audit of Amtrak’s
Consolidated Financial Statements for Fiscal Year Ended 2014 (OIG-A-2016-004)
Amtrak (the company) contracted with the independent certified public accounting
firm of Ernst & Young LLP to audit its consolidated financial statements as of
September 30, 2014, and for the year then ended, and to provide a report on internal
control over financial reporting and on compliance and other matters. Because the
company receives federal assistance, it must obtain an audit performed in accordance
with generally accepted government auditing standards.
As authorized by the Inspector General Act of 1978, we monitored the audit activities of
Ernst & Young to help ensure audit quality and compliance with auditing standards.
Our review disclosed no instances in which Ernst & Young did not comply, in all
material respects, with generally accepted government auditing standards. The key
aspects of the Ernst & Young reports are discussed below.
In its audit of the company’s consolidated financial statements, Ernst & Young
concluded, in its report dated October 1, 2015, that the consolidated financial statements
fairly presented, in all material respects, the consolidated financial position of the
National Railroad Passenger Corporation and subsidiaries at September 30, 2014, and
the consolidated results of their operations, and cash flows for the year then ended in
conformity with U.S. generally accepted accounting principles (GAAP). Ernst &
Young’s report also emphasized that without receipt of federal funding, the company