Amtrak 2014 Annual Report Download - page 32

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National Railroad Passenger Corporation and Subsidiaries (Amtrak)
Notes to Consolidated Financial Statements (continued)
1509-1694994 24
4. Accounting and Reporting for Federal Payments (continued)
The 2013 CR appropriated $19.4 million to directly fund operations of Amtrak’ s Office of
Inspector General (OIG) to be spent by March 31, 2013. Amtrak and the OIG entered into a
services agreement on January 8, 2010 whereby Amtrak would continue to provide accounting
and financial management services for the OIG. Amtrak is reimbursed for expenses incurred
upon the submission of invoices to the OIG. As of September 30, 2014, Amtrak invoiced and
received $18.6 million, which was recorded in “Other paid-in capital” in the Consolidated
Balance Sheets and Consolidated Statements of Changes in Capitalization.
Since 2005, the Department of Homeland Security has awarded Amtrak a total of $149.1 million
in annual grants from the Intercity Passenger Rail Grants Program, American Recovery and
Reinvestment Act Rail and Transit Security Grant Program, and other security grants. Funding is
provided on a reimbursable basis. Amtrak has cumulatively received $108.3 million and
$92.0 million as of September 30, 2014 and 2013, respectively, which are included in “Other
Paid-in Capital” in the Consolidated Balance Sheets and Statements of Changes in
Capitalization.
In May 2011, the DOT awarded Amtrak $449.9 million in American Recovery and
Reinvestment Act of 2009 High Speed Intercity Passenger Rail funding to upgrade its rail
infrastructure to support more frequent and faster high-speed rail service, and to improve
reliability of current service between New York and Washington. The funding supports the
project to upgrade electrical power, signal systems, and track and overhead catenary wires
between Trenton and New Brunswick, New Jersey – one of the busiest segments of the NEC and
where the densest concentration of Acela Express high-speed rail operations occurs. Funding is
provided on a reimbursable basis. As of September 30, 2014 and 2013, Amtrak cumulatively
received $133.7 million and $20.6 million, respectively, which were recorded in “Other paid-in
capital” in the Consolidated Balance Sheets and Statements of Changes in Capitalization.
“Other paid-in capital”, included in the Consolidated Balance Sheets and Statements of Changes
in Capitalization, also includes the effects of certain funding received from the Federal
Government to finance acquisition of and improvements to property and equipment. In exchange
for this funding, Amtrak issued two promissory notes to the United States of America. The first
note has a balance of $4.0 billion as of September 30, 2014 and 2013, was issued in 1976 and
matures on December 31, 2975, and is secured by the real and personal property of Amtrak,
WTC, CUS, and PRIL. The second note has a balance of $1.1 billion as of September 30, 2014
and 2013, was issued in 1983 and matures on November 1, 2082, with successive 99-year
renewal terms, if the note has not been paid at maturity or accelerated in accordance with its