Amtrak 2012 Annual Report Download - page 70

Download and view the complete annual report

Please find page 70 of the 2012 Amtrak annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 97

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97

Summary of Changes from FY11 to FY12
$ Millions
FY11 Total Actual $7.4
Chan
g
es to Base Activit
y
$0.2
($0.1)
$0.0
$0.1
FY12 Budget before Reductions $7.5
FY12 Reduction ($6.7)
FY12 Final Budget $0.8
Professional Fees & Services
Other
Base Activity Increase/(Decrease) from Prior Year
Inflation of Prior Year expenses including labor
Procurement & Materials Management
Overview of the Department:
The department consists of three distinct functional areas: Procurement, Materials Management and
Corporate Administration. Procurement is tasked with developing and managing optimal purchasing
processes for all capital and operating parts, components and end items for rolling stock, maintenance of
way and equipment consumption as well as bidding and contracting for all other outside services and
commodities. The Materials Management group operates supply chain activity such as warehousing,
transportation and logistics, and inventory planning, management, and control. In addition, this
department manages all corporate administrative functions at the corporate offices including mail
communications, reprographics center, facility management, construction and space planning.
The FY12 total budget request is $38.5M compared to $42.1M for FY11 actual.
Base Activity:
The FY12 base budget request is $39.1M and it is mainly driven by labor cost, facility expenses and a
credit for capitalized overhead expenses. The FY12 base core operating request, as compared to FY11
actual has decreased by $3.0 M. This decrease is primarily due to:
o Additional capitalization of materials, ($6.2M). The additional credit is offset by inflation and
higher wages totaling $2.7M.
New Activity:
The implementation of Strategic Asset Management system is expected to show savings in salary, wages
and related benefits of ($0.2M). This is offset by additional Maintenance of Way costs of $0.1M due to
the MW Inventory Security Initiative implemented during FY11.
FY2012 Budget Post Board 1.20.12.doc 70 of 79