Report 2009-106 Highlights - April 2010
High-Speed Rail Authority:
It Risks Delays or an Incomplete System Because of Inadequate Planning, Weak Oversight, and Lax Contract Management
Our review of the High-Speed Rail Authority (Authority) revealed the following.
- The Authority's 2009 business plan estimates it needs $17 billion to $19 billion in federal funds. However, the Authority has no federal commitments beyond $2.25 billion from the American Recovery and Reinvestment Act of 2009 (Recovery Act), and other potential federal programs are small.
- The Authority's plan for spending includes almost $12 billion in federal and state funds through 2013, more than 2.5 times what is now available.
- The Authority does not have a system in place to track expenditures according to categories established by the Safe, Reliable High-Speed Passenger Train Bond Act for the 21st Century, its largest source of committed funding.
- The Authority has not completed some systems needed to administer Recovery Act funds, for example, a system to track jobs created and saved.
- Some monthly progress reports, issued by the Authority's contracted Program Manager to provide a summary of program status, contain inconsistent and inaccurate information.
- Authority staff paid at least $4 million of invoices from regional contractors received after December 2008, without having documented written notification that the Program Manager had reviewed and approved the invoices for payment.
- The Authority paid contractors more than $268,000 for services performed outside of the contractors' work plans and purchased $46,000 in furniture for one of its contractor's use, based on an oral agreement contradicted by a later written contract.