| United States: Integrity Scorecard Report > Sub-Category: State-Owned Enterprises | ||
| Indicators | Score | |
| 64 | In law, is there an agency or equivalent mechanism overseeing state-owned companies? | 100 |
| 65 | Is the agency or equivalent mechanism overseeing state-owned companies effective? | 100 |
| 66 | Can citizens access the financial records of state-owned companies? | 100 |
Indicator and sub-Indicator Details
| 64 | In law, is there an agency or equivalent mechanism overseeing state-owned companies? | |||||||
| 64: In law, is there an agency or equivalent mechanism overseeing state-owned companies? | ||||||||
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Comments: However, there are exceptions in the cases of public/private state-supported entities, such as the passenger train system known as Amtrak. Under the Rail Passenger Service Act of 1970, Amtrak was created in 1971 and authorized to operate a nationwide system of passenger rail transportation. Historically, Amtrak has received subsidies from the Federal Government. These subsidies are approved annually, and Amtrak's ability to continue operating in its current form is dependent upon the continued receipt of such subsidies and other forms of financing transactions to raise funds. Amtrak Annual Report, 2006. [ LINK ] There is no universal agency dedicated to overseeing state-owned companies. However, Amtrak, for example, has its own inspector general similar to executive branch departments. [ LINK ]
References: With the exception of localized public utility companies, and some cities that have experimented with privatizing education, road construction and maintenance, trash collection and other services by contracting them out to private firms, state-owned companies do not generally exist in the United States. [ LINK ]
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| 65 | Is the agency or equivalent mechanism overseeing state-owned companies effective? | |||||||
| 65a: In law, the agency or equivalent mechanism overseeing state-owned companies is protected from political interference. | ||||||||
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Comments: References: Amtrak has its a separate Board of Directors that is generally separate from the federal government. The Board, along with the Executive committee, has no direct connection to the government, with the exception of the Secretary of Transportation, who serves on the Board.
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| 65b: In practice, the agency or equivalent mechanism overseeing state-owned companies has a professional, full-time staff. | ||||||||
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Comments: References: Amtrak's OIG is well staffed, with offices in six major cities in the U.S.
Peer Review Comments: Elsewhere, it is written that there are offices of the inspector general in six cities. We need to clarify.
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| 65c: In practice, the agency or equivalent mechanism overseeing state-owned companies receives regular funding. | ||||||||
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Comments: References: As with OIG offices in general, the Amtrak OIG receives regular funding and is expected to report annually to Congress.
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| 65d: In practice, when necessary, the agency or equivalent mechanism overseeing state-owned companies independently initiates investigations. | ||||||||
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Comments: References: There are about 25 investigative staff, comprised of individuals with varying skills and level of expertise. This group conducts investigations on a variety of fraudulent, abusive, and mismanagement practices. OI staff is located in Washington, Baltimore, Philadelphia, New York, Chicago, and Los Angeles. The offices are aligned consistent with the company's corporate structure, infrastructure needs, and employee population. This allows us to provide service to the business units, maintain communication with management, and stay appraised of changes within the company.
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| 65e: In practice, when necessary, the agency or equivalent mechanism overseeing state-owned companies imposes penalties on offenders. | ||||||||
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Comments: References: According to the OIG's report to Congress, Amtrak OIG investigators were involved in hundreds of cases, including those involving credit card fraud and bribery on construction projects. 2007 Letter to Congress. [ LINK ]
Peer Review Comments: Again, nit-picking here, but the Office of the Inspector General does not actually impose the penalties.
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| 66 | Can citizens access the financial records of state-owned companies? | |||||||
| 66a: In law, citizens can access the financial records of state-owned companies. | ||||||||
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Comments: References: Amtrak's annual report, including summaries of its federal subsidies, is available online. [ LINK ]
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| 66b: In practice, the financial records of state-owned companies are regularly updated. | ||||||||
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Comments: References: Amtrak's OIG includes an audit division, which annually audits the agency's finances. [ LINK ] See also, Semiannual Report to Congress, March 31, 2007. [ LINK ]
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| 66c: In practice, the financial records of state-owned companies are audited according to international accounting standards. | ||||||||
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Comments: References: Amtrak's audit reviews include, but not limited to, the accuracy and reliability of financial information, compliance with applicable laws and regulations, and safeguarding of company assets. Operational, financial, systems, and compliance audits are conducted in accordance with applicable standards, particularly those established by the Comptroller General of the United States as promulgated in Government Auditing Standards (Yellow Book).
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| 66d: In practice, citizens can access the financial records of state-owned companies within a reasonable time period. | ||||||||
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Comments: References: As noted above, Amtrak's financial reports are available online.
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| 66e: In practice, citizens can access the financial records of state-owned companies at a reasonable cost. | ||||||||
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Comments: References: As noted above, Amtrak's financial reports are available online.
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