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Don Phillips column about Amtrak accounting

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Phillips makes a number of statements regarding Amtrak's accounting procedures that appear to be without support.  He quotes a Mr. Seldon as someone who has insight into Amtrak's cost allocation methods, i.e. loading the long distance trains operating in the NEC with extraordinary costs if I remember correctly.  How Seldon got his information remains a mystery. What is even more interesting is the fact that he was the only source willing to be named in Phillips article. To know how Amtrak allocates its costs, one would have to be an insider or have an insider give him or her access to the company's books. As per the external auditor's report, Amtrak keeps its books in accordance with, "accounting principles generally accepted in the United States of America", which is frequently referred to as GAAP.  It's standards, which are promulgated by the Financial Accounting Standards Board, are codified in FASB Statements, Interpretations, FASB Staff Positions, Technical Bulletins, and EITF Abstracts.  These are the standards that govern Amtrak's accounting, although it may adhere to some government accounting standards.   The implication that Amtrak's officers are unduly influencing the company's accounting procedures and practices, i.e. not following GAAP as well as governmental accounting principles where applicable, is not supported.  The further implication that the external auditors from one of the world's most highly regarding accounting firms are turning a blind eye to these accounting irregularities is likewise without foundation.  Amtrak follows the same accounting principles as every other stock company in the United States. That is not to say that they don't have some wiggle room in how they interpret and apply accounting standards, especially when it comes to estimates, i.e. depreciation, amortization, retiree benefits, etc., but any estimates that they use must be supported, and they must be consistent.
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