Report on the Railroad Retirement Board's Financial Statements Fiscal Year 2023

The Railroad Retirement Board's Bureau of Information Services should review and update its policy to routinely maintain its Record Disposition Schedule to ensure all the required and necessary financial/nonfinancial data is retained, specifically for its benefit payments to allow management to support its financial activity and support its requirement to obtain an audit of the Railroad Retirement Board's financial statements.

The Railroad Retirement Board's Office of Programs should, in coordination with the Bureau of Field Service, determine, develop, and document policies and procedures including end-to-end business processes for its Railroad Retirement Act annuity payments. Those procedures should include: (a) an implementation of a checklist when reviewing and accepting employee applications for benefits payments that must be signed by the appropriate preparer and reviewer; (b) requirement that all eligibility documentation is complete and accessible; and (c) the development of an in-depth guide that outlines how the Payment Rate Entitlement History (PREH) completes the benefit payment calculations.

The Railroad Retirement Board's Bureau of Fiscal Operations should implement a process to ensure both accounting and financial reporting processes Accounting Procedures Guides are reviewed and updated periodically to support its accounting and financial reporting processes.

The Railroad Retirement Board's Bureau of Fiscal Operations should maintain a master list of all Accounting Procedures Guides for tracking and archival purposes.

The Railroad Retirement Board's Office of Administration should develop, implement, and document the necessary standard operating procedures to establish an effective control environment, along with the end-to-end business processes and quality assurance process to verify all balances recorded are supported by underlying source documentation. At a minimum, the procedures should include establishing and maintaining relationships with key business process owners, including sub-processes, across the Railroad Retirement Board to maintain all relevant documentation for undelivered obligations in a central location in the Financial Management Integrated System (FMIS).

The Railroad Retirement Board's Office of Administration should analyze Undelivered Orders balances quarterly to verify balances are still valid for obligations that are open for an extended period after the end of the period of performance. At a minimum, continue the quarterly analysis until the Office of Administration has determined the updated internal controls as effective.

The Railroad Retirement Board's Bureau of Fiscal Operations should develop and implement effective controls necessary to ensure transactions recorded are United States Standard General Ledger compliant.

The Railroad Retirement Board's Office of Administration should develop, implement, and document the necessary standard operating procedures to establish an effective control environment. along with the end-to-end business processes and quality assurance process to ensure these undelivered orders are supported with underlying source documentation with the intent to verify the agency is Antideficiency Act compliant.