Account Structure Definition and Accounting 

Methodology Improvements to Address 

Section 11201 of the FAST Act of 2015

Federal Railroad Administration

U.S. Department of Transportation

May 2016
 2 

Table of Contents

1 INTRODUCTION ............................................................................................................................................3

2 AMTRAK ACCOUNT STRUCTURE ............................................................................................................5

2.1 Goals and Principles ...............................................................................................................................5

2.2 Account Structure Hierarchy ..................................................................................................................5

2.3 Account Structure ...................................................................................................................................9

2.4 Account Structure Summary ................................................................................................................13

2.5 Consolidated Sources and Uses Statement ...........................................................................................13

2.6 Consultation and Stakeholder Outreach ...............................................................................................14

3 IMPLEMENTATION.....................................................................................................................................15

3.1 Next Steps for Amtrak and FRA ..........................................................................................................15

3.2 Allocation of Sources and Uses under the Financial Account Structure ..............................................15

3.3 Potential Challenges .............................................................................................................................15

3.4 Grant Process and Internal Controls .....................................................................................................16

3.5 Future Adjustments and Refinements to Methodology ........................................................................16

4 CONCLUSION ..............................................................................................................................................17

APPENDIX A – Definitions ....................................................................................................................................18

APPENDIX B - Amtrak Consolidated Sources and Uses Statement .......................................................................27
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1 INTRODUCTION

The Fixing America’s Surface Transportation (FAST) Act (P.L. 114-94, enacted December 4, 2015) 

authorized $305 billion over fiscal years 2016 to 2020 for the Department of Transportation’s surface 

transportation programs, including highway, highway and motor vehicle safety, public transportation, 

motor carrier safety, hazardous materials safety, rail, and research, technology and statistics programs. 

As part of the FAST Act, Title XI—Rail, also known as the Passenger Rail Reform and Investment Act 

of 2015, Congress authorized numerous Federal rail programs and informed Federal rail policy. Subtitle 

A authorized $8.05 billion over five years for grants to Amtrak, composed of $2.596 billion for the 

Northeast Corridor (NEC) and $5.454 billion for the National Network, as well as other Federal rail 

programs. 

Subtitle B outlines reforms related to Amtrak. This document responds to the Congressional mandate in 

Section 11201 “Accounts,” which provides: “Not later than 180 days after the date of enactment of the 

Passenger Rail Reform and Investment Act of 2015, the Secretary of Transportation, in consultation 

with Amtrak, shall define an account structure and improvements to accounting methodologies, as 

necessary, to support, at a minimum, the Northeast Corridor and the National Network.” The provisions 

of Section 11201 are codified at 49 U.S.C. § 24317. 

The Federal Railroad Administration (FRA), on behalf of the Secretary of Transportation (Secretary) 

and in consultation with Amtrak, considered the specific requirements for Section 11201 in conjunction 

with closely related provisions of Section 11202, “Grant Process,” (codified at 49 U.S.C. § 24318 and § 

24319) and Section 11203 “Amtrak 5-year Business Line and Asset Plans” (codified at 49 U.S.C. § 

24320). Taken together, these sections provide a framework for the Account Structure and the FAST 

Act provisions focused on financial performance reporting and business planning. 

Summary – Amtrak Financial Account Structure Requirements

Section 11201: Accounts

(a) Purpose • Promote Amtrak’s effective use and stewardship of revenues, appropriations, grants, and 

other funding sources. 

• Enhance transparency of assignment of revenues and costs among business lines.

(b) Account Structure • Not later than 180 days after enactment, the Secretary of Transportation (Secretary), in 

consultation with Amtrak, shall define an account structure and improvements to 

accounting methodologies to support, at a minimum the NEC and the National Network 

accounts. 

(c) Financial Sources • Ensure all revenues, appropriations, grants and other forms of financial assistance, 

compensation, and other funding sources are assigned to NEC and National Network 

accounts.

(d) Financial Uses • Ensure all costs associated with operating, capital, acquisition and rehabilitation of 

equipment and facilities, and principal and interest payments on loans and capital leases

are assigned to NEC and National Network accounts. 

(e) Implementation and 

Reporting

• Amtrak implements Account Structure and improvements to accounting methodologies.

• Amtrak produces profit and loss statements for Business Lines and Asset Lines. 
 4 

Section 11202: Grant Process

Internal Controls

(within 180 days of 

enactment)

• Amtrak establishes and maintains internal controls to ensure costs, revenues, and other 

compensation is appropriately allocated to the NEC or National Network. 

Grant Process

(within 90 days of 

enactment; transmitted to 

Congress on 3/9/2016 )

• Secretary establishes and transmits substantive and procedural requirements for grant 

requests. 

• Section defines the contents of the Amtrak grant requests and a schedule for disbursement 

of grant funds.

Section 11203: Amtrak 5-year Business Line and Asset Plans

5-year Business Line 

Plans 

(fiscally constrained plan 

due annually, beginning 

2/15/2017)

• Defines content of requirements for plans and process for development for each Business 

Line. 

• Business Lines are statutorily defined as Northeast Corridor train services, Statesupported routes operated by Amtrak, Long-distance routes operated by Amtrak, and 

Ancillary services operated by Amtrak. 

5-year Asset Plans

(fiscally constrained plan 

due annually, beginning 

2/15/2019)

• Defines content requirements for plans and process for development for each Asset Plan.

• Asset Categories are statutorily defined as Infrastructure, Passenger rail equipment, 

Stations, and National Assets. 

The creation of the Account Structure is the first of many steps to meet FAST Act requirements

associated with Amtrak and cooperatively organize how Amtrak reports its financial activities. FRA 

worked with Amtrak to develop the Account Structure that meets the requirements of Section 11201 of 

the FAST Act. FRA and Amtrak started with common goals, principles, and definitions to establish a 

common foundation. As Amtrak begins organizing 

its reporting process around the new structure, there 

will be more issues to resolve. FRA and Amtrak will 

communicate changes to Congress as the 

implementation process continues. 

The new Amtrak Account Structure is an important 

step toward more effective management of costs and

revenues and increased accounting transparency for 

all of Amtrak’s stakeholders. The Account Structure 

is intended to provide a comprehensive view of 

Amtrak’s financial information to better inform

Amtrak’s decision-making process and more clearly 

communicate with Congress, States, train travelers

and partners on Amtrak’s business priorities and 

financial performance. This document will provide

detail on the recommended Account Structure and outline implementation issues and key next steps. 

FRA’s Coordination with Amtrak

• Consensus on Goals and Principles 

• Mutual understanding of Amtrak’s business 

objectives

• Close coordination at the staff and executive 

leadership level 

• Account Structure developed to meet FAST

Act requirements and be implementable

• Continuous dialogue between FRA and 

Amtrak staff to share cross-agency expertise
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2 AMTRAK ACCOUNT STRUCTURE

2.1 Goals and Principles

Section 11201 has a number of provisions that direct Amtrak and the Secretary to take specific actions 

in consultation with each other. The Secretary was tasked with defining the Account Structure and he 

directed FRA to work collaboratively with Amtrak on this effort. 

To ensure these reforms will enhance, rather than diminish Amtrak’s competitiveness, and to comply 

with legislative intent, FRA and Amtrak jointly agreed on goals that the new Account Structure should 

achieve. FRA and Amtrak also defined principles to be followed in pursuit of these goals, to ensure 

results are useful to Amtrak and its many funding partners. Through the discussion of goals and 

principles, FRA and Amtrak developed a shared understanding of the Congressional requirements of 

Section 11201 and guided FRA and Amtrak’s work during the development of the Account Structure. 

2.2 Account Structure Hierarchy 

2.2.1 Service Lines and Asset Lines

Amtrak performs a range of business activities for its customers in different capacities. Amtrak’s 

customers include intercity rail passengers and public and private sector entities that contract for, partner 

with, or invest in Amtrak’s business activities. To address the needs of Amtrak’s customers and meet the 

FAST Act requirements, FRA and Amtrak grouped Amtrak’s business activities into Service Lines.1

Service Lines share a common mission and core customers. 

 

1 Section 11203 identifies four Business Lines (Northeast Corridor train services; State Supported routes operated by Amtrak; Long-distance routes operated 

by Amtrak and Ancillary services operated by Amtrak) and four Asset Categories (Infrastructure, Passenger Rail Equipment, Stations, National Assets) that 

are also cross-referenced in Section 11201(e). FRA and Amtrak determined that the term Service Lines better reflects the purpose and activities performed 

by the components of the corporation that Congress identified as Business Lines. Similarly, Amtrak determined that the term Asset Lines is a better 

representation of what Congress identified as Asset Categories. FRA and Amtrak use the term Business Lines more broadly to include both Amtrak’s 

Service and Asset Lines. FRA uses the terms Service Lines and Asset Lines in place of statutory language throughout this document. 

Goals

• Promote the effective use and 

stewardship by Amtrak of Amtrak 

revenues, Federal, State, and third party 

investments, appropriations, grants and 

other forms of financial assistance, and 

other sources of funds 

• Enhance the transparency of the 

assignment of revenues and costs among 

Amtrak business lines while ensuring the 

health of the Northeast Corridor and 

National Network 

Principles

• Provide understandable information to 

investors, customers and Amtrak to make fully 

informed business decisions

• Account for all of Amtrak’s activities and 

assets with clarity and consistency

• Fully integrate the objectives of Title XI of the 

FAST Act and support the planning and 

internal control requirements for Sections 

11201, 11202 and 11203 of the FAST Act 

• Request the right amount of information, but 

no more 

• Maximize efficiency of implementation by 

leveraging existing resources
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While Section 11203 called for four Business Lines (referred to as Service Lines by FRA and Amtrak), 

FRA and Amtrak determined that to fully reflect the whole of Amtrak’s business, an additional Service 

Line should be added – Infrastructure Access. Infrastructure Access has a specific mission and serves 

different customers than those served by other Service Lines. For these reasons, FRA and Amtrak 

agreed to establish Infrastructure Access as a new Service Line. 

The mission and primary customers for each of the Service Lines are shown in Figure 1. 

Figure 1. Amtrak Service Lines

Service Lines are responsible for meeting the needs of the respective customers to fulfill their mission. 

• NEC Intercity Operations: Provides premium and regular intercity rail passenger service along 

the NEC while seeking to maximize operating surplus. Its customers are intercity train travelers

on the NEC. 

• State Supported: Provides intercity rail passenger service and supporting services under contract 

to States on corridor routes of not more than 750 miles. Its primary customers are State 

Departments of Transportation and authorities, and intercity travelers. 

• Long Distance: Provides intercity rail passenger service on routes of more than 750 miles. Its 

primary customers are travelers and communities across the national network and the Federal 

Government. 

• Infrastructure Access: Plans, develops, manages, and provides access to users of Amtrak-owned 

or Amtrak-controlled infrastructure. Its primary customers are Amtrak’s NEC, State Supported 

and Long Distance Service Lines, commuter and freight railroads, and third-parties such as 

States and localities, utilities, and others that seek to make use of Amtrak’s infrastructure and 

fixed assets. 

• Ancillary Services: Competes to operate commuter rail services, performs reimbursable work 

for States and railroads, and leverages Amtrak owned real-estate and commercial assets. 
 7 

Service Lines are supported by five Asset Lines: Train Operations, Passenger Rail Equipment2

(Equipment), Infrastructure, Stations, and National Assets and Corporate Services. Asset Lines provide 

resources and deliver transportation and related services to the Service Lines. The FAST Act 

established four Asset Categories (referred to as Asset Lines by FRA and Amtrak.) As with Service

Lines, FRA and Amtrak believed it was necessary to establish a fifth Asset Line – Train Operations. 

This important function was not reflected in the statutorily-defined four Asset Categories. 

• Train Operations: Assets related to the operation and movement of the trains, on-board services 

and amenities. 

• Equipment: Amtrak-controlled rolling stock, locomotives, and mechanical shop facilities that 

are used to maintain and overhaul equipment. 

• Infrastructure: All Amtrak-controlled Northeast Corridor infrastructure assets and other Amtrakcontrolled infrastructure, along with the associated facilities that support the operation, 

maintenance and improvement of those assets. 

• Stations: All passenger rail stations served by Amtrak trains, with a focus on Amtrak-controlled 

stations and elements of other stations for which Amtrak has legal responsibility or where it 

intends to make capital investments.

• National Assets and Corporate Services: Cross-cutting assets such as systems for reservations, 

security, training, training centers, and others associated with Amtrak’s national rail passenger 

transportation system. Corporate Services include company-wide functions such as legal, 

finance, government affairs, human resources, and information technology. It should be noted 

that Section 11203 also requires the Secretary to conduct a review of Amtrak’s National Asset 

Costs. 

In addition to its core functions, each Service Line and Asset Line requires strategic and operational 

leadership, management, and administrative support to carry out their functions. 

2.2.2 Mapping Service Lines to Account Structure

Section 11201 requires that the financial information regarding these Service Lines be split into two 

accounts: the Northeast Corridor Account (NEC Account) and National Network Account (NN 

Account). The NEC Service Line maps to the NEC Account; the State Supported and the Long Distance 

Service Lines map to the NN Account. 

Two of the five Service Lines – Infrastructure Access and Ancillary Services – are split between the 

NEC and NN Accounts as shown in Figure 2. The mapping of Amtrak Service Lines to the NEC and 

NN Accounts yields a conceptual design for the Account Structure as shown in Figure 3. The purpose of 

the Account Structure is to provide a comprehensive and complete view of all Amtrak’s business 

activities across both Service Lines and Asset Lines. 

 

2 Section 11203(c)(1) identifies Asset Categories (referred to by FRA and Amtrak as Asset Lines). The Asset Line Passenger Rail Equipment is also referred 

to throughout this document as Equipment. FRA and Amtrak understand that these terms have the same meaning. 
 8 

Figure 2. Alignment of Amtrak Service Lines to Accounts 

Figure 3. Amtrak Conceptual Account Structure 

Utilizing this conceptual account structure hierarchy, the following section explains the Account 

Structure in detail.
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2.3 Account Structure 

The purpose of the Account Structure is to show the comprehensive and complete view of Amtrak’s

revenues and funding (sources) and expenditures (uses) in a manner that focuses on the services that 

Amtrak’s customers buy or fund. Amtrak customers should be able to see both comprehensive data 

about Amtrak’s financial sources and uses, as well as specific data that correspond to the particular 

service(s) they support. 

To support transparency and mutual understanding, FRA and Amtrak have agreed on high level 

definitions for each of the columns and rows in the Account Structure. The chart of definitions can be 

found in Appendix A. FRA and Amtrak agree more time is required to review and update the 

accompanying accounting methodologies and processes used to assign and allocate revenues and 

expenses, as well as how the underlying data sources are used to generate, maintain, and report 

information. Amtrak and FRA will continue to work on this documentation effort and will provide 

updates as appropriate once these methodologies and processes are sufficiently refined. 

Table 1 shows the proposed Amtrak Account Structure divided into key components and described 

below. 
Table 1. Amtrak Account Structure 
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A – Accounts and Service Lines: Primary mission and customers of each Service Line mapped to the 

NEC and/or NN Accounts. 

B – Financial Sources: Sources of revenue for Amtrak, separated into operating and capital categories, 

and the Federal grants to Amtrak mapped to the NEC and/or NN Accounts. 

Operating sources include:

• Passenger Related Revenues – ticket revenue, revenue from operation of charter and special 

trains, and revenues from sale of food and beverage on the train. 

• Contractual Contributions – payments from various contractual arrangements between Amtrak 

and its customers, including but not limited to, States, freight operators, and commuter agencies. 

This includes payments to Amtrak from States and commuter authorities to carry out Passenger 

Rail Investment and Improvement Act of 2008 (PRIIA) Section 209 and Section 212 costsharing obligations, as well as any contracts Amtrak has with commuter rail agencies, and 

revenues from freight operators and commuter rail agencies for access. 

• Commercial Revenue – revenues generated from owned assets, including real estate holdings, air 

rights, commercial pipe and wire, and parking. 

• All Other Revenue – other sources of revenue such as insurance payouts, commissions from cobranded credit cards, sales of Amtrak branded merchandise, loyalty marketing, and package

express.

Capital sources include: 

• Contractual Contributions – capital payments from States and commuter agencies for PRIIA 

Section 209 and Section 212 cost-sharing obligations, payment from certain reimbursable 

activities for freight railroads and other entities

• Financing Proceeds – drawdown from loans and other financing arrangements between Amtrak 

and its lenders. 

• Other Special Grants –other grants that may come from States or local sources.

Federal grants to Amtrak include:

• FAST Section 11101 Grants – this row represents the appropriations amount requested or 

received under the annual Amtrak NEC and National Network grants provided by Congress. 

• Other Federal Grants – grants provided by the Federal government to Amtrak, outside of the 

NEC and National Network grants. 

C – Financial Uses: All expenditures made by Amtrak mapped to the NEC and/or NN Accounts. Like 

Financial Sources, this section is sub-divided into both operating and capital uses, but also includes an 

additional sub-section for debt service. 

• Operating Uses – organized and presented as Amtrak’s five Asset Lines – Train Operations, 

Equipment, Infrastructure, Stations, and National Assets and Corporate Services. Service Line 

Management, which includes expense associated with the administration and management of 

Service Lines that is not shared across Amtrak as whole, is also reported separately as an 

operating use;

• Debt Service Payments – the principal and interest repayment on Railroad Rehabilitation and 

Improvement Financing (RRIF) loans and future Amtrak debt or financing arrangements. These 
 12

debt service payments are repaid from Amtrak’s operating surplus – shown in the Operating 

Surplus/Deficit row.

• Capital Uses – organized and presented as Amtrak’s five Asset Lines and any direct expenses of 

Service Line Management staff associated with the administration and management of capital 

projects.

• Legacy Debt Repayments – repayment of any long-term debt and capital lease that originated 

before the passage of PRIIA or other debt originated for the purpose of restructuring these debt 

and lease payments. Much of this debt was incurred during years of reduced Federal funding for 

the explicit purpose of covering operating deficits or to free up other funds for operating or 

capital purposes. These repayments have previously been funded by the Federal Government 

and will continue to be under the FAST Act’s annual Amtrak NEC and National Network grants 

appropriated by Congress. 

D – Surplus/Deficit and Transfer: After accounting for all financial sources and uses, the resulting 

Surplus/Deficit row represents the total surplus or deficit of Amtrak during the accounting period. 

Transfers between Accounts and Services Lines are reflected in the row titled Transfers.

E – Table Values: The values in this section represent each revenue or expense line item from the 

period of accounting, as assigned directly or allocated appropriately across the various Service Lines and 

mapped to the NEC and/or NN Accounts. The shading on the table indicates that the cell is notapplicable because there is no source or use of funds for that item based on our current understanding of 

Amtrak’s business. As FRA and Amtrak continue to implement the Account Structure, our 

understanding of revenue and cost assignments or allocations may change. 
 13

2.4 Account Structure Summary

The Account Structure Summary is an executive level summary of the information presented in the

Account Structure. The Summary (Table 2) shows, Amtrak’s total revenues (Financial Sources) and 

expenditures (Financial Uses), subdivided into the NEC and NN Accounts. 

Table 2. Account Structure Summary 

The Summary shows the total financial operating, capital and Federal grants sources. Consistent with the 

Account Structure, these sources represent Amtrak’s total financial resources from all sources. The 

Operating Uses are reported, followed by the calculation of the Operating Surplus/Deficit. The Debt 

Service Payments, which represent the repayment of RRIF loan debt as well as any other new debt that 

Amtrak incurs, are shown here to demonstrate that any new debt is paid from the Operating Surplus 

generated from Amtrak’s business activities. 

Any remaining Operating Surplus after the Debt Service Payments, plus the Capital Sources and the 

Federal Grants to Amtrak represents the amount Amtrak has available for capital uses. The Capital Uses 

are reported, followed by the calculation of the final Surplus/Deficit and Transfers. 

2.5 Consolidated Sources and Uses Statement

Section 11201(e) requires Amtrak to implement the proposed Account Structure and related 

improvements and produce updated profit and loss statements for each of the Service Lines, and Asset 

Northeast 

Corridor 

Account

National 

Network 

Account

Total

Financial Sources

Operating Sources - - -

Capital Sources - - -

Federal Grants to Amtrak - - -

Total Operating and Capital Sources - - -

Financial Uses (Operating):

Operating Expenses - - -

Operating Surplus/Deficit

(Operating Sources - Operating Uses) - - -

Financial Uses (Debt Service Payments):

Debt Service Payments - - -

Available for Capital Uses

(Operating Surplus/Deficit - Debt Service Payments + Capital 

Sources + Federal Grants to Amtrak)

 - - -

Financial Uses (Capital):

Capital Expenses - - -

 Legacy Debt Repayments - - -

Surplus/Deficit

(Available for Capital Uses - Capital Expenses - Legacy Debt 

Repayments)

 - - -

Transfers - - -
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Lines as appropriate, by January 4, 2017. In response to this requirement, Amtrak has made significant 

progress towards establishing a Consolidated Sources and Uses Statement3, to encompass all five 

Service Lines in one document. This effort was undertaken concurrently with the Account Structure 

development. The effort organized and validated Amtrak’s ability to report the Consolidated Sources 

and Uses Statement in the Account Structure format to ensure consistency. Amtrak’s current 

preliminary draft of its Consolidated Sources and Uses Statement is shown in Appendix B. 

2.6 Consultation and Stakeholder Outreach 

Prior to the submission of the final Account Structure, FRA undertook conversations with States and 

commuter customers of the NEC Intercity Operations and State Supported Service Lines, as well as 

congressional staff, to review and gather feedback on the draft Account Structure. FRA solicited their 

input on key issues related to the Account Structure, including: 

• Is the Account Structure clear?

• Does the Account Structure respond to both legislative intent and customer needs?

• How can the Account Structure be improved? 

Stakeholders expressed general support for the Account Structure framework. State feedback focused 

on steps Amtrak and FRA will undertake to define the methodology to assign sources and uses to the 

Account Structure – specifically, that the Account Structure will support the reporting associated with 

the cost allocation methodologies developed to meet the requirements of Sections 209 and 212 of the 

PRIIA; the Account Structure framework is intended to advance compliance with both Sections of 

PRIIA. 

 

3 The FAST Act legislation requires Amtrak, in consultation with the Secretary, to produce Profit and Loss statements for each of the Business Lines

(Service Lines) and as appropriate, each of the Asset Categories (Asset Lines). Because the legislation directs Amtrak to include appropriations in the profit 

and loss statements and this does not align with what is commonly included in a Profit and Loss Statement, Amtrak recommended renaming these statements 

Sources and Uses Statements. FRA adopted this recommendation.
 15

3 IMPLEMENTATION

Defining Amtrak’s Account Structure is a first step in a multi-pronged effort to improve the financial 

transparency and accountability of Amtrak’s organization. FRA believes the new structure will improve 

understanding of Amtrak’s business activities, the sources of funds that support those activities, and how 

Amtrak uses those funds for operations, long term investments, and debt repayment. 

FRA recognizes that the structure defined in this document is a starting point, and will require ongoing 

analysis to ensure it is functioning as intended. As FRA and Amtrak address the details of each 

calculation over the coming months, unforeseen issues may arise that may require further improvements 

to the Account Structure or the accounting and allocation processes, including how funds are allocated 

between stakeholders and how they are used to deliver service. 

3.1 Next Steps for Amtrak and FRA

FRA and Amtrak will continue working to implement the Account Structure and reporting requirements 

of Section 11201(e) (1) and (2), which have deadlines of December 4, 2016 and January 4, 2017, 

respectively. Amtrak expects to use the new Account Structure as the basis for its required legislative 

report and grant request to Congress for fiscal year 2018, which is due on February 15, 2017. In order to 

meet that deadline, Amtrak will continue to build the underlying accounting framework to support the 

new Account Structure. Amtrak will also provide reports to stakeholders using the Account Structure on 

a quarterly basis beginning one month after the close of each quarter, starting April 30, 2017.4

 

FRA and Amtrak will work together to ensure that the specific calculations in the Account Structure are 

consistent with agreed-upon definitions, and can be broken out by Service Line and Asset Line so they 

align with how Amtrak’s business is organized. 

FRA will further engage States, commuter railroads, and other funders of Amtrak services to ensure that 

increased transparency is maintained for all of Amtrak’s funding partners. 

3.2 Allocation of Sources and Uses under the Financial Account Structure 

FRA will continue to work with Amtrak and its stakeholders to verify that the sources of funds and 

Amtrak’s use of those funds to fulfill their intended purpose is documented clearly and accurately in the 

Account Structure. 

Many of Amtrak’s resources and expenditures are shared across its Service Lines and Asset Lines and 

are allocated to each route using the Amtrak Performance Tracking (APT) system. The APT system was 

designed to assign costs to each route the costs incurred solely for the benefit of that route, and a 

proportional share of costs that are incurred for the common benefit of more than one route. 

3.3 Potential Challenges

A principle in developing the Account Structure was to leverage Amtrak’s existing resources to 

implement and support the Account Structure. FRA and Amtrak recognize that existing accounting 

 

4 Quarterly reporting due dates are January 31, April 30, July 31, and October 31 of each year. 
 16

systems, such as APT, require some investment to enhance cost accounting and financial reconciliation 

processes to report in the format defined for the Account Structure. While the APT system has been 

extensively developed and reviewed with respect to operating expenses, few system resources have been 

dedicated to allocating capital costs. 

Amtrak’s current accounting and financial platforms are resource-intensive and require further 

integration to provide desired levels of functionality. As FRA and Amtrak work to implement the 

provisions of the FAST Act, planning for effective long-term investments in Amtrak’s core accounting

and financial reporting systems is critical to Amtrak’s success and to public confidence in Amtrak’s use 

of public resources. Recognizing resource constraints, FRA will work with Amtrak to define business 

data needs, enhance internal controls, and streamline processing in a system that will integrate the 

multiple platforms and reporting systems Amtrak uses today. FRA will work with Amtrak to identify 

funding sources for these improvements. 

Amtrak recognizes that Congress and other stakeholders are interested in increased transparency and the 

presentation of sources and uses that allows stakeholders to make informed decisions. It is important to 

keep in mind that the needs of Amtrak and its stakeholders may change over time. As issues or concerns 

arise, FRA and Amtrak will work together to adapt the reporting tools to incorporate improvements. In 

addition to the aforementioned technical challenges, the financial reporting structure requires adequate 

staffing levels to support the requisite reporting and analysis. Amtrak must leverage existing resources 

to the extent practical; however Amtrak may need additional resources – staff and/or improvements to 

the information systems, to accomplish the timely and successful implementation of the Account 

Structure. 

3.4 Grant Process and Internal Controls 

FRA has transmitted its grant process procedures to Congress, as required by Section 11202. This 

process is intended to expedite federal funding to support Amtrak’s financial needs to operate and 

maintain its NEC and National Network systems and associated activities, by clearly setting forth the 

required submittal and review process that FRA uses in managing its grants to Amtrak. This process 

relies heavily on Amtrak’s ability to establish effective internal controls to assure that the grant funds are 

being used as designated. Amtrak is in the process of establishing these controls and will work with 

FRA to assure the internal controls adequately support the information presented in the Account 

Structure.

3.5 Future Adjustments and Refinements to Methodology

Throughout implementation of the Amtrak Account Structure, Grants Process and Service Line and 

Asset Line planning process, FRA and Amtrak, with consultation from States and stakeholders, will 

continue to monitor data reported by Amtrak to ensure it represents the sources and uses of funds 

accurately. 

FRA and Amtrak will continue to meet regularly to review Account Structure implementation and 

address any issues identified with the data reported that are the result of implementation of the structure 

itself. Amtrak and FRA will collaboratively establish a process to review the Account Structure annually 

to make appropriate updates. 

 
 17

4 CONCLUSION

FRA and Amtrak have developed this Account Structure to meet the requirements of the FAST Act, to 

provide Congress and stakeholders with a more transparent view of the sources and uses of funds in the 

provision of Amtrak’s services, both in the Northeast Corridor and throughout the National Network. 

The desired outcome is a more thorough understanding of the whole of Amtrak’s activities and to be 

able to more clearly articulate the federal investment needed to fully support passenger rail as a valued 

and viable means of transportation in the United States. 
18 

APPENDIX A – Definitions 

FAST Act Section 11201 Amtrak Account Structure 

Definition of Terms

A. Account

For the purposes of implementing FAST Act Section 11201, the term “Account” means a collection of detailed financial 

information related to specific portions of Amtrak’s business activities. Two accounts – a Northeast Corridor Account and a 

National Network Account – are identified in § 11201 and further defined herein. 

The FRA defines “Account Structure” and accounting methodologies as reporting tables to ensure Amtrak assigns its financial 

sources and uses to the appropriate account in a consistent, transparent, and repeatable basis. 

1. Northeast Corridor 

Account (NEC

Account) 

The Northeast Corridor Account (NEC Account) provides information to investors, customers, and 

Amtrak on financial sources and uses associated with the business activities on the Northeast Corridor 

main line (NEC) between Boston, Massachusetts, and the District of Columbia, and the proportional 

share of facilities and services used to operate and maintain that line. 

The NEC Account details operating and capital sources and uses for the NEC Intercity Operations 

Service Line and the NEC-related portion of the Infrastructure Access and Ancillary Services Service 

Lines, defined in Section B. 

2. National Network 

Account The National Network Account provides information to investors, customers, and Amtrak on all 

financial sources and uses associated with the business activities on the national rail passenger 

transportation system, and the proportional share of facilities and services used to operate and 

maintain that system, exclusive of the NEC. 

The National Network Account details both operating and capital sources and uses related to the 

national rail passenger transportation system. It is comprised of the entirety of the State Supported and 

Long Distance Service Lines, as well as the National Network-related portion of the Infrastructure 

Access and Ancillary Services Service Lines, which are further defined below.
19 

B. Service Line

A Service Line represents a set of Amtrak business activities that typically share a common mission, core customers, and/or 

management structure. These Service Lines have been known as Business Lines. FRA and Amtrak leadership agreed that using 

“Service Line” nomenclature better reflects the mission to provide high-quality service to internal and external customers. 5

a. NEC Intercity 

Operations The NEC Intercity Operations Service Line provides premium and regular intercity rail passenger 

transportation along the NEC main line between Boston, Massachusetts and the District of Columbia. 

Its primary customers are the intercity train travelers. 

Its financial sources and uses are reported as part of the NEC Account. 

b. State Supported The State Supported Route Operations Service Line provides intercity rail passenger transportation 

and supporting services along short-distance corridor routes of not more than 750 miles between 

endpoints, as defined at 49 USC §24102(7)(D). Its primary customers are the intercity train travelers 

along these routes and State departments of transportation or other entities subject to PRIIA Section 

209 (or successor legislation) who have responsibility for providing intercity rail passenger 

transportation. 

Its financial sources and uses are reported as part of the National Network Account. 

c. Long Distance The Long Distance Route Operations Service Line provides intercity rail passenger transportation 

along long-distance routes of more than 750 miles between endpoints, as defined at 49 USC 

§24102(7)(C). Its primary customers are intercity train travelers along these routes and the federal 

government. 

Its financial sources and uses are reported as part of the National Network Account. 

d. Infrastructure Access The Infrastructure Access Service Line seeks to safely and efficiently plan for, develop, manage, and 

provide access to Amtrak-owned or controlled infrastructure and facilities, consistent with Amtrak’s 

statutory obligations. Its primary customers include rail operators and other public and private sector 

 

5 Note: For the purposes of the Account Structure, customer is broadly defined to include Amtrak’s internal departments, intercity rail passengers, and public and 

private sector entities that contract for, partner with, or invest in, Amtrak’s service lines. 
20 

entities that currently use, or plan to use, Amtrak-owned assets. 

Amtrak owns assets in the NEC and across the U.S., the financial sources and uses of the 

Infrastructure Access Service Line are assigned appropriately between the NEC Account and the 

National Network Account. 

Its financial sources and uses include operating and capital cost sharing payments that Amtrak 

receives from or pays to other NEC owners and operators in accordance with the terms of the 

Northeast Corridor Commuter and Intercity Rail Cost Allocation Policy, which implements the 

requirements of 49 USC §24905(c).6 

e. Ancillary Services This service line is composed of three functions: Commuter Operations, Reimbursable Services, and 

Real Estate/Commercial Services.

- Commuter Operations provides commuter rail passenger transportation services, maintenance, or 

related services for a cost-based fee to commuter rail agencies;

- Reimbursable Services provides maintenance, engineering and capital improvement activities for 

freight and commuter operators, and other outside enterprises on a reimbursable cost basis. 

- Real Estate/Commercial Services engages in real estate activities and/or commercial 

arrangements with public and private sector entities to leverage Amtrak-owned fixed assets. 

Each ancillary function is identified in the Account Structure. Additionally, Amtrak’s Ancillary 

Service Line engages in activities both on the NEC and across the U.S. Thus, the financial sources and 

uses of this Service Line are assigned appropriately between the NEC Account and the National 

Network Account. 

 

6 49 USC §24905(c) requires a standardized policy for determining and allocating costs for NEC commuter rail passenger transportation, as defined in 49 USC § 

24102, on the NEC main line between Boston, Massachusetts and Washington, District of Columbia, and for the branch lines connecting to Harrisburg, 

Pennsylvania, Springfield, Massachusetts, and Spuyten Duyvil, New York. For the purposes of the Accounts defined here, amounts related to the NEC main line 

will be reported in the NEC Account, and amounts related to the branch lines will be reported in the National Network Account. 
21 

C. Asset Lines 

Asset Lines represent the business activities required to manage Amtrak’s assets and deliver the needs of the Service Lines.

a. Train Operations Train Operations means the train crew operating trains on the road, crew moving equipment in the 

yards, crew providing on-board services on the trains (for example, service attendants, café 

attendants), on-board food and beverage supplies, commissary management, diesel fuel and electric 

propulsion costs, host railroad maintenance of way and performance incentive payments, passenger 

inconvenience payments, passenger claims, connecting bus service, utilities, and the management, 

supervision, and support required to perform activities listed here. 

b. Equipment Equipment means the management and maintenance of Amtrak-controlled locomotives, cars, and 

trainsets, train servicing, maintenance of facilities where equipment is maintained, and the 

management, supervision and support required to perform activities listed here. This service line also 

includes any preventive maintenance and minor repair performed by external vendors or contractors to 

maintain the locomotives, cars, trainsets, and non-revenue equipment. 

c. Infrastructure Infrastructure means management and safe maintenance of Amtrak-controlled fixed assets, and the 

management, supervision and support required to provide a safe and reliable railroad. Fixed assets 

include, but are not limited to, track and associated materials, communication and signal, electric 

traction propulsion generation and transmission, tunnels, bridges, culverts, rights-of-way, signs, real 

property and associated air rights buildings. It excludes stations and facilities where equipment is 

maintained.

d. Stations Stations means All passenger rail stations served by Amtrak trains, with a focus on Amtrak-controlled 

stations and elements of other stations for which Amtrak has legal responsibility or where it intends to 

make capital investments. This includes the maintenance and operation of such facilities that serve

one or multiple routes, and their related management, supervision and support. 

e. National Assets and 

Corporate Services National Assets are defined as Nation’s core rail assets shared among Amtrak services, including: 

systems for reservations, security, training and training centers, and other assets associated with 

Amtrak’s national rail passenger transportation system. 

Corporate services are defined to include company-wide functions, such as, legal, finance, 

government affairs, human resources, information technology, etc. 
22 

D. Financial Sources: 

Financial Sources are defined as all revenues, appropriations, grants, and other forms of financial assistance, compensation, and 

other sources of funds. 

1. Passenger Related 

Revenue Revenue from passenger train operations.

2. Ticket Revenue 

(Adjusted) Revenue from the sale and use of tickets to passengers including but not limited to subtracting a 

portion of ticket sales transferred to Food and Beverage, and other small transfers. 

3. Charter/Special Trains The contracting of Amtrak’s equipment crews for private excursion. The terms charter trains and 

special trains are used interchangeably.

4. Food and Beverage Revenue from the sale of food, beverages, and goods on-board the trains plus the ticket revenue 

transfer associated with food & beverage. 

5. Contract Revenue Revenue from contractual arrangements between Amtrak and its customers, including but not 

limited to, States, freight operators and commuter agencies.

6. PRIIA 209 Operating 

Payments Net operating payments collected from States or entities subject to PRIIA 209, or any successor 

legislation, for the operation of State Supported routes as determined by the PRIIA Section 209 Cost 

Methodology Policy, and any subsequent amendments to that policy. 

7. PRIIA 212 Operating 

Payments Net operating payments received pursuant to agreements made to implement the requirements of the 

Northeast Corridor Commuter and Intercity Rail Cost Allocation Policy (PRIIA 212). 

8. Access Revenue Access fee revenue from the use of Amtrak owned and/or controlled tracks, infrastructure, and 

facilities. 

9. Commuter Operations Revenues from contractual arrangements to operate commuter rail services.

10. Commercial Revenue Commercial development revenue from retail, parking, advertising, air rights, pipe and wire, real 
23 

(incl. Pipe/Wire, Real 

Estate, Parking)

property leases/easements/sales, and other commercial activities.

11. All Other Revenue 

(incl. Insurance 

Revenue, Cobranded 

Commissions, 

Adjustments to Bad 

Debt and Credit Card)

Miscellaneous revenue not included elsewhere such as ticket by mail fees, loyalty marketing 

revenue, commissions from sales of third ‐ 

(call/Internet “tipping”), package express where applicable, allowances for bad debt, credit card 

commissions, and any other.

12. Operating Sources

Subtotal Sum of revenues from operating sources. This is computed as the total of line items 1 to 11. 

13. PRIIA 209 Capital 

Payments Capital payments collected from the States or intercity passenger rail agencies for the overhaul of 

Amtrak owned passenger service equipment used in State Supported routes, other mechanical 

expense related to equipment, or other Amtrak Fixed Assets, and non-Amtrak Fixed Assets, as 

defined in the PRIIA Section 209 Cost Methodology Policy and any subsequent amendments to that 

policy. 

14. PRIIA 212 Capital 

Payments Capital payments received pursuant to agreements made to implement the requirements of the 

Northeast Corridor Commuter and Intercity Rail Cost Allocation Policy (PRIIA 212).

These capital payments include baseline capital charges and other capital payments. 

15. Reimbursable 

Contracts Revenue earned from reimbursable maintenance, engineering, and capital improvement activities for 

freight railroads and other outside enterprises on a reimbursable cost basis. 

16. Financing Proceeds 

Applied Amounts advanced to Amtrak from loans and other financing agreements. 

17. Other Special Grants Capital grants from non-federal sources (incl. State/local sources). 

18. Capital Sources 

Subtotal Sum of revenues from capital sources. This is computed as the total of line items 13 to 17. 

19. FAST Sec. 11101 Grants authorized to Amtrak pursuant to FAST Act Sec. 11101. 
24 

Grants to Amtrak

20. Other Federal Grants Capital grants provided by federal sources that are different from those authorized by FAST Act 

Sec. 11101 (incl., FRA/OST, FTA, DHS). 

21. Federal Grants to 

Amtrak Sum of grants from Federal sources. This is computed as the total of line items 19 and 20. 

22. Total Financial Sources Sum of revenues from operating and capital sources, and Federal grants. This is computed as the 

total of line items 12, 18, and 21. 

E. Financial Uses (Operating):

Expenses associated with the operation of passenger rail service, and the goods and services consumed to fulfill the related activities 

and functions. 

23. Service Line 

Management Expenses associated with the administration and management of Amtrak’s Service Lines. Expenses 

include, but are not limited to, planning, administration, business development, contract 

management, and support. 

24. Train Operations Operating expenses associated with Train Operations, as defined above.

25. Equipment Operating expenses associated with Equipment, as defined above. 

26. Infrastructure Operating expenses associated with Infrastructure, as defined above.

27. Stations Operating expenses associated with Stations, as defined above.

28. National Assets and 

Corporate Services Operating expenses associated with National Assets and Corporate Services, as defined above. 

29. Total Operating Uses Sum of all expenses associated with operations of passenger rail service. This is computed as the 

total of 23 to 28. 
25 

F. Interim Calculation – A

30. Operating Surplus/ 

Deficit

This is computed as the difference between Total Operating Sources (12) and Total Operating Uses 

(29). 

G. Financial Uses (Debt Service Payments):

31. RRIF debt repayments Principal and interest payments to the FRA for Railroad Rehabilitation and Improvement Financing 

(RRIF) loans.

32. Other/new financing 

repayments

Principal and interest payments for financial agreements other than RRIF. 

33. Total Debt Service 

Payments

Principal and interest payment for RRIF and other financial agreements. This is computed as the 

total of 31 and 32 above. 

H. Interim Calculation – B

34. Available for Capital 

Uses These are the funds available for capital uses. This is computed by subtracting the Debt Service 

Payments from the summation of Operating Surplus/Deficit and Capital Sources and Federal 

Grants to Amtrak.

I. Financial Uses (Capital): 

Investments in capital assets that are required to achieve and maintain a state of good repair. Capital projects or programs primarily 

associated with rehabilitation, replacement, renewals, improvements, acquisitions, or safety, mandatory, or legal mandates, and 

other strategic initiatives.
26 

35. Service Line 

Management Capital improvements related to management and administration of Service Lines. 

36. Train Operations Investments in capital projects and programs related to Train Operations as defined above. 

37. Equipment Capital investments associated with equipment. This may include but is not limited to the 

acquisition, rehabilitation, manufacture, overhaul, or improvement of equipment as defined above. 

38. Infrastructure Capital investments in projects and programs related to infrastructure assets as defined above. 

39. Stations Capital investments in capital projects and programs related to Stations and related facilities as 

defined above. 

40. National Assets and 

Corporate Services Capital investments in the National Assets as defined above. 

41. Capital Expenses Sum of capital expenses calculated as the sum of line items from 35 to 40. 

42. Legacy debt repayment Any long term debt and capital lease originated before the passage of P.L. 110-432 or other debt 

originated for the purpose of restructuring such long-term debt and capital lease. 

43. Total Capital Uses Sum of capital expenses and legacy debt repayments calculated as the sum of line items 41 and 42. 

J. Final Summary

44. Surplus/Deficit This is computed as the difference between Available for Capital Uses (34) and Total Capital Uses 

(43).

K. Account Transfers

45. Account Transfers Amount transferred from one Account to another Account. 
27

APPENDIXB-Amtrak Consolidated Sources and Uses Statement

Amtrak Level 2

NEC State 

Supported

Long 

Distance Commuter Reimbursable Commercial Infrastructure Access Total Amtrak 

($s in Millions) NEC NN NN NEC NN NEC NN NEC NN NEC NN

Sources:

Ticket Revenue (Adjusted) - - - - - - - - - - - -

Charters/Special Trains - - - - - - - - - - - -

Food & Beverage - - - - - - - - - - - -

Subtotal Passenger Related Revenue - - - - - - - - - - - -

Subtotal Contract Revenue/Income - - - - - - - - - - - - 

Commercial Revenue - - - - - - - - - - - - 

All Other Revenue/Income - - - - - - - - - - - - 

Financing Proceeds (RRIF Draw Downs) - - - - - - - - - - - - 

Total Sources - - - - - - - - - - - -

Uses (Operational):

Business/Service Line Management (Direct)

Operations & Management Support - - - - - - - - - - - -

Total Business/Service Line Management - - - - - - - - - - - -

Train Operations 

Crew Expense - - - - - - - - - - - -

Fuel/Power - - - - - - - - - - - -

Host Railroad Access Fees - - - - - - - - - - - -

OBS Non Crew - - - - - - - - - - - -

Passenger Related - - - - - - - - - - - -

Operations & Management Support - - - - - - - - - - - -

Total Train Operations - - - - - - - - - - - -

Equipment

Turnaround & Maintenance - - - - - - - - - - - -

Facilities & Maintenance - - - - - - - - - - - -

Fleet Strategy - - - - - - - - - - - -

Operations & Management Support - - - - - - - - - - - -

Total Equipment - - - - - - - - - - - -

Infrastructure

Operating expense & MoW - - - - - - - - - - - -

Dispatching/CETC - - - - - - - - - - - -

Operations & Management Support - - - - - - - - - - - -

Total Infrastructure - - - - - - - - - - - -

Stations

Station Expense - - - - - - - - - - - -

Parking - - - - - - - - - - - -

Real Estate & Lease Expense - - - - - - - - - - - -

Operations & Management Support - - - - - - - - - - - -

Total Stations - - - - - - - - - - - -

National Assets

Reservation Control - - - - - - - - - - - -

Police & Emergency Management

Safety Department

Training Centers - - - - - - - - - - - -

Total National Assets - - - - - - - - - - - -

Total Corporate Services - - - - - - - - - - - -

Total Operational Uses - - - - - - - - - - - -

Subtotal Surplus/Deficit - - - - - - - - - - - -

New Debt

RRIF Debt - - - - - - - - - - - -

RRIF Loan Draw Down Payment to Vendor - - - - - - - - - - - -

Total New Debt - - - 0 - - - - - - 0 - - -

Surplus Available - - - - - - - - - - - -

Account Transfers - - - - - - - - - - - -

Net Surplus Available - - - - - - - - - - - -

Uses (Capital):

Business/Service Line Management (Direct)

Technology & Systems - - - - - - - - - - - -

Total Business/Service Line Management - - - - - - - - - - - -

Train Operations

Technology & Systems - - - - - - - - - - - -

Facilities - - - - - - - - - - - -

Host Railroad Capital - - - - - - - - - - - -

Operations Equipment - - - - - - - - - - - -

Total Train Operations - - - - - - - - - - - -

Equipment

Overhauls - - - - - - - - - - - -

New/Replacement Equipment - - - - - - - - - - - -

Facilities - - - - - - - - - - - -

Other Train Capital - - - - - - - - - - - -

Program Management - - - - - - - - - - - -

Total Equipment - - - - - - - - - - - -

Infrastructure

Normalized Replacement - - - - - - - - - - - -

Safety & Mandates - - - - - - - - - - - -

Major Backlogs - - - - - - - - - - - -

Improvements - - - - - - - - - - - -

Environmental Remediation - - - - - - - - - - - -

Program Management - - - - - - - - - - - -

Total Infrastructure - - - - - - - - - - - -

Stations

Normalized Replacement - - - - - - - - - - - -

Safety & Mandates - - - - - - - - - - - -

Major Backlogs - - - - - - - - - - - -

Improvements - - - - - - - - - - - -

Environmental Remediation - - - - - - - - - - - -

Parking - - - - - - - - - - - -

Program Management - - - - - - - - - - - -

Total Stations - - - - - - - - - - - -

National Assets

Police and Emergency Management - - - - - - - - - - - -

Total National Assets - - - - - - - - - - - -

Total Corporate Services - - - - - - - - - - - -

Total Capital Uses - - - - - - - - - - - -

Legacy Debt

Legacy Debt - - - - - - - - - - - -

Total Legacy Debt - - - 0 - - - - - - 0 - - -

Total Surplus/Deficit - - - - - - - - - - - -

Federal Grant Allocated

NEC

National Network - - - - - - - - - - - -

Train Services Ancillary Services

Amtrak Consolidated Sources and Uses Statement