Audit of Financial Controls for Cost Accounting and Billing Practices, Volpe National Transportation Systems Center
We issued the first two of three reports regarding the Volpe National Transportation Systems Center, performed at the request of Rep. Ernest J. Istook, Chairman of the Appropriations Subcommittee on Transportation, Treasury and Independent Agencies. The first audit examines Volpe’s role and function and whether it is meeting the Department’s needs. The second audit is on Volpe’s cost allocation process where we reviewed whether the Center’s revenue and costs are accurately reflected in accounting records. We also evaluated whether Volpe’s overhead rate development and implementation, including its method of distributing overhead costs to projects, are in accordance with Federal accounting standards.
The third report, currently in progress, focuses on Volpe’s project management controls and whether such controls are adequate to ensure cost effective services.