Review of FAA's Audited FY 2002 Financial Statements
We publicly released our quality-control reviews of the audits of TSA’s and FAA’s FY 2002 financial statements. Both audits were completed by KPMG LLP, Washington, DC. KPMG gave both TSA and FAA an “unqualified” opinion on their financial statements. The TSA audit report cited five “material internal-control weaknesses,” one “reportable internal-control condition,” and one “material noncompliance” with accounting laws and regulations. FAA’s report identified one “material internal-control weakness,” six “reportable internal-control conditions,” and one “material noncompliance” with accounting laws and regulations. KPMG made 18 recommendations to TSA and 14 to FAA for corrective actions. We agreed with the recommendations and found KPMG’s audit work complied with applicable standards. We asked TSA and FAA to specify their actions and estimated completion dates.