Quality Control Review of FAA's FY07 and FY06 Financial Statements
On November 9, we issued a quality control report of the audit of the Federal Aviation Administration's (FAA) fiscal years 2007 and 2006 financial statements. KPMG LLP, under contract to us and under our supervision, issued a clean (unqualified) audit opinion. This signals that FAA has overcome last year's qualified opinion on the Construction in Progress (CIP) account, which is part of the Properly, Plant, and Equipment line item on the balance sheet. However, KPMG reported that FAA's property management, including CIP operations, remains a material weakness and requires close monitoring. In addition, KPMG identified two significant deficiencies in FAA's oversight of inventory and financial systems controls, and a noncompliance issue concerning the Federal Financial Management Improvement Act.
Complete Financial Statements are included in the FAA's 2007 Performance and Accountability Report, which also contains a copy of KPMG's report beginning on page 97.