Quality Control Review on the Single Audit of the City of Atlanta, Georgia
OIG issued a quality control review (QCR) on DOT’s major grant program included in the single audit of the of the City of Atlanta (City) that KPMG LLP performed for the City’s fiscal year ended June 30, 2013. During this period, the City expended approximately $34 million from DOT grant programs, and KPMG determined that DOT’s major programs were the Airport Improvement Program and the Highway Planning and Construction Program. OIG limited the scope of our QCR to the Airport Improvement Program because the City received no direct awards of Highway Planning and Construction funds.
OIG determined that KPMG’s audit work was Acceptable with Deficiencies, and therefore, met the requirements of the Single Audit Act, OMB Circular A-133, and DOT’s major program. OIG found nothing to indicate that KPMG’s opinion on DOT’s major program was inappropriate or unreliable. The deficiencies need to be corrected in future audits, but did not alter the overall results of the audit. One deficiency was related to Special Tests and Provisions - Revenue Diversion. KPMG did not document its understanding of internal controls related to the revenue diversion requirement. The other deficiency was related to Follow-up on the Status of Prior Year Audit Findings. KPMG needs to improve its audit documentation to clarify its procedures performed related to follow-up on the status of prior year audit findings.