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November 17, 2014

Quality Control Review of the Department of Transportation's Audited Financial Statements for Fiscal Year 2014 and 2013

Required by the Chief Financial Officers Act
Project ID: 
QC2015011
View PDF Document

We conducted a quality control review (QCR) of the Department of Transportation’s (DOT) consolidated financial statements for fiscal years 2014 and 2013. KPMG LLP, under contract to the Office of the Inspector General, issued a clean (unmodified) audit opinion on these financial statements. KPMG found one material weakness and two significant deficiencies in internal control over financial reporting. KPMG also found instances of reportable noncompliance with the laws and regulations tested. Our QCR disclosed no instances in which KPMG did not comply, in all material respects, with auditing standards.

Recommendations

Open

Closed

Closed on 06.06.2018
No. 1 to OST

KPMG recommends that the Chief Information Officer of DOT develop procedures and controls to address the provisioning of access and system audit log review control deficiencies identified in the FTA financial IT systems.

Closed on 06.06.2018
No. 2 to FTA

KPMG recommends that the Chief Information Officer of FTA develop procedures and controls to address the provisioning of access and system audit log review control deficiencies identified in the FTA financial IT systems.

Closed on 06.06.2018
No. 3 to OST

KPMG recommends that the Chief Information Officer of DOT Monitor progress to ensure that procedures and controls are appropriately designed, implemented, and maintained.

Closed on 06.06.2018
No. 4 to FTA

KPMG recommends that the Chief Information Officer of FTA monitor progress to ensure that procedures and controls are appropriately designed, implemented, and maintained.

Closed on 12.08.2015
No. 5 to FTA

KPMG recommends that FTA revise their process for monitoring obligations in order to timely identify and de-obligate stale obligations.

Closed on 12.08.2015
No. 6 to OST

KPMG recommend that DOT continues to provide training related to grants management, including the need for timely monitoring and close-out of projects.

Closed on 12.08.2015
$358,500,000
No. 7 to OST

KPMG recommend that all other OAs continue to timely review and monitor grant and non-grant undelivered orders to ensure that the recorded undelivered orders represent goods and services ordered and obligated, but not yet received, or potential amounts still to be claimed.

Closed on 12.08.2015
No. 8 to FHWA

KPMG recommend that FHWA work with OMB to develop and document policies and procedures on the appropriate accounting treatment for the execution and year-end reporting of UCOs entered into with non-Federal entities without an advance of funds.

Closed on 12.08.2015
No. 9 to OST

KPMG recommend that DOT, in conjunction with FHWA, develop a report that reflects a complete population of open UCO balances, by agreement number, as of a period-end date.and that FHWA use the report developed by OST to monitor and review its open UCO balances for completeness, accuracy, and validity

Closed on 09.27.2016
No. 10 to FRA

KPMG recommended that DOT complete the investigation into potential additional Anti-Deficiency Act violations at the FRA.

Closed on 09.27.2016
No. 11 to OST

KPMG recommended that DOT implement appropriate policies and procedures to prevent future violations.

Closed on 06.06.2018
No. 12 to FTA

KPMG recommends that DOT improve its general information technology controls at FTA, as noted above, to ensure that DOT's financial management systems comply with the requirements of the FFMIA.