MWAA's Office of Audit Does Not Have an Adequate Quality Assurance and Improvement Program
The Metropolitan Washington Airports Authority (MWAA) manages Ronald Reagan Washington National Airport and Washington Dulles International Airport through a lease with the U.S. Department of Transportation (DOT). MWAA is also responsible for the multibillion-dollar Dulles Corridor Metrorail Project. Our prior audits of MWAA identified weaknesses in its internal controls that were causing questionable procurement practices, mismanagement, a lack of overall accountability, and unallowable and unsupported expenses. We initiated this audit to determine whether MWAA’s Office of Audit has established and carried out an audit quality assurance and improvement program (QAIP) in accordance with applicable standards.
MWAA’s Office of Audit has not established or carried out an audit QAIP in full conformance with standards and may not be achieving the most value from its audits. Specifically, the Office (1) lacked a quality review process, (2) has insufficient audit policies and procedures, (3) does not adequately support its reports, and (4) inadequately documented its audit plans and risk assessments. While the Office is beginning to make improvements, it faces continuing challenges to performing high quality work and achieving its goal of providing reasonable assurance that MWAA has an effective system of internal controls. Enhanced oversight, policies and procedures, documentation, and audit planning will be critical to establishing an effective QAIP.
We made seven recommendations for MWAA to bring its QAIP in conformance with standards. MWAA concurred with all seven recommendations and provided appropriate planned actions and completion dates. Accordingly, we consider these recommendations resolved but open pending completion of MWAA’s planned actions.