Audit Reports

-A A +A

Quality Control Review of the Management Letter for the Audit of the Department of Transportation’s Fiscal Years 2014 and 2013 Financial Statements

Required by the Chief Financial Officers Act of 1990
Project ID: 

We conducted a quality control review of the management letter related to the Department of Transportation’s (DOT) financial statements for fiscal years 2014 and 2013. KPMG LLP, under contract to our office, conducted the audit of these statements. The internal control matters that KPMG identified in its management letter were not required to be reported in the independent audit report on DOT’s financial statements.




Closed on 06.06.2018
No. 1 to OST

KPMG recommends that DOT develop and implement guidance to formally document its assessments and recognition decisions, in accordance with Statement of Federal Financial Accounting Concept No. 5, as it relates to liabilities of exchange transactions, specifically those decisions to depart from GAAP based on materiality.

Closed on 12.08.2015
No. 2 to OST

KPMG recommends DOT automate footnotes, where applicable, to ensure consistency across the Department.

Closed on 12.08.2015
No. 3 to OST

KPMG reocmmends that DOT provide training and instruction, where necessary, to the OAs to ensure the financial reporting guidance is implemented consistently department-wide and to ensure the OAs understand the requirements of each line item on the financial statements and footnotes.

Closed on 12.08.2015
No. 4 to OST

KPMG recommends that DOT revise the financial statement (including footnotes) review checklist to incorporate the financial reporting instruction in order to determine that the financial statements were consistently prepared.

Closed on 12.08.2015
No. 5 to OST

KPMG recommnds that DOT implement an independent review of the DOT Consolidated financial statements to ensure the financial statements are properly consolidated and that the financial reporting guidance has been consistently applied.

Closed on 07.28.2017
No. 6 to FTA

KPMG recommends that FTA revise its grant accrual retrospective review to ensure that the retrospective review is performed with the appropriate level of precision and all data inputs (FFR reporting, UDO balances, grant disbursements) are reasonable and based on relevant and reliable data in order to ensure that all adjustments to the grant accrual or methodology are properly calculated and supported.

Closed on 12.08.2015
No. 7 to FHWA

KPMG recommends that FHWA review the inputs into the cash flow model to ensure that the inputs are complete and accurate and agree to the underlying supporting documentation.

Closed on 12.08.2015
No. 8 to FHWA

KPMG recommends that FHWA review the consolidated financial statements and footnote disclosures to ensure that they are prepared in accordance with the applicable accounting standards and contain all required disclosures.

Closed on 12.08.2015
No. 9 to FHWA

KPMG recommend that FHWA continue to take appropriate measures to ensure the audit logs are reviewed timely and documentation of the review is maintained.

Closed on 12.08.2015
No. 10 to FHWA

KPMG recommend  that  FHWA  management  increase the  level of  precision  of  the monthly  user  access review process to evaluate  user access  based on least  privileged"  necessary to perform their assigned tasks."

Closed on 12.08.2015
No. 11 to FHWA

KPMG recommend that FHWA strengthen its controls for removing access of separated employees and contractors to ensure that access is removed immediately upon termination or at the point in time when access is no longer required, and ensure that other DOT components are aware of the requirement to immediately notify FHWA of separations.

Closed on 12.08.2015
No. 12 to FHWA

KPMG recommend that FHWA management increase the precision of the FMIS user access review to include a review performed at the division level over the appropriateness of user access and access rights.

Closed on 12.08.2015
No. 13 to FTA

KPMG recommend that FTA implement re-authentication requirements, in accordance with the DOT Cyber Security Compendium, in the grant management system utilized by FTA.

Closed on 12.08.2015
No. 14 to FTA

KPMG recommend  that FTA  implement  procedures to remove application  access  for separated  employees and contractors immediately upon termination.