Audit Reports

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.

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

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.

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.

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.

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.

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.

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.

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

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."

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.

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.

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

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