Quality Control Review on the Single Audit of the Worcester Regional Transit Authority of Worcester, MA
This report presents the results of our Quality Control Review of McCarthy, Hargrave & Company’s (MH&Co) single audit of the Worcester Regional Transit Authority (Authority) of Worcester, MA, for the Authority’s fiscal year ended June 30, 2014. During this period, the Authority expended approximately $23 million from DOT grant programs. MH&Co determined that DOT’s major programs were the Federal Transit Cluster and Clean Fuels Grant Program.
Firms can receive a rating of pass, pass with deficiency(ies), or fail, and based on our QCR, the overall rating assigned to MH&Co’s work is a Pass. Therefore, MH&Co met the requirements of the Single Audit Act, OMB Circular A-133, and DOT’s major program. We found nothing to indicate that MH&Co’s opinion on DOT’s major program was inappropriate or unreliable. During our desk review, however, we found that in the Schedule of Findings and Questioned Costs (SFQC), MH&Co incorrectly used “unqualified” as its opinion on the Authority’s financial statements and compliance with DOT’s major program requirements. MH&Co should have used “unmodified” as its opinion on both the financial statements and compliance with program requirements. MH&Co has corrected the SFQC and resubmitted its single audit report to the Federal Audit Clearinghouse.