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November 16, 2015

Quality Control Review of the Department of Transportation’s Audited Financial Statements for Fiscal Years 2015 and 2014

Required by the Chief Financial Officers Act
Project ID: 
QC2016008
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This report presents the results of our quality control review of KPMG LLP’s audit of the Department of Transportation’s (DOT) consolidated financial statements for fiscal years 2015 and 2014. The audit’s objective was to determine whether DOT’s financial statements were fairly presented in accordance with accounting principles generally accepted in the United States of America. KPMG issued an unmodified audit opinion on DOT’s financial statements. KPMG reported one material weakness and one significant deficiency in internal controls over financial reporting. KPMG also found instances of reportable noncompliance with 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 FTA

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

Closed on 06.06.2018
No. 2 to FTA

That the Chief Information Officers of DOT and FTA monitor progress to ensure that procedures and controls are appropriately designed, implemented, and maintained.

Closed on 07.28.2017
No. 3 to FHWA

KPMG recommends that FHWA establish procedures and controls over the accrual period revalidation process, including policies to regularly revalidate the accrual periods.

Closed on 07.28.2017
No. 4 to FHWA

KPMG recommends that FHWA develop survey questions that more closely align with the relevant data necessary to determine the accrual periods for the four expenditure categories.

Closed on 07.28.2017
No. 5 to FHWA

KPMG recommends that FHWA document the methodology of how the survey responses are used to determine the accrual period. When a deviation from the standard methodology is necessary; document the reasoning and maintain evidence to support the deviation.

Closed on 09.27.2016
No. 6 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. 7 to FRA

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

Closed on 06.08.2018
No. 8 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.