New Audit Announcements
February 1, 2017
Audit Initiated of DOT’s Implementation of Earned Value Management System
The Department of Transportation (DOT) relies on over 450 information technology (IT) systems, with an annual investment of over $3 billion. The Clinger-Cohen Act of 1996 requires Federal agencies to establish effective management structures to govern IT investments and to improve their implementation and management. The Office of Management and Budget (OMB) has developed Federal policy for planning, budgeting, acquiring, and managing IT assets. OMB also directs agencies to use earned value management (EVM)—a management technique tool that relates resource planning to schedules and technical, cost, and schedule requirements—to calculate cost and schedule variances from the approved baselines for major IT investments.
Due to the large investment in the Department’s IT systems, we are initiating an audit of DOT’s adoption and use of an Earned Value Management System to assess DOT’s (1) implementation of EVM policies, procedures, and practices for its IT investments, and (2) use of EVM data to plan, monitor, and report the status of its IT investments and related security spending. We have contracted with KPMG LLP, an independent public accounting firm, to conduct this review, subject to our oversight.