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Audit Reports

Date

Quality Control Review of the Management Letter for the Audit of Fiscal Years 2016 and 2015 Financial Statements of the Federal Aviation Administration (FAA)

Requested By
Required by the Chief Financial Officers Act
Project ID
QC2017026
File Attachment

We conducted a quality control review of the management letter related to FAA’s financial statements for fiscal years 2016 and 2015. KPMG, LLP, under contract to our office, issued a management letter identifying internal control matters that KPMG was not required to report in its independent audit report on FAA’s financial statements for the period. Our review disclosed no instances in which KPMG did not comply, in all material respects, with generally accepted Government auditing standards.

Recommendations

Closed on
No. 1 to FAA
KPMG recommends that FAA Management revise procedures to ensure manual journal vouchers are reviewed timely and within the timeframes established by the policies.
Closed on
No. 2 to FAA
KPMG recommends that FAA perform an analysis to determine the materiality of the expense transactions currently not included in the accounts payable accrual. If the amount is determined to be immaterial, management should develop and implement guidance to document its assessment and recognition decisions, in accordance with SFFAC No. 5, as it relates to liabilities for non-grant expense transactions and specifically decisions to not accrue for certain transactions. If the amount is determined to be material, management should revise its accounts payable policies to include all material payables in the accrual at year-end.
Closed on
No. 3 to FAA
KPMG recommends that FAA refine its policies and procedures to ensure purchase orders and invoices are reviewed at the appropriate level of precision to ensure that amounts are properly expensed or capitalized.
Closed on
No. 4 to FAA
KPMG recommends that FAA management properly document and implement procedures to update policies and procedures over physical access to the data center to be in compliance witht he DOT Cybersecurity Compendium.
Closed on
No. 5 to FAA
KPMG recommends that FAA management properly document and implement procedures to maintain accurate and detailed user listing of individuals granted access to the data center.
Closed on
No. 6 to FAA
KPMG recommends that FAA management properly document and implement procedures to perform periodic reviews of access rights for existing data center users.