Audit Reports

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November 14, 2017

Quality Control Review for the Surface Transportation Board’s Audited Financial Statements for Fiscal Years 2017 and 2016 (restated)

Required by the Accountability of Tax Dollars Act of 2002
Project ID: 
QC2018007
View PDF Document
What We Looked At
 
This report presents the results of our quality control review (QCR) of the Surface Transportation Board’s (STB) audited financial statements for fiscal years 2017 and 2016 (restated). Leon Snead & Company, P.C. (Leon Snead), under contract with us, issued a clean (unmodified) audit opinion on STB’s financial statements. Lean Snead withdrew its prior auditor’s report dated November 7, 2016, due to errors in the statements that in aggregate were material. The 2016 (restated) statements included in the attached report replace those prior statements. Leon Snead reported two material weaknesses and one significant deficiency in internal control over financial reporting. The report did not include any instances of reportable noncompliance with tested laws and regulations.
 
What We Found
 
We performed a QCR of Leon Snead’s report and related documentation and found no instances in which Leon Snead did not comply, in all material respects, with generally accepted Government auditing standards.

Recommendations

Open

Closed

Closed on 12.19.2018
No. 1 to STB

STB and its accounting service provider should implement accounting processes for estimating and recording the value of goods and/or services provided by vendors for open obligations, with and without an advance.

Closed on 12.19.2018
No. 2 to STB

Develop written policies to: obtain invoices supporting the value of goods and services provided by vendors with advances so permanent reductions can be made to reduce the value of individual advances, close out advances where all services have been provided, and recoup all unused advance funding; including those currently outstanding.

Closed on 12.19.2018
No. 3 to STB

Strengthen monitoring controls of financial management operations performed by the agency's accounting service provider. Develop policies, procedures and review checklists to ensure that monitoring processes are performed consistently and documented as required by GAO internal control standards.

Closed on 12.19.2018
No. 4 to STB

Work with the accounting service provider to strengthen the service provider's quality control processes, and obtain documented assurances that quality control reviews have been performed on financial statements presented to the agency for audit

Closed on 09.27.2018
No. 5 to STB

Determine the reasons that abnormal general ledger account balances were not identified, researched, and corrected, as appropriate despite the assurances provided in response to the same issues reported in the FY 2016 financial statement audit report. Implement additional controls to ensure abnormal account balances are properly identified, researched, and appropriate corrective actions are taken.