Audit Reports

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Quality Control Review of DOT’s Implementation of Earned Value Management Practices

Self-Initiated
Project ID: 
QC2018015
What We Looked At
This report summarizes the results of an audit of DOT’s implementation of earned value management (EVM) practices. For fiscal year 2017, DOT invested approximately $3.4 billion in information technology (IT). 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 has developed Federal policy for planning, budgeting, acquiring, and managing IT assets, and directs agencies to use EVM to calculate cost and schedule variances for all major IT investments.
 
We contracted with KPMG LLP, an independent public accounting firm, to conduct this audit subject to our oversight. The audit objectives were 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.
 
What We Found
We performed this QCR of KPMG’s report and related documentation. Our QCR disclosed no instances in which KPMG did not comply, in all material respects, with generally accepted Government auditing standards.
 
Recommendations
DOT concurred with recommendations for the Maritime Administration and the Office of the Secretary of Transportation, and partially concurred with the recommendation for the Federal Transit Administration.

Recommendations

Open

Closed

No. 1 to MARAD

Establish a work breakdown structure, consistent with the DOT Earned Value Managment Implementation Guide standard, for investment projects when required by the DOT EVM Policy.

No. 2 to FTA

Establish a work breakdown structure, consistent with the DOT Earned Value Managment Implementation Guide standard, for investment projects when required by the DOT EVM Policy.

No. 3 to OST

Ensure that artifacts illustrating implementation and execution of EVM are in accordance with the DOT EVM policy.

No. 4 to OST

Retain evidence of the required EVM artifacts.