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February 12, 2018

Quality Control Review of the Management Letter for Department of Transportation’s Audited Consolidated Financial Statements for Fiscal Years 2017 and 2016

Required by the Chief Financial Officers Act of 1990
Project ID: 
QC2018023
View PDF Document

What We Looked At
This report presents the results of our quality control review (QCR) of KPMG LLP’s management letter related to the audit it conducted, under contract with us, of the Department of Transportation’s (DOT) consolidated financial statements for fiscal years 2017 and 2016. In addition to its audit report on DOT’s financial statements, KPMG issued a management letter that discusses two internal control matters that it was not required to include in its audit report. 

What We Found
Our QCR of KPMG’s management letter disclosed no instances in which KPMG did not comply, in all material respects, with generally accepted Government auditing standards. 

Recommendations
KPMG made two recommendations in its management letter. DOT concurred with both recommendations.

Recommendations

Open

Closed

Closed on 12.14.2018
No. 1 to FTA

KPMG recommends that FTA enhance its grant accrual retrospective review procedures to include a review, and adjustment, if necessary, of grantee expenditures used in the retrospective review to ensure such data is relevant and reliable.

Closed on 03.30.2021
No. 2 to FHWA

KPMG recommends FHWA strengthen policies and procedures to ensure that terminated users’ access is removed timely from UPACS and the application it supports, in accordance with the DOT Cybersecurity Compendium guidelines.