Audit Reports

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November 15, 2018

Quality Control Review of the Independent Auditor’s Report on the Department of Transportation’s Audited Consolidated Financial Statements for Fiscal Years 2018 and 2017

Required by the Chief Financial Officers Act of 1990
Project ID: 
QC2019010
View PDF Document
What We Looked At
We contracted with the independent public accounting firm KPMG LLP to audit the Department of Transportation’s (DOT) financial statements as of and for the fiscal years ended September 30, 2018, and September 30, 2017, and to provide a report on internal control over financial reporting and compliance with laws and other matters. The contract required that the audit be performed in accordance with U.S. generally accepted Government auditing standards, Office of Management and Budget audit guidance, and the Governmental Accountability Office’s and Council of the Inspectors General on Integrity and Efficiency’s Financial Audit Manual. In connection with the contract, we performed a quality control review of KPMG’s report dated November 13, 2018, related documentation, and inquired of its representatives.
 
What We Found
Our quality control review disclosed no instances in which KPMG did not comply, in all material respects, with U.S. generally accepted Government auditing standards.
 
Recommendations
DOT concurs with KPMG’s four recommendations.

Recommendations

Open

Closed

Closed on 02.07.2020
No. 1 to FAA

KPMG recommends that DOT management develop sufficient procedures and controls to address the identified GITC control deficiencies.

Closed on 02.07.2020
No. 2 to FAA

KPMG recommends that DOT management monitor progress to ensure that the GITC procedures and controls are implemented and operating effectively.

Closed on 12.17.2020
No. 3 to FHWA

KPMG recommends that DOT Management perform a thorough and detailed review of the overall TIFIA cashflow model functionality and implementation to ensure that all assumptions areproperly applied in the execution of the cash flow projections.

Closed on 12.17.2020
No. 4 to FHWA

KPMG recommends that DOT consider automating the calculations that are performed manually to reduce risk of misapplication of assumptions due to human error.