Audit Reports

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November 15, 2018

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

Required by the Accountability of Tax Dollars Act of 2002
Project ID: 
QC2019011
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What We Looked At
We contracted with the independent public accounting firm of Leon Snead & Company, PC to audit the Surface Transportation Board’s (STB) 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 Leon Snead’s report dated November 6, 2018, related documentation, and inquired of its representatives.
 
What We Found
Our quality control review disclosed no instances in which Leon Snead did not comply, in all material respects, with U.S. generally accepted Government auditing standards.
 
Recommendations
STB concurs with Leon Snead’s five recommendations.

Recommendations

Open

Closed

Closed on 02.13.2020
No. 1 to STB

LSC recommends STB discuss with ESC officials the need to substantially strengthen its system of review over financial information processed for the STB.

Closed on 03.19.2020
No. 2 to STB

LSC recommends STB require ESC to determine the cause(s) for the instances of incorrect and/or improper accounting and financial reporting of STB data, and to take appropriate corrective actions to address these continuing problems.

Closed on 02.13.2020
No. 3 to STB

LSC recommends STB ensure that the proper accounting procedures are in place and operating effectively for year-end financial statements when posting the costs incurred by contractors with advances.

Closed on 02.11.2020
No. 4 to STB

LSC recommends STB develop a STB policy that: 1) implementsthe BFS guidance relating to interagency agreements; 2) identifies theresponsibilities for the STB and its service provider; and 3) establishes astandard set of processes that support the recording, reporting,reconciliation, and measurement of intergovernmental activity and anyidentified differences.

Closed on 02.11.2020
No. 5 to STB

LSC recommends STB ensure that actions are taken prior to the end of the fiscal year to address the differences identified in the FY 2018 report.