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Quality Control Review of the Management Letter for 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: 
QC2019024
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 2018 and 2017. In addition to its audit report on DOT’s financial statements, KPMG issued a management letter that discusses four 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 eight recommendations in its management letter. DOT concurred with all eight recommendations.

Recommendations

Open

Closed

No. 1 to FAA

KPMG recommends that ESC develop, implement, and document a timeline for journal vouchers to be approved and posted.

No. 2 to FAA

KPMG recommends that ESC establish a review control, with the appropriate level of precision, to ensure journal vouchers are posted in a timely manner and in accordance with the above policy.

No. 3 to FHWA

KPMG recommends that FHWA management develop and implement a process to require documentation of the UPACS audit log review to be maintained to include documentation of the date reviewed, person who reviewed the log, and any follow-up actions required.

No. 4 to FHWA

KPMG recommends that FHWA management update the UPACS standard operating procedures or other appropriate documentation to reflect the new audit log review process.

No. 5 to FHWA

KPMG recommends that FHWA management develop a process to ensure the review of FMIS5 application access is completed by all divisions.

No. 6 to FHWA

KPMG recommends that FHWA management update the FMIS5 standard operating procedures or other appropriate documentation to reflect the new review process.

No. 7 to FHWA

KPMG recommends that FHWA management strengthen policies and procedures that require terminated user accounts to be removed from UPACS in a timely manner.

No. 8 to FHWA

KPMG recommends that FHWA management update the UPACS standard operating procedures documents to reflect the new requirements.