We performed a quality control review (QCR) on the single audit that CliftonLarsenAllen LLP (CLA) performed for the New Mexico Department of Transportation’s (NMDOT) fiscal year that ended June 30, 2018. During this period, NMDOT expended approximately $414 million from the U.S. Department of Transportation’s (DOT) grant programs. CLA determined that DOT’s major programs were the Highway Planning and Construction Cluster, the Highway Safety Cluster, and the Transit Services Programs Cluster.
Our QCR objectives were to determine (1) whether the audit work complied with the Single Audit Act of 1984, as amended, and the Office of Management and Budget’s Uniform Guidance, and the extent to which we could rely on the auditors’ work on DOT’s major programs; and (2) whether NMDOT’s reporting package complied with the reporting requirements of the Uniform Guidance.
What We Found
CLA’s audit work complied with the requirements of the Single Audit Act, the Uniform Guidance, and DOT’s major programs. We found nothing to indicate that CLA’s opinion on each of DOT’s major programs was inappropriate or unreliable. However, we identified an audit quality deficiency in CLA’s work that should be corrected in future audits. We also identified a deficiency in NMDOT’s reporting package that required correction and resubmission.