This report presents the results of our quality control review (QCR) of Allmond & Company, LLC’s management letter regarding the audit it conducted, under contract with us, of the Surface Transportation Board’s (STB) financial statements as of and for the fiscal year ended September 30, 2021. The management letter discusses internal control matters that Allmond was not required to include in its report on the audit.
What We Found
Our quality control review of the management letter disclosed no instances in which Allmond did not comply, in all material respects, with generally accepted Government auditing standards.
Allmond made eight recommendations in its management letter. STB concurred with all eight recommendations.
No. 1 to STB
STB management should review the current version of OMB Circular A-136 to independently verify that all required footnotes are included and bring any omissions to the service provider’s attention so that errors or omissions can be corrected.
No. 2 to STB
STB management should review the service provider’s Financial Statement and Notes Review Checklist to verify that the checklist is up to date and includes all required elements per OMB and Treasury guidance and then complete the checklist independently. Alternatively, STB management should develop and complete its own review checklist based on current Treasury and OMB reporting requirements.
No. 3 to STB
STB management should request its financial management service provider to:
a. Reevaluate the inclusion of account balances that were excluded in the Other Liabilities footnote, or
b. Disaggregate (i.e. separately report) intragovernmental other liabilities balances reported as a single line item on the balance sheet that are not included in the footnote so that the total amounts reported for Other Liabilities on the Balance Sheet and in the footnote agree.
No. 4 to STB
STB should perform routine reviews of employee benefit elections and Official Personnel Folders to ensure they are complete and accurate.
No. 5 to STB
STB should address missing or unavailable supporting documentation with its shared service provider to ensure that document retrieval tools are available and are working properly to allow retrieval of all stored documents.
No. 6 to STB
STB management should work with the service provider to identify, at least quarterly, upward adjustments that have been offset by downward adjustments in the general ledger or perform an independent review of the general ledger activity of both accounts so that manual adjustments can be recorded to properly state the ending balances of both accounts, if needed.
No. 7 to STB
STB management should design and implement policies and procedures which enhance the internal review process for upward and downward adjustment transactions and includes a reconciliation of the UDO balances with the supporting documentation to ensure that transactions have been recorded correctly.
No. 8 to STB
STB should amend its existing policy regarding the review and approval of journal vouchers to include a review of all non-reversing entries recorded during the fiscal year and to review all year-end journal vouchers before they are recorded in the agency’s general ledger.