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November 15, 2023

Quality Control Review on the Independent Auditor’s Report on the Department of Transportation’s Audited Consolidated Financial Statements for Fiscal Years 2023 and 2022

Required by the Chief Financial Officers Act of 1990
Project ID: 
QC2024007
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) consolidated financial statements as of and for the fiscal years ended September 30, 2023, and September 30, 2022. KPMG was required to provide an opinion on those financial statements, report on internal control over financial reporting, and report on compliance with laws and other matters. The contract also required KPMG to perform the audit 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. We performed a quality control review of KPMG’s report dated November 13, 2023, and 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.
 
Our Recommendations
DOT concurred with KPMG’s nine recommendations. We agree with KPMG’s recommendations and are not making any additional recommendations.

Recommendations

Open

Closed

No. 1 to FTA

KPMG recommends that FTA management evaluate the COVID-19 grant programs and develop an estimation methodology responsive to the nature of the program and expected drawdown patterns.

No. 2 to FHWA

KPMG recommends that FHWA management consider the increased IIJA funding and subsequent increase in expenses and develop an estimation methodology responsive to fluctuations in future expenses.

No. 3 to FHWA

KPMG recommends that FHWA management review and update accounting policies and operating procedures to capitalize costs for the construction and procurement of non-heritage fixed assets on behalf of FLMA partners.

No. 4 to FHWA

KPMG recommends that FHWA management establish and maintain communications channels with FLMA partners and establish protocols for communicating asset-level detail for projects required by each agency’s property accountants.

No. 5 to FHWA

KPMG recommends that FHWA management perform an assessment of costs expensed for completed fixed asset construction projects to determine materiality and record correcting accounting entries as needed.

No. 6 to OST

KPMG recommends that DOT management perform procedures to consistently approve and document new or modified user account and recertification requests and timely remove separated users as required by internal policy and standards for effective internal control systems.

No. 7 to OST

KPMG recommends that DOT management update policies and procedures to assign backup responsibilities for control operators.

No. 8 to OST

KPMG recommends that DOT management provide training to system administrators on documented procedures.

No. 9 to OST

KPMG recommends that DOT management conduct monitoring to assess whether control operators are performing control activities in accordance with policy.