Quality Control Review of the Independent Auditor's Report on the Surface Transportation Board's Audited Financial Statements for Fiscal Years 2023 and 2022

Submitting OIG:

Department of Transportation OIG

Report Description:

What We Looked At We contracted with the independent public accounting firm Allmond & Company, LLC (Allmond), to audit the Surface Transportation Board’s (STB) financial statements as of and for the fiscal years ended September 30, 2023, and September 30, 2022; 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 required the audit to be performed in accordance with U.S. generally accepted Government auditing standards, Office of Management and Budget audit guidance, and the Government Accountability Office’s and Council of the Inspectors General on Integrity and Efficiency’s Financial Audit Manual. We performed a quality control review (QCR) of Allmond’s report, dated November 6, 2023, and related documentation, and inquired of its representatives. What We Found Our QCR disclosed no instances in which Allmond did not comply, in all material respects, with U.S. generally accepted Government auditing standards. Our Recommendations STB concurred with Allmond’s ten recommendations. We agree with Allmond’s recommendations and are not making any additional recommendations.

Date Issued:

Tuesday, November 14, 2023

Agency Reviewed / Investigated:

Surface Transportation Board

Submitting OIG-Specific Report Number:

QC2024004

Location(s):

Agency-Wide

Type of Report:

Audit

Questioned Costs:

Funds for Better Use:

Number of Recommendations:

Report updated under NDAA 5274:

Additional Details Link:

https://www.oig.dot.gov/library-item/39695

Recommendation Number	Recommendation Status	Significant Recommendation	Additional Details
3	Open	Yes	https://www.oig.dot.gov/library-item/39695
STB management should request its financial management service provider to: Reevaluate the inclusion of account balances that were excluded in the Other Liabilities footnote, or 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.
4	Open	Yes	https://www.oig.dot.gov/library-item/39695
STB management should ensure that its review process includes procedures to disaggregate material balances reported in the financial statements and footnotes, agree balances to source documents, agree the footnotes to the principal financial statements, and verify the mathematical accuracy of all statements and schedules included in the financial statement package.
5	Open	Yes	https://www.oig.dot.gov/library-item/39695
Management’s review and certification of the financial statements and footnotes should be clearly documented and indicate what was reviewed, when the review was performed, and who performed the review for each reporting period.
6	Open	Yes	https://www.oig.dot.gov/library-item/39695
STB should perform a review of 100% of employee benefit elections and Official Personnel Folders (OPFs) to ensure they are complete and accurate.
7	Open	Yes	https://www.oig.dot.gov/library-item/39695
STB should develop policies and procedures that include the performance of periodic reviews of employees’ Official Personnel Folders to ensure that they are complete and accurate.
10	Open	Yes	https://www.oig.dot.gov/library-item/39695
We recommend that STB implement and enforce its existing policies and procedures requiring the periodic review of all open obligations to ensure that closeout of completed contracts, including the de-obligation of funds and return of the balances for any advanced payments, is performed regularly and timely.

Recommendation Number

Recommendation Status

Significant Recommendation

Additional Details

Open

Yes

https://www.oig.dot.gov/library-item/39695

STB management should request its financial management service provider to: Reevaluate the inclusion of account balances that were excluded in the Other Liabilities footnote, or 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.

Open

Yes

https://www.oig.dot.gov/library-item/39695

STB management should ensure that its review process includes procedures to disaggregate material balances reported in the financial statements and footnotes, agree balances to source documents, agree the footnotes to the principal financial statements, and verify the mathematical accuracy of all statements and schedules included in the financial statement package.