Quality Control Review of the Independent Auditor's Report on the Great Lakes St. Lawrence Seaway Development Corporation's Audited Financial Statements for Fiscal Year 2025

Date Issued

Tuesday, January 13, 2026

Submitting OIG

Department of Transportation OIG

Agencies Reviewed/Investigated

Department of Transportation

Components

Great Lakes St. Lawrence Seaway Development Corporation

Report Number

QC2026007

Report Description

Our Objective(s)To perform a quality control review (QCR) of Allmond & Company, LLC's audit of the Great Lakes St. Lawrence Seaway Development Corporation's (GLS) financial statements as of and for the fiscal year ended September 30, 2025. We reviewed Allmond's report, dated January 7, 2026, and related documentation.
About This ReportWe contracted with the independent public accounting firm Allmond & Company, LLC to audit GLS's financial statements, provide an opinion on those financial statements, report on internal control over financial reporting, and report on compliance with laws and other matters.
What We FoundThe independent auditor, Allmond, found one significant deficiency in GLS's internal controls over financial reporting:

Incorrect unit costs resulted in misstatement of the balance of operating materials and supplies.

Our QCR disclosed no instances in which Allmond did not comply, in all material respects, with U.S. generally accepted Government auditing standards.
RecommendationsWe agree with Allmond's five recommendations to help strengthen GLS's internal controls over financial reporting.

Report Type

Audit

Agency Wide

Yes

Number of Recommendations

Questioned Costs

Funds for Better Use

Report updated under NDAA 5274

External Link

https://www.oig.dot.gov/library-item/47042

Open Recommendations

This report has 5 open recommendations.

Recommendation Number	Significant Recommendation	Recommended Questioned Costs	Recommended Funds for Better Use
1	Yes	$0	$0
GLS should amend its procedures relating to the annual count and valuation of OM&S to include verification of unit and total costs. This should include locating or reconstructing source documentation for the total quantity on hand for each item and matching the costs entered in the system to the source documents.
2	Yes	$0	$0
GLS should determine how average costs are calculated within the inventory tracking system. If the average cost in the system for specific inventory items does not represent the average cost of inventory on hand, the average cost in the system should be periodically adjusted when the annual inventory is performed or at year-end.
3	Yes	$0	$0
GLS should tighten its controls relating to personnel's completion of inventory issuance requests so that warehouse personnel are aware when items are checked out and the inventory tracking system can be updated timely.
4	Yes	$0	$0
GLS should implement a procedure (e.g., require two people to sign off on the shipping receipt or bill of lading) for all operating materials and supplies to ensure that the quantity received agrees with the quantity recorded and placed into inventory.
5	Yes	$0	$0
GLS should continue executing its corrective action plan and complete the review of the unit and total costs of inventory items.