Quality Control Review of the Management Letter for the Department of Transportation’s Audited Consolidated Financial Statements for Fiscal Years 2023 and 2022

Date Issued

Wednesday, January 31, 2024

Submitting OIG

Department of Transportation OIG

Other Participating OIGs

Department of Transportation OIG

Agencies Reviewed/Investigated

Department of Transportation

Components

Office of the Special Trustee for American Indians

Office of the Secretary of Transportation

Report Number

QC2024016

Report Description

What We Looked AtThis report presents the results of our quality control review of KPMG LLP’s management letter for its audit, conducted under contract with us, of the Department of Transportation’s (DOT) consolidated financial statements for fiscal years 2023 and 2022. The management letter discusses four internal control matters that KPMG was not required to include in its audit report. What We FoundOur quality control review of the management letter disclosed no instances in which KPMG did not comply, in all material respects, with U.S. generally accepted Government auditing standards. Our RecommendationsKPMG made seven recommendations in its management letter. DOT concurred with all seven recommendations.

Report Type

Audit

Agency Wide

Yes

Number of Recommendations

Questioned Costs

Funds for Better Use

Open Recommendations

This report has 3 open recommendations.

Recommendation Number	Significant Recommendation	Recommended Questioned Costs	Recommended Funds for Better Use
5	Yes	$0	$0
KPMG recommends that ESC management review and update the journal voucher control log reconciliation process to ensure it is properly designed to identify all potential deviations from policy throughout the fiscal year.
6	Yes	$0	$0
KPMG recommends that ESC management create monitoring procedures over the journal voucher control log to ensure complete and accurate documentation over manual journal vouchers is maintained.
7	Yes	$0	$0
KPMG recommends that MARAD management, in conjunction with their accounting service provider, ESC, develop a PP&E roll forward control that contains all activity within the relevant PP&E accounts by disclosure category, including additions, annual cost adjustments, year to date depreciation, capitalizations from construction in progress to other categories, and retirements.