Quality Control Review of the Management Letter for the Federal Aviation Administration’s Audited Financial Statements for Fiscal Years 2022 and 2021

Date Issued

Wednesday, February 8, 2023

Submitting OIG

Department of Transportation OIG

Other Participating OIGs

Department of Transportation OIG

Agencies Reviewed/Investigated

Department of Transportation

Components

Federal Aviation Administration

Report Number

QC2023018

Report Description

What We Looked AtThis report presents the results of our quality control review (QCR) of the management letter that KPMG issued on its audit, under contract with us, of the Federal Aviation Administration’s (FAA) consolidated financial statements for fiscal years 2022 and 2021. This management letter discusses internal control matters that KPMG was not required to include in its audit report. What We FoundOur QCR disclosed no instances in which KPMG did not comply, in all material respects, with U.S. generally accepted Government auditing standards. RecommendationsKPMG made 17 recommendations to FAA in its management letter. FAA concurred with all 17 recommendations.

Report Type

Audit

Agency Wide

Yes

Number of Recommendations

Questioned Costs

Funds for Better Use

Open Recommendations

This report has 6 open recommendations.

Recommendation Number	Significant Recommendation	Recommended Questioned Costs	Recommended Funds for Better Use
3	Yes	$0	$0
KPMG recommends that FAA management perform a risk assessment to consider the potential impact of discrepancies between vendor-submitted invoice web portal amounts and the vendor-submitted supporting documentation, and respond to the level of risk identified as appropriate.
12	Yes	$0	$0
KPMG recommends that FAA management design and implement controls to ensure that the population generated to support the disclosure of future minimum lease payments is complete and accurate.
14	Yes	$0	$0
KPMG recommends that FAA management design and implement control activities to monitor the effective operation of its process controls related to provisioning new payroll shared service center access requests.
15	Yes	$0	$0
KPMG recommends that FAA management develop policies and procedures for maintaining completed and authorized payroll shared service center access forms for new user access requests in a secure centralized location.
16	Yes	$0	$0
KPMG recommends that FAA management design and implement control activities to monitor the effective operation of its process controls related to monitoring FAA employees’ payroll shared service center access.
17	Yes	$0	$0
KPMG recommends that FAA management take measures to ensure that FAA has sufficient control operator personnel available to support the annual recertification of FAA employees with payroll shared service center access within the reporting timeline prescribed by DOT.