Our Objective(s)To perform a quality control review (QCR) of KPMG LLP's management letter related to the audit of the Federal Aviation Administration's (FAA) consolidated financial statements as of and for the fiscal years ended September 30, 2024, and September 30, 2023. We reviewed KPMG's management letter, dated November 27, 2024, and related documentation.
About This ReportWe contracted with the independent public accounting firm KPMG to audit FAA's consolidated financial statements. KPMG also issued a management letter discussing internal control matters that KPMG was not required to include in its audit report.
What We FoundThe independent auditor, KPMG, found 12 internal control matters in FAA's management of operations. Two of the matters are related to DOT's internal controls and, although they affect FAA's control environment, FAA is not required to take corrective actions. The remaining 10 internal control matters are weaknesses in FAA's:
procurement system separation of users,
procurement system new user and recertification processes,
timely recording of procurement
accounting for costs incurred in projects with both construction and operating
and accuracy of intragovernmental lease payments
over the timely deobligation of grant undelivered orders,
calculation of non-letter of intent and additional Infrastructure Investment and Jobs Act grant accruals, and
Headquarters review of manual journal vouchers.
In addition, documentation weaknesses exist in the Enterprise Services Center's review of FAA journal entries, and
FAA has an insufficient number of personnel to support the annual recertification of payroll system users.
Our QCR disclosed no instances in which KPMG did not comply, in all material respects, with U.S. generally accepted Government auditing standards.
RecommendationsWe agree with KPMG's 15 recommendations to strengthen FAA's information technology and service organization system, business process, and manual journal voucher controls.