Quality Control Review of the Management Letter for the Federal Aviation Administration's Audited Consolidated Financial Statements for Fiscal Year 2025

Date Issued

Wednesday, February 25, 2026

Submitting OIG

Department of Transportation OIG

Agencies Reviewed/Investigated

Department of Transportation

Components

Federal Aviation Administration

Report Number

QC2026017

Report Description

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) financial statements for fiscal year 2025. We reviewed KPMG's management letter, dated January 28, 2026, and related documentation.
About This ReportWe contracted with the independent public accounting firm KPMG to audit FAA's 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 four internal control matters in FAA's management of operations:

Weaknesses in documenting review of FAA procurement system users during non-routine provisioning,
Weaknesses in the recording of right-to-use leases,
Weaknesses in ESC's review of manual journal entries,
Untimely review of year-end journal vouchers.

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 four recommendations to help strengthen FAA's information technology and service organization system and business processes.

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/47153

Open Recommendations

This report has 4 open recommendations.

Recommendation Number	Significant Recommendation	Recommended Questioned Costs	Recommended Funds for Better Use
1	Yes	$0	$0
Establish policies and procedures for granting procurement system access to users provisioned outside of the recurring new user process, including documented justification and approval by a system administrator.
2	Yes	$0	$0
Provide additional resources or training for appropriately assessing and recording lease terms with similar circumstances in accordance with existing policies and procedures.
3	Yes	$0	$0
Consider designing modified financial reporting controls as part of government furlough planning and reassess the nature of journal vouchers requiring the Director of Financial Management review.
4	Yes	$0	$0
Communicate to journal voucher preparers and reviewers a reminder regarding their responsibility to review supporting documentation for indicators of intragovernmental transactions and ensure trading partner attributes are included as appropriate while preparing and reviewing manual journal vouchers.