Quality Control Review of the Management Letter for the Great Lakes St. Lawrence Seaway Development Corporation's Audited Financial Statements for Fiscal Year 2025

Date Issued

Monday, February 23, 2026

Submitting OIG

Department of Transportation OIG

Agencies Reviewed/Investigated

Department of Transportation

Components

Great Lakes St. Lawrence Seaway Development Corporation

Report Number

QC2026015

Report Description

Our Objective(s)To perform a quality control review (QCR) of Allmond & Company, LLC's management letter related to the audit of the Great Lakes St. Lawrence Seaway Development Corporation's (GLS) financial statements for fiscal year 2025. We reviewed Allmond's management letter, 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. Allmond also issued a management letter discussing internal control matters that Allmond was not required to include in its audit report.
What We FoundThe independent auditor, Allmond, found five control deficiencies in GLS's internal controls over financial reporting:

Review of fund balance with treasury reconciliation did not identify errors and omissions,
Complementary user entity controls were not properly designed and implemented for the use of service organization systems,
Non-capitalized assets are not located during the performance of the annual property inventory,
Recording of transactions relating to prior year activity did not use the appropriate general ledger accounts for error corrections,
Accounts payable balance was incomplete.

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 9 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/47148

Open Recommendations

This report has 9 open recommendations.

Recommendation Number	Significant Recommendation	Recommended Questioned Costs	Recommended Funds for Better Use
1	Yes	$0	$0
Update its guidance and procedures to include procedures performed by the reviewer to ensure that all reconciliation procedures have been performed and the reconciliation documentation is complete, accurate, and internally consistent.
2	Yes	$0	$0
Develop a contingency plan that assigns a backup designated point of contact for the Federal Personnel and Payroll System who is trained to perform the required functions and can immediately take over those responsibilities, if needed.
3	Yes	$0	$0
Perform and document, at least monthly, a follow up review of any User Access Request forms that were submitted during that period to verify that the forms were processed in Federal Personnel and Payroll System and access was terminated.
4	Yes	$0	$0
Correct and then regularly update all listings of GLS's non-capitalized assets to enable the agency to quickly and accurately locate all items issued to GLS personnel.
5	Yes	$0	$0
Perform a full inventory of all non-capitalized and capitalized property during its annual physical inventory, including identifying and following up on items that have been reported as lost or stolen or for which the stated location is not accurate.
6	Yes	$0	$0
Develop a process to: a. identify and track all unusual transactions, including corrections relating to prior year activity that were processed during the current fiscal year; b. review the posting logic that was applied within Oracle for each correcting entry to ensure the entries had the intended effect; and c. record reclassification journal entries in the general ledger using the appropriate general ledger accounts for the correction of errors, in accordance with generally accepted accounting principles and Department of Treasury requirements, when appropriate.
7	Yes	$0	$0
Update written standard operating procedures and desk procedures to include the steps to be performed when recording unusual transactions and error corrections within Oracle and any additional actions to be taken, such as the recording of reclassification journal entries.
8	Yes	$0	$0
Update its written procedures or develop a desk procedure that provides detailed guidance or instructions for the calculation of the organization's year-end accounts payable and other accruals.
9	Yes	$0	$0
Develop a look-back analysis or otherwise document its review and assessment of disbursements made early in the subsequent reporting period (i.e., at the beginning of the next fiscal year) to identify items which should have been included in its year-end accounts payable balance and amend the existing accrual, if needed, prior to the preparation of the financial statements.