Federal Reports

An Electrical Technician based in Washington, D.C., was arrested for driving more than 100 miles per hour while pursued by police and passing vehicles on the shoulder. He was charged with driving under the influence and other driving violations. He was held without bond on December 18, 2024, and remains incarcerated until his jury trial scheduled for March 17, 2025. While incarcerated, he applied for leave under the Family Medical Leave Act and failed to report his arrest to the company. The former employee resigned on January 29, 2025. He is ineligible for rehire.

Ernesto Ruiz of Orlando, Florida, pleaded guilty on January 29, 2025, in the Circuit Court of Orange County, State of Florida, to fraudulent use of a credit card. The same day, Ruiz was sentenced to one day incarceration and ordered to pay a special assessment of $618. Our investigation found that Ruiz and codefendant Eric Cardenas were part of a sophisticated credit card fraud ring operating throughout central Florida. They used fraudulently obtained credit cards, to include an Amtrak Wright Express Corporation (WEX) card, to purchase fuel.

Cardenas previously pleaded guilty and was sentenced in November 2024.

Our Objective(s)To perform a quality control review (QCR) of KPMG LLP's management letter related to the audit of DOT's 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, LLP, to audit DOT'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 six internal control matters in DOT's management of operations.

Federal Highway Administration's (FHWA) weaknesses within the user profile system change management process.
FHWA's weakness in accounting policies for Federal Lands Highway construction.
Enterprise Services Center's (ESC) weakness in control over Central Accounting Reporting System Classification, Transactions, and Accountability module reconciliation.
ESC's weakness in control over quarterly review of the journal voucher control log.
OST's weakness in control over management legal schedule and management legal letter.
FHWA's weaknesses in controls over the inputs to the Federal aid grant accrual.

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 11 recommendations to strengthen DOT's information system and business process controls.

Our Objective(s)To perform a quality control review (QCR) of Allmond & Company, LLC's (Allmond) management letter related to the audit of NTSB's financial statements as of and for the fiscal years ended September 30, 2024, and September 30, 2023. We reviewed Allmond's management letter, dated November 6, 2024, and related documentation.
About This ReportWe contracted with the independent public accounting firm Allmond to audit NTSB'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 three internal control matters in NTSB's management of operations.

NTSB does not have agency-specific written policies and procedures for processing personnel actions.
NTSB does not review the Official Personnel Folders of transferred employees and employees returning to Federal service to verify the employees' payroll and benefits information is accurate and supported by appropriate documentation
NTSB does not have a procedure to validate upward and downward adjustment activity in the general ledger and to make the necessary corrections to ensure that both the upward and downward adjustment balances are accurate.

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 seven recommendations to help strengthen NTSB's internal controls.