Federal Reports

What We Looked AtWe contracted with the independent public accounting firm KPMG LLP to audit the Department of Transportation’s (DOT) consolidated financial statements as of and for the fiscal years ended September 30, 2023, and September 30, 2022. KPMG was required to provide an opinion on those financial statements, report on internal control over financial reporting, and report on compliance with laws and other matters. The contract also required KPMG to perform the audit in accordance with U.S. generally accepted Government auditing standards, Office of Management and Budget audit guidance, and the Governmental Accountability Office’s and Council of the Inspectors General on Integrity and Efficiency’s Financial Audit Manual. We performed a quality control review of KPMG’s report dated November 13, 2023, and related documentation, and inquired of its representatives. What We FoundOur quality control review disclosed no instances in which KPMG did not comply, in all material respects, with U.S. generally accepted Government auditing standards. Our RecommendationsDOT concurred with KPMG’s nine recommendations. We agree with KPMG’s recommendations and are not making any additional recommendations.

We contracted with the independent public accounting firm of Sikich CPA LLC to audit the financial statements of HUD as of and for the fiscal years ending September 30, 2024 and 2023, and to provide reports on HUD’s (1) internal control over financial reporting and (2) compliance with laws, regulations, contracts, and grant agreements and other matters, including whether financial management systems complied substantially with the requirements of the Federal Financial Management Improvement Act of 1996 (FFMIA).  Our contract with Sikich required that the audit be performed in accordance with U.S. generally accepted government auditing standards, Office of Management and Budget audit requirements, and the Financial Audit Manual of the U.S. Government Accountability Office and the Council of the Inspectors General on Integrity and Efficiency.

In its audit of HUD, Sikich reported

That HUD’s financial statements as of and for the fiscal year ending September 30, 2024, were presented fairly, in all material respects, in accordance with U.S. generally accepted accounting principles.

No material weaknesses for fiscal year 2024 in internal control over financial reporting, based on limited procedures performed.

One significant deficiency for fiscal year 2024 in internal control over financial reporting, based on the limited procedures performed.  The significant deficiency was related to HUD’s financial reporting controls over grant accruals. 

No reportable noncompliance issues for fiscal year 2024 with provisions of applicable laws, regulations, contracts, and grant agreements or other matters.

In connection with the contract, we reviewed Sikich’s reports and related documentation and questioned its representatives.  Our review, as differentiated from an audit of the financial statements in accordance with U.S. generally accepted government auditing standards, was not intended to enable us to express and we do not express opinions on HUD’s financial statements or conclusions about (1) the effectiveness of HUD’s internal control over financial reporting; (2) HUD’s compliance with laws, regulations, contracts,  and grant agreements or other matters; or (3) whether HUD’s financial management systems complied substantially with the three FFMIA requirements.  Sikich is responsible for the attached Independent Auditors’ Report, dated November 15, 2024, and the conclusions expressed therein.  Our review disclosed no instances in which Sikich did not comply, in all material respects, with U.S. generally accepted government auditing standards.

HUD’s financial statements are included in HUD’s Agency Financial Report which can be found at  afr2024.pdf.

We found the EPA’s financial statements to be fairly presented and free of material misstatement.