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Summary

On November 13 we issued the final report on the audit of Department of Transportation's (DOT) Consolidated Financial Statements for FYs 2007 and 2006. We concluded that DOT's consolidated financial statements are fairly presented, in all material respects, in conformity with generally accepted accounting principles. The clean (unqualified) opinions signals to the public that the Department has successfully overcome last year's qualified opinion on the Construction in Process (CIP) balance, which is a subcomponent of the Property, Plant, and Equipment line item on the Department's balance sheet. We reported FAA's CIP-related process a continued material weakness. We also reported four significant deficiencies associated with the Department internal controls over Highway Trust Fund agency accounting operations, financial systems controls, DOT information security program, and the Federal Transit Administration grant accrual. In addition, we reported four noncompliance with laws and regulations in the areas of Federal Financial Management Improvement Act, Antideficieny Act, Improper Payments Information Act, and Managerial Cost Accounting Concepts and Standards.

Complete Financial Statements are included in DOT's 2007 Performance and Accountability Report, which also contains a copy of our report beginning on page 202.