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Summary

We issued a favorable report on DOT’s consolidated financial statements for FY 2004. This is the fourth fiscal year in a row—2001, 2002, 2003, and 2004—that DOT has achieved an unqualified or “clean” opinion on accounts representing year-end assets of about $68 billion, year-end liabilities (debts) of $13 billion, costs of operations (program costs) of $58 billion, and total budgetary resources (available financial resources) of $105 billion. The clean audit opinion signals to users of the financial statements that they can rely on the information presented. Significantly, this year also marked the transition to a new integrated accounting system and the only one at a large cabinet department. FAA deserves credit for addressing significant challenges this year. Highway Trust Fund Agencies need to address financial management and grant oversight issues. Continued executive level attention, backed by skilled resources, will be critical to correct the remaining deficiencies.