EXHIBIT IV
Independent Auditors' Report
Status of Prior Year Findings
STATUS OF PRIOR YEAR MATERIAL WEAKNESSES, REPORTABLE CONDITIONS, AND NON-COMPLIANCE WITH SIGNIFICANT LAWS AND REGULATIONS
| Prior Year Condition | As Reported At September 30, 2005 | Status As Of September 30, 2006 |
|---|---|---|
| Financial Accounting Processes Do Not Fully Support Financial Management or Facilitate the Timely Preparation of Accurate Financial Statements | Material Weakness:
|
The issues related to suspense accounts and Fund Balance with Treasury are downgraded to a reportable condition. The remaining issues have been closed. |
| Grants Financial Management Oversight | Material Weakness: Management did not have a systemic process in place to ensure that grant payments were properly supported. In addition, FHWA management did not properly monitor UDO balances to ensure they were valid. |
The issue related to UDOs has been downgraded to a reportable condition. The remaining issues have been closed. |
| Federal Lands Highway Program Transaction Processing and Reconciliation | Reportable Condition: Federal Lands Highway program transaction processing and reconciliations were not properly supported. |
The issue has been closed. |
| Information Technology Control Weaknesses | Reportable Condition: Information Technology Control Weaknesses |
The issues are repeated as a reportable condition. |
| Non-compliance with Laws and Regulations |
|
The FFMIA financial systems issues are repeated as instances of non-compliance. The remaining issues have been closed. |
