APPENDIX A
MANAGEMENT RESPONSE TO AUDITOR’S REPORT
MEMORANDUM TO: Sal Ercolano
Partner, Clifton Gunderson
FROM: Phyllis F. Scheingberg
Assistant Secretary for Budget and Progams/Chief
Financial Officer
SUBJECT: Management Response - Audit of the Highway Trust Fund's Fiscal Year (FY) 2005 and FT 2004 Financial Statements
The Department is pleased to respond to your audit report on the Highway Trust Fund (HTF) FY 2005 and FT 2004 financial statements. For the seventh consecutive year we have achieved an unqualified audit option for the HTF.
We concur with the two material weaknesses and the instances of noncompliance with laws and regulations contained in your report. Corrective actions have already been initiatd to address these matters. The Department plans to submit a detailed Action PLan to the Inspector General no later than december 31, 2005, to address the findings contained in your report. We agre, in general, with the recommendations listed in the report and will utilize them for several of our corrective action measures.
The achievement of an unqualified audit opinion was accomplished through the joint efforst of your staff and the financial staffs of the Operating Adminstrations (OA). During FY 2005, significant progress was made in correcting the financial management deficiences identified in the FT 2004 and FT 2003 audits. The Department will continue to implement corrective action recommendations provided by Clifton Gunderson in FT 2006.
We are committed to establishing effective internal controls, and will work with the HTF OAs as they continue implementing corrective action measures.
I would like to thank you and your staff for the continuing professionalism you have exhibited during the course of the audit.
