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Audit Reports

Date

Quality Control Review of the Management Letter for the National Transportation Safety Board’s Audited Financial Statements for Fiscal Year 2025

Origin
Mandated by the Accountability of Tax Dollars Act of 2002
Project ID
QC2026016
File Attachment
View PDF Document

Our Objective(s)
To perform a quality control review (QCR) of Allmond & Company, LLC’s (Allmond) management letter related to the audit of the National Transportation Safety Board’s (NTSB) financial statements for fiscal year 2025. We reviewed Allmond’s management letter, dated January 7, 2026, and related documentation.

About This Report
We contracted with the independent public accounting firm Allmond to audit NTSB’s financial statements. Allmond also issued a management letter discussing internal control matters that Allmond was not required to include in its audit report.

What We Found
The independent auditor, Allmond, found five internal control matters in NTSB’s management of operations:

  • Financial statements and footnotes did not comply with Office of Management and Budget financial reporting requirements,
  • Improvements needed in internal controls relating to the processing and review of employee benefit assignments,
  • Improvements needed in internal control relating to performance of property inventories,
  • Improvements needed in processing personnel actions, and
  • Accounts payable accrual calculation duplicated expenses that were separately accrued.

Our QCR disclosed no instances in which Allmond did not comply, in all material respects, with U.S. generally accepted Government auditing standards.

Recommendations
We agree with Allmond’s nine recommendations to help strengthen NTSB’s internal controls.

Recommendations

Closed on
No. 1 to NTSB
Document that NTSB's preparation of the financial statements and footnotes is compliant with the most recent version of the financial reporting requirements as of the interim submission deadline stated in OMB Circular A-136, including any revisions required for new reporting requirements, before providing the financial statements and footnotes to external parties.
No. 2 to NTSB
Develop a process for ensuring that all initial and subsequent benefits coverage changes requested by employees are processed timely and accurately.
No. 3 to NTSB
Develop policies and procedures that include the performance of periodic reviews of employees' Official Personnel Folders to ensure that they are complete and accurate.
No. 4 to NTSB
Create and enforce written procedures to review all employee onboarding documents, including documentation received for transferred employees and individuals returning to Federal civilian service, to ensure that the documentation is complete and accurate.
No. 5 to NTSB
Perform and document routine reviews of employees' Official Personnel Folders to verify that payroll and benefits elections are correct, including retirement plan assignments and benefit elections. Take action to correct any errors, including the collection or return of excess employee contributions, when warranted.
No. 6 to NTSB
Verify that all accountable and sensitive property has been located during the agency's annual self-audit process, including educating employees regarding their responsibility to report damaged, lost, and stolen property immediately after a loss has been identified.
No. 7 to NTSB
Develop and implement a follow up procedure to verify that (1) all assets marked for disposal have been moved to a disposal holding area immediately before or after the assets' status is changed to disposal and (2) the disposal of the asset has taken place in a timely manner.
No. 8 to NTSB
Create and enforce agency-specific written policies and procedures that specify how personnel actions should be initiated, reviewed, and submitted. These policies and procedures should specify the roles and responsibilities of human resources personnel relating to this process and the required elements and documentation of management's review of personnel actions prior to submission.
No. 9 to NTSB
Review and revise its current methodology relating to the estimation and recording of accounts payable accruals to ensure that the bases used to calculate these accruals do not include any expense types or amounts for which separate accruals are recorded.