Our audit of the Department of Transportation (Transportation), including the Highway Planning and Construction Cluster, for the fiscal year ended June 30, 2025, found:

 

• • proper recording and reporting of all transactions, in all material respects, in the Commonwealth’s accounting and reporting system, Transportation’s internal accounting and reporting systems, and supplemental information and attachments submitted to the Department of Accounts, after adjustment for the misstatement noted in the finding titled “Improve Contract Management Controls Over Contractual Commitments”;

 

• • six matters involving internal control and its operation requiring management’s attention, four of which also represent instances of noncompliance with applicable laws and regulations that are required to be reported under Government Auditing Standards; and

 

• • adequate corrective action with respect to the prior audit findings identified as complete in the Findings Summary included in the Appendix.

 

In the section titled “Internal Control and Compliance Findings and Recommendations” we have included our assessment of the conditions and causes resulting in the internal control and compliance findings identified through our audit as well as recommendations for addressing those findings. Our assessment does not remove management’s responsibility to perform a thorough assessment of the conditions and causes of the findings and develop and appropriately implement adequate corrective actions to resolve the findings as required by the Department of Accounts in Topic 10205 – Agency Response to APA Audit of the Commonwealth Accounting Policies and Procedures Manual.  Those corrective actions may include additional items beyond our recommendation.