METRO. Audit results. September 30, 2017

Transcription

1 METRO Audit results September 30, 2017 This presentation to the Board of Directors is intended solely for the information and use of the Board of Directors and management and is not intended to be and should not be used by anyone other than these specified parties. This presentation is not intended for general use, circulation or publication and should not be published, circulated, reproduced or used for any purpose without our prior written permission in each specific instance.

2 Agenda Audit results and status Internal Control Observations Other Observations Single audit results and status Required communications and other matters 2

3 Fiscal 2017 audit results and status Audit execution Audit was completed in accordance with our professional standards and audit plan Management was helpful and professional Due to computer software conversion, audit timelines were pushed back Audit reports Independent auditors report on the audit financial statements Unmodified opinion Report issued March 14,2018 Single Audit Report In process filing deadline is June 30, 2018 Target completion date is early April 2018 Other deliverables National Transit Database Agreed Upon Procedures Report to the Committee on various matters in accordance with Statement of Auditing Standards No. 114, The Auditors Communication with those Charged with Governance and on internal control matters Report will be issued this month METRO requested and received an extension due to SAP conversion and Hurricane Harvey No findings Communications summarized herein. 3

4 Fiscal 2017 audit results and status (continued) SAP Implementation - METRO converted to the SAP ERP system as of October 1, KPMG and management met early to discuss impact on audit - KPMG performed testwork over implementation including the following: Reviewed the implementation plan which followed the ASAP Implementation Methodology. We also reviewed update documentation. Reviewed documentation regarding METRO s process for testing of configuration and migration of data. Performed analytical reviews to evaluate consistency of account mapping Performed specific testwork over a sample of fixed assets to test data migration from Oracle to SAP. - We did not identify any errors in data we tested within SAP. 4

5 Significant deficiencies and material weaknesses in internal control We test controls for the purpose of our audit procedures. We did not conduct our procedures for the purpose of issuing an opinion on internal controls. Material weaknesses Description None Noted Significant deficiencies Description None Noted 5

6 Other Observations Continued Emphasis on Developing SAP Reporting Proficiencies - Instances were noted where data was unable to be easily be extracted from SAP. - Short-term work-around solutions were identified to complete audit. Recommendation: We recommend that the Authority s management require further training for staff and additional resources should be devoted to ensure the full array of SAP capabilities can be utilized. National Transit Database (NTD) Report - The report covers both financial and operation information - Inefficiencies were noted in the processes to accumulate data for this report. Recommendation: We recommend that management evaluate the processes and systems it currently utilizes for preparing its NTD submission. 6

7 Texas Public Funds Investment Act Texas Public Funds Investment Act Compliance - KPMG reviewed the investment policies for conformity with the Public Funds Investment Act. - Policy updated annually - Policy addresses quality and capability of investment manager - Policy includes a list of the types of authorized investments - Policy includes maximum allowable stated maturity - KPMG selected a sample of purchases of securities to ensure they were approved by an Investment Official. - KPMG ensured Investment officers have attended a training session not less than once in a two-year period. - KPMG ensured the Investment Committee annually reviews and adopts a list of qualified brokers that are authorized to engage in investment transactions with them. 7

8 Single audit results and status 2 Major Programs - Federal Transit Cluster - Transit Services Programs Cluster Testwork is in progress - No findings to date Pending Matters - Complete review process - Issue report - File data collection form with Data Clearinghouse 8

9 Required communications and other matters Type Response Type Response Related parties Mobility payment transactions with City of Houston, Harris County and 14 cities is disclosed in note 7. Other information No material inconsistencies were identified related to other information in the annual report. Illegal acts or fraud None noted. Significant difficulties encountered during the audit Noncompliance with laws and regulations None noted. Disagreements with management or scope limitations Modifications to auditor s report None. Management s consultation with other accountants Group audit considerations Significant issues discussed, or subject to correspondence with, management Subsequent events Wellington Fisher, LTD partnership was terminated in October Bond offering 2017A and 2017B was issued in November Bond offering 2017C was issued in December Difficult or contentious matters for which the auditors consulted External confirmations Material Written Communications between KPMG and Management Engagement letter, management representation letter(s), and management letter Other matters No other matters to report. 9

10 Thank you

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