| Dear Center Members: |
| This GAQC Alert should be of interest to members with transit agency clients that are required to report to the Department of Transportation Federal Transit Administration (FTA) National Transit Database (NTD). We are pleased to announce that after working collaboratively with the FTA, the GAQC has released the following:
Read on for more details and how to access this important information. |
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FTA/NTD Background
As noted in GAQC Alert #365, in April 2018, the FTA issued a reminder to transit agencies about updated NTD requirements for a "financial data review" engagement and related auditor reporting for both full and reduced reporter transit agencies. The FTA communication generated questions by both transit agencies and their auditors primarily because (1) the engagements are new for most agencies; and (2) the FTA illustrative auditor reports in the NTD policy manuals for both full and reduced reporters (referred to as the IAS-FD in the NTD policy manuals) do not meet professional auditing or attestation standards.
The GAQC has met several times with FTA staff to better understand the intended objective of the "financial data review" and worked with a small group of member volunteers to develop alternative reporting that the FTA would accept. The culmination of this collaborative process is today's issuance of illustrative AUP reporting and related guidance. The GAQC recommends that auditors use this GAQC guidance in lieu of the illustrative IAS-FD reporting included in the NTD policy manuals since the FTA examples do not meet professional auditing or attestation standards.
Timing of the AUP Engagements
Due to the timing of the issuance of this reporting guidance, FTA has informed the GAQC that it recognizes that there may be challenges for June 30, 2018, year-end transit agencies to transmit this AUP engagement by the October 31, 2018, deadline for other required NTD submissions. Therefore, FTA has indicated it will consider granting extensions on a case-by-case basis upon transit agency request. Any requests for extensions and/or questions about the underlying FTA requirements should be directed to the NTD Operations Staff at NTDHelp@dot.gov or at 1-888-252-0936.
Accessing the GAQC Guidance
GAQC is posting the illustrative reports and related guidance document on its Web site on a new GAQC FTA-NTD Web page and leaving it open to the public so that both auditors and transit agencies can easily access it. If you are engaged to perform one of these AUP engagements, use the links below to access this important information. We suggest that you read the guidance document first as it discusses information on the process used to develop the reports, the management assertions, the various FTA Forms, and more.
- Access the GAQC guidance document "Background for Performing "Financial Data Reviews" Under the 2018 NTD Policy Manual for Full Reporters and 2018 NTD Reduced Reporter Policy Manual and Related Illustrative Agreed-Upon Procedures Reports."
- Access the GAQC full reporter AUP illustration titled, "GAQC Illustrative Agreed-Upon Procedures Report for Full Reporter to Meet the Requirements of the 2018 National Transit Database (NTD) Policy Manual for a Financial Data Review."
- Access the GAQC reduced report AUP illustration titled, "GAQC Illustrative Agreed-Upon Procedures Report for Reduced Reporter to Meet the Requirements of the 2018 National Transit Database (NTD) Policy Manual for a Financial Data Review."
We hope you find this information helpful. As always, thank you for your commitment to governmental audit quality. * * * * *
Sincerely,
AICPA Governmental Audit Quality Center |
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