WMATA receives independent auditor’s report for FY2014

Written by Jenifer Nunez, assistant editor

The Washing Metropolitan Area Transportation Authority (WMATA) Board of Directors received an independent audit of its FY2014 Financial Statements from McGladrey LLP, which WMATA says is a significant milestone in its work to improve financial management.

 

“This is a very important step forward in getting WMATA’s financial house in order,” said WMATA Board Chairman Mortimer Downey. “We have more work to do to restore our credibility but this independent audit is key to demonstrating our commitment to transparency in our financial reporting to the market, our funders and our stakeholders.”

The independent auditor’s opinion is qualified with respect to WMATA’s restricted net position based on the expectation that some federal capital costs may shift to non-federal sources and vice versa as management and the Federal Transit Administration (FTA) work to conclude ongoing grant analyses, accounting and reconciliations for unreimbursed costs; an issue that was identified in the FTA’s 2014 Financial Management Oversight Report. McGladrey LLP is unable to determine the effect of such changes within WMATA’s Restricted Net Position.

According to McGladrey LLP, except for the matter of Restricted Net Position, WMATA’s financial statements for the year ending June 30, 2014, are “presented fairly, in all material respects, with accounting principles generally accepted in the United States of America.”

“The historic documentation problem is being addressed with new management, new processes and new financial controls that will make WMATA fully compliant with FTA requirements,” said WMATA Chief Financial Officer Dennis Anosike. “These improvements in financial management will make future audits more timely and less problematic.”

 

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