The AICPA’s Governmental Audit Quality Center (GAQC) worked collaboratively with the U.S. Department of Transportation’s Federal Transit Administration (FTA) to assist transit agencies that report to the National Transit Database (NTD) and are required to undergo a “financial data review.”
The culmination of this effort was the issuance of updated agreed-upon procedures (AUP) report illustrations and related guidance for both full and reduced reporter transit agencies.
This effort was undertaken after the FTA issued a reminder to transit agencies in April 2018 about updated NTD requirements for a required "financial data review" engagement. 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 existing FTA illustrative auditor reports for this engagement did not meet professional auditing or attestation standards.
The GAQC 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.