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As noted in GAQC Alert #365, in April 2018, the Federal Transit Administration (FTA) issued a reminder to transit agencies about updated National Transit Database (NTD) reporting requirements that included a “financial data review” and related auditor reporting for the 2018 NTD Report Year for both full and reduced reporter transit agencies. The FTA communication has generated a lot of interest and questions by both transit agencies and their auditors primarily because the engagements are new for most agencies and due to the fact that the illustrative auditor report for the financial data review contained in the NTD Policy Manuals for both full and reduced reporters (referred to as IAS-FD in the NTD Policy Manuals) do not meet professional auditing or attestation standards.
The GAQC met 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 the GAQC issuance of the illustrative agreed-upon procedures reports and related guidance listed below. The GAQC recommends that auditors use this 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. Use the links below to access this important information. Also see GAQC Alert #368 for more details.
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
Illustrative AUP Report (Full Reporters) – Word Document
Illustrative AUP Report (Reduced Reporters) – Word Document