MoDOT receives top financial rating from auditing firm

The Missouri Department of Transportation has received the top financial rating from an independent auditing firm. KPMG of Kansas City told Missouri Highways and Transportation Commission officials Oct. 31 that it had given the department's financial statements its best rating, an "unqualified opinion."

"From an accounting standpoint, this is as good as it gets," said Drew Blossom, a partner with KPMG, in a MoDOT release. "An unqualified opinion' means MoDOT's figures present the department's financial position fairly."

Blossom also said that KPMG had no significant recommendations for changing the department's procedures.

"This audit is good news for Missourians. It shows we have tremendous assets in our state highway system, and that MoDOT is very responsible in handling its finances," said Jim Anderson, chair of the commission's audit committee.

Commissioner Duane Michie, a member of the commission's audit committee, said the rating shows that MoDOT is accountable. "The numbers are accurate, complete and thorough and people can have confidence in them. This is what public trust is all about," he said.

According to the release, this is the first year government agencies like MoDOT are required to include the value of fixed assets and infrastructure, like highways and bridges, in the financial process. Auditors said it would take $65 billion to replace the state's more than 32,000-mile highway system and its more than 10,000 bridges.

The state system, now valued at $25 billion, depreciates at a rate of $993 million a year, which means the department should spend at least that much each year just to maintain the value of the existing system.

KPMG's audit examined a variety of financial aspects, including the value of the department's assets, depreciation, inventory, funding going to other agencies and payroll processes, and how it links with the state's financial system.

"Each year, MoDOT's processes get a little better," Blossom said. State law requires an annual independent audit of MoDOT's finances. KPMG has audited MoDOT for the past five years. KPMG, which has national and international experience in working with government agencies and other transportation departments, said MoDOT is a leader in implementing the new government financial standards.