Report Summary

Title: Audit of VA's Consolidated Financial Statements for Fiscal Years 2012 and 2011
Report Number: 12-01284-13
Issue Date: 1/18/2013
City/State:
VA Office: Office of Information and Technology (OIT)
Office of Management
Report Author: Office of Audits and Evaluations
Report Type: CFS/FISMA Report
Release Type: Unrestricted
Summary: We contracted with the independent public accounting firm, CliftonLarsonAllen LLP (the Contractor), to audit VA’s consolidated financial statements. This audit is an annual requirement of the Chief Financial Officers Act of 1990. The contractor provided an unqualified opinion on VA’s fiscal year 2012 and 2011 consolidated financial statements. With respect to internal control, the Contractor identified one material weakness, information technology security controls, which is a repeat condition. They also reported one significant deficiency, undelivered orders, as a partial repeat condition and retitled it from accrued operating expenses. The department has taken corrective actions sufficient to address the reasonable estimation of the accrued operating expenses portion of unpaid obligations and therefore accrued operating expenses have been removed from the significant deficiency for this year. The department has also taken corrective actions sufficient to eliminate on other significant deficiency, loan guaranty reporting, previously cited last year. The Contractor reported that VA did not substantially comply with the Federal financial management systems requirements of the Federal Financial Management Improvement Act (FFMIA) of 1996. They also noted instances of non-compliance with the Debt Collection Improvement Act of 1996. They referenced a violation of the Antideficiency Act, as identified by the department, and an OIG report citing less than full compliance with the Improper Payments Elimination and Recovery Act. They also noted a potential issue concerning compliance with the CFR and USC sections pertaining to loan guaranty service. The Loan Guaranty Service has requested a legal opinion on the matter from VA’s Office of General Counsel.