Audit of VA's Compliance With the DATA Act

Report Information

Issue Date
Report Number
17-02811-21
VISN
State
District
VA Office
Office of Management (OM)
Report Author
Office of Audits and Evaluations
Report Type
Audit
Recommendations
21
Questioned Costs
$0
Better Use of Funds
$0
Congressionally Mandated
No

Summary

Summary
The OIG contracted with an independent public accounting firm for a performance audit to assess the Department of Veterans Affairs (VA) compliance with the Digital Accountability and Transparency Act of 2014 (DATA Act). The contractor reported that VA did not fully comply with the DATA Act due to weaknesses in VA’s existing financial management systems and internal controls related to source systems, data management, and data reporting processes. As a result, VA did not submit complete, timely, quality, and accurate financial and award data to USASpending.gov for the second quarter of fiscal year 2017. The contractor recommended that VA continue its system modernization efforts and coordinate with VA’s shared service provider to ensure DATA Act requirements will be met. The contractor made 21 recommendations for improving VA’s compliance with DATA Act.

Open Recommendation Image, SquareOpenClosed and Implemented Recommendation Image, CheckmarkClosed-ImplementedNot Implemented Recommendation Image, X character'Closed-Not Implemented
No. 1
Closed and Implemented Recommendation Image, Checkmark
to Office of Management (OM)
We recommend the Acting Assistant Secretary for Management and Acting Chief Financial Officer continue progress with system modernization efforts. Ensure that current and upcoming DATA Act requirements are incorporated so that the detail level requirements for meeting the DATA Act will be made possible as automatic bulk file transmissions going forward.
No. 2
Closed and Implemented Recommendation Image, Checkmark
to Office of Management (OM)
We recommend the Acting Assistant Secretary for Management and Acting Chief Financial Officer establish milestones to monitor VA's system modernization efforts. Coordination with the shared service provider should continue to incorporate current and upcoming DATA Act requirements to ensure that they will be met going forward.
No. 3
Closed and Implemented Recommendation Image, Checkmark
to Office of Management (OM)
We recommend the Acting Assistant Secretary for Management and Acting Chief Financial Officer obtain procurement management system and if feasible, grants management system capabilities that are integrated with the financial system as part of VA's transition to a shared service provider.
No. 4
Closed and Implemented Recommendation Image, Checkmark
to Office of Management (OM)
We recommend the Acting Assistant Secretary for Management and Acting Chief Financial Officer to the extent possible, reduce the amount of journal vouchers to those related to accrual adjustments or one time, unusual Adjusted Trial Balance System (GTAS) trial balance and resolve variances between the two systems. transactions. Journal vouchers recorded should contain data elements required for File B such as the program activity. In addition, if possible, automate efforts to combine FMS journal output files with the MinX-based Governmentwide Treasury Account Symbol
No. 5
Closed and Implemented Recommendation Image, Checkmark
to Office of Management (OM)
We recommend the Acting Assistant Secretary for Management and Acting Chief Financial Officer reduce the extensive use of 1358 obligations, and develop an automated procurement action capturing and reporting mechanism to timely capture all procurement activities greater than $3,500 for the File D1 submission.
No. 6
Closed and Implemented Recommendation Image, Checkmark
to Office of Management (OM)
We recommend the Acting Assistant Secretary for Management and Acting Chief Financial Officer prepare the SBR and ensure reconciliation of File A, SF-133s and the SBR prior to File A submission.
No. 7
Closed and Implemented Recommendation Image, Checkmark
to Office of Management (OM)
We recommend the Acting Assistant Secretary for Management and Acting Chief Financial Officer continue efforts to reduce the number of journal vouchers to those related to accrual adjustments or one time, unusual transactions. Journal vouchers recorded should contain data elements required for File B such as the program activity code and budget object class. In addition, if feasible, automate efforts to combine FMS journal output files with the MinX-based GTAS trial balance and identify and resolve variances between the two systems.
No. 8
Closed and Implemented Recommendation Image, Checkmark
to Office of Management (OM)
We recommend the Acting Assistant Secretary for Management and Acting Chief Financial Officer where feasible, perform validation of MinX journal vouchers as they may contain errors and reside in the ultimate File B submission.
No. 9
Closed and Implemented Recommendation Image, Checkmark
to Office of Management (OM)
We recommend the Acting Assistant Secretary for Management and Acting Chief Financial Officer research and resolve warnings identified by the broker before DATA Act files submission.
No. 10
Closed and Implemented Recommendation Image, Checkmark
to Office of Management (OM)
We recommend the Acting Assistant Secretary for Management and Acting Chief Financial Officer ensure that knowledge of DATA Act processes is not limited to one or a few people, and develop a succession plan to ensure the required expertise and capabilities will continue to remain available before personnel with highly technical and specialized knowledge leave or retire from the agency.
No. 11
Closed and Implemented Recommendation Image, Checkmark
to Office of Management (OM)
We recommend the Acting Assistant Secretary for Management and Acting Chief Financial Officer ensure complete reconciliations between the subsidiary and general ledger systems are performed. Differences should be researched and resolved to improve data accuracy, completeness and quality.
No. 12
Closed and Implemented Recommendation Image, Checkmark
to Office of Management (OM)
We recommend the Acting Assistant Secretary for Management and Acting Chief Financial Officer for all TASes, ensure that amounts can be distinguished between general ledger accounts 4901 and 4902.
No. 13
Closed and Implemented Recommendation Image, Checkmark
to Office of Management (OM)
We recommend the Acting Assistant Secretary for Management and Acting Chief Financial Officer ensure a timely reconciliation process between File A and File B; File B to File C (when applicable); and File B to Files D1 and D2 such that procedures are completed prior to certifying each quarter¿s submission through the broker. Research and resolve variances identified through reconciliation processes.
No. 14
Closed and Implemented Recommendation Image, Checkmark
to Office of Management (OM)
We recommend the Acting Assistant Secretary for Management and Acting Chief Financial Officer maintain documentation to support the various cost allocation methodologies used for aggregating VHA transactions included in File D2. Ensure File D2 VHA aggregated data includes only the required costs for DATA Act submission. Seek formal confirmation from OMB and Treasury that the direct services VHA is reporting should be included in File D2 as financial assistance awards and the employee payroll and File D1 duplicate contract cost data VHA is reporting should or should not be included in File D2 as financial assistance awards
No. 15
Closed and Implemented Recommendation Image, Checkmark
to Office of Management (OM)
We recommend the Acting Assistant Secretary for Management and Acting Chief Financial Officer provide targeted training to address specific issues identified to DATA Act points of contact on USASpending.gov requirements.
No. 16
Closed and Implemented Recommendation Image, Checkmark
to Office of Management (OM)
We recommend the Acting Assistant Secretary for Management and Acting Chief Financial Officer implement PMO oversight of the reports submitted by VBA and VHA's ARC to ensure completeness, timeliness, quality, and accuracy of the information reported.
No. 17
Closed and Implemented Recommendation Image, Checkmark
to Office of Management (OM)
We recommend the Acting Assistant Secretary for Management and Acting Chief Financial Officer implement internal controls related to the proper tracking and accounting for intragovernmental transfers as to their trading partner, type, and nature. Produce reliable subsidiary reports with transfer level details to facilitate management¿s reconciliation and reporting with the trading partner. Any differences between File A and B should be researched and corrected prior to file submission.
No. 18
Closed and Implemented Recommendation Image, Checkmark
to Office of Management (OM)
We recommend the Acting Assistant Secretary for Management and Acting Chief Financial Officer research and identify the root cause of those transactions with default program activity names and implement corrective actions to address those issues. In addition, implement FMS and MinX JV edit checks to ensure all JVs contain the proper program activity name, program activity code and object class code or the JV will not be accepted by the system. The JV reviewer should ensure all those elements are properly recorded and are consistent with OMB A-11 and the President's Budget to improve the accuracy of the data.
No. 19
Closed and Implemented Recommendation Image, Checkmark
to Office of Management (OM)
We recommend the Acting Assistant Secretary for Management and Acting Chief Financial Officer assess the impact of the internal control weaknesses reported and develop corrective actions to address data quality issues at the individual or aggregate transaction level.
No. 20
Closed and Implemented Recommendation Image, Checkmark
to Office of Management (OM)
We recommend the Acting Assistant Secretary for Management and Acting Chief Financial Officer ensure the complete reporting of all required data elements. Establish and develop a process to validate data quality for all DATA Act files on a regular basis prior to file submission
No. 21
Closed and Implemented Recommendation Image, Checkmark
to Office of Management (OM)
We recommend the Acting Assistant Secretary for Management and Acting Chief Financial Officer continue to maintain communication with OMB and Treasury regarding VA¿s data reporting limitations and progress, and document such communication.