The VA Office of Inspector General (OIG) reviewed Veterans Health Administration (VHA) assertions required by the Office of National Drug Control Policy (ONDCP) in its fiscal year 2021 detailed accounting report and budget formulation compliance report.
The OIG’s review was conducted in accordance with generally accepted government auditing standards, which incorporate the attestation standards established by the American Institute of Certified Public Accountants. Those standards require that the OIG plan and perform the review to obtain limited assurance about whether any material modifications should be made to management’s assertions for them to be fairly stated. The OIG believes this review provides a reasonable basis for its conclusion.
In the detailed accounting report, VHA reported three material weaknesses, two significant deficiencies, and five matters concerning noncompliance with laws and regulations, as identified in the OIG report, Audit of VA’s Financial Statements for Fiscal Years 2021 and 2020. A material weakness is a deficiency, or combination of deficiencies, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented or detected and corrected on a timely basis. A significant deficiency is a control deficiency, or a combination of control deficiencies, that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
Based on the OIG’s review, except for the effects, if any, of the matters described in the preceding paragraph, the OIG is not aware of any material modifications that should be made to VHA management’s assertions for them to be fairly stated.