Audit of VA’s Financial Statements for Fiscal Years 2022 and 2021

The VA Office of Inspector General (OIG) contracted with the independent public accounting firm CliftonLarsonAllen LLP (CLA) to audit VA’s financial statements as of September 30, 2022 and 2021, and for the fiscal years then ended. CLA provided an unmodified opinion on VA’s financial statements for fiscal year (FY) 2022 and FY 2021. CLA did, however, note material weaknesses and significant deficiencies in internal control and instances of noncompliance with laws and regulations. Regarding internal control, CLA identified three material weaknesses. A material weakness is a deficiency, or combination of deficiencies, in internal control over financial reporting 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. CLA also identified two significant deficiencies. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control over financial reporting that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. CLA is responsible for the attached audit report dated November 15, 2022, and the conclusions expressed in the report. The OIG does not express opinions on VA’s financial statements, internal control, or compliance with FFMIA, nor does the OIG express conclusions on VA’s compliance with laws and regulations. The independent auditors will follow up on these internal control and compliance findings and evaluate the adequacy of corrective actions taken during the FY 2023 audit of VA’s financial statements.