Audit of VA’s Compliance under the DATA Act of 2014

View Report

Date Issued

Monday, November 8, 2021

Submitting OIG

Department of Veterans Affairs OIG

Other Participating OIGs

Department of Veterans Affairs OIG

Agencies Reviewed/Investigated

Department of Veterans Affairs

Components

Office of the Secretary

Report Number

20-04237-09

Report Description

The VA OIG contracted with the independent public accounting firm CliftonLarsonAllen LLP (CLA) to audit VA’s compliance under the Digital Accountability and Transparency Act of 2014 (DATA Act). CLA conducted this performance audit with data sampled from the fourth quarter of fiscal year (FY) 2020, in accordance with Generally Accepted Government Auditing Standards. CLA primarily conducted its audit work during FY 2021, and the results of the audit are presented in the attached report. The VA OIG does not express an opinion on VA’s compliance under the DATA Act.

Report Type

Audit

Agency Wide

Yes

Number of Recommendations

Questioned Costs

Funds for Better Use

Open Recommendations

This report has 4 open recommendations.

Recommendation Number	Significant Recommendation	Recommended Questioned Costs	Recommended Funds for Better Use
01	Yes	$0	$0
Continue the system modernization efforts that provide VA with the capability to generate the required DATA Act reporting files containing the necessary elements to meet compliance with the DATA Act. Ensure the modernization will provide the following: a. Accurate reporting of object class, program activity codes, program activity names, and all other elements required by the DATA Act. b. Award identification to allow VA to be able to develop a File C and reconcile the File C to both summary level data (Files A and B) and award level data (File D). c. Reconciliations with subsidiary systems. d. A mechanism to ensure transactions are reported that currently may be excluded due to the use of 1358s. e. Standardized data fields to allow management to record an award ID across financial and supporting systems. f. Subsidiary systems that are consistent with USSGL or adequately mapped to USSGL to ensure transactions contain the necessary data elements/field required to meet DATA Act reporting. g. Differentiation between direct and reimbursable amounts.
03	Yes	$0	$0
3. Improve researching of all root causes of differences between the VBA source systems and the monthly GTAS balances as part of their File B reconciliations. Also, differences should be accumulated and assessed at an aggregate level. The total differences either allocated to programs, reclassified out of other programs, or attributed to MinX JVs should be researched and reported as part of the SAO sub-certification process.
04	Yes	$0	$0
Continue mapping efforts and ensure programs without entitlement codes are recorded with the correct program activity codes and names rather than defaulting to Compensation.
09	Yes	$0	$0
Investigate potential controls or processes that could identify 1358s that should be reported until the system modernization can implement a solution.