Audit of VA’s Financial Statements for Fiscal Years 2019 and 2018

The OIG contracted with the independent public accounting firm CliftonLarsonAllen LLP (CLA) to audit VA’s financial statements for the prior two fiscal years: 2019 and 2018. CLA provided an unmodified opinion on VA’s financial statements and identified five material weaknesses concerning controls over significant accounting estimates and transactions; accrued liabilities, undelivered orders, and reconciliations; financial systems and reporting; information technology security; and entity-level controls. The audit also identified instances of noncompliance with laws and regulations, including substantial noncompliance with federal financial management systems’ requirements and the United States Standard General Ledger mandates at the transaction level under the Federal Financial Management Improvement Act. The independent auditors will follow up on these findings in the fiscal year 2020 audit of VA’s financial statements and evaluate the adequacy of corrective actions taken.