Federal Reports

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.

Our objective was to assess mail delivery services at the Montbello Station in Denver, CO.

DHS developed a strategy to apply 29 lessons learned from prior system updates to the current Financial Systems Modernization (FSM) TRIO program. Since DHS’ actions provides a positive outlook on the future progress of the FSM TRIO project we made no recommendations for improvement. The report’s limited objective and scope does not provide a complete assessment DHS’ efforts to incorporate lessons learned into their recently reinvigorated FSM efforts.

We found that the CSB was fully compliant with improper payments legislation and guidance during fiscal year 2019.We have amended our previous memorandum dated December 19, 2019, to add a sentence stating that our work was not performed in accordance with generally accepted government auditing standards.