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Financial Management: Opportunities for Improving VA's Internal Accounting Controls and Procedures

AFMD-89-35 Published: Aug 11, 1989. Publicly Released: Aug 11, 1989.
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Highlights

GAO reviewed the Department of Veterans Affairs' (VA) financial management systems, focusing on how VA could improve internal accounting controls and financial management.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Veterans Affairs The Secretary of Veterans Affairs should direct the Chief Benefits Director and the Controller to develop a plan for implementing corrective action on the internal control problems that the GAO audit disclosed in the housing credit area. VA requirements for reconciliation of account balances and documentation and proper authorization of accounting transactions are excellent internal control techniques for ensuring the integrity of data contained in the VA financial accounting system. Accordingly, the plan for corrective action should include procedures for ensuring compliance with agency policies and procedures. In addition, the Controller should clarify the policy regarding approval of journal vouchers to require an individual not directly involved in voucher preparation to approve vouchers initiated by the Chief, Accounting Section.
Closed – Implemented
This recommendation is being addressed as part of the most current audit efforts of the VA Office of Inspector General. Because VA is required to continue its audits on an annual basis as a result of the Chief Financial Officers Act of 1990, similar or identical recommendations will be repeated until corrective action has been achieved. Therefore, VA considers prior-year recommendations closed. However, corrective actions continue.

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Topics

Accounting proceduresAccounts receivableElectronic data processingFederal agency accounting systemsFinancial management systemsFinancial recordsPayroll systemsRisk managementVeterans benefitsInternal controls