Greater Audit Coverage of Internal Financial Operations Is Needed

FGMSD-77-3: Published: Nov 19, 1976. Publicly Released: Nov 19, 1976.

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The Veterans Administration's (VA) internal audit operations for fiscal years (FY) 1973 through 1976 were reviewed to determine whether VA maintains effective control over finances and whether its financial reports contain accurate and useful data.

The VA audit effort was directed primarily toward hospitals; however, benefits programs were reviewed to a lesser extent. VA medical programs represent about $3.8 billion, or 21 percent, of the VA $18 billion appropriation for FY 1976, while the benefits programs represented about $13.7 billion, or 74 percent, of the total. Significant financial areas, such as accounting systems, financial statements, and administrative control of funds were not subjected to the important internal control which can be provided by an independent audit. The Internal Audit Service did not identify for correction many of the basic causes that contributed to financial deficiencies it reported.

Recommendation for Executive Action

  1. Status: Closed

    Comments: Please call 202/512-6100 for additional information.

    Recommendation: The Internal Audit Service needs to fully identify all programs within its scope and implement a plan to provide coverage for those programs. VA should assess the audit function to determine needs for planning, staffing, and the location of the Internal Audit Service within VA.

    Agency Affected:

 

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