Audit of VA’s Consolidated Financial Statements for Fiscal Years 2009 and 2008

The Office of Inspector General (OIG) contracted with the independent public accounting firm, Deloitte & Touche LLP (Deloitte), to perform the audit of VA’s FY 2009 and 2008 consolidated financial statements. Deloitte provided an unqualified opinion on those statements and reported four material weaknesses. Three of the four material weaknesses are repeat conditions from the prior year audit and identified as (i) financial management system functionality, (ii) information technology security controls, and (iii) financial management oversight. The fourth material weakness, compensation, pension, and burial liabilities, was identified during the fiscal year 2009. Deloitte reported that VA is not in substantial compliance with the Federal Financial Management Improvement Act (FFMIA) of 1996 because VA did not substantially comply with Federal financial management systems requirements. Deloitte also identified four other instances of non-compliance with law, including a violation of the Antideficiency Act.