Summary: Pursuant to a congressional request, GAO reviewed the Veterans Administration's (VA) financial management systems to: (1) identify and describe the automated financial management systems; (2) identify internal control and automatic data processing (ADP) problems in selected systems; (3) review VA initiatives to strengthen financial management; and (4) rank the importance of the automated financial system projects now being developed.
GAO found that: (1) VA managers were not getting reliable financial information needed to effectively carry out and report on the financial aspects of VA program and administrative operations; (2) VA did not maintain a consolidated agencywide ledger; (3) the systems that support planning for medical facility construction projects did not produce timely, accurate information needed to develop effective plans; and (4) budget development timeframes precluded the use of the actual financial results of the preceding year's program. GAO also found that: (1) VA financial management systems did not support effective internal controls; (2) general ADP controls did not support the accurate processing of financial information; (3) tests of new or modified computer programs were not adequate to ensure that programs were implemented properly; (4) controls over information received for processing could not ensure that all information was actually processed; and (5) VA planned a 5-year ADP and telecommunications project for the development of 52 major automated systems and 5 major procurements of computer and other ADP equipment.
