Financial Audit

Veterans Administration's Financial Statements for Fiscal Years 1988 and 1987 Gao ID: AFMD-89-69 September 15, 1989

GAO examined the Veterans Administration's (VA) consolidated financial statements for the fiscal years ended September 30, 1988 and 1987, and the related consolidated statements of operations and changes in financial position and reconciliation to budget for the fiscal years then ended.

GAO found that the consolidated financial statements presented fairly the financial position of VA as of September 30, 1988 and 1987, the results of its operations, and the changes in its financial position and reconciliation to budget for the fiscal years then ended, in conformity with generally accepted accounting principles. GAO qualified its opinion, since: (1) VA did not have the documents supporting the original cost of land, buildings, and equipment which it acquired over periods dating back to its establishment in 1930; (2) although VA made significant improvements in transferring project costs from work-in-process to completed facilities, it still kept manual accounting records for land and buildings, which had errors in recorded values; (3) the financial statements reflected statutorily calculated life insurance reserves, rather than reserves calculated in accordance with generally accepted accounting principles; and (4) the VA housing credit program experienced financial problems that may require assistance beyond that identified in its current appropriation request.

Recommendations

Our recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.

Director: Team: Phone:


The Justia Government Accountability Office site republishes public reports retrieved from the U.S. GAO These reports should not be considered official, and do not necessarily reflect the views of Justia.