The U.S. Department of Veterans Affairs is a federal government agency which provides services and programs that benefit veterans and their family members. The department offers educational opportunities, rehabilitation and compensations for disabilities or deaths that occur during military service as well as it offers loan guaranties, pensions and healthcare services. The department is government funded and I will be presenting an analysis of its comprehensive annual financial report for the financial year 2016-2017.
The CAFR begins by introducing its progress statistically presenting growth in its support services. The statistical presentation shows the increase in number of all beneficiaries as an attribute of the department. Moreover, the report presents the mission of the department which is touching and continues to analyze the management and specifically the organization structure which it is structured to provide its services strategically for the countries veterans. There are discussions of government performance, objectives and goals of the department which are directly co-aligned with improving the department’s service delivery and building trust through accountability and transparency. Also, this section evaluates how Government Accounting Organization Standards (GAO) has been adhered as well as the use of Generally Accepted Accountings Principles (GAAPS) used in the financial framework. The internal controls are effective since the department’s adherence to law is paramount e.g. compliance with Federal Financial Management Improvement Act (1996), Anti-Deficiency Act, Prompt Payment Act etc.
This section aims to provide information to the public and the government so as to understand the department’s budgetary process and how finances are used. It involves the financial section, management discussions and the auditor’s statements. The auditor’s report examined and gives an independent view about the usefulness of the financial information to ensure that all services were adhered following all financial reporting procedures
The entity and non-entity assets of the departments have risen by 2.2% ($2billion) indicating improvement in capacity to handle its services. There is also a decrease in estimated liabilities by $17.1 billion due to revised models for estimating the liabilities and the effective analysis of subsequent events by independent auditors. The trust fund balances have reduced since the treasury. The financial year also experiences an increase in the number of the guaranteed loans disbursed compared to the previous financial year. Moreover, the departments Property, plant and equipment rose (PPE) to $25.2 billion which meant good services delivery and adequacy in financial reporting. The budgetary resources have increased due to the transaction-like activities, intergovernmental transfers and collections from the public as well as increase in guarantee services.All financial information has been accompanied with notes which describe specifically the activities that were carried pertaining to any financial activities of the department. Also, it explains what financial procedures were adhered to while preparing the financial reports of the department.
The CAFR of the Department Of Veterans Affairs is in good financial standing due to increased trust funds from the Treasury and high assets of about $25.2 billion compared to FY2016. The report is informative and will be helpful to the public and the government to understand how funds are allocated and used to run the department.