In FY 2008, the Dept. of Veterans Affairs (VA) identified three material internal control weaknesses over financial reporting ¿ financial management system functionality, IT security controls, and financial management oversight. VA is developing a new financial system, but full implementation is not expected until 2014. This report addresses: (1) the nature of the internal control weaknesses identified in the VA FY 2008 financial audit report and how long they have been outstanding; (2) whether VA had plans appropriately focused on near-term corrective actions; and (3) whether VA had appropriate oversight mechanisms in place to help assure that near-term corrective action plans are implemented on schedule. Charts and tables.