You're joining different years without taking into account the system_id. You need something like:

Code:
CREATE OR REPLACE VIEW CURRENT_VIEW 
  (FISCAL_YEAR,
   SA_ID,  
   SYSTEM_ID,
   STATUS_CODE
   )
AS 
   SELECT fiscal_year,
      SA_ID,
      SYSTEM_ID,
      STATUS_CODE
      FROM ASSESSMENT
   WHERE (system_id, fiscal_year) IN 
      (SELECT system_id, max(fiscal_year) 
       FROM assessment 
       GROUP BY system_id)
   ORDER BY system_id