Audit of VHA's Financial Management and Fiscal Controls for Veterans Integrated Service Network Offices

We conducted this audit to determine if VHA’s VISN office management controls and fiscal operations promoted the proper stewardship of VA funds. We found VHA lacked budgetary controls and reliable data to monitor VISN offices, evaluate performance relative to operational costs, and ensure the effective and efficient use of funds, leading a 500 percent increase above the estimated $26.7 million at inception. VHA allowed VISN offices to operate independently, believing required fiscal controls were in place. However, growth in the offices’ costs and increases operational costs show VHA needs stronger VISN office fiscal controls. We recommended VHA implement a financial management system and fiscal controls. The Under Secretary for Health agreed with our findings and recommendations and provided appropriate action plans.