VHA Did Not Effectively Oversee the Use of Manual Journal Vouchers

Report Information

Issue Date
Report Number
25-00451-200
VA Office
Veterans Health Administration (VHA)
Report Author
Office of Audits and Evaluations
Report Type
Audit
Report Topic
Financial Management
Major Management Challenges
Stewardship of Taxpayer Dollars
Recommendations
4
Questioned Costs
$0
Better Use of Funds
$0
Congressionally Mandated
No

Summary

Summary

From October 2023 through September 2024, VHA processed almost 114,000 manual journal vouchers, representing about $71.2 billion in healthcare-related accounting transactions. Manual journal vouchers are used to record salary accruals, expenditure transfers, and other adjustments where processing cannot be automated. Although these journal vouchers are intended to support accurate records, they introduce the risk of error and misclassification because they rely on manual input, a vulnerability the OIG has highlighted in the past.

The OIG found that staff at 172 medical centers did not follow VHA financial policy in processing manual journal vouchers. The OIG estimated that 76 percent of manual journal vouchers lacked one or more required elements, such as clear justification, and estimated that at least $27 billion in transactions were processed using manual journal vouchers that lacked the required documentation or approvals. Reasons included limited staff training, ineffective use of a journal voucher generator tool, and inconsistent oversight at the regional level of medical facilities’ financial teams. Some staff reported never receiving formal journal voucher training, and no refresher training or onboarding instruction was required. Moreover, use of the tool was not mandatory, and some staff used outdated versions or used the tool incorrectly. In terms of regional financial managers, their responsibilities were not clearly delineated. Oversight was therefore inconsistent, with limited monitoring of facility compliance. As a result, a large volume of transactions were at elevated risk of misstatement.

The OIG recommended developing a plan to ensure manual journal vouchers are justified, documented, and approved before they are entered into the Financial Management System (VA’s official system of record), and then reviewed after posting. In addition, VHA should require ongoing training, clarify use of journal voucher tools, and define clear oversight responsibilities for regional financial managers. VHA concurred with all four recommendations.

Open Recommendation Image, SquareOpenClosed and Implemented Recommendation Image, CheckmarkClosed-ImplementedNot Implemented Recommendation Image, X character'Closed-Not Implemented
No. 1
Open Recommendation Image, Square
to Veterans Health Administration (VHA)

Develop a plan to ensure manual journal vouchers are justified, documented, and approved before they are entered into the Financial Management System and that they are reviewed after posting to verify accuracy and support compliance, transparency, and audit readiness.

No. 2
Open Recommendation Image, Square
to Veterans Health Administration (VHA)

Require ongoing training for all staff who prepare, review, or approve manual journal vouchers, including a process to ensure that new employees complete initial training and that refresher courses are provided when policies or tools are updated.

No. 3
Open Recommendation Image, Square
to Veterans Health Administration (VHA)

Clarify expectations for using macro-enabled journal voucher tools by defining when the standardized macro must be used; establishing a process to communicate macro tool updates and prompt the adoption of newly released versions; and providing guidance, training, and user support to promote correct and consistent application of the tools.

No. 4
Open Recommendation Image, Square
to Veterans Health Administration (VHA)

Define and communicate clear oversight responsibilities for Veterans Integrated Service Network financial managers by requiring routine monitoring of documentation and compliance at facilities.