Improving Controls over Obligations
- In fiscal year 2007, VHA used miscellaneous obligations to record over $6.9 billion against its appropriations for the procurement of goods and services, such as fee-based medical and dental services, as well as drugs and hospital supplies.
- VA policies and procedures were not designed to provide adequate controls over the use of miscellaneous obligations.
- This lack of adequate controls increases the risk for fraud, waste, and abuse at VHA.
^ Back to topWhat Needs to Be Done
To reduce the risks associated with the use of miscellaneous obligations, VA should develop and implement policies and procedures consistent with federal appropriations law and internal control standards that
- establish a process for the review of miscellaneous obligations by contracting officials, including requiring appropriate documentation that the review has occurred;
- segregate duties for
- creating, approving, and recording miscellaneous obligations,
- the certification and payment of invoices, and
- the receipt of the resulting goods or services;
- document the purposes, vendors, and contract numbers of miscellaneous obligations; and
- establish an oversight mechanism to ensure that these control polices and procedures are fully and effectively implemented.
Highlights of GAO-08-976 (PDF)
^ Back to topKey Reports
- Veterans Health Administration: Improvements Needed in Design of Controls over Miscellaneous Obligations
- GAO-08-976, September 11, 2008
- Summary (HTML) Highlights Page (PDF) Full Report (PDF, 43 pages) Accessible Text Recommendations (HTML)
- Veterans Health Administration: Improvements Needed in Design of Controls over Miscellaneous Obligations
- GAO-08-1056T, July 31, 2008
- Summary (HTML) Highlights Page (PDF) Full Report (PDF, 36 pages) Accessible Text
