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The Office of Business Oversight (OBO) organization was established in February 2004 as a result of a realignment and consolidation of existing review organizations and functions currently spread throughout the Department.  OBO is organized into a director's office, located in Washington, D.C., and three supporting services, the Management Quality Assurance Service (MQAS), the Systems Quality Assurance Service (SQAS), and the Internal Controls Service (ICS), located in Austin, Texas.  In addition to its oversight and compliance responsibilities, OBO also facilitates the administration of the Department of Veterans Affairs (VA) Finance & Logistics Council.

Previously, throughout the Department there was a lack of separation of responsibility between the policy offices, program offices, and the review groups.  There was not a clear separation of responsibility and authority between the development of policies and procedures and the oversight of compliance with those policies and procedures.  The creation of OBO establishes a clear delineation between establishing policy, implementing programs, and ensuring compliance with policy.  OBO, however, will seek to continually foster communications between the policy, program, and review activities.  Developing a cooperative relationship between these activities is seen as a priority.