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Accounting Flaws Found In Audit Of Va
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Guest Berta
From Ray B Davis----
VETERANS RESOURECES NETWORK
http://www.valaw.org
Accounting Flaws Found at VA
Associated Press | February 03, 2006
WASHINGTON - Eager to reduce spending, the Bush administration falsely
claimed savings of more than $1.3 billion in the Department of
Veterans Affairs to justify cuts to health care services,
congressional investigators say.
The report by the Government Accountability Office is the latest to
document funding woes at the VA, which currently offers health care to
7 million out of 24 million eligible veterans. It found that the
agency used misleading accounting methods and lacked documentation to
prove its claimed savings.
The audit, released Thursday, comes amid growing political debate
about streamlining veterans health care. In the last fiscal year, more
than 260,000 veterans considered to have higher incomes could not sign
up for services because of cost-cutting, a move decried by Democrats.
"It's unconscionable," said Rep. Lane Evans, D-Ill., the ranking
Democrat on the House Veterans' Affairs Committee, who requested the
audit. "Veterans needing health care are being penalized because of an
accounting deception promulgated by this administration."
In a written response, the VA acknowledged that its accounting
practices aren't "perfect" and should be improved. But it rejected the
report's finding that the agency was motivated simply "to fill the
budget gap."
"Proper stewardship of taxpayer resources requires that VA strive to
become more effective and more efficient in delivering timely,
high-quality health care for our veterans," wrote Gordon Mansfield,
deputy secretary of Veterans Affairs.
The GAO report found several flaws in VA's accounting to justify
smaller budget requests for the agency while claiming that the quality
of health care wasn't hurt. For instance, the VA:
-Lacked adequate documentation for $1.3 billion it reported as
"management efficiency savings" in fiscal years 2003 and 2004.
-Claimed savings of more than $3 million due to "efficiencies" from
reduced overtime and delayed hiring at VA offices without explaining
how the savings were achieved without a reduction in the quality of
service.
-Often double-counted savings from volume purchasing in government
contracts from year to year, resulting in overinflated figures. Audits
from the GAO and VA inspector general last year found the VA could
negotiate reduced prices totaling more than $1 billion.
"VA officials told us that the management efficiency savings assumed
were savings goals ... to fill the gap between the cost associated
with VA's projected demand for health care services and the amount the
president was willing to request," the GAO report stated.
In recent years, Bush's budgets have included proposals to require
some veterans to pay a portion of their care with co-payments, but
Congress has repeatedly rejected that idea.
Although Congress has increased VA's budget in recent years, the
agency found itself with a gaping budget hole last year and had to ask
Congress for emergency funding. Veterans groups and some lawmakers say
the agency's increases have been inadequate, but others say the agency
has to set priorities on who gets care.
Congress provided about $23.3 billion for VA medical services for this
fiscal year, above Bush's request, with about $1.2 billion set aside
for when VA declares the money is needed for an emergency.
In 1996 Congress ordered the agency to open health care to nearly all
veterans. However, lawmakers also gave authority to the VA secretary
to suspend enrollments as needed.
Sound Off...What do you think? Join the discussion.
Copyright 2006 Associated Press. All rights reserved. This material
may not be published, broadcast, rewritten or redistributed.
http://www.military.com/NewsContent/0,13319,86987,00.html
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