Audit of VISN 8 Supply Chain Management

The VA OIG conducted an audit of supply chain management at VA medical facilities in Miami, Orlando, and Gainesville, Florida. The review assessed whether facility and network leaders effectively oversaw supply chain activities and followed Veterans Health Administration policies. The audit focused on four areas that had recurring weaknesses identified in prior audits: expendable supplies, nonexpendable equipment, supply chain leadership, and warehouse and distribution controls.

Overall, all three facilities did not consistently meet requirements for managing expendable supplies and nonexpendable equipment. These shortcomings were tied to gaps in oversight and monitoring. As a result, facilities risked using expired products as well as losing supplies or equipment.

For expendable supplies, the audit identified $3.1 million in funds that could be put to better use due to inaccurate inventories. Facility staff did not always record supply use in real time, and some storage areas at the Miami and Gainesville facilities were not properly secured. Inaccurate supply records increase the risk of expired items, unnecessary purchases, and delays in patient care when supplies cannot be located.

For nonexpendable equipment, the team estimated that 48 percent of items were not in the locations recorded in VA systems. An estimated 1,100 items—worth about $12.7 million—were missing. Missing or incorrectly tracked equipment can delay equipment maintenance and patient care.

The facilities also did not consistently tag, record, or track new equipment as required. Reports needed to investigate missing equipment were not routinely completed. Although the network chief logistics officer conducted required oversight reviews, the network does not have direct authority to enforce corrective actions at facilities or ensure sustained improvements.

The OIG made seven recommendations to improve supply chain management across the network; VA concurred with six recommendations and concurred in principle with one.