Federal Reports

The audit objectives were to determine whether program funds were managed in accordance with the ARC and Federal grant requirements.

The audit objectives were to determine whether program funds were managed in accordance with the ARC and Federal grant requirements.

The VA Office of Inspector General (OIG) conducted this review to assess whether the Veterans Health Administration (VHA) maintains price consistency across vendors and contracts when purchasing prescription eyeglasses for veterans.In fiscal year 2022, VHA spent about $127.9 million to provide eyeglasses to nearly 1.4 million veterans. Contract vendors provided 85 percent of these eyeglasses, with two vendors supplying approximately 82 percent through multiple regional contracts. The review team determined that contract prices and pricing structures for the same or similar eyeglasses differed by contract for these two vendors, sometimes more than $10 per item from the same vendor. In most instances, contract files did not include evidence to suggest that contracting officers discussed and compared pricing prior to awarding contracts, nor was there information on why prices might differ for the same or similar eyeglasses.VHA has opportunities to use strategic sourcing strategies for eyeglasses to improve consistent pricing, particularly on multiple contracts from the same vendor. Such strategies could include developing a pricing catalog or national contracts. The executive director of VHA’s prosthetic services office told the OIG review team of plans to establish such a national contract for VHA’s community care program to prescribe and provide about 459,000 eyeglasses annually over five years. Even if that contract is executed, VHA could still save $2.9 million annually by improving price consistency on VA-prescribed eyeglasses from these two vendors.The OIG made two recommendations to the under secretary for health: coordinate program offices to develop and implement a sourcing strategy for VA-prescribed eyeglasses from contract vendors, and implement a process to assist contracting officers in collaborating to ensure the best pricing for similar products.

The Chief Financial Officers Act of 1990 requires the Inspector General to audit the agency’s financial statements each year, which is intended to help improve an agency’s financial management and controls over financial reporting. For FY 2023, the independent auditor issued a disclaimer of opinion as it was not able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion because of unresolved errors identified in the underlying data used to calculate the subsidy re-estimates for the Department’s direct loan and loan guaranty programs. The auditors identified one material weakness related to the Department’s Direct and FFEL student loan portfolios, and two significant deficiencies related to information technology controls and entity-level controls. The auditors also noted the Department did not substantially meet requirements of the Federal Managers Financial Integrity Act. See page 100 for the audit.

The Chief Financial Officers Act of 1990 requires the Inspector General to audit the agency’s financial statements each year, which is intended to help improve an agency’s financial management and controls over financial reporting. The Inspector General is also required to audit the Federal Student Aid (FSA) office’s financial statements, as it is a Performance-Based Organization. For FY 2023, the independent auditor issued a disclaimer of opinion as it was not able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion because of unresolved errors identified in the underlying data used to calculate the subsidy re-estimates for the FSA’s direct loan and loan guaranty programs. The auditors identified one material weakness related to the Direct and FFEL student loan portfolios, and two significant deficiencies related to information technology controls and entity-level controls. See page 168 for the audit.