The VA Office of Inspector General (OIG) conducted this inspection to assess the VA Milwaukee Healthcare System’s oversight and stewardship of funds and to identify potential cost efficiencies. The review assessed the following financial activities and administrative processes to determine whether the healthcare system had appropriate oversight and controls in place: use of managerial cost accounting information, accrued expense oversight, purchase card use, and inventory and supply management.The OIG found that the healthcare system could improve the following:• Use of management cost accounting information. The healthcare system did not always use that information to enhance efficiency, help reduce costs, or inform business decisions.• Accrued expense oversight. The number of invalid open obligations grew from 23 in fiscal year 2021 to 43 in fiscal year 2022. Because Veterans Integrated Service Network (VISN) 12 and the local contracting office have not worked together, the list of invalid obligations remaining open has continued to grow, leaving about $1.9 million in funds attached to orders that could be used for other purposes.• Purchase card use. Cardholders and approving officials did not always work together to ensure compliance with VA policy. The team also determined that contracts could have been considered for an estimated 6,300 transactions totaling at least $6.7 million.• Inventory and supply management. Information in the Supply Chain Common Operating Picture were not being used to monitor stock levels or meet the required accuracy rate for inventory as required by VHA policy. The healthcare system could improve effectiveness and efficiency by ensuring inventory values are correctly recorded in the Generic Inventory Package.OIG made eight recommendations to the healthcare system director and one to the VISN 12 director. The recommendations address issues that, if left unattended, may eventually interfere with effective financial efficiency practices and the strong stewardship of VA resources.
Milwaukee, WI
United States
