The Department of Veterans Affairs cannot account for billions. This was well established Wednesday in a House Committee on Veterans Affairs hearing. Chair Bob Filner noted, "The US Dept of Veterans Affairs is the second largest agency in our system of government and each year, they are authorized billions of dollars to care for our nation's veterans. Miscellaneous obligations are used by the VA to obligate funds in circumstances where the amount to be spent is uncertain. They are used to reduce administrative workload and to facilitate payment for contracted goods and services when quantities and delivery dates are unknown."
And the Government Accountability Office can't track it. This was very clear from the testimonies of the GAO's Susan Ragland and Glenn Slocum -- even with the GAO attempting to be "diplomatic" as US House Rep. Cliff Stearns pointed out.
The VA sent the Deputy Assistant Secretary for Finance Edward Murray, the Chief Financial Officer W. Paul Kearns III and Chief Procurement and Logistics Officer Frederick Downs, Jr. to testify. Kearns would provide a breakdown of missing/unaccounted for monies:
2007: $6.9 billion
2008: $11 bilion
2009: $12 billion
2010: $12 billion
That adds up to $41.9 billion.
Ranking Member Steve Buyer would repeatedly express his hope that the money was merely unaccounted for but repeatedly note how, when the money can't be tracked, there is a huge temptation for fraud and worse.
Committee member Jerry McNerney would repeatedly express how the VA and the Congress needed to get on top of this issue before the press started running with it. McNerney was worrying for no reason. Despite an open hearing, despite $41.9 billion being missing/unaccounted for, the press pretty much ignored the hearing. No major daily paper reported on it the next day. McNerney
Rep. Jerry McNerney: As Mr. Searns pointed out, we've seen an increase from five billion to 12 billion in the use of form 1358. t just seems to me that form 1358 must be so easy to use that everybody in the VA wants to use it. I mean is that why people are using it more? Is that why the -- it's just easier to use? It requires less discipline? Less work? Is that what's happening?
Edward Murray: I-I-I -- 135 -- 1358 form is used primarily, should be used primarily for non-far type uh procurement transactions, things like that. Beneficiary travel, meal tickets, purchase care under Title 38 that does not require a far based contract.
Ranking Member Steve Buyer: You've just said "should be." We're all getting really annoyed here. Please be responsive to the gentleman's question.
Edward Murray: There are 23 approved uses for this -- for that form.
Rep. Jerry McNerney: Right.
Edward Murray: They've been vetted. That is the uses for that form. They should only be used for that 23 approved uses.
Rep. Jerry McNerney: It just seems to me that form 1358 ought to be eliminated and form 2237 ought to be expanded and used for everything because look what the problem -- look what the situation is that you're in right now. I mean, if 2237 requires more discipline then that's what people should be using. Uh, I mean, do you have a way to respond to that?
No, he didn't have a way to respond to that.
Chair Filner stated, "I am angry that the VA leadership continues to be unresponsive to these issues on cost controls. I understand the need to obligate funds before you know the exact cost, however, these expenditures need to be tracked, itemized, and carefully reviewed. This particular procurement process is a disaster waiting to happen. As the Committee charged with oversight of the VA, we will continue to press for action until we are assured that waste, fraud, and abuse is prevented." Ranking Member Buyer would note to the GAO witnesses that "the VA's own audits showed a continued a disregard for your recommendations and, "I mean, right now, you could look back and the last three or four [VA] Secretaries -- I mean, they have, since 2000, increased these directives without execution."
For more on this topic, refer to C.I.'s "Iraq snapshot" and Kat's "The House Veterans Affairs Committee was pissed" and C.I.'s "VA can't account for $41.9 billion in tax payer monies."
And the Government Accountability Office can't track it. This was very clear from the testimonies of the GAO's Susan Ragland and Glenn Slocum -- even with the GAO attempting to be "diplomatic" as US House Rep. Cliff Stearns pointed out.
Chair Bob Filner: If you had to give a grade between your initial report and now, what would you give?
Susan Ragland: Oh.
Chair Bob Filner: I'm a teacher, so.
Susan Ragland: Oh, I guess I'd say somewhere between a C+ or a B-. Somewhere in there.
Chair Bob Filner: Sounded like an F to me, but what do I know?
2007: $6.9 billion
2008: $11 bilion
2009: $12 billion
2010: $12 billion
That adds up to $41.9 billion.
Ranking Member Steve Buyer would repeatedly express his hope that the money was merely unaccounted for but repeatedly note how, when the money can't be tracked, there is a huge temptation for fraud and worse.
Committee member Jerry McNerney would repeatedly express how the VA and the Congress needed to get on top of this issue before the press started running with it. McNerney was worrying for no reason. Despite an open hearing, despite $41.9 billion being missing/unaccounted for, the press pretty much ignored the hearing. No major daily paper reported on it the next day. McNerney
Rep. Jerry McNerney: As Mr. Searns pointed out, we've seen an increase from five billion to 12 billion in the use of form 1358. t just seems to me that form 1358 must be so easy to use that everybody in the VA wants to use it. I mean is that why people are using it more? Is that why the -- it's just easier to use? It requires less discipline? Less work? Is that what's happening?
Edward Murray: I-I-I -- 135 -- 1358 form is used primarily, should be used primarily for non-far type uh procurement transactions, things like that. Beneficiary travel, meal tickets, purchase care under Title 38 that does not require a far based contract.
Ranking Member Steve Buyer: You've just said "should be." We're all getting really annoyed here. Please be responsive to the gentleman's question.
Edward Murray: There are 23 approved uses for this -- for that form.
Rep. Jerry McNerney: Right.
Edward Murray: They've been vetted. That is the uses for that form. They should only be used for that 23 approved uses.
Rep. Jerry McNerney: It just seems to me that form 1358 ought to be eliminated and form 2237 ought to be expanded and used for everything because look what the problem -- look what the situation is that you're in right now. I mean, if 2237 requires more discipline then that's what people should be using. Uh, I mean, do you have a way to respond to that?
No, he didn't have a way to respond to that.
Chair Filner stated, "I am angry that the VA leadership continues to be unresponsive to these issues on cost controls. I understand the need to obligate funds before you know the exact cost, however, these expenditures need to be tracked, itemized, and carefully reviewed. This particular procurement process is a disaster waiting to happen. As the Committee charged with oversight of the VA, we will continue to press for action until we are assured that waste, fraud, and abuse is prevented." Ranking Member Buyer would note to the GAO witnesses that "the VA's own audits showed a continued a disregard for your recommendations and, "I mean, right now, you could look back and the last three or four [VA] Secretaries -- I mean, they have, since 2000, increased these directives without execution."
For more on this topic, refer to C.I.'s "Iraq snapshot" and Kat's "The House Veterans Affairs Committee was pissed" and C.I.'s "VA can't account for $41.9 billion in tax payer monies."
