The Veterans Affairs Office of Inspector General reports the Veterans Health Administration's Chief Business Office violated appropriations laws by using funds dedicated to medical support and compliance to pay for a health IT project.
The VA OIG's review determined the CBO "obligated" a total of $92.5 million of medical support and compliance appropriations to finance the development of the agency's Health Care Claims Processing System. So far, $73.8 million of the funds have been used, and $18.7 million remain obligated.
Funds appropriated for medical support and compliance are only authorized for administering medical, construction, supply and research activities, according to the VA OIG's report.
The report indicates the misappropriation of funds occurred because the former deputy chief business officer of the VA did not seek or acquire the necessary funds required to develop the claims processing system.
The VA OIG recommends the interim under secretary for health establish oversight mechanisms, return all the used MS&C funds, deobligate all the current MS&C funds and determine if administrative action against the deputy chief business officer officials should be taken. All corrective actions should be completed by Sept. 30.
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