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Review of Alleged Mismanagement of VHA's Service-Oriented Architecture Research and Development Pilot Project

Report Information

Issue Date
Report Number
14-00545-343
VA Office
Veterans Health Administration (VHA)
Information and Technology (OIT)
Report Author
Office of Audits and Evaluations
Report Type
Audit
Recommendations
4
Questioned Costs
$0
Better Use of Funds
$0
Congressionally Mandated
No

Summary

Summary
OIG conducted this review to evaluate the merits of allegations that VHA mismanaged the Service-Oriented Architecture Research and Development (SOARD) pilot project. We substantiated an allegation that VHA misused Medical Support and Compliance (MS&C) appropriations to pay for SOARD instead of using congressionally mandated Information Technology (IT) Systems appropriations. This occurred because the former Assistant Deputy Under Secretary for Health for Administrative Operations inappropriately authorized $2.6 million of MS&C appropriations for SOARD. In addition, the former Under Secretary for Health (USH) inappropriately approved an additional $48.8 million of MS&C appropriations to deploy Maximo the underlying software for SOARD. VA’s Office of Information & Technology (OI&T) denied VHA’s request for additional IT Systems appropriations for SOARD, thus ending nationwide deployment of Maximo before VHA could obligate the $48.8 million. Additionally, although OI&T used Project Management Accountability System (PMAS) to manage SOARD, OI&T lacked controls to prevent VHA’s improper use of MS&C appropriations before using PMAS. We did not substantiate the other two allegations. We recommended the Interim USH establish an oversight mechanism, remedy all MS&C appropriations used to pay for SOARD, and determine if VA should take administrative action against VHA senior officials involved in SOARD funding decisions. We also recommended the Executive in Charge, OI&T obtain Chief Financial Officer certifications that VA is using proper appropriations to fund IT projects.

Open Recommendation Image, SquareOpenClosed and Implemented Recommendation Image, CheckmarkClosed-ImplementedNot Implemented Recommendation Image, X character'Closed-Not Implemented
No. 1
Closed and Implemented Recommendation Image, Checkmark
to Veterans Health Administration (VHA)
We recommended the Under Secretary for Health establish an oversight mechanism to ensure the use of proper appropriations for Veterans Health Administration information technology projects.
No. 2
Closed and Implemented Recommendation Image, Checkmark
to Veterans Health Administration (VHA)
We recommended the Under Secretary for Health remedy all Medical Support and Compliance appropriations used to pay for Service-Oriented Architecture Research and Development.
No. 3
Closed and Implemented Recommendation Image, Checkmark
to Veterans Health Administration (VHA)
We recommended the Under Secretary for Health confer with VA’s Office of Accountability Review regarding administrative actions against Veterans Health Administration senior officials, beyond those individuals who have left VA employment, who were involved with Service-Oriented Architecture Research and Development funding decisions and ensure that action is taken, if appropriate.
No. 4
Closed and Implemented Recommendation Image, Checkmark
to Information and Technology (OIT)
We recommended the Executive in Charge, Office of Information and Technology, obtain Chief Financial Officer certifications from responsible VA Administrations or Staff Offices that proper appropriations will be used before using any non-Information Technology Systems appropriations for any information technology project, including projects managed by the Project Management Accountability System.
Total Monetary Impact of All Recommendations
Open: $ 0.00
Closed: $ 2,600,000.00