Audit of NCA’s Appropriated Operations and Maintenance Funds Oversight

We determined NCA effectively budgeted and used operations and maintenance funds as intended. For FY 2010 and FY 2011, the budget authority increased 38 percent from the FY 2009 budget for operations and maintenance. NCA effectively planned its FY 2010 budgetary process using appropriated operations and maintenance funds. In addition, the controls over budget implementation were adequate. We identified minor conditions that needed correction to improve equipment accountability. However, these issues were not considered significant or systemic. We discussed these minor conditions with NCA’s local management on a site-specific basis, and NCA took actions to address our concerns. We made no recommendations in this report and did not require a written response. The Under Secretary for Memorial Affairs noted the report provided several opportunities for improvement and NCA is currently working with the Veterans Health Administration and Veterans Benefits Administration to define the roles and responsibilities for the management of non-expendable equipment.