Audit of Alleged Misuse of VHA Funds at the Northern Arizona VA Health Care System

The OIG did not substantiate an allegation that the Northern Arizona VA Health Care System (NAVAHCS) inappropriately used VHA appropriations to purchase IT items. From September 2012 through March 2014, the Network Contracting Office for the Veterans Integrated Service Network overseeing NAVAHCS awarded six contracts to obtain various IT items for this and other medical facilities. NAVAHCS paid about $368,000 for multifunctional devices (MFD) with printing functionality and other expenses using VHA appropriations. Although VA’s 2006 policy memo stated that VA should use the IT Systems appropriations for MFDs with printer functionality, we did not fault NAVAHCS for its decision to use VHA appropriations because of inconsistent guidance on the correct use of funds for similar copier machines connected to a network that could also serve as printers.. We also determined that NAVAHCS appropriately used VHA funds on the remaining five contracts to purchase commercial software supporting patient care. Because VA issued guidance to clarify VA’s 2006 policy memo during the audit, we made no recommendations.