August 4, 2010 - We may be past the days of seeing ridiculously large budgets being thrown around without regard, but that doesn't mean there aren't still large budgets being granted. Large budgets tend to lead to large spending and when government oversight is involved, these two things don't always gel.
Representative Bob Filner (D.-CA.) is Chairman of the House Veterans' Affairs Committee. Rep. Filner has targeted the Veterans Health Administration (VHA) for continuing to spend money on a wholly inappropriate level. Filner's concern is the VHA's amplified dependence on the miscellaneous obligation (MO) process.
The MO process refers to money made available for unknown financial obligations that may happen in the future. Essentially, it is money set aside for a rainy day. The Department of Veterans Affairs (VA) spent $12 billion in fiscal 2009 on their rainy days. This is an unsettling increase from the $6.9 billion they spent in fiscal 2007.
Rep. Filner believes it is his responsibility to not only keep promises made to the veterans, but to guarantee the appropriate use of taxpayer money in keeping those promises to them. It is not the MO process Rep. Filner has a problem with per se, it is the lack of tracking and itemization of those funds. Rep. Filner has good support for his belief: the Government Accountability Office (GAO) believes the VHA's MO process is ripe for fraud and abuse. The VHA's particular MOs are established in such a way so as to deny efficient oversight and control.
The GAO made the VA aware of major problems in their financial management system in 2009. Despite this, spending was not curtailed. Rep. Filner's anger is rooted in the complete lack of concern on the part of the VA's leadership.
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