Audit of VISN 8 Supply Chain Management

Report Information

Issue Date
Report Number
25-00885-144
VISN
8
State
Florida
Georgia
Puerto Rico
Virgin Islands
District
VA Office
Veterans Health Administration (VHA)
Report Author
Office of Audits and Evaluations
Report Type
Audit
Report Topic
Supplies and Equipment
Major Management Challenges
Healthcare Services
Stewardship of Taxpayer Dollars
Recommendations
7
Questioned Costs
$0
Better Use of Funds
$3,077,369
Congressionally Mandated
No

Summary

Summary

The VA OIG conducted an audit of supply chain management at VA medical facilities in Miami, Orlando, and Gainesville, Florida. The review assessed whether facility and network leaders effectively oversaw supply chain activities and followed Veterans Health Administration policies. The audit focused on four areas that had recurring weaknesses identified in prior audits: expendable supplies, nonexpendable equipment, supply chain leadership, and warehouse and distribution controls.

Overall, all three facilities did not consistently meet requirements for managing expendable supplies and nonexpendable equipment. These shortcomings were tied to gaps in oversight and monitoring. As a result, facilities risked using expired products as well as losing supplies or equipment.

For expendable supplies, the audit identified $3.1 million in funds that could be put to better use due to inaccurate inventories. Facility staff did not always record supply use in real time, and some storage areas at the Miami and Gainesville facilities were not properly secured. Inaccurate supply records increase the risk of expired items, unnecessary purchases, and delays in patient care when supplies cannot be located.

For nonexpendable equipment, the team estimated that 48 percent of items were not in the locations recorded in VA systems. An estimated 1,100 items—worth about $12.7 million—were missing. Missing or incorrectly tracked equipment can delay equipment maintenance and patient care.

The facilities also did not consistently tag, record, or track new equipment as required. Reports needed to investigate missing equipment were not routinely completed. Although the network chief logistics officer conducted required oversight reviews, the network does not have direct authority to enforce corrective actions at facilities or ensure sustained improvements.

The OIG made seven recommendations to improve supply chain management across the network; VA concurred with six recommendations and concurred in principle with one.

Open Recommendation Image, SquareOpenClosed and Implemented Recommendation Image, CheckmarkClosed-ImplementedNot Implemented Recommendation Image, X character'Closed-Not Implemented
No. 1
Open Recommendation Image, Square
to Veterans Health Administration (VHA)

Require medical facility directors in Veterans Integrated Service Network 8 to ensure supply chain staff periodically review unit conversion factors in the Generic Inventory Package to ensure accurate system values and quantities are recorded and then correct any discrepancies.

No. 2
Open Recommendation Image, Square
to Veterans Health Administration (VHA)

Require medical facility directors in Veterans Integrated Service Network 8 to develop and implement procedures to maintain stock within the required thresholds as outlined in Veterans Health Administration Directive 1761.

No. 3
Open Recommendation Image, Square
to Veterans Health Administration (VHA)

Require medical facility directors in Veterans Integrated Service Network 8 to ensure supply chain staff review and update ABC classification labels on expendable supplies in accordance with Veterans Health Administration guidance and establish a process to routinely verify that labeling aligns with the official ABC classification report.

No. 4
Open Recommendation Image, Square
to Veterans Health Administration (VHA)

Ensure medical facility directors in Veterans Integrated Service Network 8 develop a process to ensure facility staff safeguard expendable supplies in accordance with Veterans Administration Handbook 0730.

No. 5
Open Recommendation Image, Square
to Veterans Health Administration (VHA)

Ensure medical facility directors in Veterans Integrated Service Network 8 develop and implement local procedures that require clinical service areas to notify supply chain staff when equipment is relocated and establish protocols to validate and update equipment location during clinical moves or room changes and ensure equipment items are properly tagged.

No. 6
Open Recommendation Image, Square
to Veterans Health Administration (VHA)

Require medical facility directors in Veterans Integrated Service Network 8 to enforce timely completion of reports of survey in accordance with Veterans Health Administration policy and implement oversight mechanisms to monitor the timely initiation, approval, and closure of reports.

No. 7
Open Recommendation Image, Square
to Veterans Health Administration (VHA)

Ensure facilities implement corrective actions to effectively address deficiencies identified during the Veterans Integrated Service Network’s quality control reviews.

Total Monetary Impact of All Recommendations
Open: $ 3,077,369.00
Closed: $ 0.00