VA Health Care

In response to a congressional request, GAO reviewed: (1) the extent to which the Veterans Administration (VA) was able to employ 199,426 full-time equivalent employees (FTEE) funded under its medical care, medical and prosthetic research, and medical administration and miscellaneous operating expenses accounts during fiscal year (FY) 1985; (2) the basis for the VA decision to employ fewer FTEE and the extent to which the Office of Management and the Budget (OMB) influenced that decision; and (3) whether OMB took any actions that violated the statute requiring it to release to VA the funds appropriated to support its approved employment level.

GAO found that: (1) the average VA employment level was 198,589 under the three health-care accounts for FY 1985; (2) the VA decision to propose reducing the remaining FY 1985 employment level under its health care accounts was based on OMB proposals that VA reduce its FY 1986 employment level by 2,277 FTEE and absorb its increased FY 1985 pay costs of $111,647; (3) the OMB proposals influenced the VA decision to propose reducing employment levels, but OMB did not prevent VA from using funds appropriated for FY 1985 to support 199,426 FTEE or require VA to reduce that level; (4) OMB is not required to request supplemental appropriations for the three health-care accounts in the event there are insufficient funds to maintain the personnel levels set by Congress; and (5) the OMB actions did not violate any federal statutes.