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DOCUMENT BESUME
04403 - [B34311699]
(Financial Controls Exercised by the Veterans Administration
over the Predischarge Education Program]. HRD-78-20; B-140300.
December 8, 1977. 9 pp. + 2 enclosures (5 pp.).
Report to Max Cleland, Administratcr of Veterans Affairs,
Veterans Administration; by Gregory J. Ahart, Director, Human
hesourcas Div.
Issue Area: Fedezally Sponsored or Assisted Education Programs
(3300) ; Personnel Management ard CoLwnensation (300) ;Federal
Procurement of Goods and Services (1900).
Contact: Human Resources Div.
Budget I'dnction: Veterans Benefits and Servica: Veterans
Education, Training, and Rehabilitation (702); Natiozal
Defense: Department of Defense - Milit&ry (except
procurement & contracts) (C31) ; National Defense: Deper+-nt
of Defense - Procurement & Contracts (05:3).
Organizaticr Concerned: Dtpartment of Defense.
C~ngressioial Relevance: House Committee on Veterans' Affairs;
Senate Committee on Veteians' Affairs.
Authority: Veterans Ed'.x7ation and Iraining Amerdment Act of 1970
(P.L. 91-219). P.-.. 92-540. P.1. 94-502.
A review of the financial controls exercised by the
Veterans Administration (TA) ovez the Predischarge Education
Program (PREP) showed tha: nin'e schools and two consiltants
accumulated an estimated $9.9 million in surplus funds.
Findings/Conclusions: The surpluses, whic', represent excess VA
payments over costs incurred after October 1972 when legislation
established reasonable costs as the basis for VA payments to
PREP projec-ts, occurred because VA dil not have safficient
financial conrtols to assure that such payments arproximated
reasorable costs. The VA should recover the surplus funds; any
unused inventories may be of use tc tie Department of Defense
(DODI or disposed of according to General Services
Administration procedures. Recommendations: The VA should:
conduct or provide audits of the nine schools and two
consultants -AO visited to establish the amount of recoverable
sutplus; conauct or provide audits, as appropriate, at the
remaining ?00 schools tr identify whether additional recoverable
surpluses exist; take action to recover those surplus funds that
have beer. identified; and determine if the unused PREP
inventories at Olympic College can be used by DOD for its
military personnel still in training. If PREP resumes a! planned
in 1979, the VA should issue regulations which clearly define
the types and amounts of PREP costs for which reimbursement will
be made and make appropriate audits of schools' aud consultants'
PREP financial records to determine if there is compliance with
appropriate regulations. Before the VA resui-es operation oZ
e9EP, it should determine, in conjunction with DOD, the need to
participate in this type of program. rf DOD is providing this](ViewImageLocal?handle=hein.gao/gaobaawjd0001&div=1&collection=&method=preview&ext=.png&size=3)