VA Pulls the Plug on Financial Management Project

The Department of Veterans Affairs (VA) was on a mission to modernize its financial management system. After spending almost $400 million on the project, the VA finally yielded and terminated the mission.

The official reasons given were the project’s “high risk of failure” and “resource constraints.” The VA then, has officially stopped its funding and development of both the integrated financial accounting system and data consolidation components which were both elements of the VA’s Financial and Logistics Integrated Technology Enterprise program (FLITE).

The FLITE program was to serve as a management tool for both physical assets and VA inventories. The VA fully intends to continue to develop FLITE’S strategic asset management system. This system gives the VA much better control over their general supply chain. The VA will also continue to fund smaller, more effective, and less expensive projects that will heighten the value of data used in their financial system.

The Office of Management and Budget (OMB) released a statement explaining they would be stopping all federal financial system modernizations. The OMB, however, did not order the VA’s modernization canceled. The culture lately has been one of canceling projects not likely to produce quality results on schedule.

Not one major task was ever awarded under the FLITE program. The VA will now focus their attention on strengthening weaknesses in their computer programs. More specifically, they will improve the accuracy of the system tracking where money is spent.

If you are a disabled veteran who has been denied disability compensation or have not yet applied for benefits from the VA, contact Veterans Help Group. You may be entitled to certain programs and benefits so contact our veterans disability rights firm today.