[Decision Concerning VA Restoration of Deficiency in Trust Account]

B-227202: Aug 14, 1989

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The Department of Veterans Affairs (VA) asked whether it could use appropriated funds to restore losses due to an erroneous payment in the VA Boston Medical Center's patients' trust account. GAO held that VA could credit the account for the 1979 loss from the unobligated balance of its 1979 expired appropriations, since: (1) it was liable for the loss; and (2) covering the loss was a necessary expense of administering the trust account. Accordingly, VA could restore the loss, and GAO recommended that VA review the procedures used to identify patients making withdrawals from the fund to determine whether such procedures were adequate to prevent future erroneous payments.

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