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Highlights

GAO addressed issues concerning: (1) a Veterans Administration (VA) proposal to reorganize the Veterans' Canteen Service (VCS); (2) VCS authority to contract for some or all canteen food services; and (3) the transfer of funds from the VCS revolving fund to the Treasury as a result of a 1986 sequestration order. GAO determined that: (1) certain aspects of the proposed reorganization were inconsistent with the organizational independence and control provided VCS by law; (2) VCS could contract for the provision of goods and services to veterans and other canteen patrons if it did not abdicate control of canteen operations; and (3) the transfer of funds from the VCS revolving fund to the Treasury pursuant to the sequestration order was proper.

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