Budget Issues: Agency Implementation of Capital Planning Principles Is Mixed

The Department of Veterans Affairs (VA) has undertaken various planning efforts to realign its real property portfolio, including the Capital Asset Realignment for Enhanced Services, creation of a 5-year capital plan, and its newest effort, the Strategic Capital Investment Planning process. Through these efforts, VA has identified numerous real property priorities it believes should be completed if the agency's facilities are to meet veterans' needs for services now and in the future. This report addresses the extent to which VA's capital planning efforts: (1) have resulted in changes to its real property portfolio; and (2) follow leading practices and provide information for informed decision making. Includes recommend. Illus. This is a print on demand report.

Capital acquisition funds (CAF) have been discussed as a new mechanism for financing fed. capital assets. As envisioned, CAFs would have 2 goals. First, CAFs would potentially improve decision-making by reflecting the annual cost for the use of capital in program budgets. 2nd, they would help ameliorate at the sub-unit level the effect of large increases in budget authority for capital projects, without forfeiting congressional controls requiring the full cost of capital assets to be provided up-front. This report describes: (1) how CAFs would likely operate; (2) the potential benefits & difficulties of CAFs, including alternative mechanisms for obtaining the benefits; & (3) several issues to weigh when considering implementation of CAFs. Tables.

GAO-04-138 Budget Issues: Agency Implementation of Capital Planning Principles Is Mixed