Identified over $2 billion in monetary benefits, closed 530 investigations, made 286 arrests and work resulted in 511 administrative sanctions.

by Larry Scott, VA Watchdog dot Org

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The latest from the VA's Office of Inspector General (VAOIG) is their Semiannual Report.

Office of Inspector General Department of Veterans Affairs Semiannual Report to Congress April 1, 2009 - September 30, 2009 -- 11/30/2009 | Summary | Semiannual Report (PDF)

The full report is good reading.  It details many of VAOIG's "triumphs over evil."

And, also look at the bottom of the report to see how many recommendations have not been implemented.

For a quick overview, the IG's opening message is posted below.

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This Semiannual Report, submitted to Congress pursuant to the Inspector General Act of 1978, as amended, summarizes the activities of the Office of Inspector General (OIG) for the reporting period from April 1, 2009, through September 30, 2009.

OIG issued 133 reports on VA programs and operations during this reporting period, for a total of 235 reports issued in fiscal year (FY) 2009. We recommended systemic improvements and efficiencies in quality of care, accuracy of benefits, financial management, economy in procurement, and information security. OIG audits, investigations, and other reviews identified over $2.3 billion in monetary benefits, for a return of $59 for every dollar expended on OIG oversight. Our criminal investigators have closed 530 investigations and made 286 arrests for a variety of crimes including fraud, bribery, embezzlement, identity theft, drug diversion and illegal distribution, computer crimes, and personal and property crimes. OIG investigative work also resulted in 511 administrative sanctions.

At the request of the Secretary and VA’s congressional oversight committees, OIG performed an extensive review of the reprocessing of endoscopic equipment at VA Medical Centers (VAMCs). OIG testified on the results of the review before the U.S. House of Representatives’ Committee on Veterans’ Affairs, Subcommittee on Oversight and Investigations in June 2009. The review found that the facilities were noncompliant with existing directives designed to ensure compliance with endoscopic reprocessing procedures, resulting in a risk of infectious disease to Veterans. The Veterans Health Administration’s (VHA’s) failure to comply on such a large scale suggested fundamental defects in organizational structure. During August 2009, OIG performed unannounced follow-up inspections of VHA facilities that perform colonoscope reprocessing. Among the 129 facilities inspected, all were compliant with requirements for standard operating procedures, and all but one facility had adequate documentation of demonstrated competence for reprocessing staff.

An OIG audit of VHA’s Non-VA Outpatient Fee Care Program discovered significant payment errors and weak controls over the justification and authorization process of claims payments. In FY 2008 alone, 37 percent of payments issued by VAMCs were improper, resulting in an estimated $225 million in overpayments and $52 million in underpayments to fee providers. These estimates translate to approximately $1.126 billion in overpayments and $260 million in underpayments over 5 years. VHA lacks reasonable assurance that Fee Program funds were used as intended and in an effective and economical manner for 80 percent of outpatient care payments because VAMCs did not properly justify and authorize fee services as required by VHA policy. OIG made eight recommendations toVHA to ensure outpatient fee care program payments are consistent, reasonable, and proper.

Two OIG administrative investigations substantiated instances of abuse of authority, misuse of position, nepotism, and prohibited personnel practices within the Office of Information and Technology (OI&T). The first investigation substantiated that a senior official within OI&T misused her position, abused her authority, and engaged in prohibited personnel practices when she influenced a VA contractor and later her VA subordinates to employ a friend. It also substantiated that she misused her position when she took advantage of a personal relationship with her supervisor to relocate her duty station outside of the VA Central Office (VACO) commuting area while spending almost 60 percent of her time at VACO on official travel. The report also found that the employee failed to provide proper contract oversight. Further, the investigation substantiated that three other senior officials within OI&T abused their authority and engaged in prohibited personnel practices in the filling of four GS-15 positions.

A second administrative investigation substantiated that a former senior official within OI&T engaged in nepotism when she improperly advocated for the hiring and advancement of her family members and that she abused her authority and engaged in prohibited personnel practices when she improperly hired an acquaintance and friend. It also substantiated that two other OI&T employees misused their positions for the private gain of family members and that one of the employees failed to testify freely and honestly and failed to properly discharge the duties of his position. Additionally, the investigation found that OI&T managers improperly authorized academic degree funding for family and friends; improperly applied hiring authorities to appoint family and friends; and were not fiscally responsible when administering awards. OIG testified on these reports before the U.S. House of Representatives’ Committee on Veterans’ Affairs, Subcommittee on Oversight and Investigations in September 2009.

Two reports issued by the Office of Contract Review this reporting period concluded that VA has not performed adequate oversight of Information Technology (IT) projects. At the request of the Secretary and the Ranking Republican Member, U.S. House of Representatives’ Committee on Veterans’ Affairs, OIG reviewed the Interagency Agreement (IAA) between OI&T and the Department of Navy, Space and Naval Warfare Systems Center. The review found that all parties entered into the IAA without an adequate analysis to determine whether it was in the best interest of the Government, as required by the Federal acquisition regulations. Moreover, OIG determined that neither party complied with the terms and conditions of the IAA.

The second review, performed at the request of the Ranking Member, U.S. Senate Committee on Veterans’ Affairs, made findings consistent with the IAA review. OIG determined that OI&T’s program planning and oversight of the Replacement Scheduling Application (RSA) project was ineffective for various reasons. As a result, VA expended over $70 million through January 2009 and does not have a deployable RSA application. The findings from both reports suggest a fundamental inability on the part of OI&T to properly manage IT projects internally. OIG appreciates the ongoing support we receive from the Secretary, the Deputy Secretary, and senior management. We look forward to working with VA and Congress to transform VA into a 21st Century organization that is people-centric, results-driven, and forward-looking. Most importantly, we will continue to do our part to ensure America’s Veterans receive the care, support, and recognition they have earned in service to our country.

GEORGE J. OPFER Inspector General

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TOPICS: veterans, veterans' benefits, VA, Department of Veterans' Affairs, VAOIG