VA Failing to Properly Monitor Retention Bonuses, According to Oversight Organization
The Veterans Affairs Department inspector general has released a new report highlighting gaps in the agency's oversight of monetary incentives for employees of the Veterans Health Administration (VHA) in fiscal years 2022 and 2023.
The report, which was prompted by concerns about the management of these incentives, found several areas of concern. One of the most significant issues was the lack of adequate substantiation for approximately $340.9 million in payouts to 38,800 individuals.
The errors in incentive payments were primarily due to an overhaul in fiscal years 2019 and 2020 that transferred HR responsibilities from the facility level to the Veterans Integrated Services Networks (VISNs). As a result, VISN human resources staff did not always adhere to policy, leading to numerous issues.
Some of the specific problems identified in the report include:
- 71% of employees who received relocation incentives, or 2,200 individuals, did not self-certify that they moved. This oversight allowed one worker who received a relocation incentive of $30,000 to keep about $22,000 due to an administrative processing error.
- Approximately 4,100 people received incentive payments despite missing one or more of the required signatures from appropriate agency officials.
- 10,900 individuals received bonuses for improper reasons.
- Justification forms were missing for 18,000 employees.
- Investigators identified 28 employees who were still receiving retention bonuses, in some cases for years, after they were supposed to have ended, leading to $4.6 million in improper payments. One employee received a 12% retention incentive in September 2013 that was supposed to end in February 2014, but payments continued for the next decade, totaling about $150,900.
In response to the 2017 audit, the VA updated its policy to establish internal controls and improve oversight of incentives. However, the department did not take sufficient steps to sustain or enforce the updated policies. The VA concurred with all eight recommendations, which include enforcing quality control checks and identifying retention awards that have been paid for more than one year.
The VA is pursuing debt collection for 27 of the 28 employees who received improper payments. However, there is no information in the search results about the name of the person or authority who improperly awarded about 11 million dollars in "critical skill" bonuses to senior executives of the VHA in 2024.
Under President Donald Trump, the VA is seeking to downsize its workforce by around 80,000 employees, which would represent a 15% cut that brings it down to fiscal 2019 levels. The report's findings underscore the importance of proper oversight and management of incentives to ensure that resources are used effectively and efficiently.
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