Administrative Investigation of the FY 2011 Human Resources Conferences in Orlando, Florida

Report Information

Issue Date
Report Number
12-02525-291
VA Office
Human Resources and Administration Office/Operations, Security, and Preparedness (HRA/OSP)
Acquisitions, Logistics, and Construction (OALC)
Report Author
Office of Investigations
Office of Audits and Evaluations
Report Type
Administrative Investigation
Recommendations
49
Questioned Costs
$0
Better Use of Funds
$0
Congressionally Mandated
No

Summary

Summary
VA OIG opened an administrative investigation upon receiving allegations of wasteful expenditures related to HR conferences held in Orlando, FL, in July and August 2011. While VA reported lower estimates of conference costs to Congress, we reconstructed the costs of the two conference events to be approximately $6.1 million, but could not gain reasonable assurance that this figure represents a complete accounting for these conferences. In our opinion, VA held these conferences to fulfill valid training needs. However, VA’s processes and the oversight were too weak, ineffective, and in some instances, nonexistent. Thus, many conference costs were not sufficiently documented, which made them difficult to clearly justify, or identify whether they were accurate, appropriate, necessary, or even reasonably priced. In fact, we questioned about $762,000 as unauthorized, unnecessary, and/or wasteful expenses. Further, we found that eleven VA employees, tasked with conference management responsibilities, improperly accepted gifts from contractors seeking to do business or already doing business with VA. The VA Secretary agreed to take action on our findings and OIG will monitor the Department’s progress on implementing all proposed corrective actions.

Open Recommendation Image, SquareOpenClosed and Implemented Recommendation Image, CheckmarkClosed-ImplementedNot Implemented Recommendation Image, X character'Closed-Not Implemented
No. 1
Closed and Implemented Recommendation Image, Checkmark
to Office of the Secretary (SVA)
We recommended the VA Secretary take the appropriate action against Mr. Sepúlveda.
No. 2
Closed and Implemented Recommendation Image, Checkmark
to Office of the Secretary (SVA)
We recommended the VA Secretary confer with Human Resources officials outside VA Central Office's Office of Human Resources Management and attorneys in the Office of General Counsel to determine the appropriate administrative action to take against Ms. Muellerweiss and ensure that action is taken.
No. 3
Closed and Implemented Recommendation Image, Checkmark
to Office of the Secretary (SVA)
We recommended the VA Secretary confer with Human Resources officials outside VA Central Office's Office of Human Resources Management and attorneys in the Office of General Counsel to determine the appropriate administrative action to take against Ms. Deanes and ensure that action is taken.
No. 4
Closed and Implemented Recommendation Image, Checkmark
to Office of the Secretary (SVA)
We recommended the VA Secretary confer with Human Resources officials outside VA Central Office's Office of Human Resources Management and attorneys in the Office of General Counsel to determine the appropriate administrative action to take against Dr. McMahan and ensure that action is taken.
No. 5
Closed and Implemented Recommendation Image, Checkmark
to Office of the Secretary (SVA)
We recommended the VA Secretary confer with Human Resources officials outside VA Central Office's Office of Human Resources Management and attorneys in the Office of General Counsel to determine the appropriate administrative action to take against Mr. Barritt and ensure that action is taken.
No. 6
Closed and Implemented Recommendation Image, Checkmark
to Office of the Secretary (SVA)
We recommended the VA Secretary confer with Human Resources officials outside VA Central Office's Office of Human Resources Management and attorneys in the Office of General Counsel to determine the appropriate administrative action to take against Ms. Dudley and ensure that action is taken.
No. 7
Closed and Implemented Recommendation Image, Checkmark
to Office of the Secretary (SVA)
We recommended the VA Secretary confer with Human Resources officials outside VA Central Office's Office of Human resources Management and attorneys in the Office of General Counsel to determine the appropriate administrative action to take against Ms. Thomas and ensure that action is taken.
No. 8
Closed and Implemented Recommendation Image, Checkmark
to Office of the Secretary (SVA)
We recommended the VA Secretary confer with Human Resources officials outside VA Central Office's Office of Human Resources Management and attorneys in the Office of General Counsel to determine the appropriate administrative action to take against Mr. Gingrich and ensure that action is taken.
No. 9
Closed and Implemented Recommendation Image, Checkmark
to Office of the Secretary (SVA)
We recommended the VA Secretary confer with Human Resources officials outside VA Central Office's Office of Human Resources Management and attorneys in the Office of General Counsel to determine the appropriate administrative action to take against Dr. McMahan and ensure that action is taken.
No. 10
Closed and Implemented Recommendation Image, Checkmark
to Office of the Secretary (SVA)
We recommended the VA Secretary confer with Human Resources officials outside VA Central Office's Office of Human Resources Management and attorneys in the Office of General Counsel to determine the appropriate administrative action to take against Ms. Coke and ensure that action is taken.
No. 11
Closed and Implemented Recommendation Image, Checkmark
to Office of the Secretary (SVA)
We recommended the VA Secretary confer with Human Resources officials outside VA Central Office's Office of Human Resources Management and attorneys in the Office of General Counsel to determine the appropriate administrative action to take against Mr. Pleso and ensure that action is taken.
No. 12
Closed and Implemented Recommendation Image, Checkmark
to Office of the Secretary (SVA)
We recommended the VA Secretary confer with Human Resources officials outside VA Central Office's Office of Human Resources Management and attorneys in the Office of General Counsel to determine the appropriate administrative action to take against Ms. McIntosh-Moore and ensure that action is taken.
No. 13
Closed and Implemented Recommendation Image, Checkmark
to Office of the Secretary (SVA)
We recommended the VA Secretary confer with Human Resources officials outside VA Central Office's Office of Human Resources Management and attorneys in the Office of General Counsel to determine the appropriate administrative action to take against Ms. Wakeley and ensure that action is taken.
No. 14
Closed and Implemented Recommendation Image, Checkmark
to Office of the Secretary (SVA)
We recommended the VA Secretary confer with Human Resources officials outside VA Central Office's Office of Human Resources Management and attorneys in the Office of General Counsel to determine the appropriate administrative action to take against Ms. Dudley and ensure that action is taken.
No. 15
Closed and Implemented Recommendation Image, Checkmark
to Office of the Secretary (SVA)
We recommended the VA Secretary confer with Human Resources officials outside VA Central Office's Office of Human Resources Management and attorneys in the Office of General Counsel to determine the appropriate administrative action to take against Mr. Barritt and ensure that action is taken.
No. 16
Closed and Implemented Recommendation Image, Checkmark
to Office of the Secretary (SVA)
We recommended the VA Secretary confer with Human Resources officials outside VA Central Office's Office of Human Resources Management and attorneys in the Office of General Counsel to determine the appropriate administrative action to take against Ms. Caruso and ensure that action is taken.
No. 17
Closed and Implemented Recommendation Image, Checkmark
to Office of the Secretary (SVA)
We recommended the VA Secretary confer with Human Resources officials outside VA Central Office's Office of Human Resources Management and attorneys in the Office of General Counsel to determine the appropriate administrative action to take against Mr. Gardner and ensure that action is taken.
No. 18
Closed and Implemented Recommendation Image, Checkmark
to Office of the Secretary (SVA)
We recommended the VA Secretary confer with Human Resources officials outside VA Central Office's Office of Human Resources Management and attorneys in the Office of General Counsel to determine the appropriate administrative action to take against Mr. Pierce and ensure that action is taken.
No. 19
Closed and Implemented Recommendation Image, Checkmark
to Office of the Secretary (SVA)
We recommended the VA Secretary establish a policy that VA will no longer solicit lodging accommodation upgrades as part of contracts.
No. 20
Closed and Implemented Recommendation Image, Checkmark
to Office of the Secretary (SVA)
We recommended the VA Secretary modify VA procedures to include a requirement for a detailed spend plan to ensure cost estimates are reasonable.
No. 21
Closed and Implemented Recommendation Image, Checkmark
to Office of the Secretary (SVA)
We recommended the VA Secretary implement policy to ensure conference managers obtain subsequent authorization from the Chief of Staff or the Deputy Secretary once they determine estimated costs have been exceeded or other major changes occur.
No. 22
Closed and Implemented Recommendation Image, Checkmark
to Office of the Secretary (SVA)
We recommended the VA Secretary require an after-action report be provided to the Chief of Staff or the Deputy Secretary identifying planned-versus-actual costs, including justifications for significant differences.
No. 23
Closed and Implemented Recommendation Image, Checkmark
to Office of the Secretary (SVA)
We recommended the VA Secretary issue policy outlining requirements for authorizing, justifying, and conducting pre-planning site visits for conferences.
No. 24
Closed and Implemented Recommendation Image, Checkmark
to Office of the Secretary (SVA)
We recommended the VA Secretary establish requirements to support major conferences with contracting officers and other support resources to ensure conferences and the supporting acquisitions are planned and managed in accordance with applicable regulations.
No. 25
Closed and Implemented Recommendation Image, Checkmark
to Human Resources and Administration/Operations, Security, and Preparedness (HRA/OSP)
We recommended the VA Secretary establish budgetary controls to ensure centralized accounting for individual conference expenditures.
No. 26
Closed and Implemented Recommendation Image, Checkmark
to Office of the Secretary (SVA)
We recommended the VA Secretary ensure conference budgets are authorized and monitored to ensure appropriate expenditures.
No. 27
Closed and Implemented Recommendation Image, Checkmark
to Office of the Secretary (SVA)
We recommended the VA Secretary establish controls to ensure senior officials exercise their responsibility and accountability for prudent management of conference funds.
No. 28
Closed and Implemented Recommendation Image, Checkmark
to Office of the Secretary (SVA)
We recommended the VA Secretary require travelers and approvers to comply with the requirement to not incur hotel taxes in states which offer tax exemption to the Government.
No. 29
Closed and Implemented Recommendation Image, Checkmark
to Office of the Secretary (SVA)
We recommended the VA Secretary require conference planning committees to identify, by name, individuals needed onsite for conference support before or after the conference and that this designation be provided to the traveler for inclusion in their travel receipts.
No. 30
Closed and Implemented Recommendation Image, Checkmark
to Office of the Secretary (SVA)
We recommended the VA Secretary require travelers and approving officials to comply with the requirement to include a cost comparison when choosing to use a privately owned vehicle instead of a government contracted mode of transportation.
No. 31
Closed and Implemented Recommendation Image, Checkmark
to Office of the Secretary (SVA)
We recommended the VA Secretary develop a process to track and monitor the use of interagency agreements.
No. 32
Closed and Implemented Recommendation Image, Checkmark
to Office of the Secretary (SVA)
We recommended the VA Secretary establish a mechanism to modify existing high-risk interagency agreements and ensure that all future interagency agreements account for costs associated with each single conference event.
No. 33
Closed and Implemented Recommendation Image, Checkmark
to Office of the Secretary (SVA)
We recommended the VA Secretary establish a process to obtain detailed vendor invoice information to support tracking and validation of costs associated with interagency agreements.
No. 34
Closed and Implemented Recommendation Image, Checkmark
to Office of the Secretary (SVA)
We recommended the VA Secretary require that all VA program offices (Administrations, Boards, Centers, and Offices) that plan meetings, conferences, or events involving more than 50 staff identify and clearly state all event requirements to minimize contract modifications.
No. 35
Closed and Implemented Recommendation Image, Checkmark
to Office of the Secretary (SVA)
We recommended the VA Secretary develop a mechanism to ensure that commitments, expenditures, and combined liabilities exceeding $25,000 receive a legal and technical review.
No. 36
Closed and Implemented Recommendation Image, Checkmark
to Office of the Secretary (SVA)
We recommended the VA Secretary ensure a Price Negotiation Memorandum be used to document negotiated agreements to minimize the possibility of future claims against the Government and to obtain a clear understanding from the contractor that all costs have been fully considered.
No. 37
Closed and Implemented Recommendation Image, Checkmark
to Office of the Secretary (SVA)
We recommended the VA Secretary ensure contracting officers designate and authorize in writing a Contracting Officer's Representative on all contracts and orders other than those that are firm-fixed-price and for firm-fixed-price contracts as appropriate.
No. 38
Closed and Implemented Recommendation Image, Checkmark
to Office of the Secretary (SVA)
We recommended the VA Secretary ensure that only authorized contracting personnel make commitments or changes that affect price, quality, quantity, delivery, or other terms and conditions of a contract.
No. 39
Closed and Implemented Recommendation Image, Checkmark
to Office of the Secretary (SVA)
We recommended the VA Secretary ensure contract modifications are completed timely.
No. 40
Closed and Implemented Recommendation Image, Checkmark
to Office of the Secretary (SVA)
We recommended the VA Secretary establish oversight mechanisms to eliminate excessive and wasteful conference expenditures of public funds.
No. 41
Closed and Implemented Recommendation Image, Checkmark
to Office of the Secretary (SVA)
We recommended the VA Secretary ensure contracting officers document the results of all contract actions in VA's Electronic Contract Management System.
No. 42
Closed and Implemented Recommendation Image, Checkmark
to Office of the Secretary (SVA)
We recommended the VA Secretary take action to ratify any legal agreements made by VA employees where there was no previous authority to commit payments for goods and/or services with the Marriott.
No. 43
Closed and Implemented Recommendation Image, Checkmark
to Office of the Secretary (SVA)
We recommended the VA Secretary establish an effective cost system for credit card purchases that appropriately assigns costs to individual major VA events.
No. 44
Closed and Implemented Recommendation Image, Checkmark
to Office of the Secretary (SVA)
We recommended the VA Secretary ensure purchase card approvers are trained on proper oversight of purchase card transactions.
No. 45
Closed and Implemented Recommendation Image, Checkmark
to Office of the Secretary (SVA)
We recommended the VA Secretary ensure VA Learning University personnel with acquisition support responsibilities have valid warrants and that the warrants match their purchase authorization.
No. 46
Closed and Implemented Recommendation Image, Checkmark
to Office of the Secretary (SVA)
We recommended the VA Secretary issue guidance regarding the proper procedures for transferring warrants within VA organizations.
No. 47
Closed and Implemented Recommendation Image, Checkmark
to Office of the Secretary (SVA)
We recommended the VA Secretary ensure VA Learning University employees are trained on purchase card policies related to splitting purchases.
No. 48
Closed and Implemented Recommendation Image, Checkmark
to Office of the Secretary (SVA)
We recommended the VA Secretary ensure supervisors have the required documentation prior to approving purchase card transactions.
No. 49
Closed and Implemented Recommendation Image, Checkmark
to Office of the Secretary (SVA)
We recommended the VA Secretary require the Department to accomplish a special review of purchase card transactions made in support of VA Learning University conferences.
Total Monetary Impact of All Recommendations
Open: $ 0.00
Closed: $ 762,198.00