Breadcrumb

Review of Alleged Waste of Funds at the VA Medical Center in Detroit, Michigan

Report Information

Issue Date
Report Number
16-02729-350
VISN
State
Michigan
District
VA Office
Veterans Health Administration (VHA)
Report Author
Office of Audits and Evaluations
Report Type
Audit
Recommendations
3
Questioned Costs
$0
Better Use of Funds
$0
Congressionally Mandated
No

Summary

Summary
In January 2016, the Office of Inspector General received an allegation that the VA Medical Center (VAMC) in Detroit, MI, purchased 300 televisions (TVs) and accessories in September 2013 for about $311,000. The complainant alleged the facility never installed the TVs because they were the wrong type. Thus, the facility could not use the TVs, which remain in storage. We substantiated the allegation the Detroit VAMC had not installed and used 282 of the 300 TVs, or associated accessories it purchased. The facility acquired the equipment in September 2013 as part of a project to replace the patient TV system in the facility, but as of April 2016, 282 of the TVs and associated accessories were not in use. Despite having all the TVs and accessories on hand for nearly 2 1/2 years, the facility was unable to install the items in the patient rooms because the items did not meet the design specifications identified in the patient TV system architect and engineer (AE) services contract. We determined Detroit VAMC officials did not communicate with the AE contractor in a timely manner to ensure the TVs purchased were compatible with the project design and specifications. Thus, the Detroit VAMC issued a contract modification for $19,052 to adjust the project design and specifications to support the TVs purchased. The TVs and related accessories should have been purchased closer to award of the construction contract. By purchasing these items well before a construction contract to install them was awarded, the facility exposed itself to unnecessary financial risk in the event it did not proceed with the project. As of June 21, 2016, the facility had not yet awarded a contract to install these TVs. By purchasing too early in the process, the facility also allowed valuable warranties to expire, increasing the risk of incurring additional expenses to replace any faulty TVs. We recommended the Veterans Integrated Service Network (VISN) 10 Acting Director strengthen policy to ensure the proper equipment is purchased at the appropriate time, as well as develop and implement a plan to use the purchased TVs. We also recommended the VISN 10 Acting Director determine whether a bona fide needs violation occurred, and take appropriate corrective action if required. The VISN 10 Acting Director concurred with our recommendations and provided plans for corrective action. We will monitor planned actions and follow up on their implementation.

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 Veterans Health Administration (VHA)
We recommended the Veterans Integrated Service Network 10 Acting Director require the Detroit VA Medical Center strengthen policy to ensure the proper equipment is purchased at the appropriate time when planning projects requiring the purchase of equipment.
No. 2
Closed and Implemented Recommendation Image, Checkmark
to Veterans Health Administration (VHA)
We recommended the Veterans Integrated Service Network 10 Acting Director ensure the Detroit VA Medical Center develop and implement a plan to use the purchased televisions or make them available to other VA facilities to use.
No. 3
Closed and Implemented Recommendation Image, Checkmark
to Veterans Health Administration (VHA)
We recommended the Veterans Integrated Service Network 10 Acting Director consult with the appropriate VA financial and legal officials to determine whether the Detroit VA Medical Center violated the bona fide needs rule, and if a violation occurred, take the steps necessary to remedy the violation.
Total Monetary Impact of All Recommendations
Open: $ 0.00
Closed: $ 311,544.00