Review of VHA's Minor Construction Program

Report Information

Issue Date
Report Number
12-03346-69
VISN
State
California
Florida
Massachusetts
Rhode Island
District
VA Office
Veterans Health Administration (VHA)
Report Author
Office of Audits and Evaluations
Report Type
Audit
Recommendations
6
Questioned Costs
$0
Better Use of Funds
$0
Congressionally Mandated
No

Summary

Summary
At the request of the House Committee on Appropriations, and following irregularities identified at the Miami VA Healthcare System, OIG reviewed the VHA Minor Construction Program. VA medical facilities combined design and construction work for 7 of 30 minor construction projects into 3 projects exceeding the $10 million minor construction limit. VHA violated the Antideficiency Act by combining 5 minor construction projects into 2 projects exceeding the $10 million threshold. We found VHA lacks assurance that construction projects are designed within their approved scopes, medical facility funding is used appropriately, and underperforming projects are identified in timely manner. We recommended the Under Secretary for Health publish Minor Construction policy, develop procedures to ensure projects are executed within approved scope. VHA should implement funding mechanisms, ensure program reviews are performed, and strengthen project tracking reports. The Under Secretary agreed with our recommendations and provided an acceptable action plan.

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 Under Secretary for Health publish policy for the Minor Construction Program.
No. 2
Closed and Implemented Recommendation Image, Checkmark
to Veterans Health Administration (VHA)
We recommended the Under Secretary for Health develop procedures to ensure minor construction projects are executed within their approved scope.
No. 3
Closed and Implemented Recommendation Image, Checkmark
to Veterans Health Administration (VHA)
We recommended the Under Secretary for Health review the seven minor construction projects that were integrated into three combined projects which exceeded the $10 million construction appropriation limit to determine if major construction projects were created, and take appropriate administrative action.
No. 4
Closed and Implemented Recommendation Image, Checkmark
to Veterans Health Administration (VHA)
We recommended the Under Secretary for Health implement a mechanism to ensure medical facility funding is not used to supplement minor construction projects.
No. 5
Closed and Implemented Recommendation Image, Checkmark
to Veterans Health Administration (VHA)
We recommended the Under Secretary for Health ensure internal program reviews of the Minor Construction Program are performed.
No. 6
Closed and Implemented Recommendation Image, Checkmark
to Veterans Health Administration (VHA)
We recommended the Under Secretary for Health strengthen minor construction Project Tracking Reports to ensure information is accurate and sufficient to monitor program performance.