Alleged Contracting and Appropriation Irregularities at the Office of Transition, Employment, and Economic Impact

The VA Office of Inspector General (OIG) conducted a review in response to a Hotline complaint alleging that the Veterans Benefits Administration (VBA) Office of Transition, Employment, and Economic Impact (OTEEI) authorized printing services that were out of scope, resulting in an unauthorized commitment. The complainant also alleged that OTEEI misused the General Operating Expense (GOE) Appropriation to develop and maintain a dashboard and purchase Information Technology (IT) equipment and software. The OIG substantiated the allegation that VBA’s Chief of Transition executed an unauthorized commitment when he notified CALIBRE to print Transition Assistance Program training materials. As a result, OTEEI inappropriately obligated and spent approximately $2.1 million. The OIG also substantiated the allegation that OTEEI inappropriately obligated and spent approximately $9.6 million of its GOE Appropriation, rather than the IT Systems Appropriation, to develop and maintain a dashboard and purchase IT equipment and software. As a result, OTEEI committed statutory violations totaling about $11.7 million, resulting in improper payments. OTEEI also committed a Purpose Statute violation and may have violated the Antideficiency Act, pending the adjustments to its appropriation accounts. The OIG made three recommendations to include taking action to remedy the unauthorized commitment, obtaining appropriate funding for all future IT costs, and making account adjustments to debit the IT account and credit the GOE account.