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Adaptive Sports Grants Management Needs Improvement

Report Information

Issue Date
Report Number
20-01807-173
VA Office
Veterans Health Administration (VHA)
Report Author
Office of Audits and Evaluations
Report Type
Review
Report Topic
Financial Management
Major Management Challenges
Stewardship of Taxpayer Dollars
Recommendations
7
Questioned Costs
$0
Better Use of Funds
$0
Congressionally Mandated
No

Summary

Summary
Sports adapted for athletes with disabilities can play a vital role in improving veterans’ quality of life. VA’s Office of National Veterans Sports Programs and Special Events (NVSPSE) granted $47 million to organizations with experience in managing adaptive sports programs from fiscal year (FY) 2017 to FY 2020. In December 2019, the VA Office of Inspector General (OIG) received a hotline complaint alleging fraud in how the NVSPSE was “closing out” adaptive sports grants—bringing a grant to an end after determining recipients have completed all requirements. The OIG examined whether officials effectively managed the program to ensure compliance with applicable laws and regulations. The team also examined whether grant recipients were reimbursed on time. The OIG did not find evidence of fraud in the grant closeout process; however, it found that the NVSPSE was not effectively managing the program. The NVSPSE’s director had not established adequate internal controls, including developing standard operating procedures for managing adaptive sports grants. As a result, the NVSPSE could not effectively evaluate risks from grant recipients, did not reimburse some recipients’ expenses on time, did not always close out grants on time, and did not appropriately authorize extensions for using funds. By not closing out grants on time, the NVSPSE failed to free up about $346,000 that could have been used for other purposes. It also improperly allowed recipients to spend $328,000 in FY 2017 appropriations outside the approved period and improperly reimbursed 19 recipients a total of about $247,000. These expenditures may have violated both the Purpose Statute and the Antideficiency Act. The OIG made seven recommendations to improve management of the adaptive sports grants program and to determine whether Purpose Statute or Antideficiency Act violations occurred.

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)

The OIG recommended the under secretary for health ensure the Office of National Veterans Sports Programs and Special Events director develop standard operating procedures for all processes related to managing the adaptive sports grants program.

No. 2
Closed and Implemented Recommendation Image, Checkmark
to Veterans Health Administration (VHA)
The OIG recommended the under secretary for health ensure the Office of National Veterans Sports Programs and Special Events director develop and train current staff and identify and hire staff specialized in grants management.
No. 3
Open Recommendation Image, Square
to Veterans Health Administration (VHA)
The OIG recommended the under secretary for health ensure the Office of National Veterans Sports Programs and Special Events director establish and execute a plan to evaluate risks posed by grant applicants before awarding grants, in accordance with VA financial policy.
No. 4
Closed and Implemented Recommendation Image, Checkmark
to Veterans Health Administration (VHA)

The OIG recommended the under secretary for health ensure the Office of National Veterans Sports Programs and Special Events director establish procedures to ensure the timely reimbursement of grant recipient expenses.

No. 5
Closed and Implemented Recommendation Image, Checkmark
to Veterans Health Administration (VHA)

The OIG recommended the under secretary for health ensure the Office of National Veterans Sports Programs and Special Events director establish grant closeout procedures that include communicating timelines with the grant recipients, documentation requirements for proper grant closeout, availability of grant funds, and a process to approve modification and extension requests.

No. 6
Open Recommendation Image, Square
to Veterans Health Administration (VHA)
The OIG recommended the under secretary for health ensure the Office of National Veterans Sports Programs and Special Events director act to ensure all adaptive sports grants are closed out on time.
No. 7
Open Recommendation Image, Square
to Veterans Health Administration (VHA)
The OIG recommended the under secretary for health ensure the Office of National Veterans Sports Programs and Special Events director determine, in coordination with VA’s Office of Finance and Office of General Counsel, whether a Purpose Statute violation occurred, whether account adjustments need to be made, whether Antideficiency Act violations occurred, and report any Purpose Statute and Antideficiency Act violations.
Total Monetary Impact of All Recommendations
Open: $ 247,000.00
Closed: $ 0.00