Contracted Residence Programs Need Stronger Monitoring to Ensure Veterans Experiencing Homelessness Receive Services

Staff at VA medical facilities work with contractors in the Contracted Residential Services (CRS) program to provide temporary housing and services to veterans experiencing homelessness. The OIG examined whether the Veterans Health Administration (VHA) effectively monitored veterans and administered CRS contracts to ensure veterans received needed services, contractors met the terms and conditions of their contracts, and funds were used appropriately. The OIG found facility staff did not consistently document case management and monitor the progress of veterans in the program. Case management involves evaluating veterans’ needs, planning and assessing their treatment, and advocating for treatment plan changes. Documenting this process helps facilities provide veterans with high quality care and establishes a record for continuity of that care. Further, four of the 14 CRS contracts reviewed had performance deficiencies, with one resulting in improper payments of $592,000. These deficiencies may affect the health and safety of veterans living in transitional settings. Moreover, VA lacks assurance that veterans received required services. There were also contract administration problems in 13 of 14 reviewed contracts. Contracting officers did not always properly delegate responsibilities to staff functioning as contracting officer’s representatives. Further, one facility’s representative did not ensure contractors provided meals or the means to purchase them, as required, and another lacked invoice supporting documentation for approval. The audit team estimated that 107 of 119 contracts had monitoring and administration deficiencies. Furthermore, the team estimated that VHA made $35.3 million in improper payments, of which approximately $21.6 million was technically improper because the individuals authorizing payment were not delegated authority to serve as contracting officer’s representatives. The OIG made five recommendations to VHA to address the issues identified such as establishing monitoring controls for CRS staff, contracting officers, and their representatives; updating the program handbook; and including quality assurance plans for contracts.