Federal Reports

In House Report (H. Rept. 114-497) to accompany the House of Representatives, Military Construction, Veterans Affairs, and Related Agencies Appropriations Bill, 2017 (H.R. 4974), the Committee on Appropriations requested the OIG review VA’s reimbursement of the Department of the Treasury’s Judgment Fund relating to the payment of contractors for major medical construction projects to settle claims arising from contract disputes.We found VA did not reimburse the Treasury Judgment Fund in accordance with Title 31 Code of Federal Regulations (CFR) §256.40. From October 1, 2011 through September 30, 2016, Treasury paid 23 claims related to 10 major medical facility construction projects totaling $247,748,686. Of this amount, $226,328,422 remained unpaid as of January 31, 2017, with an average delinquency of 221 days. VA has been delinquent in reimbursing the Judgment Fund because VA has not been requesting sufficient funding for the reimbursement of Contract Disputes Act of 1978 (CDA) claims. VA’s FY 2017 congressional submission requested funding of only $9 million to reimburse the Judgment Fund for the payment of claims. By not reimbursing the Judgment Fund timely, VA has continued to maintain significant liabilities not covered by budgetary resources. VA will require significant future funding to satisfy the outstanding claims.We recommended the Acting Assistant Secretary for Management and Acting Chief Financial Officer establish procedures to ensure VA reimburses the Treasury Judgment Fund within 45 business days of receipt of demands for reimbursement, or establish appropriate payment plans for CDA claims. The Acting Assistant Secretary for Management concurred with the intent of the recommendation and reported VA will update policy to reflect the requirements in Treasury Policy, and 31 CFR §256.40 and §256.41.

During this period, we closed 25 investigations involving fraud or corruption related to the Department’s programs and operations, securing more than $20 million in restitution, settlements, fines, recoveries, forfeitures, and savings. In addition, as a result of our investigative work, criminal actions were taken against a number of people, including school officials, vendors, and service providers who cheated both students and taxpayers. We also issued 7 audits that contained recommendations to improve program operations.

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Office of Inspector General issues its Semiannual Report to Congress summarizing the office’s activities and accomplishments from April 1 – September 30, 2017.

The TVA OIG meets its legal requirement to report to Congress on its results twice a year through its Semiannual Report to Congress (SAR). This SAR edition takes a walk through the past 14 years of TVA's first Presidentially-appointed and longest-running Inspector General, Richard Moore, who became the U.S. Attorney for the Southern District of Alabama in late September 2017. This issue also includes an introduction to Acting Inspector General Jill Matthews, formerly the Deputy Inspector General, who has served in the TVA OIG since its inception in the mid-1980s.

(Reissued on 11/27/17)This audit report was reissued on November 27, 2017 to correct an error in a number reported for deobligations on page 16 from $206.9 million to $71.9 million.