Judgment Fund VA OIG Contract Disputes

VA OIG: Veterans Affairs In Debt $247 Million To Judgment Fund For Contract Disputes

A VA OIG investigation found Veterans Affairs failed to pay back the Judgment Fund over $247 million for contract disputes and has no plan to pay the funds back.

Investigators concluded VA is delinquent because the agency failed to request sufficient funds in its budget to fund reimbursement of contract disputes. VA told VA OIG that repayment of funds was a lower priority than supporting veterans’ access to healthcare and safety. The majority of settlements came from breaches at Orlando VA Medical Center.

Given the headlines over the past 4 years, including VA covering up for bad doctors, it sure looks like other priorities are trumping both settlements and veteran safety.

RELATED: VA Stonewalls Vietnam Veterans Over Cancer-Causing Parasites

So what is a top priority at VA these days?

VA is charged with caring for veterans healthcare and benefits needs while it stonewalls and deceives veterans and the American public into believing all such needs are met. When will America wise up to the colossal waste in an agency forever plagued by scandal and fraud.

Below is the main body of the full report:

VA OIG Judgment Fund Investigation Results And Recommendations

Contract Disputes

VA failed to reimburse the Treasury Judgment Fund for major construction claims as required. From October 1, 2011 through September 30, 2016, Treasury used the Judgment Fund to pay 23 claims related to 10 major construction projects. The payments made on VA’s behalf totaled $247,748,686, but VA reimbursed the Judgment Fund only $21,420,264. The average delinquency for all 23 claims was 221 days. As of January 31, 2017, 11 of the claims remained unpaid with an overdue balance of $226,328,422.  

VA was delinquent in reimbursing the Judgment Fund because VA did not request sufficient funding for the reimbursement of CDA claims. Despite having an overdue balance of more than $226 million, VA’s 2017 congressional submission requested funding of only $9 million to reimburse the Judgment Fund for the payment of CDA claims. VA was aware that it needed more funds to satisfy its reimbursement obligation but, according to VA’s Acting Deputy Assistant Secretary for Budget, the replacement of judgment funds was considered a lower priority than other needs. Without such funding, the Deputy Chief Financial Officer could not follow Federal regulations and VA policies, which require claims be reimbursed promptly or a reimbursement plan be established. By not reimbursing the Judgment Fund timely, VA has continued to maintain significant liabilities not covered by its budget. VA will require additional funding to satisfy all reimbursement obligations remaining as of January 31, 2017.

Criteria For VA OIG Review

Federal regulations, 31 CFR §256.40 and §256.41, require VA to reimburse the Judgment Fund for payments made pursuant to the CDA. In addition, the Treasury Financial Manual10 states, “Upon receipt of a reimbursement notice in a Contract Disputes Act case, an agency has 45 business days to repay the Judgment Fund or contact the Judgment Fund Branch to make written arrangements for reimbursement.” VA’s Judgment Fund Reimbursement policy states the Office of the Deputy Chief Financial Officer receives the Treasury request for reimbursement and provides VA’s plan for reimbursement. This policy also states VA will reimburse the Judgment Fund for CDA claim payments and will adhere to the regulatory time frame established for submitting such reimbursements.

VA is to use proper appropriated funds or request supplemental appropriations to reimburse the Judgment Fund, if necessary.

Required Funds And Examples

From October 1, 2011 through September 30, 2016, the Judgment Fund paid $247,748,686 on behalf of VA for major construction claims related to 10 major construction projects, with an average delinquency of 221 days. As of January 31, 2017, VA still owed the Judgment Fund $226,328,422 from Treasury reimbursement requests. VA did not establish repayment plans to reimburse the Judgment Fund, as required. According to VA, Treasury had not made any follow-up collection requests for reimbursement to the Judgment Fund.

Examples of substantial delinquencies in VA repayments to Treasury include:

  • The Judgment Fund made a payment related to the new construction of the VA Orlando Medical Center totaling $31,806,708 in July 2015. VA’s reimbursement to Treasury was overdue 340 days, as of January 31, 2017.
  • The Judgment Fund made a payment related to the new construction of the VA Denver Medical Center totaling $4,447,028 in March 2015. VA’s reimbursement to Treasury was overdue 411 days, as of January 31, 2017.

Appendix A describes the 23 payments made by the Judgment Fund during the review period to settle VA major construction claims.

VA Fails To Request Sufficient Funds To Pay Judgment Fund

Between 2012 and 2017, VA only included about $28.9 million in its budget requests to reimburse the Judgment Fund. Of that amount, VA used $21,420,264 to reimburse the Judgment Fund for major construction claims and used the remainder for other types of claims. VA’s Acting Deputy Assistant Secretary for Budget reported to us that because of budget constraints, “…emphasis was on Department facility requirements that support veteran access and safety while replacement of judgment funds was a lower priority.” 

Although VA is not assessed interest by Treasury on outstanding balances that are overdue to the Judgment Fund, VA has continued to maintain significant liabilities not covered by budgetary resources. VA requires significant funding to satisfy the outstanding claims.

VA OIG Conclusion

VA failed to fully and timely reimburse the Judgment Fund as required. From October 1, 2011 through September 30, 2016, Treasury paid claims from the Judgment Fund totaling $247,748,686 on VA’s behalf. The average delinquency on these claims of 221 days is well beyond the required 45 business days. VA reimbursed the Judgment Fund $21,420,264, leaving a balance due of $226,328,422 as of January 31, 2017. VA failed to pay these claims timely because it failed to request and obtain sufficient funds from Congress. By not reimbursing the Judgment Fund timely, VA has continued to maintain significant liabilities not covered by its budget.

VA OIG Recommendation

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 requests for reimbursement or establishes appropriate payment plans for claims paid pursuant to applicable law.

VA Management Comments

The Acting Assistant Secretary for Management, who was also serving as the Acting Chief Financial Officer, concurred with the intent of the recommendation. He reported VA will update policy to establish procedures ensuring that VA reimburses the Treasury Judgment Fund or establishes appropriate repayment plans for claims paid. The policy will be updated to reflect the requirements contained in Treasury Policy, and 31 CFR §256.40 and §256.41. The expected completion date for this policy update is June 2018.

VA OIG Response To VA Management

The Acting Assistant Secretary’s corrective action plan is responsive to the intent of the recommendation. We will monitor implementation of the planned action and will close the recommendation when we receive sufficient evidence demonstrating progress in addressing the recommendation.

Source: https://www.va.gov/oig/pubs/VAOIG-17-00833-05.pdf

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    The VA announced that it will suspend Ashford’s eligibility for GI Bill tuition payments and approval of student enrollments and re-enrollments within 60 days unless the university takes “corrective action.” That could disrupt the education of more than 10,000 veterans and active-duty military students among Ashford’s overall enrollment of more than 40,000 by early January.


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      “Ashford University preyed on veterans and people of modest means. This for-profit college illegally misled students”


  2. Ben Krause is the most powerful lawyer in the united states i have ever seen. how he picked up that information fast like that. i hope they make a movie about Ben Krause . this lawyer is dangerous and on FIRE , holy shit lick his shoe every time he comes in the court room and let him drink nothing but milk and honey from now on. long live the Ben Krause resistance. he deserves more than a salute he deserves general patton god damn jeep!!!

    just start doing donuts on the va lawn ben all cover the flaming dog poop bags near the rotating door

  3. Military veterans sought for clinical study testing the safety, efficacy of cannabis
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  4. Off topic: The Daily Callers Jonah Bennett just posted an article saying the VA has hired back Toby Mathew, the former director of the VAMC in Shreveport.

    Spokeshack Cashour is busy blaming the civil service personnel system rather than the VAs own incompetence in their inability to fire someone.

    The article does say the VA has figured out what to do with these slugs when they screw up firing them. The VA has detailed Mathew to Houston for some make-work job. Rather than leaving him in place, the VA has assigned him to the Office of Organizational Excellence.

    So, Mathew was fired last February. New legislation was passed in June making it easier to fire these hacks. The VA still fucks it up and has to rehire him in October…and the VA keeps it very quiet until the Daily Caller calls them out.

      1. Sometime ago, a fellow vet complained about these “doctors” who were by design refusing to designate Vets injuries as “Not service connected” even when the evidence called for such a designation for compensation. Each time this happens, each of those phony doctors should have a lawsuit filed against him/her for malpractice and then such a lawsuit highly publicized.
        These phony doctors/shills need to have their resumes flooded with lawsuits, wherein they will be forced to admit that it was a VA “plan and practice” they were implementing.

    1. do you know that you can become appointed as a private prosecutor and then go after these slugs? Why aren’t these POSs harassed from the face of the earth??
      If I were any of these crapheads I would be afraid to go to a public bathroom for fear that I might fall into an unflushed toilet bowl and accidentally drown. Vermont Ave N.W. Washington, D.C. society is now organizing surprise drag races

      1. Crocodiles never shed one tear or any sleep while it’s still alive caged snack within it’s mouth screams for mercy…that’s a morning live snack and one sadistic crocodile.

  5. Whack a Mole!!

    EXCLUSIVE: VA Forced To Take Back Medical Center Director Who Retaliated Against, Demeaned Employees
    Photo of Jonah Bennett
    Jonah Bennett
    National Security/Politics Reporter
    2:40 PM 11/29/2017

    “The Department of Veterans Affairs had to take back Toby Mathew, the former director of the Overton Brooks VA Medical Center”

    “The VA confirmed that Mathew has been hired back into the system due to a “flawed and outdated civil service personnel system,” but said that he will not be working at the Shreveport VA. Rather, he will be detailed to the Office of Organizational Excellence. He was rehired on October 15, 2017.”


    1. Guess the new improved Version of the Whack a Mole game includes promoting the mole after it is Whacked.

      With all the new legislation on VA firings being nothing but bullshit.

    2. The VA has perfected their form of ‘Willy Wonka’s Neverending Gobstopper’, but in VA’s case, it’s the Neverending Unflushable Turd Supply (N.U.T.S.). JSee, the VA even relies on it’s own nefarious indifference to fall-back upon when it actually needs to follow procedures, which resuscitates the turd and the game of whack a turd begins all over again…I am thinking Toby Mathew may just find himself heading to the Phoenix VAMC to tend to the wait lists of excellence. Wait for it…

    3. Since the signing of the VA Accountability Act of 2017, has anyone seen a the VA be “forced” to take back a whistleblower?

      It’s all a scam. The MSPB, OSC and VA Accountability Office is making sure managers stay employed while victims suffer. Where’s the people who claim reform at the VA is taking place (for the first time in years) under the Trump administration?

      1. My Fellow Vets; Please don’t commit suicide; But if you must kill as many VA bureaucrats before you go.

    4. Gee, guy, I thought he drowned in the bayou…………………… Mathew is now working in the “ORGANIZATIONAL EXCELLENCE”??!! HarHarHarHarHar!!!
      Are you chitting me man??
      which scumbag rehired him??? Find out

      1. Seriously, now isn’t there a lawsuit that can be filed against whoever re-hired him for not enforcing the NEW REGS ON FIRING OF SHITBIRDS??

  6. I’m trying to turn over a new leaf by not seeking out deliberate villainy. To that end, today I give you Hanlon’s Razor: “Never attribute to malice that which is adequately explained by stupidity.”

    Gosh – I feel so much better now that I have de-escalated from “dirty fargin iceholes” to mere “stupid mortar forkers”.

    Everything is beautiful
    In it’s own way
    Like a starry summer night
    On a snow covered winter’s day…..

  7. Anyone else tired of seeing the same bullshit excuses from VA for various things?

    “We need to update policy to fix our incompetence”.

    “Our incompetence is only due to how much we care about our veterans.”

    If they cared about veterans, why does it take 6 months to update this policy, but it will take them 1 year to update the policy on reporting bad doctors?

    They use the iCare (i Can arrange reasonable excuses) excuse for not asking congress for money to pay their lawful obligations, but we see their priority when it comes to caring for vets and their bonuses, and we know which one is higher.

    They didn’t ask for money because it would have been embarrassing to the Obama administration to do so, and that was a period when nobody in that administration gave a shit about the law or policy. Now the bill is coming due. Another fine example of the VA not only stiffing vets, but contractors and the Treasury as well.

    The Treasury doesn’t just pay these claims Willy nilly. The VA was well aware of what was going on, particularly the CFO, yet they did nothing, likely because it was directed to do nothing at a higher level…to avoid embarrassment.

    Its interesting to see that $226 million is for major disputes. How much is paid out for minor disputes?

    Congress can easily fix this. Change the Treasury law requiring payment to where an agency that owes money because of a payout automatically has their budget reduced by an equal amount and transferred to Treasury. They can start with their bonus budget, move on to their Interior Designer budget and so on until its paid.

  8. Ben, you need that big tax break, right? Flesh and blood have to stand by for the move ahead of hardware.

  9. What is oddly strange here is that if the VA Orlando cost was 600m, and the Denver project exceeded 1.5b, What was Kiewit Turners payment deficiencies by VA?
    The OIG continually publishes these weekly TunaBeast chronicles without naming contractors which should be made public .
    Disabled veteran contractors are being left out of the equation to compete for these contracts.
    Word of the day: #MistakenBacon and the OIG is faking. Veterans are being taken for the raking. ……….3 second pause Faggots!
    (In the voice of Margaret Thatcher)

    1. I forgot about that in my comment below.

      How many of these major or minor contractors getting stiffed by the VA are disabled veteran owned companies?

      1. Probably none, because they don’t really award valuable construction contracts to disabled veteran owned companies. They have awarded a few contracts to empty the construction site porta pottys and a few contracts to provide coffee for the G.C. every morning on the jobsite.

    2. CorpsmanUp,
      Wasn’t it around 11/2 to 2 years ago, the OIG’s or GAO stated the VA “…shouldn’t be in the contracting business of building…” anything.
      Today’s article reinforces those findings!
      As a matter of fact, why hasn’t some government agency filed criminal charges against those committing these things?

  10. The Hospital Spectrum Health in Grand Rapids, MI will no longer see Veterans because of unpaid fees exceeding $20 Millions. CHOICE failed to take care of it. I am not certain how valid this is since I did not speak to any comptrollers at the hospital, just people that work there.

  11. Looks to me like VA management sure knows how to “slide taxpayers monies into a deep abyss”! Just like those hospitals it thinks it knows how to build! Can’t wait for the American Taxpaying People to revolt against VA for all the monies they’ve wasted!

    I still say, an audit of va, and a check to see how many, from Shulkin all the way down to the directors, off-shore accounts these reprobates have, is essential!

    The more negative information coming out of VA isn’t looking too good for Shithead Shulkin’s future employment!

  12. “VA was delinquent in reimbursing the Judgment Fund because VA did not request sufficient funding for the reimbursement of CDA claims.”

    They need to quit dipping their hands in PINE TAR before getting into that cookie jar…..
    That would surely fix the problem….LOL

    1. Pretty sure they only use bacon grease, not pine tar…the bacon grease emulates from the pores of the purple teams and greases the walls at same time $$$ sticks to fatback skin.

  13. 1) VA OIG is a flyswatter made of overcooked noodles and, 2) The VA requires a Taxpayer Appointed Fiduciary because these fucks cannot manage funds that *should be* going to Vets, and 3) as 91Veteran has stated, “I bet everyone of these fucks with bacon grease on their sleeves from sliding in and out of Veteran cookie jar know *exactly* whom to call if there’s a problem with their purple team’s paycheck….and 4, for good measure…fuck you VA!

      1. namnibor…..That cookie jar is bigger now than u think, I got a peek, It’s a bank vault,
        but they do use the bacon grease on both sides of the entry door to slide in, They sure are getting Fat off of the taxpayers…..

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