Highlights of VA OIG’s Oversight Work from May

Louis Calderon:
This is Veteran Oversight Now, the Veterans Affairs Office of Inspector General official podcast. I’m your host, Louis Calderon.
Brent Arronte, deputy assistant inspector general for the Office of Audits and Evaluations, testified on May 14 before the House Veterans’ Affairs’ Subcommittee on Disability Assistance and Memorial Affairs. His testimony focused on the OIG’s independent oversight of VA’s compensation and benefits programs. He discussed the OIG’s reports that demonstrate how inadequate training combined with often unclear and undeveloped guidance contribute to incorrect payments to veteran beneficiaries.

Brent Arronte:
Our oversight work has identified deficiencies in VBA’s processes, IT systems, training, and internal controls. As a result of that oversight, we focus on recommendations that will help VA find ways to deliver timely, accurate payments so beneficiaries are not impacted by miscalculations and incorrect payments. Taking corrective action on OIG recommendations could also help VBA be good stewards of taxpayer dollars.

Louis Calderon:
Meanwhile, 11 OIG investigations had updates in May. I’d like to highlight three of them.
A VA OIG and VA Police Service investigation revealed that a former inventory specialist at the Mountain Home VA Medical Center in Tennessee stole dental equipment from the facility and subsequently sold it online. The former VA employee was sentenced in the Eastern District of Tennessee to six months’ imprisonment, 36 months’ supervised release, and ordered to pay restitution to VA of approximately $385,000 after previously pleading guilty to theft of government property.
A multiagency investigation resulted in charges alleging an individual stole VA and Social Security benefits intended for his uncle, a quadriplegic veteran who was last seen around 2019. Allegedly, the nephew, who was supposedly residing with and providing care for his uncle, concealed his uncle’s death in order to steal his benefits. He allegedly used the funds to purchase exotic reptiles, fund lavish vacations, and enrich himself. The loss to the government is approximately $726,000. Of this amount, the loss to VA is approximately $650,000. The nephew was indicted in the Eastern District of Missouri on charges of wire fraud, theft of government funds, aggravated identity theft, and being a felon in possession of firearms.
Lastly, a VA OIG and Los Angeles Police Department investigation resulted in charges alleging a veteran made multiple threats to kill a West Los Angeles VA Medical Center employee. The defendant was arrested after being charged in Los Angeles County Superior Court with making criminal threats.
The OIG published 11 reports in May.
An OIG review found that VBA’s failure to flag fiduciaries who were removed from service results in risk to vulnerable beneficiaries. VBA’s Fiduciary Program appoints and oversees fiduciaries who are authorized to receive and distribute VA funds on behalf of beneficiaries. Fiduciaries can be removed and barred from future service for certain offenses, and in such cases, staff are required to flag them in VBA’s electronic system to prevent a reappointment. The review team found that in 68 percent of sampled cases, VBA did not flag removed fiduciaries when required. The program’s manual lacked clear procedures about who should place the flag and when. Also, training and oversight of staff were insufficient. Failure to properly flag barred fiduciaries increases the risk they will be reappointed. The OIG made three recommendations to the under secretary for benefits.
Another report described an OIG investigation that found that the former deputy director of the Orlando VA Medical Center, Tracy Skala, violated federal government ethics rules. On multiple occasions, she used her public office to promote VA procurement of navigation software from her son’s employer without disclosing their relationship, and she knew her son could receive bonus pay for a new contract. Her conduct reflected an apparent conflict of interest. The OIG also noted an additional matter outside the scope of the original allegations. Ms. Skala informed VA she received a critical skills incentive payment of more than $32,000; however, VA had not initiated the process to recover any debt after she retired before completing the required service period associated with the incentive. Because Ms. Skala retired, the OIG made no recommendations regarding her conduct. The OIG did make three recommendations that involved addressing potential conflicts before vendor presentations and recovering critical skill incentive debts.

Other OIG reports published in May include three healthcare facility inspection reports on facilities in Florida, Georgia, and Oklahoma, as well as an inspection of four vet centers in Illinois, Indiana, and Wisconsin.

Read more about the VA OIG’s oversight work in May 2025 on our website at vaoig.gov. Want to stay up to date? Sign up to receive email messaging from the VA OIG. Thanks for listening.

Highlights of VA OIG’s Oversight Work from May
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