In a recent government meeting, Michael Missal, Inspector General of the U.S. Department of Veterans Affairs (VA), presented findings from a report that raised serious concerns about the improper awarding of $10.8 million in critical skill incentives (CSIs) to senior executives within the VA. The report, published on May 9, highlighted that these awards, which ranged from nearly $39,000 to over $100,000, were granted at the maximum percentage allowed under the PACT Act, despite significant governance and procedural lapses.

Missal detailed that the awards were primarily given to senior executives in the Veterans Health Administration (VHA) and Veterans Benefits Administration (VBA), based on a vague justification that cited a competitive job market for high-demand skills. However, the report criticized the lack of substantial evidence supporting these claims, noting that the justification provided was merely a short paragraph on a single form. In contrast, the National Cemetery Administration opted not to award CSIs to its senior executives, citing insufficient justification.

The report identified two main findings: first, the awards were inconsistent with the PACT Act and VA policy, as the VHA and VBA improperly grouped all senior executives together without considering their diverse occupational roles. Second, it revealed ineffective internal controls within the VA that failed to prevent these improper awards. Key issues included a lack of communication and accountability, with the Office of Human Resources and Administration (HRNA) overlooking staff concerns and the Office of General Counsel missing legal issues prior to the awards being made.

In response to the findings, Secretary McDonough acted swiftly to cancel the payments to the senior executives upon learning of the situation and requested an investigation into the CSI award process. The meeting underscored the need for improved governance and oversight within the VA to prevent similar issues in the future.