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AP Graphic VETERANS BONUSES

By HOPE YEN

Associated Press Writer

WASHINGTON (AP) – Months after a politically embarrassing $1 billion shortfall that put veterans' health care in peril, Veterans Affairs officials involved in the foul-up got hefty bonuses ranging up to $33,000.

The list of bonuses to senior career officials at the Veterans Affairs Department in 2006, obtained by The Associated Press, documents a generous package of more than $3.8 million in payments by a financially strapped agency straining to help care for thousands of injured veterans returning home from Iraq and Afghanistan.

Among those receiving payments were a deputy assistant secretary and several regional directors who crafted the VA's flawed budget for 2005 based on misleading accounting. They received performance payments up to $33,000 each, a figure equal to about 20 percent of their annual salaries.

Also receiving a top bonus was the deputy undersecretary for benefits, who helps manage a disability claims system that has a backlog of cases and delays averaging 177 days in getting benefits to injured veterans.

The bonuses were awarded even after government investigators had determined the VA repeatedly miscalculated – if not deliberately misled taxpayers – with questionable methods used to justify Bush administration cuts to health care amid a burgeoning Iraq war.

Annual bonuses to senior VA officials now average more than $16,000 – the most lucrative in government.

The VA said the payments are necessary to retain hardworking career officials.

Several watchdog groups questioned the practice. They cited short-staffing and underfunding at VA clinics that have become particularly evident after recent disclosures of shoddy outpatient treatment of injured troops at Walter Reed Army Medical Center in Washington.

"Hundreds of thousands of our veterans remain homeless every day and hundreds of thousands more veterans wait six months or more for VA disability claim decisions," said Paul Sullivan, executive director of Veterans for Common Sense. "The lavish amounts of VA bonus cash would be better spent on a robust plan to cut VA red tape."

Sen. Daniel Akaka, chairman of the Senate Veterans' Affairs Committee, said the payments pointed to an improper "entitlement for the most centrally placed or well-connected staff."

Seeking an explanation from Secretary Jim Nicholson, Akaka also asked the department to outline steps to address disparities in which Washington-based senior officials got higher payments than their counterparts elsewhere.

"Awards should be determined according to performance," said Akaka, D-Hawaii. "I am concerned by this generous pat on the back for those who failed to ensure that their budget requests accurately reflected VA's needs."

A VA spokesman, Matt Burns, said the department was reviewing Akaka's request. Burns contended that many of the senior officials had been with the department for years, with an expertise that could not be replicated immediately if they were to leave for the more profitable private sector.

"Rewarding knowledgeable and professional career public servants is entirely appropriate," he said. "The importance of retaining committed career leaders in any government organization cannot be overstated."

In 2006, the VA officials receiving top bonuses included Rita Reed, the deputy assistant secretary for budget, and William Feeley, a former VA network director who is now deputy undersecretary for health for operations and management.

Also receiving $33,000 was Ronald Aument, the deputy undersecretary for benefits, who helps oversee the strained and backlogged claims system that Nicholson now says is unacceptable.

The bonuses are determined by the heads of the VA's various divisions, based in part on performance evaluations. All requests are submitted to Nicholson for final approval.

In July 2005, the VA stunned Congress by suddenly announcing it faced a $1 billion shortfall after failing to take into account the additional cost of caring for veterans injured in Iraq and Afghanistan.

The admission, months after the department insisted it was operating within its means and did not need additional money, drew harsh criticism from both parties and some calls for Nicholson's resignation.

The investigative arm of Congress, the Government Accountability Office, determined the VA had used misleading accounting methods and claimed false savings of more than $1.3 billion, apparently because President Bush was not willing, at the time, to ask Congress for more money.

According to the White House Office of Personnel Management, roughly three of every four senior officials at the VA have received some kind of bonus each year. In recent years, the payment amount has steadily increased from being one of the lowest in government – $8,120 in 2002 – to the most generous – $16,713 in 2005.

In contrast, just over half the senior officials at the Energy Department in 2005 received an average bonus of $9,064. Across all government agencies, about two-thirds of employees received bonuses, which averaged $13,814 in 2005, the most recent data available.

Steve Ellis, vice president of Taxpayers for Common Sense, said the VA bonuses appeared to reflect a trend in government where performance bonuses were increasingly used to reward loyal associates and longtime employees.

Put in place shortly after the 1978 Civil Service Reform Act, executive bonuses were designed to increase accountability in government by tying raises more closely to performance. But while bonuses can help retain key employees, damage can be done when payments turn into an automatic handout regardless of performance, Ellis said.

"Simply put, people who nearly shortchanged our veterans shouldn't get a bonus check at the end of the year," he said.

Joe Davis, spokesman for Veterans of Foreign Wars, one of the nation's largest veterans groups, agreed. His organization is awaiting Nicholson's explanation, saying that the budget shortfall was partly to blame for backlogs and other problems today.

"No one joins the government to get rich, and the bonus may be used as a retention tool to keep the best and the brightest, but it must be performance-based in award to be fair and impartial," Davis said. "Anything else could be viewed as favoritism."

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On the Net:

Veterans Affairs Department: http://www.va.gov/

Senate Veterans' Affairs Committee: http://veterans.senate.gov

VA awards bonuses to senior officials involved in shorting budget, vets health care

By HOPE YEN
Associated Press Writer

AP Graphic VETERANS BONUSES
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AP Graphic VETERANS BONUSES

By HOPE YEN

Associated Press Writer

WASHINGTON (AP) – Congressional leaders on Thursday demanded that the Veterans Affairs secretary explain hefty bonuses for senior department officials involved in crafting a budget that came up $1 billion short and jeopardized veterans' health care.

Rep. Harry Mitchell, chairman of the House Veterans' Affairs subcommittee on oversight, said he would hold hearings to investigate after The Associated Press reported that budget officials at the Veterans Affairs Department received bonuses ranging up to $33,000.

Sen. Daniel Akaka, who heads the Senate Veterans' Affairs Committee, said the payments pointed to an improper "entitlement for the most centrally placed or well-connected staff." He has sent a letter to VA chief Jim Nicholson asking what the department plans to do to eliminate any bonuses based on favoritism.

"These reports point to an apparent gross injustice at the VA that we have a responsibility to investigate," said Mitchell, D-Ariz. "No government official should ever be rewarded for misleading taxpayers, and the VA should not be handing out the most lucrative bonuses in government as veterans are waiting months and months to see a doctor."

One member of the House committee, Rep. Phil Hare, D-Ill., called for Nicholson to resign.

A list obtained by the AP of bonuses to senior career officials in 2006 documents a generous package of more than $3.8 million in payments by a financially strapped agency straining to help care for thousands of injured veterans returning home from Iraq and Afghanistan.

Annual bonuses to senior VA officials now average more than $16,000 – the most lucrative in government. All bonuses are proposed by division chiefs, then approved by Nicholson.

A VA spokesman said the payments are necessary to retain hardworking career officials. "Rewarding knowledgeable and professional career public servants is entirely appropriate," spokesman Matt Burns said.

Several veterans groups questioned the practice. They cited short-staffing and underfunding at VA clinics that have become particularly evident after recent disclosures of shoddy outpatient treatment of injured troops at Walter Reed Army Medical Center in Washington.

"Rewarding bureaucrats for failure while veterans wait for care is inexcusable," said Paul Rieckhoff, executive director of the Iraq and Afghanistan Veterans of America.

In a letter to Nicholson, Akaka also asked the department to outline steps to address disparities in which Washington-based senior officials got higher payments than their counterparts elsewhere.

Burns, who said the department is reviewing Akaka's request, said many of the senior officials have the kind of experience that would be hard to replace.

"The importance of retaining committed career leaders in any government organization cannot be overstated," Burns said.

VA officials characterized the agency's Washington-based jobs as more difficult, often involving management of several layers of divisions that would justify the higher payments.

Also receiving $33,000 was Ronald Aument, the deputy undersecretary for benefits, who helps oversee the strained and backlogged claims system that Nicholson now says is unacceptable.

The admission, which came months after the department insisted it was operating within its means and did not need additional money, drew harsh criticism from both parties and some calls for Nicholson's resignation.

In urging Nicholson to step down, Hare cited problems with accounting as well as data security that contributed to the loss of 26.5 million veterans' sensitive personal information last year.

"Time and time again, Secretary Nicholson, a former chair of the Republican National Committee, opted to offer political spin instead of preparing for the inevitable influx of new veterans entering the system," Hare said. "Veterans deserve a secretary that will fight for them."

Burns, the VA spokesman, defended Nicholson. "Nobody cares more about veterans than Secretary Nicholson," Burns said, adding that his boss's "efforts to serve his fellow veterans will not be deterred by partisan posturing and angry personal attacks."

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On the Net:

Veterans Affairs Department: http://www.va.gov/

Angry over VA officials' hefty bonuses, lawmaker seeks to stop 2007 payments

By HOPE YEN
Associated Press Writer

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By HOPE YEN

Associated Press Writer

WASHINGTON (AP) – The chairman of a House panel wants to stop hefty bonus payments to senior Veterans Affairs officials until they reduce a severe backlog of veterans waiting for disability benefits.

Rep. John Hall, D-N.Y., said Friday he was introducing legislation to place a hold on this year's bonuses after The Associated Press reported that senior VA officials involved in a budget foul-up which jeopardized veterans' health care received performance bonuses ranging up to $33,000.

Under the measure, 2007 bonuses could not be released until the VA pares down its backlog to under 100,000 cases – a feat the VA has said could take many months, if not years. Currently, the backlog of claims ranges from between 400,000 to more than 600,000, with delays averaging 177 days.

"It is shocking and scandalous even by the VA's own low standards that top officials at the VA would get performance bonuses when there's a backlog of over 600,000 cases," said Hall, chairman of the House Veterans Affairs subcommittee on disability assistance.

The disclosure prompted outrage among veterans groups and on Capitol Hill, where Democratic leaders have demanded an explanation from VA Secretary Jim Nicholson and said they would hold hearings to investigate. The VA says the bonuses were needed to help retain hardworking employees.

"VA and its leaders are committed to providing the best possible care and services to our nation's veterans," VA spokesman Matt Burns said Friday.

Among those receiving top bonuses of $33,000 was the deputy undersecretary for benefits, who helps manage a disability claims system with the backlog that Nicholson now says is unacceptable.

Also receiving top payments were a deputy assistant secretary and several regional directors who crafted the VA's flawed budget for 2005 based on misleading accounting. They received performance payments up to $33,000 each, a figure equal to about 20 percent of their annual salaries.

Annual bonuses to senior VA officials now average more than $16,000 – the most lucrative in government.

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On the Net:

Department of Veterans Affairs:

http://www.va.gov/

Nicholson pledges to improve veterans care, defends bonuses

By HOPE YEN
Associated Press Writer

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By HOPE YEN

Associated Press Writer

WASHINGTON (AP) – VA Secretary Jim Nicholson told skeptical House members Wednesday he would work hard to improve veterans' care and said he would take personal responsibility for implementing a presidential task force's recommendations.

Responding to renewed criticism of performance bonuses given to senior officials, Nicholson generally defended the award of hefty bonuses to top Veterans' Affairs officials. Those officials crafted a budget that fell $1 billion short and have been accused of jeopardizing health care, but Nicholson said many Veterans Affairs employees could get higher salaries in private business.

"We recognize our shortcomings," Nicholson told the House Veterans Affairs Committee. "They could be making tremendous money on the outside. But they're staying."

Following reports of the bonuses last week by The Associated Press, Rep. John Hall, D-N.Y., introduced legislation that would freeze future VA bonuses until the backlog of veterans waiting for disability benefits is reduced from more than 400,000 to below 100,000. An expedited vote on that measure by the full House is planned for next week.

On Wednesday, Nicholson testified to the House members about recommendations issued last month by the presidential task force he chairs on improving veterans care. Among the proposals are for computerized record-keeping of patient information, better Pentagon and VA collaboration and additional screenings for brain injury.

President Bush ordered the immediate implementation of the recommendations. But lawmakers from both parties have questioned whether they will actually take effect, noting that many of the proposals were made years ago with little success.

Nicholson said he would accept blame if the recommendations don't make significant headway.

"I take personal responsibility in assuring Congress, veterans and service members that this report will be accompanied by definitive and measured actions," Nicholson said. "I can't wave a wand over all these different agencies, but it's taken very seriously, and I'm in charge of follow-up."

Asked by Rep. Harry Mitchell, D-Ariz., if the VA regretted not asking for more money in previous years to address growing demands from veterans returning from Iraq and Afghanistan, Nicholson responded: "I think the VA is adequately staffed."

That drew a harsh response from Rep. Bob Filner, D-Calif., the committee chairman. He said if Nicholson made that claim to any veterans groups, they would "boo you off the stage."

"We can't keep saying we have this backlog and we're going to solve it," Filner said, in calling for more money and staff for training, treatment and diagnoses of post-traumatic stress disorder and other psychological problems. "We've got to cut through it."

"I think people want bolder action. They don't want this process stuff," Filner said.

Rep. Steve Buyer, R-Ind., the top Republican on the panel, reminded Nicholson that there has been report after report on improving Pentagon-VA collaboration over the last 15 years.

"We must now have implementation," Buyer said.

Nicholson responded that he is seeing a renewed zeal to solve problems, with top officials from the Pentagon and VA meeting earlier this week to discuss ways to break bureaucratic obstacles that have delayed reforms in the past.

Regarding money for veterans care, Nicholson said the VA "can probably always make good use of more money."

Democratic lawmakers also renewed their criticism of the VA's payment of $3.8 million in performance bonuses.

The bonuses, which ranged up to $33,000, were given to several top officials who devised a budget that investigators later found to be misleading and put veterans care at risk.

Hawaii Sen. Daniel Akaka, who chairs the Senate Veterans Affairs Committee, and groups including Veterans of Foreign Wars and Iraq and Afghanistan Veterans of America, have called on Nicholson to explain why officials involved in a budget foul-up would be rewarded.

A House Veterans Affairs subcommittee plans hearings to investigate the payments in the coming weeks.

"I am hearing from a number of our soldiers who've returned home who can't get their benefits because of a backlog at the VA. When they hear about a senior VA official getting a bonus while they can't even get a benefit to keep them in their home or feed their family, it's pretty disturbing," said Sen. Patty Murray, D-Wash., at a Senate hearing Wednesday on VA backlogs.

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On the Net:

Department of Veterans Affairs: http://www.va.gov/

House Veterans Affairs Committee: http://veterans.house.gov/

AP Enterprise: VA bonus recipients sat on boards that oversaw payments

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AP Graphic VETERANS BONUSES

By HOPE YEN

Associated Press Writer

WASHINGTON (AP) – Nearly two dozen officials who received hefty performance bonuses last year at the Veterans Affairs Department also sat on the boards charged with recommending the payments.

Documents obtained by The Associated Press raise questions of conflicts of interest or appearances of conflicts in connection with the bonuses, some of which went to senior officials involved in crafting a budget that came up $1.3 billion short and jeopardized veterans' health care.

The documents show that 21 of 32 officials who were members of VA performance review boards received more than half a million dollars in payments themselves.

Among them: nearly a dozen senior officials who devised the flawed 2005 budget. Also rewarded was the deputy undersecretary for benefits, who manages a system with severe backlogs of veterans waiting for disability benefits.

Deputy undersecretaries who sit on the review boards, which are appointed by VA Secretary Jim Nicholson, also had input on bonus recommendations involving themselves, fellow members and spouses that made questionable performance claims and neglected agency problems.

The VA, which has defended the bonuses as necessary to retain hardworking senior employees, says board members do not participate in bonus decisions that involve themselves or fellow board members. In those cases, recommendations are made by agency heads in consultation with deputy undersecretaries, who usually serve as supervisors to their fellow board members, the agency says.

But government watchdogs were harshly critical, saying the process does little to instill public confidence in the fairness of awards. In its last known report on the issue – one involving NASA – the Government Accountability Office in 1980 urged that performance boards add credibility and objectivity to their decisions by including "one or more impartial members from outside the agency," although agencies are not required to do so.

With the exception of a panel tasked with reviewing the VA inspector general's office, all the VA's performance board members come from within the agency.

In one case, Michael Walcoff, associate deputy undersecretary for field operations who sits on two of the review boards, and his wife, Kimberly, a VA director, received a package of bonuses totaling $42,000.

"This is a scandal in the making," said Paul C. Light, professor of public service at New York University who specializes in government reform. He said the VA bonuses pointed to possible "featherbedding" and other favoritism.

Light said given the current problems in veterans care, the department would be best served if Nicholson restricted most performance bonuses for at least a year except in cases of clear improvement.

"This is not the time for largesse for the Department of Veterans Affairs," Light said. "They must not make a link between retention and employees, but employees and performance as an incentive to solve these very serious problems."

Following reports this month by the AP of the $3.8 million in bonuses, groups such as the Veterans of Foreign Wars and the Iraq and Afghanistan Veterans of America have called on Nicholson to explain why officials involved in budget foul-ups would be rewarded.

Annual bonuses to senior VA officials last year averaged more than $16,000, the highest average in government.

Rep. John Hall, D-N.Y., has introduced legislation that would freeze 2007 VA bonuses for "senior politically appointed officers" – such as assistant secretaries or deputy undersecretaries – until the agency pares its disability claims backlog to under 100,000 cases. The VA says deputy undersecretaries are career employees, and a committee spokeswoman acknowledged that was the case.

"It is simply unacceptable that veterans are waiting longer and longer for benefits they desperately need while senior staff members in charge of bad policy are rewarded so-called performance bonuses," Hall said.

The legislation, originally scheduled for a vote Tuesday, was expected to be considered along with other veterans health care bills later this month, a spokeswoman for Hall said.

Under a federal law passed in 1978 to increase government accountability by tying bonuses more closely to performance, agencies are required to appoint performance review boards yearly to guarantee bonus awards are "fair and credible."

According to guidance by the U.S. Office of Personnel Management, performance boards must ensure that bonuses are given based not only on individual accomplishments cited by supervisors, but also the department's overall success.

However, 2006 bonus proposals obtained by the AP show that senior officials who received top payments of $33,000 were sometimes credited for achievements that were questionable, if not inaccurate. Also, no mention was made of agency-wide problems.

For example:

–Rita Reed, deputy assistant secretary for budget: "Demonstrated the ability to design and implement strategies that maximize employee potential and foster high ethical standards in meeting the organization's mission and goals."

While touting her role in launching programs to "leverage the VA's buying power" as well as collecting $5.1 million in erroneous payments, the proposal does not mention Reed's lead role in crafting the VA's flawed 2005 budget.

Months prior to her bonus award, GAO investigators determined the VA had used misleading accounting to justify health cuts, claiming false savings in part by double-counting savings from volume purchasing in government contracts from year to year.

–William Feeley, deputy undersecretary for health for operations and management: "Made numerous contributions to veterans and the Veterans Health Administration in his role as deputy undersecretary." It said he also led systemwide improvements that resulted in a 2.2 percent decrease in wait times for primary care.

Feeley received a top bonus and is credited for yearlong achievements even though he did not take the job until February 2006, nearly halfway into the fiscal year. Previously, he was a VA regional director who played a role in the flawed 2005 budget.

Regarding veterans' wait times to see doctors, a 2005 report from the VA inspector general found that VA schedulers routinely put the wrong requested appointment dates into the system, which made reported wait times appear shorter than they really were. The IG has said problems lingered in 2006 despite VA promises.

–Ronald Aument, deputy undersecretary for benefits: "His knowledge of VBA programs and operations and his breadth of experiences across VA have contributed greatly to VBA's progress in improving services to veterans."

Aument helps manage a disability claims system that has backlogs of 400,000 to 600,000 veterans. The waits average 177 days, two months short of the VA's strategic goal of 125 days to process claims. Nicholson has called the delays unacceptable.

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On the Net:

Veterans Affairs Department: http://www.va.gov/

VA needs to do better job when awarding performance bonuses, investigators say

By HOPE YEN
Associated Press Writer

AP Graphic VETERANS BONUSES
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AP Graphic VETERANS BONUSES

By HOPE YEN

Associated Press Writer

WASHINGTON (AP) – The VA needs to do a better job of handing out department bonuses after it awarded $3.8 million to officials who put health care at risk, investigators said Tuesday.

Testifying at a congressional hearing, the Government Accountability Office said the Veterans Affairs Department was taking additional steps to link hefty bonus payments more closely to the department's overall success in treating veterans.

But confusion still exists within the VA on the proper criteria, and executives based in Washington consistently outpaced their counterparts elsewhere in the size of payments – $19,439 compared with $15,268 to officials outside Washington.

In a report to a House Veterans Affairs subcommittee, the Office of Personnel Management said its review of VA practices found inconsistency in the awarding of bonuses.

"Discussions within the VA performance review boards should center on measurable results achieved and the awards scoring form ... should more clearly focus on results," said OPM director Linda Springer.

The subcommittee hearing comes after The Associated Press reported last month that 21 of 32 officials who were members of VA performance review boards charged with recommending bonuses received more than half a million dollars in payments themselves.

Among them: nearly a dozen senior officials who received bonuses ranging up to $33,000 to senior officials involved in crafting a budget that came up $1.3 billion short by repeatedly failing to anticipate needs of growing numbers of veterans returning from Iraq and Afghanistan.

Also rewarded was the deputy undersecretary for benefits, who manages a system with severe backlogs of veterans waiting for disability benefits. The current wait for veterans averages 177 days, two months short of the VA's strategic goal of 125 days.

Gordon Mansfield, the VA's deputy secretary, defended the bonuses as appropriate. He said the hefty payments were necessary to retain hardworking officials who might otherwise leave for the more profitable private sector.

But the bonuses drew fire from lawmakers from both parties, who decried the payments as evidence of improper favoritism. All bonus recommendations must be approved by VA Secretary Jim Nicholson, who declined to testify before the subcommittee.

"When the backlog of claims has been increasing for the past few years, one would not expect the senior-most officials to receive the maximum bonus," said Rep. Harry Mitchell, D-Ariz., who chairs the House subcommittee on oversight. "Indeed, it appears the bonuses in the central office were awarded primarily on the basis of seniority and proximity to the Secretary."

Florida Rep. Ginny Brown-Waite, the top Republican on the panel, said she wanted to make sure the bonuses were awarded based on VA officials' "actual performance, and not just performance on paper."

"The federal government should not be in the practice of awarding bonuses to people who permit failure on their watch," Brown-Waite said. "It should be limited only to the very best, particularly in time of war."

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On the Net:

House Veterans Affairs Committee: http://veterans.house.gov/

Veterans Affairs Department: http://www.va.gov/

VA acknowledges problems with bonus process, says it will consider changes

By HOPE YEN
Associated Press Writer

AP Photo DCMC106, DCMC105, DCMC102
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aD8PNHN6G0 06-12-2007 18:18:02 BC-Veterans Care-Bonuses, 3rd Ld-Writethru

aD8PNI4GO0 06-12-2007 18:46:27*F BC-Veterans Care-Bonuses, 4th Ld-Writethru

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BC-Veterans Care-Bonuses, 4th Ld-Writethru,800

VA acknowledges problems with bonus process, says it will consider changes

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Eds: UPDATE with additional color, Space comment. Moving on general news and financial services.

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AP Graphic VETERANS BONUSES

By HOPE YEN

Associated Press Writer

WASHINGTON (AP) – The VA on Tuesday acknowledged problems in its award of $3.8 million in bonuses to senior officials who put health care at risk and said it would consider changes to avoid conflicts of interest and improve oversight.

Testifying before a House panel, Veterans Affairs Deputy Secretary Gordon Mansfield insisted the hefty awards were appropriate and necessary to retain hardworking VA employees. But he agreed the process might lack objectivity because members who sit on VA performance review boards – charged with recommending bonuses for top employees – all come from within the agency and typically get bonuses themselves.

"I understand the issue you are raising," said Mansfield, when lawmakers asked whether VA should add outsiders to its board to reduce peer pressure on VA employees to take care of their own at the expense of taxpayers. "Bringing some outside influence might make the system better."

Mansfield said VA Secretary Jim Nicholson would consider adding agency outsiders to the VA's review boards. In its last known report on the issue, the Government Accountability Office in 1980 urged departments to include outsiders to add credibility to bonus awards.

"VA remains committed to the statutory imperative of executive bonuses to both reward and to encourage continued excellence in performance. We've got some damn good people," a grim and subdued Mansfield said.

Mansfield spoke as a few members of a veterans advocacy group, Grassroots America, silently held up signs in the hearing room that read, "My 80% disabled son backlogged 1 1/2 years," and "$$ for vets not execs."

The hearing before a House Veterans Affairs subcommittee comes after The Associated Press reported last month that 21 of 32 officials who were VA performance review board members received more than half a million dollars in payments themselves.

Among them: nearly a dozen senior officials who received bonuses ranging up to $33,000. Those officials, however, were involved in crafting a budget that came up $1.3 billion short by repeatedly failing to anticipate needs of growing numbers of veterans returning from Iraq and Afghanistan.

Also rewarded was the deputy undersecretary for benefits, who manages a system with severe backlogs of veterans waiting for disability benefits. The current wait for veterans averages 177 days, nearly two months longer than the VA's strategic goal of 125 days.

"With this backlog, I find it hard to believe reasonable justification existed for awarding some of these bonuses," said Rep. Zack Space, D-Ohio, who elicited the pledge from Mansfield to consider changing the VA's review process. "That money could have been used to help our heroes, not line the pockets of bureaucrats."

Earlier in the hearing, government investigators told House members the VA needed to do a better job in linking its bonuses to the department's overall success in treating veterans.

The GAO said confusion still exists in the VA on the proper criteria, and executives based in Washington consistently outpaced their counterparts elsewhere in the size of payments – $19,439 compared with $15,268 to officials outside Washington.

In a report to the subcommittee, the Office of Personnel Management said its review of VA practices found inconsistency in the awarding of bonuses.

Mansfield expressed concern that the hardworking VA officials might leave for the more profitable private sector if they did not receive bonuses.

That drew fire from lawmakers from both parties, who decried the payments as evidence of improper favoritism and said it would be illegal to award bonuses on anything other than performance. All bonus recommendations must be approved by Nicholson, who declined to testify before the subcommittee.

Florida Rep. Ginny Brown-Waite, the panel's top Republican, said she wanted to make sure the bonuses were awarded based on VA officials' "actual performance, and not just performance on paper."

"The federal government should not be in the practice of awarding bonuses to people who permit failure on their watch," she said. "It should be limited only to the very best, particularly in time of war."

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On the Net:

House Veterans Affairs Committee: http://veterans.house.gov/

Veterans Affairs Department: http://www.va.gov/