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25-789 PDF 2006

S. HRG. 109–394

PENDING NOMINATIONS

HEARING

BEFORE THE

COMMITTEE ON VETERANS’ AFFAIRS

UNITED STATES SENATE

ONE HUNDRED NINTH CONGRESS

FIRST SESSION

SEPTEMBER 29, 2005

Printed for the use of the Committee on Veterans’ Affairs

(

Available via the World Wide Web: http://www.access.gpo.gov/congress/senate

(II)

COMMITTEE ON VETERANS’ AFFAIRS

LARRY E. CRAIG, Idaho, Chairman

ARLEN SPECTER, Pennsylvania

KAY BAILEY HUTCHISON, Texas

LINDSEY O. GRAHAM, South Carolina

RICHARD BURR, North Carolina

JOHN ENSIGN, Nevada

JOHN THUNE, South Dakota

JOHNNY ISAKSON, Georgia

DANIEL K. AKAKA, Ranking Member, Hawaii

JOHN D. ROCKEFELLER IV, West Virginia

JAMES M. JEFFORDS, (I) Vermont

PATTY MURRAY, Washington

BARACK OBAMA, Illinois

KEN SALAZAR, Colorado

LUPE WISSEL, Majority Staff Director

D. NOELANI KALIPI, Minority Staff Director

(III)

CONTENTS

SEPTEMBER 29, 2005

SENATORS

Page

Craig, Hon. Larry E., Chairman, U.S. Senator from Idaho ................................. 1

Akaka, Hon. Daniel K., U.S. Senator from Hawaii .............................................. 3

Hutchison, Hon. Kay Bailey, U.S. Senator from Texas ........................................ 5

Burr, Hon. Richard, U.S. Senator from North Carolina ....................................... 5

Salazar, Hon. Ken, U.S. Senator from Colorado ................................................... 6

Obama, Hon. Barack, U.S. Senator from Illinois .................................................. 7

Specter, Hon. Arlen, U.S. Senator from Pennsylvania ......................................... 7

WITNESSES

Tuerk, William F., Nominee to be Under Secretary for Memorial Affairs,

U.S. Department of Veterans Affairs ................................................................. 9

Prepared statement .......................................................................................... 11

Questionaire ...................................................................................................... 13

Response to written questions submitted by: .................................................

Hon. Larry E. Craig .................................................................................. 35

Hon. Daniel K. Akaka ............................................................................... 37

Henke, Robert J., Nominee to be Assistant Secretary for Management, U.S.

Department of Veterans Affairs .......................................................................... 38

Prepared statement .......................................................................................... 40

Questionaire ...................................................................................................... 42

Response to written questions submitted by: .................................................

Hon. Larry E. Craig .................................................................................. 47

Hon. John D. Rockefeller IV ..................................................................... 47

Molino, John M., Nominee to be Assistant Secretary for Policy, Planning,

and Preparedness, U.S. Department of Veterans Affairs ................................. 48

Prepared statement .......................................................................................... 49

Questionaire ...................................................................................................... 51

Response to written questions submitted by: .................................................

Hon. Larry E. Craig .................................................................................. 57

Hon. Daniel K. Akaka ............................................................................... 58

Mondello, Lisette M., Nominee to be Assistant Secretary for Public and Intergovernmental Affairs, U.S. Department of Veterans Affairs ............................ 58

Prepared statement .......................................................................................... 60

Questionaire ...................................................................................................... 62

Response to written questions submitted by: .................................................

Hon. Larry E. Craig .................................................................................. 67

Hon. Daniel K. Akaka ............................................................................... 67

Opfer, George J., Nominee to be Inspector General, U. S. Department of

Veterans Affairs ................................................................................................... 68

Prepared statement .......................................................................................... 69

Questionaire ...................................................................................................... 71

Response to written questions submitted by: .................................................

Hon. Larry E. Craig .................................................................................. 76

Hon. Daniel K. Akaka ............................................................................... 77

(1)

PENDING NOMINATIONS

THURSDAY, SEPTEMBER 29, 2005

U.S. SENATE, COMMITTEE ON VETERANS’ AFFAIRS, Washington, DC.

The committee met, pursuant to notice, at 10:00 a.m., in room

SR–418, Russell Senate Office Building, Hon. Larry E. Craig

(chairman of the committee) presiding.

Present: Senators Craig, Specter, Hutchison, Burr, Akaka,

Obama, and Salazar.

OPENING STATEMENT OF HON. LARRY E. CRAIG,

U.S. SENATOR FROM IDAHO

Chairman CRAIG. Good morning, ladies and gentlemen. The Committee on Veterans’ Affairs will now come to order.

This morning we will receive testimony from five individuals who

have been nominated by the President of the United States to serve

in posts at the U.S. Department of Veterans Affairs: William

Tuerk, whom many of us know, nominated to serve as Under Secretary for Memorial Affairs; Robert Henke, nominated to serve as

Assistant Secretary for Management; Lisette Mondello, nominated

to serve as Assistant Secretary for Public and Intergovernmental

Affairs; John Molino, nominated to serve as Assistant Secretary for

Policy, Planning, and Preparedness; and George Opfer, nominated

to serve as Inspector General.

Well, first and foremost, congratulations to all of you for your

nominations, and welcome to the committee. Also, I want to welcome all of your families—I have had a chance to meet some of

them—and your friends who are accompanying you here today. I

look forward to you taking the opportunity to introduce them to the

committee.

I believe Senator Hutchison will be joining us in a few minutes

to introduce you, Lisette, and so I will move on with the introductions of our other nominees. However, I do want to comment on

some of the important responsibilities in this process that each of

the nominees will undertake if confirmed. I also want to introduce

Mr. Tuerk, Chief Counsel of the committee, as a valued member of

our staff.

After earning his undergraduate degree from the University of

Notre Dame, Mr. Tuerk served as a military policeman in the

Army from 1971 to 1973. He then earned a law degree from George

Washington University. Mr. Tuerk began his long and distinguished career in service of veterans in 1985, when he served on

the health care legal staff of VA’s General Counsel. In 1991, he

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joined the Veterans’ Affairs Committee where he has served as the

Republican General Counsel, the Republican Chief Counsel and

Staff Director, and currently is our Chief Counsel.

I am extremely pleased that Bill, who has served this committee

with distinction for 14 years, has been nominated to serve our Nation’s veterans as the Under Secretary for Memorial Affairs. I also

understand the personal circumstance in your family at this moment, and we certainly wish your wife the very, very best.

The incumbent is responsible for overseeing our National Cemetery Administration, which operates and maintains our national

cemeteries and administers programs that honor our deceased veterans. Especially during a time of war, when we have fallen soldiers returning from the battlefield, we must ensure that our Nation’s heroes are laid to rest on sacred grounds befitting of their

service and their sacrifice. We must also ensure that their grieving

families receive the respect and sympathies of a grateful Nation.

Bill, these are important responsibilities, and I want to thank

you for your willingness to undertake them and for your professionalism and the work that you must have before you at this time.

We will also hear today from Robert Henke, the nominee for Assistant Secretary for Management. Mr. Henke served in the Navy

from 1988 to 1992, including combat service during Operation

Desert Shield and Desert Storm, and he continues to serve in the

Navy Reserve. Mr. Henke is a former staffer for the Senate Appropriations Committee and currently serves as the Principal Deputy

Under Secretary of Defense for the Department of Defense. Of the

many roles the Assistant Secretary for Management assumes, perhaps the most challenges is serving as VA’s chief budget officer.

Mr. Henke, as we discussed at meetings in my office earlier, if

confirmed, you will play a critical role in assuring that Congress

is provided with timely and accurate information regarding VA’s

funding requirements so that we will not again be caught off guard

by a shortfall in VA’s budget.

As I have stated previously, I will be requiring VA to provide

quarterly updates as to its financial picture, and I will expect complete candor from VA in providing those updates. Mr. Henke, thank

you very much for your willingness to undertake this challenging

role. I guess the most and the least I can say is good luck.

[Laughter.]

Chairman CRAIG. Also joining us today is John Molino, the nominee for Assistant Secretary for Policy, Planning, and Preparedness.

Mr. Molino served in the Army from 1974 to 1995 and is the recipient of numerous awards, including the Army Commendation

Medal. After retiring from the Army, he served as the Director of

Government Affairs for the Association of the U.S. Army and as

legislative assistant to Senator Dan Coats. Currently, he is the

Deputy Under Secretary of Defense for Military, Community, and

Family Policy. Ambassador Coats, Senator Coats, Congressman

Coats, has been a personal friend of mine for a good long while.

Among a wide range of other functions performed by the Assistant Secretary for Policy, Planning, and Preparedness, the incumbent is responsible for ensuring that VA has emergency preparedness policies in place across the Nation. As demonstrated by the

decisive and heroic actions of VA’s personnel in dealing with HurriVerDate 11-MAY-2000 17:16 Jun 13, 2006 Jkt 025789 PO 00000 Frm 00006 Fmt 6633 Sfmt 6633 C:\VA\25789.TXT CarolB PsN: CarolB
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canes Katrina and Rita, preparedness is extremely important to

the safety and well-being of VA’s patients and employees, as well

as those in surrounding communities. I trust you understand VA’s

responsibility there and will continue to perform admirably in that

situation. A lot of untold stories of sacrifice of VA staff and personnel and a tremendous record coming out of those very difficult

situations in the Gulf area.

Now turning to our nominee for Assistant Secretary of Public

and Intergovernmental Affairs, Lisette Mondello, the incumbent in

this position will play an important role in fostering VA’s reputation as a leader in health care services and, more importantly, will

be responsible for ensuring that all veterans have access to information about benefits and services that VA provides.

Mrs. Mondello, welcome, and thank you very much for the work

you will do.

Last, we will hear from George Opfer, the nominee for Inspector

General. From 1996 to 2004, Mr. Opfer worked for the U.S. Secret

Service, retiring as an Assistant Director of the Office of Investigation. He then served as Inspector General for the Federal Emergency Management Agency and is currently the Deputy Inspector

General for the Department of Labor.

The VA Inspector General is responsible for inspecting VA’s programs, recommending policy to promote economy and efficiency,

and to seek to prevent and detect criminal activities, waste, abuse,

and mismanagement. In a time when the budget is so tight, it is

more important than ever that the Inspector General vigilantly reviews VA’s programs to find ways to increase efficiencies and to ensure that taxpayer money is being well spent.

George, with your extensive investigative background, I fully appreciate that you will be up to the challenge. I look forward to

hearing from you, and, again, we want to thank you for your willingness to serve our Nation’s veterans.

Both the Ranking Member and Senator Hutchison are not here

yet—oh, Danny has just arrived, so let me allow the Ranking Member to settle in, and we will ask him if he has any comments before

we administer the oath and hear from all of you.

Senator Akaka.

OPENING STATEMENT OF HON. DANIEL K. AKAKA,

U.S. SENATOR FROM HAWAII

Senator AKAKA. Thank you so much, Mr. Chairman. As I mentioned before and I continue to tell you, I enjoy working with you

on the Committee on Veterans’ Affairs.

Today the committee has the pleasure of examining five pending

nominations for critical positions at the Department of Veterans

Affairs, and I have had the opportunity to visit the nominees before

their hearing. These vacant positions are vital to VA’s mission and

must be filled with qualified, competent individuals.

Mr. Chairman, I am confident that my colleagues on the committee will give the thoughtful consideration that these nominations deserve. I would also like to welcome the witnesses and their

families who are here to this hearing.

Mr. Bill Tuerk has been nominated to be Under Secretary for

Memorial Affairs. The Under Secretary for Memorial Affairs overVerDate 11-MAY-2000 17:16 Jun 13, 2006 Jkt 025789 PO 00000 Frm 00007 Fmt 6633 Sfmt 6633 C:\VA\25789.TXT CarolB PsN: CarolB
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sees the National Cemetery Administration, which is responsible

for honoring veterans with final resting places in national shrines

that commemorates their service to their Nation. As we all know,

Bill’s face is a familiar one in this committee. He certainly has a

wealth of experience, and I must say this is a good time of the year

for Bill Tuerk, nominated for a prestigious position at VA, and his

beloved Notre Dame football team is off to a good start.

[Laughter.]

Senator AKAKA. Mr. Robert Henke is nominated for the position

of Assistant Secretary for Management. If confirmed, Mr. Henke

would oversee all resource requirements, development and implementation of agency performance measures and financial management activities relating to VA programs and operations. This position plays a major role in the budgeting process. I look forward to

discussing with Mr. Henke ways to prevent any repeats of the

budget shortfall that we had earlier this year.

Mr. George Opfer is nominated to be Inspector General for the

Department. In my time in the Senate, I have worked hard to ensure transparency in Government. Currently, the VA IG is conducting an investigation that I requested on enrollment. I urge you,

Mr. Opfer, to give this investigation the attention that it deserves.

Mr. John Molino is nominated for Assistant Secretary for Policy,

Planning, and Preparedness, and I will be interested to hear Mr.

Molino’s comments on VA disaster relief in light of the recent national disasters. I know Mr. Molino from his tenure at DOD, where

I worked closely with him on financial literacy issues. I am sure

Mr. Molino and I can build upon this relationship to work together

in his new position.

Ms. Lisette Mondello is nominated for Assistant Secretary for

Public and Intergovernmental Affairs. This position plays an integral role in VA’s public relations. While VA has made tremendous

strides in public relations, we all know that some do not hold VA

in the highest regard. I urge Ms. Mondello—and we had a good discussion—to make every effort to be open and honest with the public about VA issues to ensure transparency.

Mr. Chairman, I would like to make a general comment to all

nominees. In order for this committee to properly conduct its oversight role, we need timely and accurate information from VA. As

you all assume your new positions, I urge you to develop relationships with the committee members and staff so that both VA and

this committee can better serve the veterans of this great Nation.

Mr. Chairman, I look forward to their testimony and this confirmation hearing, and I thank you very much for your leadership.

Chairman CRAIG. Senator Akaka, thank you very much for those

comments, and I think they are very instructive to all of the nominees as we work with them in future days.

I had referenced that Senator Hutchison would be here to make

opening introductions of Ms. Mondello, so let me turn to Kay at

this moment.

Kay.

5

OPENING STATEMENT OF HON. KAY BAILEY HUTCHISON,

U.S. SENATOR FROM TEXAS

Senator HUTCHISON. Thank you. I am very pleased to be here to

introduce my friend and fellow Texan, Lisette Mondello. She is now

senior advisor to the Secretary of Education, and before that, for

4 years she was my Director of Communications in my Senate office. She did a great job, as she does in every position that she has

ever held.

I think the experience that she has had both in the Senate office

and at the Secretary of Education’s office will really help her with

this very important job at the Department of Veterans Affairs. I

think what Senator Akaka said is right. We need someone who can

communicate the many good things that are being done at Veterans Affairs, and there is so much.

One of the best things has just happened during this tragedy of

hurricanes in Louisiana, Mississippi, Alabama, and Texas, where

not one veteran in a Veterans Affairs care hospital or clinic was injured or in any way hurt because of being left or not treated. The

Veterans Affairs Department even opened its doors when they had

clinics open to anyone who walked in, not just veterans. They did

not refuse service to anyone, so that needs to be out there and it

needs to be told. If anyone can do it, it is Lisette Mondello.

Lisette received her bachelor of arts degree from Trinity University in San Antonio, TX, the same university as my colleague, John

Cornyn, graduated from. She obtained a certificate in finance from

Southern Methodist University in Dallas, Tx.

Lisette Mondello will do a great job, and I hope that she will be

confirmed. I am not as familiar with all of the rest of you, and I

know all of you will also serve our Veterans Affairs Department

well. But I am happy to introduce Lisette Mondello.

Thank you.

Chairman CRAIG. Kay, thank you very much, and for all of you

nominees, while Kay serves on this authorizing committee, you are

aware that she chairs the MilCon and VA appropriations subcommittee.

Senator HUTCHISON. I am sure they would never have

thought——

[Laughter.]

Chairman CRAIG. Well, we just want to make sure that you keep

a close, direct, and clear relationship with the chairman of these

committees.

Let me ask my other colleagues that have joined the committee

today if they have any comments.

Senator Burr.

OPENING STATEMENT OF HON. RICHARD BURR,

U.S. SENATOR FROM NORTH CAROLINA

Senator BURR. Mr. Chairman, I thank you for assembling this

hearing. I thank the nominees for their attendance. I have had an

opportunity to meet with each and every one. Not only do they

bring with them the qualifications, I found it refreshing that they

brought an eagerness to work at the VA. I think it is safe to say

that the VA is not the most glamorous Government job that you

can have, but it is incredibly important because it brings with it

6

the responsibility to fulfill the promise of a Nation. I would encourage this committee, even though we don’t have it scheduled, that

we schedule their confirmation process, the markup, very, very

quickly and that we expedite these nominations to the floor so that

they can begin their service.

I thank you.

Chairman CRAIG. Senator Burr, thank you.

Senator Salazar.

OPENING STATEMENT OF HON. KEN SALAZAR, U.S. SENATOR

FROM COLORADO

Senator SALAZAR. Thank you very much, Chairman Craig and

Senator Akaka. Your leadership on this committee and your work

in the Senate make me a very proud member of this chamber, and

I thank you for your leadership and your mentorship.

I want to thank the nominees as well for your service to our

country and to congratulate your families. I know many of your

families are here, and this is an important day in the life of each

of your families.

To Bill Tuerk, we are going to miss you. I have only been a Member of the Committee for a few months, but I know that your service here is legendary. I know you have served Senator Craig and

Senator Specter before him and all the Members of this Committee

extremely well, and I know that you have been a tireless advocate

for the veterans of our country. In your 14 years of service, you

have left a powerful legacy of good work, and you leave behind a

talented group of individuals to carry on that good work. Congratulations to you and your wonderful family and your colleagues for

the great honor that is being bestowed upon you.

The most pressing challenge I believe that we will face on veterans issues in one way or another is the VA’s budget and the broken planning process for that budget that we saw this last year.

As everyone here knows, this year the VA announced its $1.27 billion budget shortfall, and we took action in the Senate, in part

through the leadership of this committee, to rectify that problem.

That announcement that the VA had that problem came about only

a few weeks after this committee was told that we did not have a

problem. That is going to be an area where the VA has to have a

collective focus on that issue, and it is something that I raise with

Secretary Nicholson when he and I met in private to talk about the

future of the VA. This issue is something that will affect each and

every one of you who is before this committee this morning.

The appointments we are examining today will have a huge impact on the lives of all of our Nation’s veterans. It is clear from

your resumes that you are all well qualified. It is also clear that

you need to prove to this committee and to the Nation’s veterans

that you can be independent in your thinking and that you will

stand up for the needs of veterans in our country. I have no doubt

that you will do that, and I look forward to a speedy confirmation

process for all of you for these positions.

Thank you very much. Thank you, Mr. Chairman.

Chairman CRAIG. Ken, thank you very much.

Senator Obama, any opening comments?

7

OPENING STATEMENT OF HON. BARACK OBAMA,

U.S. SENATOR FROM ILLINOIS

Senator OBAMA. Thank you very much, Mr. Chairman, Ranking

Member Akaka. Thanks for your good works day in and day out,

as well as holding this hearing today.

I will be very brief. I congratulate all of you for your nomination.

Mr. Tuerk, in particular, congratulations to you for the outstanding

work that you have done on this committee, and we are very proud

of you. I think everybody on the committee—although, like Senator

Salazar, I have not been on the committee long, everybody has

been extraordinarily impressed with your knowledge and hard

work and regard for veterans. I am not saying that, you know, the

skids are greased for you, but I think you are in pretty good shape

here.

[Laughter.]

Senator OBAMA. All of you are accepting a call to public service.

Many of you have been involved before. I appreciate that very

much. Obviously, over the last several weeks, I think there has

been a lot of attention focused on appointees to the Federal Government, and, frankly, I think all of us are aware of the fact that

although sometimes people who work for the Federal Government

are dismissed as bureaucrats or what have you, it turns out that

having qualified people in their jobs who take their jobs seriously

makes an enormous difference. In some cases, it can be a life or

death situation.

I appreciate all of you participating in this process. I will have

a few questions for some of you in terms of just talking about how

we can make sure that not only the budget process for the VA system is working the way it needs to, but that we have a customeroriented VA in which the bias is towards helping as opposed to

simply saving money. I am going to want to hear some ideas from

you about how you intend to discharge your duties.

With that, thank you very much, Mr. Chairman.

Chairman CRAIG. Senator Obama, thank you very much.

We have been joined by the former chairman of this committee,

Senator Arlen Specter, who now chairs the Judiciary Committee

and is just coming off from a 2-week vacation.

[Laughter.]

Chairman CRAIG. I understand he will resume his responsibilities on that committee. Anyway, Senator Specter, thank you very

much for coming by. I know you wanted to be here and I am glad

you are here to make comments about a former staffer of yours,

Bill Tuerk.

OPENING STATEMENT OF HON. ARLEN SPECTER,

U.S. SENATOR FROM PENNSYLVANIA

Senator SPECTER. Well, thank you very much, Mr. Chairman,

and I congratulate you, Senator Craig, on the outstanding job you

are doing in taking over the chairmanship of this committee and

your work with Senator Akaka on a very distinguished committee

doing very important work for America’s veterans. There is no

higher calling. After the very heavy workload of the Veterans Affairs Committee, it was a relief to take over the chairmanship of

the Judiciary Committee.

8

[Laughter.]

Senator SPECTER. Where it is practically a full-time vacation.

I can only be with you for a few minutes because we are now in

the process of final statements on the confirmation of Judge Roberts to be Chief Justice, and as you all know, we will be voting on

him at 11:30. Senator Leahy is scheduled to speak at 10:30 and I

at 10:45, and then the Leaders will speak, and it is really a historic

day for the 17th Chief Justice of the United States.

The work of the Veterans Affairs Committee, notwithstanding

the Judiciary Committee and notwithstanding Chief Justice, is second to none in taking care of the veterans of America. I know it

is a very dedicated committee.

I am delighted to see Bill Tuerk up for a very important position

as Under Secretary for Memorial Affairs. He will have the obligation to oversee the National Cemetery Administration, 125 national

cemeteries, 33 soldiers’ lots, and that raises very, very delicate

questions to care for the memory of veterans and to accommodate

families. I have seen the issue across the country, and we are in

the midst now of trying to find a national cemetery location in

southeastern Pennsylvania. You see the emotion when people are

faced with a locale. Where will their loved ones be interred? What

access will they have to visit them? It takes a very, very sensitive

person.

Bill Tuerk has an extraordinary background. His work with the

VA goes back 20 years where he was an attorney in the General

Counsel’s office. In 1991, I was fortunate enough to hire Mr. Tuerk

to serve as my General Counsel when I was Ranking Member, and

he has been Chief Counsel, Staff Director, and taken on very, very

heavy responsibilities.

We are all concerned about Bill’s wife, Vivian, who has had her

own problems. It is unfortunate she could not be with Bill today,

and all of us, for this very significant event in a very distinguished

career, but Bill’s children are here. I have every confidence he will

be approved by this committee and by the full Senate and do an

outstanding job in the service of America’s veterans.

Thank you very much, Mr. Chairman, for recognizing me immediately upon my arrival, and I appreciate the courtesy.

Chairman CRAIG. Chairman Specter, thank you, and thank you

for you stewardship of this committee. Most importantly, thank you

for the very respectful and honorable way you have handled the Judiciary Committee over the last several weeks under very challenging circumstances. You are right, we are engaged in a very historic time here as new people come to the Court that will ultimately shape the Court for a good number of years to come.

Thank you for your leadership.

Senator SPECTER. Thank you, Larry.

Chairman CRAIG. Now we turn to all of you, and if you would

please stand with me and raise your right hand. Do you solemnly

swear or affirm that the testimony you are about to give the committee at this hearing shall be the truth, the whole truth, and

nothing but the truth, so help you God?

Mr. TUERK. I do.

Mr. HENKE. I do.

Mr. MOLINO. I do.

9

Mrs. MONDELLO. I do.

Mr. OPFER. I do.

Chairman CRAIG. Thank you. Please be seated.

Bill, we will now turn the floor to you, and, of course, we would

ask all of you who have brought family, if you so choose, to introduce those who have come with you.

Bill Tuerk.

STATEMENT OF WILLIAM F. TUERK, NOMINEE TO BE UNDER

SECRETARY FOR MEMORIAL AFFAIRS, U.S. DEPARTMENT OF

VETERANS AFFAIRS

Mr. TUERK. Thank you, Mr. Chairman.

Chairman Craig, Ranking Member Akaka, Senator Burr, Senator

Obama, Senator Salazar, thank you for honoring me with the opportunity to appear before this committee. As you know, I have

been nominated by the President to serve as Under Secretary for

Memorial Affairs at VA. After all these years of working in this

room, I am thrilled to be sitting at this end of the table.

If I may add a minor aside. I will say to all my fellow staff members here, it looks a whole lot different from this side of the room.

[Laughter.]

Mr. TUERK. What a difference 20 feet makes.

I appreciate your welcome, and I appreciate the kind comments

of all of the Members of this Committee, particularly the kind comments of a personal nature that a number of you have made to me.

Before I get into the substance of my statement, there are some

people who are responsible for me being here, and I have to start

by thanking them. First, I have to thank the President of the

United States for nominating me to serve in this high position.

Equally, I have to thank Secretary Jim Nicholson. Secretary Nicholson recommended this appointment to the President. Without

that, obviously I would not be here.

There are two other high officials within VA that I want to recognize. Without their support, I would not be here. One of them is

with us. He is the Honorable Gordon Mansfield, the Deputy Secretary of Veterans Affairs, who is seated behind me. The other gentleman, who is a senior official at VA that I want to recognize, is

General Mick Kicklighter, Secretary Nicholson’s Chief of Staff. Either of these men could have killed this idea very quickly by, for

example, damning me with faint praise. I appreciate their support.

Finally, I have to thank two members of this body: first, the

former chairman, Senator Specter, who made a statement a moment ago. It is he who hired me here in 1991. It is he who gave

me the opportunity to be General Counsel, Chief Counsel, and Staff

Director of this committee. It is he who first urged the President

to consider my qualifications for high appointment. I am very much

indebted to him.

The other member of this body that I want to express my appreciation to is the Chairman. He has been very supportive of me during his brief but very distinguished tenure as Chairman, and I

thank you, sir, for that.

I know it is customary for nominees at this point to also thank

their spouses and family members, and I am not going to depart

from that tradition. As has been alluded to, my wife, Vivian, isn’t

10

able to be here today. She would be here if she could be here. She

has supported me at every step in my career, starting in the second

year of law school. I am very much indebted to her for her support,

but that is a minor reason for my devotion to her. The major reason—the major two reasons—are present here in the room, and

they are my daughter, Jackie, and my son, Peter. They are here,

and since, Mr. Chairman, you gave us the opportunity to introduce

our family members, I would like to do so. They are seated right

here.

Chairman CRAIG. Please. Thank you. Nice to see you both.

[Applause.]

Mr. TUERK. Now we get to the substance. I am here this morning, Mr. Chairman, Ranking Member Akaka, and Members of the

Committee, to ask for your recommendation to the Senate that I

be approved to this position. My qualifications for this job stem

greatly, though not entirely, from my service in this room in this

suite of offices, and also from my service as a lawyer in the Department of Veterans Affairs. In these two slots, I learned a lot about

law and policy as it relates to veterans issues, but I learned a

whole lot more. I learned how to be a team member and a team

builder. I learned, especially with these fine people who are seated

behind the table, how to empower staff and to trust their decisions

and to trust their judgment. I learned the importance of garnering

support across the political spectrum if you are going to get anything done around here. I learned that one must earn the trust of

veterans and veterans service organizations, and also that that

trust is earnable, even when you have to say no to veterans on occasion, so long as there is a common understanding that we share

devotion to and respect for veterans.

These are the lessons I want to take to VA. I have outlined in

my prepared statement some of the things I want to accomplish.

I want to get 11 cemeteries up, open, and operating before I finish.

I want to re-energize VA’s National Shrine Commitment Program.

I want to enhance the State Cemetery Grant Program so that veterans in less urban areas can have the benefit of burial among

their comrades in a place of honor. I want to leave behind a plan

for the burial of my generation when I am gone.

Mr. Chairman, Members of the Committee, I do not believe in

fixing something that isn’t broken. As you know, the National Cemetery Administration recently was awarded the highest customer

satisfaction scores of any organization anywhere, public or private.

Beat General Electric. Beat Federal Express. Beat whatever organization you think serves customers well. I am not going down to

VA to change NCA. It doesn’t need changing. I am going down with

the idea of shepherding the resources that NCA has to meet future

challenges, and if I am given that opportunity, I pledge to you that

I will work tirelessly to earn the confidence and support of the staff

down there, to earn the confidence and trust of veterans, and to

earn the confidence and trust of this committee.

I owe that to the President who nominated me. I owe that to the

Congress that I hope will confirm me. But, most importantly, I owe

that to veterans.

With that, I will end my statement, and I will be happy to answer your questions. Thank you.

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[The prepared statement of Mr. Tuerk follows:]

PREPARED STATEMENT OF WILLIAM F. TUERK, NOMINEE TO BE UNDER SECRETARY

FOR MEMORIAL AFFAIRS, U.S. DEPARTMENT OF VETERANS’ AFFAIRS

Chairman Craig, Ranking Member Akaka, and Members of the Committee: thank

you for honoring me with an invitation to appear before the Committee. As you

know, I have been nominated by the President to serve as Under Secretary for Memorial Affairs in the United States Department of Veterans Affairs. I am thrilled

to be sitting, after all these years of working in this room, on this side of the table.

I am more than a little humbled.

Before I get into the substance of my statement, there are some people—people

who are responsible for me being here—that I need to publicly thank. First, allow

me to express my gratitude to the President of the United States, the Honorable

George W. Bush, for nominating me to serve in this high position. Let me also thank

VA Secretary Jim Nicholson for recommending my candidacy to the President. In

addition, I need to express my gratitude to two senior VA officials, Deputy Secretary

Gordon Mansfield and Secretary Nicholson’s Chief of Staff, General Mick

Kicklighter; without the support of these two distinguished men, I would not be

here this morning. I am also indebted to former VA officials who I count as friends

(most particularly, to former Secretary of Veterans Affairs Tony Principi; to former

Under Secretary for Memorial Affairs, General Jack Nicholson; and to my boss at

VA some years ago, former Assistant General Counsel, Audley Hendricks. I have

been honored with the support of the senior Republican Member of this Committee,

Senator Arlen Specter. It is he who bestowed upon me the privilege of serving as

Chief Counsel and Staff Director of this Committee during his chairmanship. And

it is he who first urged the President to consider my qualifications for a senior appointment in this Administration.

Finally, Mr. Chairman, I know it is customary for nominees to thank their

spouses, children, and other family members at this point in the proceedings. Mr.

Chairman, my wife, Vivian, is not able to be here today, but she certainly would

be here if she could be here. She has supported my career at every step of the way,

but that is a minor reason for my devotion to her. I am most indebted to her for

my daughter, Jackie, and my son, Peter. They are here this morning. If I may, Mr.

Chairman, I would like to introduce them to the Committee.

Mr. Chairman, I am here this morning to ask that this Committee recommend

my confirmation to the Senate as a whole. My qualifications for service in an appointed position at VA stem greatly, but not entirely, from my service to veterans

right here in this suite of offices. Here, and also as an attorney in the health care

practice group at VA, I learned many substantive issues relating to law and policy

that affect veterans and their survivors. But I learned more. I learned how to be

a team member and a team builder. I learned the importance of garnering support

across the political spectrum. I learned that one must earn the trust of veterans and

their representatives, the veterans service organizations, and also that that trust is

earnable, even by those who, at times, have to say ‘‘no’’ so long as there is common

agreement on the fundamental worthiness of veterans to the Nation’s respect and

gratitude. In short, I think I learned how to get things done in Washington, and

more importantly, how to identify the things that ought to get done in Washington.

These are the lessons I will take to the VA, if I am confirmed. And there are

many things, concrete things, that I intend to get done in the relatively short period

of time that will be available to me if I am confirmed. First and foremost, there are

11 new cemeteries in various stages of development that I intend to get fully opened

and operating before I leave VA—in Atlanta; in Detroit; in Miami; in Pittsburgh;

in Sacramento; in Bakersfield; in Birmingham, Alabama; in Greenville/Columbia,

South Carolina; in Jacksonville; in Philadelphia; and in Sarasota. I intend to find

ways to enhance the VA’s State Cemetery Grant Program so that veterans in less

densely populated areas might better be able to gain access to burial among comrades in a place of honor. I hope to re-energize VA’s National Shrine Commitment

program so that veterans cemeteries might truly be monuments to the men and

women who have served. And I intend to leave the National Cemetery Administration with a plan to meet the burial needs of my generation, and with a committed,

enthusiastic, well-trained, and diverse workforce. It is to the accomplishment of

these goals that I intend to devote my energies and talents if I am confirmed.

Mr. Chairman, I do not believe in fixing that which is not broken. I know very

well from personal experience how committed, sensitive, and responsive the employees of the National Cemetery Administration are. It’s worth saying over and over

again that the National Cemetery Administration recently earned the highest customer satisfaction scores ever awarded to any organization, public or private. My

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mission, then, will not be to change the National Cemetery Administration. It

doesn’t need changing. It will be to channel the exceptional capabilities and devotion

of NCA staff to satisfy evolving needs while continuing to meet the superior standard that it has set for itself. And while I know that I am lucky, extraordinarily

lucky, to have the potential opportunity to lead such a class organization, I also

know that leading the Nation’s recognized leader in customer service will be a personal challenge of the greatest magnitude. I gain confidence from the fact that I

have experience in leading a smaller, but no less elite, staff (the staff of this Committee). If I have earned their trust and confidence, and I think I have, I think I

will have a good shot of earning the trust and confidence of the National Cemetery

Administration’s workforce and, most importantly, the veterans and survivors that

they serve. I give you my solemn commitment that, if my nomination is approved

by the Committee and by the Senate, I will work tirelessly to earn that trust and

confidence. The President, the Committee, and the Nation’s veterans deserve no

less.

Mr. Chairman, Ranking Member Akaka, and Members of the Committee, I would

be pleased to respond to your questions.

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RESPONSE TO WRITTEN QUESTIONS SUBMITTED BY HON. LARRY E. CRAIG

TO WILLIAM F. TUERK

Question 1. Last week we held a hearing on a sensitive topic, that is, whether

capital offenders should be honored in America’s national cemeteries. The difficulty

we are now confronted with is essentially this: What post-service actions are so heinous that they render a person unfit to be buried alongside America’s honored dead?

Do you have a sense of where that line should be drawn for purposes of VA burial?

Answer. My personal sense is that the current provisions of law that give rise to

disqualification for burial in the Nation’s veterans’ cemeteries need to be reconsidered.

Under current law, the following persons are barred from burial in the national

cemeteries: (1) Individuals convicted of the ‘‘subversive activity’’ offenses listed in 38

U.S.C. § 6105(b); and (2) Persons who: (a) have been convicted of a Federal capital

crime for which the person was sentenced to death or life imprisonment; (b) have

been convicted of a State capital crime for which the person was sentenced to death

or life imprisonment without parole; or (c) are found, as specified by statute, to have

committed a Federal capital crime or State capital crime, but have not been convicted of such crime by reason of such persons not being available for trial due to

death or flight to avoid prosecution. See 38 U.S.C. § 2411.

First, I have no sense that the ‘‘subversive activity’’ disqualifying statute needs

modification. My view is that the conviction of offenses against the Nation—the essence of the offenses outlined in 38 U.S.C. § 6105(b)—ought to disqualify a veteran

from repose among those who have defended the Nation. Persons who, in effect, attack this Nation should forfeit—and, to my way of thinking, have by their very acts

forfeited—any right they might otherwise have earned to lie in a place of honor.

As for the second disqualifying statute—the ‘‘first degree murder’’ disqualifier—

my sense is that the distinctions drawn between Federal and State offenders merit

review. To me, it makes no policy sense to, for example, bar a deceased veteran who

was sentenced by a Federal court to life imprisonment and yet permit burial to a

State-convicted veteran who might technically be eligible for parole at a future date

far outside his expected, and actual, life expectancy. Similarly, it makes no policy

sense to me to bar a veteran who was sentenced by a Federal court to life imprisonment and yet permit burial to a veteran who, though not technically sentenced to

life imprisonment, was sentenced to consecutive terms of imprisonment that, in the

aggregate, far exceed the veteran’s expected, and actual, life expectancy.

As an attorney, I understand the difficulty in crafting statutory language that disqualifies all who are sentenced to prison terms that, in practical terms, amount to—

but technically are not—life sentences under the laws of the various States. As a

person who, in the military, was charged with maintaining the custody and control

of prisoners, I appreciate the value of the possibility of parole, however remote, in

maintaining order in a prison environment. Finally, as an individual who believes

that nearly any criminal is capable of reform to the point that parole might become

a correctional possibility, I think no person is utterly incapable of redemption. Even

so, however, I believe that some crimes are so heinous that they ought to give rise

to disqualification.

In my view, conviction of a homicide offense of a degree of severity and aggravation that it can be punished by the maximum sentence that can be meted under

State law (whether that sentence be death or life imprisonment, with or without the

possibility of parole) should give rise to disqualification even if the court, in its discretion, elects to sentence below that maximum penalty. Further, I believe that conviction of a homicide offense or offenses by a Federal or a State court that yields

a sentence that, in practical terms, precludes release during the felon’s lifetime—

even though that felon is, technically, not given a ‘‘life sentence‘‘—should also give

rise to disqualification.

Finally, I note that the Congress has made a policy decision that reflects the view

that some criminal offenses that are not directed against the State are sufficiently

repugnant to give rise to disqualification from eligibility for veterans’ burial benefits. The Congress has, to date, identified only one crime—aggravated homicide—

that it concludes is sufficiently repugnant. In my personal view and, I believe, in

the view of most persons, there are other crimes—e.g., aggravated sexual molestation or torture of a child—that are at least as repugnant as homicide and, by the

reasoning already adopted by Congress, should also give rise to disqualification. I

would leave it to the peoples’ representatives, the Congress, to gauge and express

the citizenry’s outrage by identifying such crimes and adding them to the statutory

disqualifying list. Of course, as Under Secretary for Memorial Affairs, I would enforce whatever prohibition from eligibility for burial that the Congress chooses to

enact.

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Question 2. If confirmed, you will be responsible for ensuring that the burial prohibition law is enforced. What are your thoughts about the current enforcement efforts by the National Cemetery Administration? Do you yet have a sense of whether

those efforts can be improved?

Answer. It is my impression that the National Cemetery Administration (NCA)

goes to considerable lengths to ensure that the statutory ban on the burial of some

otherwise-eligible veterans is enforced. VA has promulgated detailed regulations setting forth procedures that will be followed by both field, and Central Office, officials

in enforcing the burial prohibition law codified at 38 U.S.C. § 2411. See 38 CFR

§§ 38.617, § 38.618. Unlike the practices which, I am informed, have been adopted

by Arlington National Cemetery (ANC) officials, VA does not passively await notification by Federal or State officials that an individual who seeks burial in a national

cemetery has been convicted of a disqualifying offense and assume, in the absence

of such notification, that every and all persons seeking burial must be provided burial benefits. Rather, NCA cemetery directors are not merely authorized to—they are

required to—initiate an inquiry whenever they have ‘‘reason to believe that they,

the deceased, may have been convicted of a Federal or State capital crime. . . .’’ See

38 CFR § 38.617(e)(1). By contrast, ANC officials have adopted a narrower—in my

opinion, an unduly narrow—interpretation of the 38 U.S.C. § 2411 disqualification

statute to the effect that information concerning a decedent’s potential ineligibility

for burial will be—and, as a matter of law, must be—disregarded unless requisite

notice of such information is received from the United States Attorney General or

an appropriate State official. See Statement by Thurman Higganbotham before the

Senate Committee on Veterans’ Affairs, September 22, 2005. ANC’s approach surely

eases administrative burden on cemetery officials by shifting all fact-finding and

conclusion-drawing tasks to other officials. To my way of thinking, NCA’s approach

is the one that puts into force the policies that I believe the Congress intended to

advance in enacting section 2411. I believe that NCA’s adoption of that policy despite the administrative burdens imposed speaks positively about the degree of enforcement effort NCA is willing to expend.

A further example of NCA’s efforts to enforce the letter and, in my view, the spirit

of the disqualification statute can be found in the relatively elaborate procedures

adopted by NCA for the enforcement of the difficult provisions of law set forth in

the 38 U.S.C. § 2411(b)(3). Those provisions bar burial to those who are found to

have committed a Federal capital crime or State capital crime but have not been

convicted of such crime by reason of death or flight to avoid prosecution. In this lawyer’s view, such a finding pivots on a series of questions—Was the crime in question

a ‘‘capital’’ crime? Did the person seeking burial commit it? Would he or she have

been convicted of any crime had there been a trial? Would he or she have been convicted of that crime?—that are not easily answered by one trained in the law. Clearly, they are not simple matters to be resolved by cemetery managers. Yet NCA has

promulgated regulations which attempt to systematize and give fundamental fairness to the decision making process. Again, I think these efforts to do as the Congress has directed speak well of NCA’s enforcement efforts.

Because I am, at this point, still uninformed on the practical issues faced by cemetery directors in the acceptance of remains for interment, I am hesitant to offer lessthan-fully informed suggestions on how NCA might improve its section 2411 enforcement efforts. It does occur to me that NCA officials who deal directly with funeral directors in the acceptance of remains for interment might consider a practice

of routinely asking funeral directors whether they have reason to believe that section 2411 might be applicable; funeral directors, after all, would likely know the

place of death and, therefore, might have reason to know whether the deceased had

been incarcerated at death. I do not know that NCA officials do not already do that.

Accordingly, I would request the opportunity to study the issue after confirmation,

if I am confirmed, before voicing further views on how NCA enforcement might be

improved.

Question 3. You have spent a considerable amount of time in leadership positions

in the Senate. What can you take from your experience here in the Senate and

apply to your new position, if confirmed?

Answer. During my employment at the Senate Committee on Veterans’ Affairs—

and during my employment at VA prior to coming to the Committee—I have had

occasion to become familiar with a considerable body of law and policy that affect

veterans and their survivors. I trust that that background will be useful in my new

role, should I be confirmed. Further, I will take to the position—if I am confirmed—

a lawyer’s more traditional understanding of substantive law and legal procedure

and a former private practitioner’s sense of the practicalities of commercial dispute

resolution. These elements of my background will, I trust, be useful at the helm of

an enterprise that spends, for example, over $80 million per year in major and

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minor construction and $70 million per year in the procurement of headstones,

markers and graveliners.

As I attempted to emphasize in my prepared statement, the more valuable elements of my experience in the Senate will be those which are less tangible. Here,

I have learned that policy disputes over veterans’ issues rarely turn on partisan or

ideological considerations. More often, they are resolved on the basis of the power

of one’s policy arguments and the quality of one’s preparation and, more subtly, on

one’s personal relationships with both potential policy allies and foes. I have learned

the value of the ‘‘human dimension’’ that lubricates personal interaction and facilitates the advancing of one’s management and policy goals. I have learned that allies

may be found in unexpected places, and that they must always be sought out and,

once found, not taken for granted. I have learned that opportunity sometimes presents at unexpected and even awkward moments and that one must be prepared

to capitalize at unanticipated or inconvenient times. I have learned the practical

value of openness and the necessity of consultation with potentially affected persons

and organizations. And most importantly, I have learned the value of identifying

staff who possess the personal qualities essential to success and, once having found

them, trusting them to do their jobs. These and other ‘‘lessons learned’’ in the course

of my employment at the Senate will, I think, be directly transferable to the job of

Under Secretary for Memorial Affairs. The degree to which I retain them will, I expect, greatly determine whether I will succeed or fail.

RESPONSE TO WRITTEN QUESTIONS SUBMITTED BY HON. DANIEL K. AKAKA

TO WILLIAM F. TUERK

Question 1. Oftentimes, the only contact that a veteran and/or his family will have

with VA is through the National Cemetery Administration. What will you do to

make certain that this contact continues to be appropriate and positive?

Answer. I concur that, in many cases, the sole contact a veteran’s family will have

with VA will be through National Cemetery Administration (NCA) staff during a

time of great personal stress and sorrow. I also concur in the premise of the question that such contact is now appropriate and positive—customer satisfaction scores

attest to that—and that the challenge I face will be assuring that such positive contact is continued through my tenure, should I be confirmed. In my view, employee

attitudes that lead to positive and sympathetic interaction with the public cannot

be ‘‘disciplined in.’’ Nor can they be acquired simply via training regimens and ‘‘sensitivity’’ seminars, though, as discussed below, there clearly is a place for such activity. I believe that, ultimately, NCA employees who deal directly with bereaved family members will display appropriate decorum if and when they themselves are rewarded with the respect that I think all humans seek. I believe that if ‘‘wage-grade’’

employees are treated as if they are less worthy of respect than salaried staff, and

that they are ‘‘only here to dig a hole or sweep up,’’ they will live down to that expectation and treat the public accordingly. Conversely, I believe that if managers

remind such employees—both explicitly and by the manner in which they are treated—that they, as front line staff, are integral, vital members of the service-providing

enterprise, those employees will live up to that expectation and treat the public accordingly. I believe, therefore, that training needs to focus not just on how staff

should treat the public—but also on how supervisors must treat those in their

charge.

This is not to suggest that NCA managers are not fully aware of these principles.

Were they not aware of them, NCA would not have achieved the customer satisfaction scores that it has. That being the case, I expect that complacency may be the

danger ahead. My first activity to attack that complacency will be extensive travel

to the field to meet with staff at all levels to assure them that senior VA management—and the Congress—are fully aware of the quality of work they perform and

that they greatly appreciate that work. Beyond that, I will seek the advice of internal human resources staff and outside consultants, resources permitting, on developing programs to get across the message that: (1) NCA’s success is in the hands

of ‘‘front line’’ employees and (2) ‘‘front line’’ employees will be recognized for attention to the unique needs of NCA’s grieving customers. Finally, I will maintain in

force the highly successful quality assurance tools already in place at NCA: performance standards that signal high expectations, self-assessment tools, customer satisfaction surveys, etc.

Question 2. I understand that annual veteran deaths will peak around 2008 to

115,000 a year. Are you confident that NCA can cope with the projected 24 percent

increase in internments?

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Answer 2. I am aware that veteran death statistics will peak in 2008 and that—

at least after the ‘‘shadow effect’’ of burials of WWII/Korea veterans’ spouses is

worked through—that demand for burial space will slowly drift downward. I am not

fully confident, however, that NCA is as prepared that it ought to be—or that it

would like to be—to fully meet that peak demand since planned new cemeteries will

likely not yet be fully in operation in 2008. Nor will the needs of veterans in smaller—but not inconsequential—communities that have no plans to provide for burial

options now ‘‘on the drawing board’’ be met in 2008. Necessary lead times would,

I expect, preclude readiness even if plans could be developed immediately.

As I said in my oral testimony to the Committee, the timely achieving of NCA’s

current goal of providing a burial option to 90 percent of the Nation’s veterans is

vital. I will not be satisfied simply with meeting that goal. Once—and before—that

key goal is met, NCA must, in my view, turn its attention to other non-served areas

not addressed in current new-cemetery construction plans. I hope to find opportunities to enhance the attractiveness and speed of the State Cemetery Grant Program

to meet these unmet—and unplanned for—needs.

The above observations having been made, I am advised by NCA that, in addition

to the 11 new national cemeteries now under construction, two new State cemeteries

(in California and Texas) will be opened before the end of 2005, and that 20 additional new State cemeteries will open before the end of the decade. I am assured,

as well, that NCA continues to seek innovations (like pre-placed crypts) that will

add to the productivity of existing cemetery acreage.

Chairman CRAIG. Bill, thank you very much.

Now let us turn to Robert Henke. Robert, thank you.

STATEMENT OF ROBERT J. HENKE, NOMINEE TO BE ASSISTANT SECRETARY FOR MANAGEMENT, U.S. DEPARTMENT OF

VETERANS AFFAIRS

Mr. HENKE. Mr. Chairman, thank you, sir. Senator Akaka and

Members of the Committee, Senator Burr, Senator Obama, thank

you for the invitation to appear here today. It is truly an honor and

a pleasure for me to be here.

I would like to express my gratitude first, Mr. Chairman, to you

and the committee for the expeditious consideration of my nomination, and those of my colleagues seated beside me. Having received

several of these nominations as recently as this very month, the

committee is now turning its attention to the matter in remarkably

short order. I think that is a testament both to this committee and

to the absolute importance of the work that the committee undertakes on behalf of our Nation’s veterans. Thank you, Mr. Chairman.

I am both honored and humbled to be President Bush’s nominee

to be the Assistant Secretary for Management. I owe a tremendous

debt of gratitude to Secretary Jim Nicholson, Deputy Secretary

Gordon Mansfield, and Chief of Staff Mick Kicklighter for their

faith and confidence in me. These gentlemen are inspired leaders,

absolutely dedicated to our Nation’s veterans, and I could not ask

to work for finer public servants, and I am energized at the prospect of joining their team.

The Department of Veterans Affairs has, in my view, the very

noblest of missions, and that is to honor the service and sacrifice

of those who have done so much for all of us, and to gratefully, to

thankfully keep our country’s promises to them.

Like many in the room today, I have had the privilege of wearing

the Nation’s uniform, and my service in the Navy was one of the

defining chapters in my life. This experience has instilled in me the

deepest respect for America’s Armed Forces and their unwavering

and selfless commitment to mission, to integrity, and to service.

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Should I have the privilege of confirmation, I will draw upon this

profound respect, and it will provide me with energy and focus and

direction.

As a nominee, I recognize that I have much to learn about the

Department of Veterans Affairs, its important responsibilities, and

the issues of critical importance to veterans. If confirmed, I assure

you that I will become fully immersed and tirelessly engaged in

these pressing issues, and I will take a proactive, pro-veteran approach in advising the Secretary and the Deputy Secretary and in

carrying out my duties.

Mr. Chairman, I am joined today by my wife, Jennifer, and our

two wonderful boys Ryan and Owen. Jen has been my——

[Applause.]

Chairman CRAIG. As long as we don’t wake the other one up.

[Laughter.]

Mr. HENKE. Yes, sir.

Chairman CRAIG. Don’t ask him to stand, please.

Mr. HENKE. Jen has been my partner and my best friend and my

foundation for almost 16 years, and simply, without her love I

would not be here today. She knows that public service is both a

privilege and a responsibility, and she fully understands the many

sacrifices of this and your profession, and she encourages me with

her whole heart at every step of the way.

Mr. Chairman, our oldest son, Ryan, started Cub Scouts this past

weekend. We had a Cub Scout overnight camp-out, and it was a

very great time, except for about two dozen daddy long-legs spiders

in the tent. Ryan is quite enamored of his new status as a Tiger

Cub, a status that may even beat becoming a big brother earlier

this year. Mr. Chairman, I should warn you, however, that Ryan

has his Tiger Cub Handbook here, and after the hearing, he may

ask you to sign off item number 49, which is, of course, ‘‘Visit a

Government Office.’’

[Laughter.]

Mr. HENKE. I hope you will not mind, Mr. Chairman.

Chairman CRAIG. Ryan, I will do that on one condition, and that

is that you strive to become the top Scout in the country. Okay?

We got a deal.

RYAN HENKE (audience). Yes, sir.

Mr. HENKE. Mr. Chairman, with our Nation at war, this is a critical time and there is much important work to do. I have met many

of the impressive, talented professionals in VA’s Office of Management, and I look forward to working with them and leading them.

I am excited at the prospect of joining a team of VA professionals

who have dedicated themselves to one goal: serving veterans. I

would tell them, and I will tell this Committee: If I am fortunate

to be confirmed, I will do my best. Veterans have done and always

will do their best for us, and I owe them nothing less in return.

Thank you, Mr. Chairman and Members of the Committee. I appreciate the opportunity to be here today. I look forward to your

questions, and hopefully what will be the first of many opportunities to work with you on important issues.

Thank you, sir.

[The prepared statement of Mr. Henke follows:]

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PREPARED STATEMENT OF ROBERT J. HENKE, NOMINEE TO BE ASSISTANT SECRETARY

FOR MANAGEMENT, U.S. DEPARTMENT OF VETERANS AFFAIRS

Mr. Chairman, Senator Akaka, and Members of the Committee, good morning and

thank you for the invitation to appear today. It is truly an honor and a pleasure

to be here. This is indeed a very special occasion for me and for my family.

I want to express my gratitude, Mr. Chairman, to you and the Committee for the

expeditious consideration of my nomination, and those of my colleagues seated beside me. Having received several of these nominations as recently as this very

month, the Committee is now turning its attention to the matter in remarkably

short order. I think this is a testament to this Committee and to the absolute importance of the work that the Committee undertakes on behalf of our Nation’s veterans.

Over the past several weeks, Members, Committee staff, and personal staff have

been more than kind with their time and with their insights into the issues of importance to the Committee. Having served on the Senate staff, I know how precious

your time is and how many important issues are on the Senate’s agenda. I thank

you.

I am both honored and humbled to be President Bush’s nominee to be the Assistant Secretary of Veterans Affairs for Management, and for the opportunity to testify

here today. I owe a tremendous debt of gratitude to Secretary Jim Nicholson, Deputy Secretary Gordon Mansfield and Chief of Staff Mick Kicklighter for their faith

and confidence in me. These gentlemen are inspired leaders, absolutely dedicated

to our Nation’s veterans. I could not ask to work with finer public servants, and

I am energized at the prospect of joining their team.

The Department of Veterans Affairs has, in my view, the most noble of missions:

to honor the service and the sacrifice of those who have done so much for all Americans, and to gratefully keep our country’s promises to them.

I have had the privilege of wearing the Nation’s uniform. My service in the Navy,

whether in combat during Operation DESERT STORM, or as a Reservist mobilized

for Operation ENDURING FREEDOM, is one of the defining chapters in my life.

This experience has instilled in me the deepest respect for America’s Armed Forces

and their unwavering and selfless commitment to mission, to integrity and to service. They are America’s best. They are patriots, in the very finest sense of the word.

Should I have the privilege of confirmation, I will draw upon this profound respect,

and it will provide me with energy, focus and direction.

I believe that I bring valuable skills, experience and perspective to this new and

challenging position. I have both private sector and public sector experience with

financial management. After leaving active duty, I was with General Electric for

three years and completed their rigorous Financial Management Program. I studied

public policy and public administration at Syracuse University’s Maxwell School of

Citizenship and Public Affairs. In the public sector, I have experience with Federal

resource management processes in both the legislative branch and the executive

branch. I served for six years on the staff of the U.S. Senate Committee on Appropriations. Currently, I serve as the Principal Deputy Under Secretary of Defense

(Comptroller) at the Department of Defense, where I have been fortunate to lead

a team of over 190 financial management professionals.

As a nominee, I recognize that I have much to learn about the Department of Veterans Affairs, its important responsibilities and the issues that are of critical concern to veterans. If confirmed, I assure you that I will become fully immersed and

tirelessly engaged in these pressing issues, and I will take a proactive, pro-veteran

approach in advising the Secretary and Deputy Secretary and in carrying out my

duties.

I do not undertake the prospect of these new duties lightly. Secretary Nicholson

outlined a philosophy in his confirmation hearing and, if the Senate allows me to

serve in this new capacity, I absolutely commit to those very same principles:

• veterans should have access to the best available health care in the most appropriate clinical settings, delivered in a timely manner by caring, compassionate clinicians; and

• veterans, their eligible dependents, and survivors are entitled to prompt, accurate, equitable and understandable decisions on their claims for benefits; and

• veterans should be appropriately honored in death for their service and sacrifices on behalf of a grateful Nation.

I am joined today by my wife Jennifer, and our two wonderful boys, Ryan and

Owen. Jen has been my partner, my best friend, and my foundation for almost 16

years. Without her love and support, I simply would not be here today. She knows

that public service is both privilege and a responsibility, and fully understands the

many sacrifices of this profession, and she encourages me with whole heart at every

step of the way.

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I would be remissed if I did not acknowledge my parents. While they could not

be here today, they taught me, by the power of their example, about the importance

of integrity, of faith, and of family. They imbued in me a respect and a love for this

country that knows no bounds.

With our Nation at war, this is a critical time and there is much important work

to do. I have met many of the impressive, talented professionals in VA’s Office of

Management, and look forward to working with them and leading them. I am excited at the prospect of joining a team of VA professionals who have dedicated themselves to one goal: serving veterans. I would tell them, and I will tell the Committee

this: if I am fortunate to be confirmed, I will do my best. Veterans have done and

always will do their best for us; I owe them nothing less in return.

Thank you, Mr. Chairman and Members of the Committee, for your courtesy and

for the opportunity to be here. I look forward to your questions, and what I hope

will be the first of many opportunities to work together on issues important to veterans.

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RESPONSE TO WRITTEN QUESTIONS SUBMITTED BY HON. LARRY E. CRAIG

TO ROBERT J. HENKE

Question 1. Last week, I sent a letter to the Secretary expressing my concerns

about the accounting of funds VA is spending to aid veterans and others affected

by Hurricane Katrina. If you are confirmed, what measures will you take to track

reimbursable expenditures and ensure that reimbursement claims are submitted to

FEMA in a timely manner?

Answer. VA has a process in place to ensure that disaster-associated expenditures

are properly documented and that reimbursement requests are accurately and

promptly submitted to FEMA. If confirmed as the Assistant Secretary for Management and Chief Financial Officer (CFO), I will be personally involved in ensuring

that VA is proactive in documenting expenses and submitting reimbursements requests to FEMA. I know that, among other efforts, VA has deployed many medical

professionals in support of community needs. VA has provided area emergency managers to certain States, operates mobile dental clinics, and has activated VA Federal

Coordinating Centers as requested by FEMA. I share VA’s pride in being an integral

part of helping disaster victims. I also share your concern that VA quickly receives

appropriate reimbursement for these laudable efforts.

Within VA, the first responsibility for coordination of assignments and proper accounting is within VHA’s office of Emergency Management Strategic Health Care

Group. The Department’s Offices of Budget and Finance (under the Assistant Secretary for Management) are actively involved in monitoring these efforts, and I will

be apprised of progress in this area and will ensure it is appropriate. The Office

of Finance will, upon certification, execute the inter-agency fund transfer from

FEMA to VA, ensuring VA receives the funds and credits the appropriate accounts.

Please be assured I understand how important it is to account for and have available to VA resources critical to providing timely, quality care for our veterans. If

confirmed, I will be proactively engaged to ensure that FEMA appropriately reimburses the Department for expenses incurred in disaster relief efforts.

RESPONSE TO WRITTEN QUESTIONS SUBMITTED BY HON. JOHN D. ROCKEFELLER IV

TO ROBERT J. HENKE

Question 1. The Department of Veterans Affairs acknowledged a budget shortfall

of at least $1.5 billion this spring. I find this deeply disturbing, especially since the

Department sent earlier letters stating that there was adequate funding. VA officials blamed poor models and unexpected costs of the Iraq war. This is not a sufficient explanation in my view. It is particularly disturbing that the shortfall included

$475 million more in long-term care costs which should be more predictable. What

will you do to evaluate and improve the models used, and to regularly update budget estimates? How will you work to ensure that the growing demands for long term

care within our aging VA population will be accurately assessed?

Answer. As I understand the long-term care shortfall issue, it had to do with the

correct estimate of savings associated with policy initiatives in the fiscal year 2006

budget request and was an implementation timing issue, not a modeling issue. Nevertheless, if confirmed as the Assistant Secretary for Management and Chief Financial Officer (CFO), I will do everything in my power to ensure careful analysis and

coordination of these estimates so that a similar error does not occur again.

I understand that the Department is making strong efforts to improve the actuarial forecasting methodology and its budget formulation, execution and monitoring

processes so VA can expeditiously adjust for time lag in data used to develop these

estimates. VA intends to continue to improve its overall financial and accounting

management practices to preclude any repeat of this past year’s experience. If confirmed, my staff and I will play a very proactive role in these estimating and reporting improvements, and I will work to ensure that funding is made available to support the VA’s long-term care policies for veterans.

Question 2. For more than a decade, I have been very concerned about the longterm health affects of veterans who served in the first Persian Gulf War, and those

serving today. VA has proposed a multi-year research commitment regarding Gulf

War Illness, and this investment is critical in my view. What will you do in your

budgetary role to ensure that long-term commitments to vital research are fulfilled?

Answer. I understand that research commitments and priorities are established

by the Secretary and the Under Secretary for Health. If confirmed as the Assistant

Secretary for Management and Chief Financial Officer (CFO), I will ensure that

funds appropriated by Congress for VA research purposes, including Gulf War Illness research, are made available to the Veterans Health Administration in a timely

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manner. I will also ensure that requests for future Gulf War Illness research funding are highlighted in the Department’s budgetary discussions for future years.

Question 3. The CARES Commission did not make a recommendation for the longterm strategy plan for VA’s long term care and mental health care policies because

the Commission said it lacked the time and necessary data. How will you work to

develop the information on long term care and mental health care needed for effective strategic planning, and how will you work to integrate this into the budget and

ongoing strategy plan for VA?

Answer. I understand that the Department is developing a strategic plan for longterm care and mental health care. If confirmed as the Assistant Secretary for Management and Chief Financial Officer (CFO), I will follow the direction of the Secretary, with input from the Under Secretary for Health, in formulating future budgets that implement this strategic plan.

Question 4. By reports and press accounts, VA is doing a truly admirable job of

helping veterans and others in the disaster areas. This is part of VA’s mission and

I am very proud of its work. But, how is VA tracking the costs of such care and

distribution of prescription drugs, and what are the current cost estimates? Will VA

be reimbursed by FEMA or will VA need additional funding from Congress in order

to avoid future funding shortfalls?

Answer. VA has a process in place to ensure that disaster-associated expenditures

are properly documented and that reimbursement requests are accurately and

promptly submitted to FEMA. If confirmed, as the Assistant Secretary for Management and Chief Financial Officer (CFO), I will be personally involved in ensuring

that VA is proactive in documenting expenses and submitting reimbursements requests to FEMA. This process is dynamic and on-going, and VA does not yet have

cost estimates that have been validated and approved. When these cost estimates

are validated and approved, VA will be happy to provide the Committee with that

information.

I know that, among other efforts, VA has deployed many medical professionals in

support of community needs. VA has provided area emergency managers to certain

States, operates mobile dental clinics, and has activated VA Federal Coordinating

Centers as requested by FEMA. I share VA’s pride in being an integral part of helping disaster victims. I also share your concern that VA quickly receives appropriate

reimbursement for these laudable efforts.

Within VA, the first responsibility for coordination of assignments and proper accounting is within VHA’s office of Emergency Management Strategic Health Care

Group. The Department’s Offices of Budget and Finance (under the Assistant Secretary for Management) are actively involved in monitoring these efforts, and I will

be apprised of progress in this area and will ensure it is appropriate. The Office

of Finance will, upon certification, execute the inter-agency fund transfer from

FEMA to VA, ensuring VA receives the funds and credits the appropriate accounts.

Please be assured I understand how important it is to account for and have available to VA resources critical to providing timely, quality care for our veterans. If

confirmed, I will be proactively engaged to ensure that FEMA appropriately reimburses the Department for expenses incurred in disaster relief efforts.

Chairman CRAIG. Thank you very much. Now we will turn to

John Molino.

John.

STATEMENT OF JOHN M. MOLINO, NOMINEE TO BE ASSISTANT

SECRETARY FOR POLICY, PLANNING, AND PREPAREDNESS,

U.S. DEPARTMENT OF VETERANS AFFAIRS

Mr. MOLINO. Thank you, Mr. Chairman, Senator Akaka, Senator

Burr, Senator Obama. Thank you to the committee for considering

my nomination and those of my colleagues for positions within the

Department of Veterans Affairs. I appreciate the confidence that

the President has expressed by nominating me in the leadership of

the Department as well. I am humbled by the nomination, I am

grateful for your consideration, and if confirmed, I would be privileged to serve as an Assistant Secretary at VA.

Joining me today is my wife, Eileen, who has been my steadfast

supporter for my 20 years on active duty and the 10 years since

my retirement from the Army. With her are two of our three sons:

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our oldest, Bill, and our youngest, Matthew, both a long time past

their days in Tiger Cubs and Cub Scouts. I would ask them to

please stand.

[Applause.]

Mr. MOLINO. We started very young, Mr. Chairman.

Not joining us today is our second son, Christopher, who is a captain in the Army and is currently serving with his Ranger unit in

Iraq.

[Applause.]

Mr. MOLINO. The responsibilities of this position span a broad

spectrum. They go from the coordination of all policies being considered by the Secretary to ensure that they have been thoroughly

vetted, fully coordinated, and that there are no unintended consequences when they are, in fact, implemented throughout the Department. They also stretch, the responsibilities do, to planning

and preparedness for unforeseen circumstances and situations that

the Department may have to face in the future.

The work of the Department of Veterans Affairs is noble work

because it is through this Department that the Nation expresses its

gratitude to the men and women who have served in uniform in

defense of freedom. Truly, we would not be living in the land of the

free if this were not also the home of the brave.

I ask this committee, therefore, for its support of my nomination.

I ask the Senate for its confirmation. I promise you that my tenure

at the Department of Veterans Affairs will have as its benchmark

a tireless commitment to our military veterans and their families.

Senator, I would be happy to entertain your questions.

[The prepared statement of Mr. Molino follows:]

PREPARED STATEMENT OF JOHN M. MOLINO, NOMINEE TO BE ASSISTANT SECRETARY

FOR POLICY, PLANNING, AND PREPAREDNESS, U.S. DEPARTMENT OF VETERANS

AFFAIRS

Chairman Craig, Senator Akaka, Members of the Committee, thank you for your

consideration of my nomination to serve as an assistant secretary in the Department of Veterans Affairs. I am grateful to President Bush for the confidence he has

placed in me by nominating me for this position. I am humbled by the nomination,

honored by your consideration, and I would be privileged, if confirmed, to serve as

the Assistant Secretary for Policy and Planning.

My earliest memories include value and respect for selfless service. My father

served as a soldier during World War II. He later joined the Veterans of Foreign

Wars and rose through the progression of positions, serving at post and county levels. He was especially proud of his volunteer service at the VA hospital (not far from

my boyhood home in Brooklyn, New York), where he amassed literally thousands

of volunteer hours. He would have been very proud had he lived to see his youngest

son serve as a Deputy Under Secretary of Defense and to receive the President’s

nomination to be an Assistant Secretary of Veterans Affairs.

My parents had three sons. Each of us was a career Army officer, serving a combined total of nearly 75 years on active duty.

I would be remiss if I did not thank my wife, Eileen, for her steadfast support

and the positive influence she has been on each of our three sons. Eileen joins me

today, along with our eldest son, Bill, and our youngest son, Matt. Bill is a graduate

of the College of William and Mary and is employed by Northrup-Grumman. He has

focused his service in our church community. Several years ago, he founded a summer theatre program for high school-aged youth that has become a mainstay in our

community. It has grown in popularity annually, providing a wholesome, summer

activity for many young people. Matt is a senior at George Mason University. He

will graduate in January and will begin his active service as a lieutenant in the U.S.

Army at that time. Chris, our second son, could not be with us today; he is a captain

in the Army and is currently serving with his Ranger unit in Iraq.

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Upon confirmation, I will become thoroughly familiar with the issues facing the

Department and will do my best to ensure we are a Department competent & capable today and fully prepared for the challenges of tomorrow. The Assistant Secretary

for Policy and Planning is charged with the responsibility of ensuring that decisions

made by the Secretary and his Deputy are made with full consideration of their impact throughout the department. The cross-cutting nature of this position makes it

vital to the current and future well-being of the Department and the lives of this

nation’s veterans. I promise you that my tenure will have as its benchmark a total

commitment to America’s veterans and their families.

I am acutely aware how fortunate we are to live in this country, how blessed we

are by God, and how grateful we should be to those who have served and to those

who serve today to protect our way of life. We are wise to remember that this would

not be the land of the free, were it not also the home of the brave.

I am committed to be of service to those brave Americans who have served our

nation in uniform.

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RESPONSE TO WRITTEN QUESTIONS SUBMITTED BY HON. LARRY E. CRAIG

TO JOHN M. MOLINO

Question 1. I understand that the Assistant Secretary for Policy, Planning, and

Preparedness has a wide array of responsibilities. Can you describe for us some of

the key responsibilities of that position and how you plan to fulfill them?

Answer. Yes, this office certainly has a wide array of responsibilities. I am confident my experience together with the team already in place in the office will effect

an organization that will successfully fulfill its mission and provide the highest

quality support to the Secretary, the Congress and the Administration.

The Office of Policy, Planning, and Preparedness serves a diverse set of needs for

the executive leadership of VA, the Congress, and other organizations. One of the

primary elements of this organization is the Office of Policy. This office provides the

Secretary and VA executive management with independent analysis and data on

policies that impact veterans. One of the challenges taken on by this office (at the

direction of Congress) is to assess current VA outreach efforts and recommend improvements in VA’s current outreach programs. As you know, as Deputy Under Secretary of Defense for Military Community and Family Policy, I was directly involved

in the development and execution of outreach efforts. VA, like DoD, faces the challenge of coordinating outreach concerning a complex set of benefits and services. I

believe my experience will add value to this outreach improvement initiative.

Along those same lines, the Assistant Secretary for Policy, Planning, and Preparedness is responsible for Department-wide strategic planning. The strategic plan

for VA addresses the provision and delivery of a vast array of benefits and services

provided through individual administrations. As, it is my responsibility to develop

a single, comprehensive strategic plan that crosses internal organizational lines and

ensures that all administrations (Veterans Benefits Administration, Veterans

Health Administration, and National Cemetery Administration) are working in concert toward the ultimate goal of serving our Nation’s veterans. In support of this,

the Office manages program evaluations for the Department. These evaluations,

conducted by independent parties, assess if programs are meeting their legislated

intent and provide recommendations for improvements. My experience will be useful

in successfully integrating the results from program evaluations into policies that

benefit veterans.

I look forward to becoming engaged in the preparedness aspect of the office, as

well. As I understand it, VA played a large and successful role in recent emergency

response activities, including assistance in evacuations and protection of infrastructure and ensuring patient safety under adverse conditions. VA assets are an important part of the emergency support functions in the National Response Plan. I believe that my experience in the Department of Defense in working with VA and

other agencies can be helpful in further developing agency to agency relationships

that are so critical to the success of integrated emergency preparedness planning

and execution.

Question 2. One strategic goal of the Office of Policy, Planning, and Preparedness

is to ‘‘improve the Nation’s preparedness for response to war, terrorism, national

emergencies, and natural disasters.’’ The events surrounding hurricanes Katrina

and Rita will undoubtedly provide a vast amount of information as to how well that

goal is being accomplished. Do you yet have a sense of what went well in dealing

with these hurricanes and whether they there are any lessons to be learned from

how VA responded?

Answer. There are always lessons to be learned. I understand the VA’s Crisis Response Team has begun the process of compiling the lessons learned from recent disaster events.

Secretary Nicholson has already stated that among the lessons already learned

are the importance of realistic emergency drills, the need to ensure that families of

VA health care workers are safe, and most of all, the need to empower employees

to ‘‘do the right thing.’’

I have learned there are two essential elements to successful response to emergencies. First is to have adequate plans in place. I understand that VA was among

the best prepared and most efficient agencies involved in the Federal response. I

was impressed by the level of preparedness at VA hospitals, particularly in the affected areas. But drills and regulations and plans cannot work without the second

essential element—a dedicated workforce willing to put in the time and energy to

do what needs to be done. VA should be proud, as I am, of the workforce. As for

preparedness for war, VA’s role is to back up DoD in the provision of health care

to active duty. In the case of national emergency, VA may be asked to provide

health care to the general public.

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RESPONSE TO WRITTEN QUESTIONS SUBMITTED BY HON. DANIEL K. AKAKA

TO JOHN M. MOLINO

Question 1. In the aftermath of Hurricane Katrina, Secretary Nicholson and others briefed the Committee on VA’s role in disaster relief. The Secretary commented

that VA will come to Congress in the near future and request additional funding

for money spent on disaster relief. I hope you will support the Secretary to do this

in a timely manner.

The recent natural disasters in the Gulf Coast region have highlighted VA’s role

in emergency response. Do you think that VA should be reimbursed for expenses

incurred? I believe VA should be reimbursed for funds expended for emergency response consistent with Administration policies and the Stafford Act. As you know,

VA health care is funded through a fixed, appropriated, annual budget. Although

we do not yet know the extent of VA resources spent over the past few weeks for

emergency relief, unanticipated spending could adversely affect planned budgets

and possibly interfere with the provision of care to veterans. The Department has

already drafted a process describing how VA will manage such reimbursements.

Question 2. Mr. Molino, what are your top priorities for the office you will oversee

and what can Congress do to assist you in your new role?

Senator I have outlined in my answer to Senator Craig, some of the more important functions in the Office of Assistant Secretary for Policy, Planning, and Preparedness. My top priority will be to support the Secretary in his mission to provide

the highest quality benefits and services to our Nation’s veterans. I will do this

through effective management of Policy, Planning, and Preparedness staff, active

participation in senior leadership forums, building strong relationships within the

Department and strengthening existing relationships with the Department of Defense.

I do not know yet how best Congress can assist me in this role, however, I very

much look forward to and appreciate your support.

Chairman CRAIG. John, thank you very much.

Now let us turn to Lisette Mondello.

STATEMENT OF LISETTE M. MONDELLO, NOMINEE TO BE

ASSISTANT SECRETARY FOR PUBLIC AND INTERGOVERNMENTAL AFFAIRS, U.S. DEPARTMENT OF VETERANS

AFFAIRS

Mrs. MONDELLO. Thank you, Mr. Chairman and Members of the

Committee, for the opportunity to appear before you today. It is a

great honor to be nominated by President Bush to be Assistant Secretary for Public and Intergovernmental Affairs at the VA. I am

also most grateful to Secretary Nicholson for his confidence in my

ability to do this job and to do it well for our veterans.

It was a privilege to have been introduced by my friend and my

mentor, Senator Hutchison. She is a tireless advocate for our Nation’s veterans.

When I was growing up in Texas, I grew up with veterans. My

dad and my uncle would show me pictures of when they were

young men and they served in the Army, and they told me about

their days in the service. My dad served in the Pacific during

World War II, and when he came back, he was able to graduate

from college because of the GI bill. My uncle served in France during World War I. I later had the privilege of working with Sam

Johnson, a veteran of Korea and Vietnam, who spent nearly 7

years in a North Vietnamese prison camp, half of that time in solitary confinement. Through him, I met many of his fellow POWs,

and I remain today awed by their courage and their love of country.

There is a country song—I don’t know if anybody is a country

and western fan—called ‘‘My Heroes Have Always Been Cowboys.’’

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I think today I could say, ‘‘My Heroes Have Always Been Veterans.’’

Without the dedication of the millions of men and women who

served in our Armed Forces, we wouldn’t enjoy the freedom we

have today. I consider it a privilege to be able to serve those who

served our Nation and defended the cause of freedom here and

throughout the world.

I have spent my professional life both in the public and private

sectors, practicing the art of effective communication and how it

can serve a mission’s priorities. I have seen how constituents and

constituencies are better served when they have clear and accurate

information available to them. I have worked both in small offices

and organizations as well as in large bureaucracies and actually

seen both operate quite well.

I spent nearly a decade in the Senate on the staffs of two highly

effective Senators—both Senator Hutchison and prior to that Senator Al D’Amato of New York. I have also served most recently as

senior advisor at the Department of Education under two very

dedicated Secretaries during a time of sweeping national education

reform. If confirmed to this position, I am looking forward to working with the staff at the Department to ensure that veterans receive the information they need to access their benefits and VA’s

other services.

Within the Office of Public and Intergovernmental Affairs, we

are charged with communicating services and programs to veterans, to their families, to service organizations, to State and local

governments and communities.

Information that is presented in an unclear and confusing manner is frustrating to our veterans; it is frustrating to those who

work with them and to their families, and it is unfair. If the

website, for example, is difficult to navigate or if information is

scattered and hard to find, we must find ways to improve. For veterans like my father from World War II who would not necessarily

turn to the Internet as their first avenue of gathering information,

we must continue to look at all avenues of communication to reach

them.

There are more than 230,000 professionals at the Department of

Veterans Affairs. They serve our veterans every day. They provide

world-class health services. There is cutting-edge medical research

going on. They do much more in providing benefits and services for

our veterans.

If confirmed, I will look for ways to constantly improve our communications efforts, both externally and internally. If confirmed, I

will reach out to the State and local governments, to veterans, to

community organizations, as well as to Congress, to explore ways

we can work together to better communicate information about

VA’s programs and services to our veterans and to their families.

Mr. Chairman, I would also like to thank my family and friends,

many of whom are here today, for their support. My husband, Joe

Mondello, who is also a Senate staff alum of many years, has provided me with unwavering support, and my son, Matthew, a first

grader—who thinks today is a holiday because he is missing school.

[Laughter and applause.]

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Mrs. MONDELLO. We are going to our first Cub Scout meeting tonight. My parents, Rosemary and Pete Elizondo, who couldn’t be

here today—they are in Dallas—they have always supported me in

every endeavor I have ever tried, and I know they are sitting actually waiting to hear how it goes.

Again, Mr. Chairman and Members, thank you so much for this

opportunity, and I look forward to any questions.

[The prepared statement of Mrs. Mondello follows:]

PREPARED STATEMENT OF LISETTE M. MONDELLO, NOMINEE TO BE ASSISTANT

SECRETARY FOR PUBLIC AND INTERGOVERNMENTAL AFFAIRS, U.S. DEPARTMENT

OF VETERANS AFFAIRS

Thank you, Mr. Chairman and Members of the Committee for the opportunity to

appear before you today. It is a great honor to be nominated by President Bush to

serve as Assistant Secretary for Public and Intergovernmental Affairs at the Department of Veterans Affairs. I am also most grateful to Secretary Jim Nicholson for

his confidence in my abilities

It is a privilege to be introduced by my mentor, Senator Kay Bailey Hutchison

from my home state of Texas. Senator Hutchison is a tireless advocate and supporter of our nation’s veterans. Thank you, Senator, for your friendship and support.

When I was growing up in Texas, my dad and uncle would show me pictures and

tell me stories of their days in the service. My dad served in the Pacific during

World War II. My uncle served in France during World War I. Later, I worked with

Sam Johnson, a Korea and Vietnam veteran who spent nearly seven years in a

North Vietnamese prison camp. I met many of his fellow POWs and remain awed

by their courage and love of country.

There is a country and western song entitled: ‘‘My Heroes Have Always Been

Cowboys.’’ I would say rather ‘‘My Heroes Have Always Been Veterans.’’ I have chosen my heroes well.

Without the millions of men and women whose love of country and dedication to

duty, we wouldn’t enjoy the freedom we have today. I consider it a privilege to be

able to serve those who have served our nation and defended the cause of freedom

and liberty here and throughout the world.

I have spent my professional life both in the public and private sectors, learning

the art of effective communication and how it can serve mission priorities. I have

seen how constituents and constituencies are better served when they have clear

and accurate information available to them. I have worked in small offices and large

bureaucracies and seen both operate most effectively.

I served nearly a decade in the Senate on the staffs of two highly effective Senators—Sen. Hutchison and Sen. Al D’Amato of New York. I have also served, most

recently as a Senior Advisor in the Department of Education under two dedicated

Secretaries (Rod Paige and Margaret Spellings) during a time of sweeping reform

of our public education system. If confirmed to this position, I am looking forward

to working with the dedicated staff at the Department of Veterans Affairs to support

their objectives, initiatives and programs as we ensure that veterans receive the information they need to access their benefits and VA’s services. I am also committed

to building strong alliances and partnerships with state and local governments as

we work together to assist our veterans.

Mr. Chairman, we have a duty at the Department of Veterans Affairs—a duty to

honor and serve our nation’s veterans. Within the Office of Public and Intergovernmental Affairs, we are charged with communicating services and programs to veterans, their families, service organizations and State and local governments. It is

imperative that we do our job well.

Information presented in an unclear and confusing manner is frustrating to our

veterans, their families and those who serve them. If the website is difficult to navigate or if information is scattered and difficult to find, we must find ways to improve. For veterans like my father, who would not turn to the web for information,

we must look at all avenues of communication to reach them. Our veterans deserve

our very best efforts.

More than 200,000 professionals at the Department serve our veterans—every

day they provide world class care, cutting edge research, and other benefits and

services. It is our job in Public and Intergovernmental Affairs to reach out to our

veterans, their families and those who work with them, to ensure that they have

the information they need to make informed decisions about the benefits, services

and programs that are available to them.

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I will look for ways to constantly improve our communications efforts both externally and internally. If confirmed, I will reach out to State and local governments,

to veterans and community organizations, as well as to Congress to explore ways

to better communicate information about the VA’s programs and services to our veterans and their families.

Mr. Chairman, I would also like to thank my family and friends, many of whom

are here today, for their support. My husband Joe Mondello, who is also a Senate

staff alum and has provided me with unwavering support, and my son Matthew,

who is very excited that Mommy is going to help our soldiers when they come home.

And my parents, Rosemary and Pete Elizondo of Dallas, who have always supported

me in all my endeavors.

Thank you again, Mr. Chairman and Members of the Committee, for your consideration of my nomination. I would be happy to answer any questions you may have.

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RESPONSE TO WRITTEN QUESTIONS SUBMITTED BY HON. LARRY E. CRAIG

TO LISETTE M. MONDELLO

Question 1. It is my understanding that the Assistant Secretary for Public and

Intergovernmental Affairs is responsible for managing and directing a number of

programs, including international, consumer affairs and faith-based community initiatives programs. How would your experience help you assume those responsibilities?

Answer. The management of the diverse programs in the Office of Public and

Intergovernmental Affairs will be one of my highest priorities. Watchful stewardship

ensures that the programs are working well for those they are intended to serve.

It is a responsibility I take most seriously.

Throughout my career, I have worked with a variety of national, State and local

groups on a wide variety of issues. Although a significant part of my portfolio was

media or public affairs, I also had strategic and implementation management responsibility on a number of key issues that required working with constituents, constituencies and government officials. Whether it was education, law enforcement,

senior concerns, or consumer affairs, the issues covered a diverse range of topics of

interest to a variety of groups and communities. For example, the implementation

of electronic delivery of Federal benefits (EFT 99) was a major issue for senior and

consumer organizations as well as to the Federal Government and the banking community. When working on the issue of Nazi gold in Swiss banks, the Holocaust survivor organizations and the international community were integral parts of process.

In education, parents, teachers, national, State and local officials and organizations,

all play integral roles. In addition, I worked closely on issues that affected State and

local governments as well as community associations who desired or received Federal grants and programs.

Question 2. One of VA’s objectives is to be ‘‘recognized as a leader in the provision

of specialized health care services.’’ In recent years, VA has done a remarkable job

in transforming into one of the nation’s best health care systems. Do you yet have

a sense of what measures can be taken to foster VA’s well-deserved reputation as

a leader in health care services?

Answer. Increasing the recognition of the leadership role of VA health care services is a key mission for the public affairs office and this mission’s success brings

with it significant benefits for the program. Recognition can bring not only enhanced

reputation but also raised credibility among the veteran population and raised internal morale. I would recommend a multi-pronged approach to communicating the VA

information. This plan would include increasing our outreach to national media, as

well as increasing our emphasis on local, regional and specialized media. I would

also promote the many health care specialists to the media for expert comments.

I would also recommend coordinating with other offices at VA to ensure that local

media opportunities are part of travel itineraries.

RESPONSE TO WRITTEN QUESTIONS SUBMITTED BY HON. DANIEL K. AKAKA

TO LISETTE M. MONDELLO

Question 1. When we met earlier this week in my office, we talked about the various means of communicating with different generations of veterans and their families. Can you give me some examples of how VA can meet the varying communication needs of its constituency?

Answer. The diverse age demographics of today’s veterans require a communications plan that provides information in a variety of ways to ensure that we reach

the maximum number of veterans as possible. Younger veterans will primarily get

their information from the intranet. I believe the VA website can be more ‘‘userfriendly’’ and would work to make the site easier to navigate and the information

more clearly presented. For many of our older or economically disadvantaged veterans, the intranet will not be their primary information vehicle. For them, we

would work to increase the access to VA information through local, regional and

specialized media. It is my understanding that the public affairs office has just come

to an agreement with ABC Radio Network, American Country Countdown and

Salem Radio Network to produce and air a series of PSAs (public service announcements) at no charge to the Department on health care and benefits available to veterans. These radio networks have more than 5000 affiliate stations total nationwide.

I also believe that national and local groups and associations, as well as their publications, are excellent ways to communicate to veterans.

Question 2. Mrs. Mondello, in your opening statement, you point to a wealth of

prior work experience you have in communicating information to various constituencies. As you know, my home state of Hawaii has some isolated veteran commuVerDate 11-MAY-2000 17:16 Jun 13, 2006 Jkt 025789 PO 00000 Frm 00071 Fmt 6633 Sfmt 6621 C:\VA\25789.TXT CarolB PsN: CarolB
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nities on the smaller islands. What new strategies would you implement to ensure

fast effective communication to this Nation’s rural and isolated veterans communities?

Answer. Reaching our veterans who live in rural or otherwise isolated communities requires what I would describe as a ‘‘cooperative’’ communications strategy.

While we would work to increase information on VA’s services and benefits on a national media level, there needs to be an increased focus on small, local media such

as weekly or community newspapers to small radio stations to ‘‘non-traditional’’

media outlets. We would work closely with State Veterans Directors and personnel,

as well as with local and community officials, to identify and inform local media and

community groups that reach or serve our rural veterans. We would also look for

ways to keep these officials and groups informed and supplied with up-to-date information on VA benefits and services available in their areas for dissemination to veterans and those who serve them.

Chairman CRAIG. Lisette, thank you very much. Matthew, I will

be happy to sign your excuse slip.

[Laughter.]

Chairman CRAIG. George Opfer. George, welcome to the committee.

STATEMENT OF GEORGE J. OPFER, NOMINEE TO BE INSPECTOR GENERAL, U.S. DEPARTMENT OF VETERANS AFFAIRS

Mr. OPFER. Thank you, Mr. Chairman, Senator Akaka, Senator

Burr, Senator Obama. It really is an honor for me and my family

to be here today, having been nominated for the position of Inspector General by the President. I am fortunate to be accompanied

today by my beautiful and supportive family. Betty and I will be

celebrating our 32nd wedding anniversary soon, and two of my

three children—Tom, the oldest, is a teacher in Fairfax at Paul VI

High School, and Chris is a recent graduate of the University of

Miami Law School, so I am starting to see a little light at the end

of debtor’s prison. Allison, my youngest, couldn’t be here today. She

is on a basketball scholarship at the University of Indianapolis,

and the coaches are tough. They wouldn’t even allow her to come

for her dad’s confirmation hearing. But Betty and I, are very fortunate to be here.

Chairman CRAIG. Please stand so we can recognize you. Thank

you.

[Applause.]

Mr. OPFER. The VA’s mission to serve, honor, and recognize the

veterans for their service to our Nation is the noblest of callings.

As in past wars, Afghanistan and Iraq bring to our attention and

remind us of the incredible sacrifices that the men and women in

uniform are making to preserve our freedom and protect our democracy. The Department’s sacred mission, ‘‘to care for him who

shall have borne the battle and for his widow and his orphan,’’ is

the legacy passed on from President Abraham Lincoln. Today the

Veterans Affairs has to carry that mission out to approximately

over 25 million living veterans and their families.

While I know every position has a learning curve, I do believe

by the reason of my previous experience and background that I will

be able to fulfill the position of Inspector General. I have worked

for almost 36 years in the Federal Government—25 years with the

U.S. Secret Service, and 11 years in the Inspector General community both at the Federal Emergency Management Agency and the

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Department of Labor. I am intimately familiar with the role and

responsibilities and functions of the Office of the Inspector General.

I firmly believe that the Inspector General Act, enacted 25 years

ago, is as important today as it was then. It provides the Inspector

General unique responsibilities and authorities to independently

conduct oversight and reviews of the agency programs. It also requires the Inspector General to keep the Congress and the Secretary duly informed of any deficiencies in those programs. As Inspector General, I will use that authority to ensure an independent

and objective review of the facts, whether the work consists of allegations of impropriety, whether it is audits of financial systems,

program and evaluations, or in the case where it is criminal investigations conducted by the Office of Inspector General. I will aggressively pursue any criminal activity to the fullest extent of the

law.

In conclusion, Mr. Chairman, I am honored to be considered for

this position, and I pledge, if I am confirmed, that I will work with

you and the other Members of the Committee to make sure that

you are duly informed of any issue that we all can address, critical

issues facing the Department of Veterans Affairs so that they can

make efficient and effective and economical delivery of benefits to

our Nation’s veterans.

Thank you for the opportunity to appear today, sir.

[The prepared statement of Mr. Opfer follows:]

PREPARED STATEMENT OF GEORGE J. OPFER, NOMINEE TO BE INSPECTOR GENERAL,

U.S. DEPARTMENT OF VETERANS AFFAIRS

Mr. Chairman and distinguished Members of the Committee, I am honored to be

here today, having been nominated by President Bush to lead the Office of Inspector

General (OIG), Department of Veterans Affairs (VA). VA’s mission to serve, honor,

and recognize veterans for their service to our nation is the noblest of callings. As

in wars past, Afghanistan and Iraq continue to remind us of the incredible sacrifices

our men and women in uniform make to defend our freedom and protect us from

terrorism. The Department’s sacred mission, ‘‘to care for him who shall have borne

the battle and for his widow and his orphan,’’ is the legacy of President Abraham

Lincoln. This legacy extends to an estimated 25 million living veterans and their

families.

VA is the second largest agency in the Federal Government, with about 230,000

employees and an annual budget of approximately $70 billion. In serving America’s

veterans, VA provides health care, income and re-adjustment benefits, and memorial and burial services. VA maintains facilities in every State, the District of Columbia, the Commonwealth of Puerto Rico, Guam, and the Philippines. Providing

these services presents VA with constant challenges.

The OIG has the formidable task of staying abreast of these challenges, and focusing its resources in areas that will maximize the impact it has on helping the VA

accomplish its mission. Key issue areas currently being addressed by the OIG include:

• Access to high-quality and safe health care.

• Accurate and timely benefits processing.

• Reliable financial management systems.

• Efficient and economical procurement practices.

• Effective and secure information management technologies.

In addressing these issues, the OIG is resolved to ensure that VA programs and

operations are efficiently and effectively managed, and free of violations of law,

waste, and abuse. The OIG is also committed to aggressively investigating, arresting, and prosecuting persons perpetrating crimes affecting VA.

While every position involves a learning curve, by reason of my experience and

my commitment to service to our Country, I believe that I am qualified to fill this

position. My 35-year Federal career has been dedicated to law enforcement and

oversight of Federal programs. My work in the inspector general community, at the

Federal Emergency Management Agency (FEMA) and the Department of Labor

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(DOL), and with the Secret Service has provided me with the necessary experience

and knowledge to fulfill the responsibilities of this position in accordance with the

mandate of the IG Act. I am intimately familiar with the role, function, operations,

and challenges of leading an Office of Inspector General.

I have worked on numerous issues that are systemic to government-wide operations. Financial management, information management, procurement, performance, and accountability are not unique to any one agency. As the Inspector General

for FEMA and as the Deputy Inspector General for DOL, I have managed and directed a wide variety of audits and investigations of agency programs and individuals. I have in-depth knowledge of government auditing standards, which focus on

opportunities to improve the economy, efficiency, and effectiveness of programs. I

also have extensive experience in the conduct and management of criminal, civil,

and administrative investigations, including a long association in working successfully with Assistant U.S. Attorneys to prosecute cases on behalf of the Federal Government.

The IG Act is as relevant today as it was over 25 years ago when it was first

enacted. It provides the Inspector General with the authority and responsibility to

independently conduct oversight into all programs and activities within the Department. It also requires the Inspector General to keep the Congress and the Secretary

fully informed about problems and deficiencies and the need for corrective action.

As Inspector General, I will use this authority to ensure an independent and objective review of the facts, whether the work involves allegations of impropriety, inspections for compliance with regulations and policy, or audits of financial systems.

I will not hesitate to review and report on any issue of fraud, waste, abuse, or mismanagement brought to my attention. I will also aggressively pursue criminal activity and work to get founded cases prosecuted to the fullest extent of the law.

VA OIG has an outstanding reputation in the inspector general community and

within the Department. This reputation has been earned through the hard work and

dedication of its staff. I look forward to becoming part of the VA OIG team and carrying on the legacy of working with Congress and the Department to help ensure

our Nation’s veterans receive the benefits they have earned through service to their

country. My goal is to be an agent for positive change and help VA become the bestmanaged service delivery organization in Government.

As Inspector General, I will continue to recruit, develop, and retain a diverse and

motivated workforce. OIG training programs and facilities must provide staff with

the necessary skills and tools to excel at their jobs. Overseeing an agency as multifaceted and complex as VA requires OIG personnel to be able to respond to everchanging challenges. I will remain devoted to ensuring that the OIG team remains

ready to fulfill their mission in an independent, objective, thorough, and timely

manner.

In conclusion, I am honored to be considered for this position. If confirmed, I will

assume the duties of Inspector General with enthusiasm and a commitment to uphold the public trust. Mr. Chairman, I pledge to work collaboratively with you and

all the Members of the Committee to address the many critical issues impacting the

efficient, effective, and economical delivery of benefits to our Nation’s veterans.

Mr. Chairman, thank you for the opportunity to provide this statement. I would

welcome any questions that you or other members might have.

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RESPONSE TO WRITTEN QUESTIONS SUBMITTED BY HON. LARRY E. CRAIG

TO GEORGE OPFER

Question 1. You have a great deal of experience in investigative roles and as an

Inspector General. What can you take from your previous experience and apply to

your new position, if confirmed?

Answer. My entire Federal career has been dedicated to law enforcement and

oversight of Federal programs. My work in the inspector general community, at the

Federal Emergency Management Agency (FEMA) and Department of Labor (DOL),

and with the Secret Service has provided me with the necessary experience and

knowledge to fulfill the responsibilities of this position in accordance with the mandate of the IG Act. I am intimately familiar with the role, function, operations, and

challenges of leading an Office of Inspector General.

As a current member of the inspector general community I have worked on numerous issues that are systemic to government-wide operations. At both FEMA and

DOL, I have managed and directed audits and investigations of agency programs

and individuals. I have in-depth knowledge of government auditing standards,

which focus on opportunities to improve the economy, efficiency, and effectiveness

of programs. I also have extensive experience in the conduct and management of

both criminal and administrative investigations, including a long association in

working successfully with Assistant U.S. Attorneys to prosecute cases on behalf of

the Federal Government.

Question 2. Concerns have been expressed to the Committee staff about the VA

Inspector General’s office focusing heavily on monetary recovery actions. It is my

understanding that some of these actions are being taken against firms that are

generally good actors and partners in government procurement and that the firms

may be paying monetary penalties to the government without admitting any wrongdoing largely—in their view—to avoid lengthy and costly public proceedings that

could undermine the confidence in their companies. Do you believe that any such

policy could be against the interest of the government, especially if it discourages

quality companies from doing business with the government? And, do you believe

that government officials must be closely monitored in the area of financial penalties to ensure that they adhere to a high standard of objectivity and integrity?

Answer. I believe one role of the VA Inspector General is to ensure VA and contractors adhere to all applicable laws, rules, and regulations, and that both parties

comply with all contractual terms and conditions. The Office of Inspector General

(OIG) has a responsibility to review contracts to identify overcharges and other

damages to the Federal Government related to non-compliance with contract terms

and conditions. All work performed by the OIG must be conducted with objectivity

and integrity, and be based on an independent and thorough review of the facts.

Monetary recoveries and penalties can result from post-award audits and in response to complaints filed under the qui tam provisions of the False Claims Act.

It is my understanding that post-award audits are conducted at the request of VA

contracting officers or in response to contractors’ voluntary disclosures. The purpose

of these audits is to ensure that VA receives fair and reasonable prices that are

based on accurate information provided by the contractor. When the OIG determines

that the Federal Government did not receive the price required under the terms of

the contract and there is no evidence of fraud, the OIG makes a recommendation

to VA to collect the overcharges.

Of the 238 post-award audits conducted in the past 12 years, 107 were conducted

in response to contractor’s voluntarily disclosing they overcharged the government.

These contractors collectively offered to pay $37.5 million in overcharges. However,

post-award audits of data submitted by the contractors determined that the overcharges were actually $113 million. The Department negotiated recovery of the

funds. The Inspector General is required under the IG Act to report all criminal violations to the Department of Justice (DOJ). Of the 107 voluntary disclosures, 5 were

referred to DOJ for a determination as to whether there was a violation of criminal

law and to pursue any monetary restitution and penalties prescribed by law.

The OIG is also required to investigate allegations of contract irregularities in response to Hotline allegations or qui tams received from DOJ. These cases involve

a wide variety of issues related to VA contracts such as defective pricing, overcharging, product substitution, Buy American Act violations, violations of Medicare/

Medicaid laws, and off-label marketing of pharmaceuticals. In these cases, the OIG

conducts a review to determine if fraud has been committed and the extent of the

damages. The OIG provides the results of these reviews to DOJ, which is responsible for negotiating monetary settlements with the contractors, to include recovering damages and determining monetary penalties as prescribed by law. If conVerDate 11-MAY-2000 17:16 Jun 13, 2006 Jkt 025789 PO 00000 Frm 00080 Fmt 6633 Sfmt 6621 C:\VA\25789.TXT CarolB PsN: CarolB
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firmed, I will review this process to ensure a high standard of objectivity and integrity.

Question 3. The President’s Management Agenda places an important emphasis

on small business participation in government procurement awards. Yet, concern

has been expressed to the Committee staff that staff from the Inspector general’s

office have made recommendations and taken actions recently that may severely

hamper VA’s ability to contract with any small or local businesses and instead leave

VA little choice than to nationalize all procurements and contracts with big suppliers. Do you believe that the Inspector General has a responsibility to be cognizant

of the President’s Management Goals and Congressional procurement policies when

making recommendations to VA on changes in its procurement policies?

Answer. I do believe that the Inspector General has a responsibility to be fully

aware of the goals of the President’s Management Agenda and all applicable procurement related laws, rules, and regulations when performing oversight and recommending improvements in procurement processes. As explained to me the OIG conducts pre-award reviews of proposals submitted by contractors seeking VA Federal

Supply Schedule (FSS) contracts, at the request of VA contracting officers. The

scope of these audits is defined by GSA regulations pertaining to the FSS, which

do not distinguish between small and large businesses. As a result, pre-award audit

recommendations do not differentiate between small and large contractors.

In addition to pre-award audits, the OIG reviews purchasing activities at VA facilities on a cyclical basis to ensure compliance with VA policies and procedures.

These reviews have identified numerous open market purchases when the same

products were available at a lower price on a FSS contract. In these cases, we recommended that VA comply with VA’s policy mandating the use of national contracts, including FSS contracts. Compliance with these recommendations may impact some small and local businesses, as well as large businesses.

The FSS program allows all vendors the opportunity to obtain a contract to provide goods and services to VA and other Federal agencies. This program is particularly beneficial to small businesses because they can be awarded a contract without

competition with large suppliers. VA data shows that 72 percent of the current VA

FSS contracts are awarded to small businesses.

If confirmed, I will ensure that all recommendations made by the OIG are consistent with the overarching charge to protect the integrity of government, improve

program efficiency and effectiveness, and prevent and detect fraud, waste, and

abuse in Federal agencies.

RESPONSE TO WRITTEN QUESTIONS SUBMITTED BY HON. DANIEL K. AKAKA

TO GEORGE OPFER

Question 1. The Office of Inspector General has an important role within VA.

Staffing levels at VA is a major concern of mine. Given the responsibility that this

office has, I would hope that staffing would never become a problem. Should there

be a time where you need additional staff, will you fight within the Administration

to increase your staffing level so that the Office of Inspector General can do its job?

Answer. I intend to be a strong advocate for the resources needed to provide objective, independent oversight of VA programs and operations. I understand that each

year the Office of Inspector General develops its resource request during the VA internal budget formulation process, and that the Inspector General always has had

an opportunity to present and justify resource needs to the VA Secretary, who has

a record of supporting OIG oversight initiatives. Additionally, the Office of Management and Budget has given the Inspector General its own budget hearings to discuss oversight needs as the Administration prepares its submission to Congress, and

I intend to take full advantage of all such opportunities. The Inspector General has

also responded to questions freely from oversight committees on resource needs and

staffing levels. I will request funding levels that enable the OIG to carry out its

statutory work of audits, investigations, and inspections—and in doing so—to help

VA and Congress ensure veterans and their dependents receive the care, support,

and recognition earned through service to their country.

Question 2. Inspector General investigations are initiated by a variety of means.

Will you be responsive to requests from Congress to initiate investigations?

Answer. If confirmed, I will be responsive to oversight requests from Congress and

make them a priority. In doing so I will utilize audit and investigative resources

to ensure financial and administrative operations associated with the delivery of

benefits to veterans are efficient, economical, and free from criminal activity. The

Inspector General has a responsibility to receive allegations of fraud, waste, and

abuse from many sources, including Congress. The VA OIG has one of most active

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Hotlines in the inspector general community, with over 15,000 contacts a year. I will

direct OIG resources to conduct investigations, audits, and health care inspections

to ensure the integrity of VA programs and operations—carrying out both reactive

and proactive efforts. I will not hesitate to review and report on any issues of fraud,

waste, abuse, or mismanagement brought to my attention. My goal will be to establish a priority for the detection, deterrence, and prosecution of fraud in VA programs

and operations, using all available oversight and investigative tools including computer matching and data mining initiatives.

The IG Act provides the Inspector General with independent authority and responsibility to conduct oversight into all programs and operations within the Department. At the same time, the IG Act requires the Inspector General to keep the

Congress fully informed about problems and deficiencies and the need for corrective

action. If confirmed as Inspector General, I will use this authority to ensure an independent and objective review of the facts, whether the work involves allegations of

impropriety, health care inspections for compliance with regulations and policy, or

audits of financial systems.

Chairman CRAIG. George, thank you very much.

We will now move to a round of questions. We will use the 5-

minute rule so that certainly each of us can get an opportunity. We

have been asked to be on the floor before the vote starts. It is a

seated vote in recognition of the obvious position involved with the

Chief Justice of the Supreme Court. We will follow in that manner,

and then if there are any questions left unasked, we will submit

them to all of you in writing. I would not in any way—we would

expect obviously prompt and timely responses, but we will also

move very expeditiously to get you before the Senate for confirmation.

With that, Bill, you have talked of your knowledge and understanding and of the importance of VA’s responsibility in establishing national cemeteries and sustaining them and maintaining

them in areas where no burial option exists within, say, 75 miles

or where the veterans population exceeds 170,000. VA’s criteria, it

would seem, leaves little chance for sparsely populated States—I

know; we have struggled with that in my State of Idaho—to have

a national cemetery established within their boundaries, even

though the service rendered by veterans residing in those States

was, of course, national in character.

Do you believe there should be a periodic re-examination of the

criteria? Or do you believe there are other criteria that we might

consider in determining location for national cemeteries?

Mr. TUERK. Mr. Chairman, I do believe the criteria need to be

and ought to be reviewed periodically. The standard that VA has

set for prioritizing where national cemeteries will be created, as

you cited, is that 90 percent of veterans will be within 75 miles of

a burial option.

It is not my belief and it would not be my position that that is

the final criterion that will be established for making site selection

decisions for national cemeteries; rather, it was, I think, a goal that

was set by the NCA back at a time when only 75 percent of veterans had a burial option available to them.

I think it was entirely appropriate for the National Cemetery Administration to set a goal that could be achieved—to hit the 90-percent number—because it gave them something to shoot for and it

gave the Congress something to measure their success against. As

I stated in my statement, there are 11 cemeteries in various stages

of development that need to be opened and will be opened during

my tenure in order to achieve that target.

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That goal, I think, is a station along the way. When I take over

as Under Secretary, if I am confirmed by the Senate, I intend to

review where we will go from there, having accomplished that goal.

There are many communities, as you cite, in less urban areas that

don’t have a burial option available to their veterans. There are

many substantial cities—Buffalo, New York; Omaha, Nebraska—

that don’t have a burial site available to them. Boise fell into that

category until very recently when last year a State cemetery was

open there.

Cities like these, intermediate-size cities, and more rural areas,

the veterans there, of course, deserve the same honor as any veteran anyplace. I will work hard, Mr. Chairman, to make sure burial options are made available to more than 90 percent of veterans

by opening the issue of how we site future national cemeteries,

once the 11 that are on-stream are built, by trying to make the

State Cemetery Grant Program more effective, and one thing that

is often overlooked, assuring that cemeteries that are reaching

their capacity are expanded so that they can continue to offer services to veterans in the communities they serve.

Chairman CRAIG. Bill, thank you.

Robert, during hearings earlier this year on VA’s budget shortfall, the Secretary pledged that VA will provide me and the committee with updates throughout the year on the status of VA’s financial condition. As the Assistant Secretary for Management, you

will be responsible for collecting that information and assuring its

accuracy. If you are confirmed, what measures will you take to ensure that the Secretary’s pledge is fulfilled and that I and the committee are provided with the useful information that we must have

in a timely fashion?

Mr. HENKE. Mr. Chairman, if I am confirmed, it would be my

first priority to fully understand VA’s budget inside and out and to

understand the models that are used to build that budget. I am

going to become very familiar with those budget models to assure

myself that they predict resource requirements accurately and completely.

Quite simply, I will do everything in my ability to ensure that

the situation will not happen again, and, sir, I am aware that the

Secretary has committed to providing regular budget updates, and

if confirmed, I would fully expect that I would be closely involved

in preparing those updates for him.

I absolutely respect and understand the role of Congress in terms

of oversight, and specifically this Committee, and I would expect to

work closely with you and your staff on a range of issues.

Chairman CRAIG. Well, we look forward to having you before the

committee for all the right reasons.

Mr. HENKE. Yes, sir.

Chairman CRAIG. Great.

Senator Akaka.

Senator AKAKA. Thank you very much, Mr. Chairman.

Bill, how do you plan to adapt your managerial style as you shift

from the legislative branch to the executive branch?

Mr. TUERK. I think, Senator Akaka, that I—well, I think your

use of the word ‘‘adapt’’ is appropriate. I don’t think I am going to

change my management style, but I think I am going to have to

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adapt it. I now am privileged—or I was recently privileged—to lead

a relatively small staff. It is a much larger staff that I will be responsible for down at the National Cemetery Administration, about

1,500 employees, and I will have a budget of some $320 million.

Obviously, it is a different order of magnitude altogether.

As I said, though, in my opening statement, I think the lessons

learned here are adaptable to leadership in the executive branch

and in the National Cemetery Administration. In fact, the situations, I think, are more similar than it might appear at first glance.

First and foremost, I am leaving one quality organization for another, and I think that calls for a similar management style. As I

said in my opening statement, I am not going down there to change

a culture. I am going down there to try to adapt—not adapt the

culture, but to steer the culture and the quality of the employees

down there to meet new challenges. I think the approach will be

the same. I will go down there with the idea of coming in to give

a respectful and a considered review of operations. I am going to

hit the road. I am going to learn from field managers what they

need from central office, not what they can do to help central office.

I am going to look for intermediate middle managers who prove

that they are ready for growth—the same sort of things that I have

tried to do here in terms of developing staff, empowering staff, and

then trusting staff to execute, and, of course, making sure that

staff is accountable for their activities.

Senator AKAKA. Thank you.

Mr. Henke, every year we deal with budgets, and we go through

the same battles to get VA health care the money it needs. This

year Congress had to add an additional $1.5 billion in emergency

funding to address the funding crisis in VA health care. Many of

us in Congress had been pressing for more money for VA health

care since the early part of the year.

What can we do to assure veterans that the budget shortfall that

came to light earlier this year does not happen again?

Mr. HENKE. Senator Akaka, thank you for that question. Sir, if

confirmed, I assure you I am going to ask tough questions and

work tirelessly to ensure the soundness and the validity of VA’s

budget. As you know well, sir, as the Chief Financial Officer, my

job would be to ensure that the Secretary has an accurate, sound,

defensible budget; also to ensure that during the budget execution

process during the year, that he has timely, relevant, and reliable

information on which he can make important decisions.

Sir, I would simply say that I want to ensure that the budget

and the resources that are entrusted to us by the American people

and by this body are executed properly and fully. I will work hard

to ensure that the Department’s budget provides appropriate resources for VA’s priorities.

Senator AKAKA. Robert, in your opening statement, you pledged

to adopt Secretary Nicholson’s philosophy that he outlined during

his confirmation hearing. The first point in this philosophy is that,

‘‘Veterans should have access to the best available health care in

the most appropriate clinical settings.’’

I wholeheartedly agree with this point as it reflects an understanding that different areas of the country require different methods of delivery for health care services. I think that my Neighbor

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Islands Health Care bill epitomizes this philosophy. We had a

hearing on this legislation in June. To date, we have not received

VA’s views. I hope you and others at VA will look at it closely.

Mr. Chairman, my time has expired. Thank you.

Chairman CRAIG. Danny, thank you very much.

Senator Obama.

Senator OBAMA. Thank you very much.

All of you are to be congratulated for terrific professional experience. I think our questions are sort of geared to trying to figure out

how you take excellent experience in your previous jobs and whether and how they apply to the current job. That is what I am going

to focus on.

Let me start with you, Mr. Molino. I know that you are aware

that Secretary Nicholson briefed this committee on the work the

VA has done in the wake of Hurricane Katrina. The VA is really

to be congratulated on its effective evacuation process. That, unfortunately, was not the case in all the institutions down there. As we

know, tragically, nursing home residents and others got caught in

that tragedy.

You have been nominated to be Assistant Secretary for Policy,

Planning, and Preparedness, and one of the questions that I have

is: In your current job in the Department of Defense, do you have

any emergency preparedness experience? If not, that does not mean

you cannot learn it, but I would be curious about how you are

thinking about that process or procedure, because conceivably these

are unfortunately the kinds of issues that could arise again in the

future.

Mr. MOLINO. Certainly, Senator. Thank you for the question.

My current position does not afford me the opportunity to exercise any authority over emergency preparedness or reaction to hurricanes or any kind of natural or manmade disasters. It is a complex organization over which I apply management with a fairly

substantial budget. It requires the building and the maintaining of

coalitions with organizations within and outside of the Department,

which I think, from the briefings I have received thus far, was key

to the success that the VA enjoyed in the area struck by the hurricanes. The pre-existing agreements that were executed properly

was fundamental. It was not so much the management of the actual disaster, much like the Director of FEMA, but it was the execution of pre-existing arrangements and execution of plans.

In that light, my 20-year career on active-duty lends well to this

job and that part of the job, because planning, executions of plans,

long-range, short-term planning, the ability to coordinate within

the organization and among organizations is also important. I

think I would rely more on the experience I garnered in uniform

with the 20 years on active duty to give me experience in this regard.

The other thing that I would say that you alluded to is the VA

is getting very good grades for how it performed in this area, and

what I would be interested in doing is not crowing about it just yet,

asking all the hard questions and making sure that this was not

a fluke. That this, in fact, was the product of a good process, and

then I would share best practices with other organizations. We can

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get better, for sure, but if they can learn from our good planning,

we would like to do that as well.

Senator OBAMA. I thank you and your family, by the way, for

your service, and we hope your son gets home safely soon.

Mr. MOLINO. Thank you. I join you in that hope.

Senator OBAMA. Absolutely.

Mrs. Mondello, your son looks very fine in his suit.

[Laughter.]

Senator OBAMA. Looking very spiffy for mom today.

Mrs. MONDELLO. He looks like a Senator.

Senator OBAMA. He does. He doesn’t live in Illinois, does he? I

just want to make sure.

[Laughter.]

Senator OBAMA. You have extraordinary experience, I think, on

the communications side of the ledger, and so I won’t focus on that.

It just strikes me that you are extremely well prepared for a substantial part of your portfolio.

I did notice—and, you know, it raises some interesting questions

organizationally—about the fact that you also have programs in

your portfolio, as I understand it, for homeless veterans. That is a

very serious problem, particularly in the city of Chicago and other

urban areas. You see huge rates of homelessness and a constant

concern is whether we are caring for them effectively, helping them

to find more stable living situations, jobs, transitions. Some of

them are suffering from substance abuse so there are interactions

with the VA health care system.

Can you just tell me a little bit about—I won’t try to put you on

the spot and ask you, you know, have you done all kinds of work

on homeless programs. I am interested in figuring out how on

things like international initiatives or homeless programs, how you

anticipate getting up to speed, and organizationally how you think

about devoting those resources. Maybe you compensate for your

lack of experience in those areas in terms of staffing. If you could

just talk about that a little bit?

Mrs. MONDELLO. Yes, sir. I think first I would like to say that

in my time at the department and here in the Senate as communications director. I wasn’t necessarily confined to work with just

press and the media.

Senator OBAMA. I understand. My communications director

would insist that he is the most important person in my office.

[Laughter.]

Mrs. MONDELLO. I would probably agree with that statement of

your staff. I was part of the strategic planning and decision-making

process throughout the organization, and that included working

with a variety of constituents, constituent organizations, national

organizations, State organizations, and both the State and local

government. As part of the portfolio of this office, as you mentioned, it falls under intergovernmental.

I think there is a lot of experience that I can bring, leadershipwise, management-wise, and in particular, I would just like

anecdotally to mention some of my work at the Department of Education. I didn’t do press per se. I actually looked at all the program

offices, what services they provided, how they did it, how they executed, and did somewhat of—I don’t like to use these words around

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these folks, but, you know, audit and was somewhat of an ombudsman, lower case. It gave me great insight into the variety of issues

as well as some learning the intricacies of those issues, and also

how you can execute and carry out those particular missions well.

The issue of homelessness, we also have faith-based and community initiatives; we also work with all the national organizations,

and State and local governments.

If confirmed and I go over to VA, it is a top priority of mine to

see exactly how they are carrying out their particular missions. For

example, the Office of Consumer Affairs is under Intergovernmental Affairs, and I have asked for a briefing on that because I

want to know not just the mechanics of what they do, but what are

the results? What is the satisfaction from our customers, from the

consumers themselves? Are we actually doing the job? Are we

doing it appropriately?

What I have discovered a lot of times in an agency is that that

follow-up gets left behind, and we need to ensure, particularly—the

same thing with our homeless program. I have not met the staff.

I haven’t been over to VA yet. I want to actually meet the staff that

works with the homeless program. I think that is critical.

I will be very happy to share those initial results and findings

with you and your staff.

Senator OBAMA. Well, my time is up. I appreciate your response.

I congratulate all of you. I know that we are short on time because

we have to be seated for the Judge Roberts nomination.

If you can just indulge me, Mr. Chairman, and just let me make

a statement on the homeless situation, it is a shameful thing that

the rates of homelessness among veterans are by several multiples

higher than the general population. It is shameful. When I walk or

drive through the Nation’s capital and I see the number of homeless individuals in our capital, a substantial percentage of whom

are veterans, it is embarrassing.

I would just urge you, Mrs. Mondello, to consider this particular

aspect of your job extremely important, and I am happy to see any

kind of innovation that works. I recognize it is not the VA’s responsibility alone. You have to work with other local and State agencies

to make it work. This is something that really I think has to be

dealt with.

Mrs. MONDELLO. I agree, Senator.

Senator OBAMA. Thank you.

Chairman CRAIG. Thank you, Senator Obama.

George, one of VA’s strategic goals is to restore veterans with

disabilities to the greatest extent possible. Yet according to a May

2005 Inspector General’s report, there is a tendency for veterans to

decrease or cease medical health treatment once they have attained

a 100-percent disability rating for post-traumatic stress disorder.

Do you yet have any sense of whether that finding would warrant follow-up studies by the Inspector General or how we get our

hands around a figure like that—that is really very troubling to

me? You are cared for until you are classified.

Mr. OPFER. I am somewhat familiar with that report, having

read it and spoken to some of the staff in the Office of Inspector

General. I do believe that it is going to require additional work by

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the Office of Inspector General to follow up on some of those issues

which came from that report.

There were a number of recommendations that have been accepted by the Department. If I am confirmed, I would personally get

involved in how those recommendations are being implemented

and what effects it would have on the issues which are raised by

the IG report.

I do understand that the IG’s office now is currently reviewing

other options, Mr. Chairman, of what additional work should be

done by the IG’s office in bringing some of the issues relating to

this very serious problem. If I am confirmed, I would get involved

with that. I would like to meet with yourself, the Committee Chair,

and other Committee Members and staff as well as the Secretary

and senior members of the Department, to try and come up with

where should the IG’s office focus its resources in trying to bring

some independent, objective reviews of this issue so that policymakers can make the appropriate decisions.

I think there is a lot more work that the IG’s office can do, valuable work to at least bring issues to the policymakers to make

those decisions. If I am confirmed, I pledge that we will put adequate resources to try and come up with some additional reports

in that area.

Chairman CRAIG. Okay. During the past year, concerns have

been expressed to my staff about some actions taken by VA’s Office

of Inspector General. For example, some private sector suppliers

have noticed that VA’s Inspector General auditors are increasing

their involvement in routine contract negotiations on behalf of the

Government, an action that goes beyond their traditional role of

pre-award advice.

Do you believe those activities are outside the proper role of the

Inspector General’s office? Do you believe that practice should be

re-examined?

Mr. OPFER. I am aware that the IG’s office has what they call

a contract audit group that has been performing this type of preawarding of contracts for approximately 15 years. They don’t actually negotiate the contract. They provide assistance to the contracting officers in the Department, and the IG’s role has been reviewing that to see if they are complying with the Federal acquisition requirements.

It is my understanding that these pre-contract awards and re- views have recovered over $1 billion in the 15 years that they have

been doing this, and that GAO has looked at specifically the VA

IG’s office and it is listed as one of the best practices in doing that

type of work. If I am confirmed, I would look at it to make sure

that we are staying within the mandate of the IG Act in performing that type of function.

Chairman CRAIG. Well, it has come to our attention, and I think

you are right in suggesting it would certainly warrant your attention for review purposes.

Well, there are other questions I have to ask. We are all but out

of time. They have asked us to be to the floor.

Danny, do you have any other questions?

Senator AKAKA. Mr. Chairman, I do. I will submit them for the

record.

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Chairman CRAIG. Okay.

Senator AKAKA. Thank you.

Chairman CRAIG. I have a few more we will submit.

Senator AKAKA. Mr. Chairman, also may I add that I would urge

the committee to move quickly to discharge these nominees to the

Senate floor for final action.

Chairman CRAIG. I thank you very much for that sensitivity of

time, and when I think of all of you here before us who should be

down there working at this moment, that sensitivity pushes us on.

Bill clearly understands, and some of you who have staffed before

may understand. This committee may convene in a small room off

the floor of the Senate at some time next week for those purposes.

We are going to take a look at that because of tight schedules and

because of the shortness of next week. It is my hope that we can

move you very, very quickly because I know the Secretary needs

you down there, the Department needs you, and we will get you

there.

Let me again thank you all very much for your willingness to

serve and, again, I congratulate you on your nomination and the

demeanor that you have brought before the committee. I am confident you will bring honor to the Department. We would expect

nothing less.

Thank you all very much, and the committee will stand adjourned.

[Whereupon, at 11:19 a.m., the committee was adjourned.]

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