Veterans Benefits Administration: Audit of the Management of Concurrent VA and Military Drill Pay Compensation

摘要

VBA did not timely process VA compensation or pension benefits offsets when drill pay was earned concurrently. We determined VBA did not timely offset 601 (86 percent) of 700 cases reviewed for FYs 2011 and 2012. Of the 601 offsets not timely processed, 553 (79 percent) were not processed and the remaining 48 were not processed within VBAs timeliness standard of within 105 calendar days from the date notifications were created in VBAs information technology (IT) system. VBA officials cited higher priorities, such as processing VA compensation claims, took precedence over processing the offsets. Additionally, VBA did not have an adequate offset tracking mechanism, a current cost-benefit analysis to accurately forecast the amount of funds recoverable, and the offset process was not included as part of VBAs Systematic Analysis of Operations (SAO) reviews. As a result, we projected VBA has not offset payments of approximately $48.9 million for FY 2011 and $95.7 million for FY 2012. If VBA improves controls over drill pay offset processing, we projected VBA could recover approximately $478.5 million from FY 2013 through FY 2017 of additional payments. In total, VBA could recover approximately $623.1 million in improper payments. Section 12316, Title 10, USC and 38 USC SC5304(c) prohibits the concurrent payment of VA compensation or pension benefits and military drill pay. VBA policy and guidance requires Veterans Affairs Regional Offices (VAROs) to process offsets within 105 calendar days from the date notifications are created in VBAs IT system. To meet VBAs 105-day timeliness standard, VAROs should have processed FY 2011 offsets prior to November 2, 2012, and FY 2012 offsets prior to August 19, 2013.