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Inspection of VA Regional Office Louisville, Kentucky

Report Information

Issue Date
Report Number
15-01193-433
VISN
State
District
VA Office
Veterans Benefits Administration (VBA)
Report Author
Office of Audits and Evaluations
Report Type
Review
Recommendations
5
Questioned Costs
$0
Better Use of Funds
$0
Congressionally Mandated
No

Summary

Summary
Overall, VA Office of Inspector General (OIG) benefits inspectors determined Louisville VA Regional Office (VARO) claims processing staff incorrectly processed 11 of the 85 disability claims (13 percent) selected for review. The claims processing errors resulted in over $151,000 in improper benefits payments to eight veterans from February 2006 to November 2014. The OIG benefits inspectors sample disability claims considered at increased risk of processing errors so inspection results do not represent the accuracy of all disability claims processed at the Louisville VARO. The OIG report indicated VARO staff incorrectly processed 7 of 30 claims related to temporary 100 percent disability evaluations but accurately processed all 30 disability claims related to traumatic brain injuries. Results in these two areas showed significant improvement since the VARO was last inspected in 2011. However, OIG reported 4 of the 25 sample cases relating to Special Monthly Compensation and ancillary benefits contained errors. Louisville VARO staff followed policy and accurately established claims in an electronic system of records using correct dates of claims for the 30 claims sampled. OIG inspectors also determined VARO staff delayed processing actions in 11 of the 30 benefits reduction cases sampled that resulted in over $93,000 in improper benefit payments from January 2013 until December 2014. The improper payments resulted from delays in taking actions to reduce the benefits because VARO management considered other work to be a higher priority. The Director of the Louisville VARO concurred with all recommendations and OIG plans to follow up in the future to ensure the planned corrective actions were implemented.

Open Recommendation Image, SquareOpenClosed and Implemented Recommendation Image, CheckmarkClosed-ImplementedNot Implemented Recommendation Image, X character'Closed-Not Implemented
No. 1
Closed and Implemented Recommendation Image, Checkmark
to Veterans Benefits Administration (VBA)
We recommended the Louisville VA Regional Office Director develop and implement a plan to ensure staff follows policies and procedures associated with scheduling medical reexaminations.
No. 2
Closed and Implemented Recommendation Image, Checkmark
to Veterans Benefits Administration (VBA)
We recommended the Louisville VA Regional Office Director conduct a review of the 345 temporary 100 percent disability evaluations remaining from our inspection universe as of December 10, 2014, and take appropriate action.
No. 3
Closed and Implemented Recommendation Image, Checkmark
to Veterans Benefits Administration (VBA)
We recommended the Louisville VA Regional Office Director develop and implement a plan to assess the effectiveness of higher-level Special Monthly Compensation training.
No. 4
Closed and Implemented Recommendation Image, Checkmark
to Veterans Benefits Administration (VBA)
We recommended the Louisville VA Regional Office Director develop and implement a plan to assess the accuracy of secondary reviews involving higher-level Special Monthly Compensation and ancillary benefits.
No. 5
Closed and Implemented Recommendation Image, Checkmark
to Veterans Benefits Administration (VBA)
We recommended the Louisville VA Regional Office Director implement a plan to ensure staff timely process claims related to benefits reductions to minimize improper payments to veterans.