Fiscal Year 2004 Performance and Accountability Report Published November 15, 2004
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FY 2004 Obligation ($ in Millions) |
% of Total VA Resources |
Strategic Goal 1: Restore the capability of veterans with disabilities to the greatest extent possible and improve the quality of their lives and that of their families. |
$41,459 |
59.3% |
Objective |
Performance Results
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1.2 Provide timely and accurate decisions on disability compensation claims to improve the economic status and quality of life of service-disabled veterans. |
- Improved to an average of 166 days the timeliness for completing rating-related actions on C&P claims (goal was 145 days)
- Average days pending for C&P rating-related actions increased to 118 days (goal was to decrease to 80 days)
- Improved to 87 percent the national accuracy rate for C&P core rating work (goal was 90 percent)
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$27,299 |
39.0% |
Performance
VA's top priority related to the many benefits programs the Department administers is to process claims in a timely and accurate manner. There are many measures that indicate how well we are doing in meeting Objective 1.2, but the three most important indicators of success are the average number of days it takes to process rating-related compensation and pension (C&P) claims, the average number of days pending for rating-related C&P claims, and the national accuracy rate for C&P claims. While the Department did not meet the FY 2004 performance goal for any of these three measures, we reduced the time required to process claims for compensation and pension benefits, while at the same time improved the high degree of accuracy with which these claims were processed. Entering FY 2004, VA was well positioned to meet our performance goals pertaining to the timeliness of processing claims. However, a September 2003 decision by the Federal Circuit Court in the case of the Paralyzed Veterans of America et al. v. the Secretary of Veterans Affairs required VA to keep veterans' claims open for 1 year before making a decision. As a result, decisions on over 62,000 claims were deferred, many for as much as 90 days or longer. While the President signed correcting legislation in December 2003, the impact of the court decision in the early portion of FY 2004 was substantial. The number of claims pending grew dramatically, and the timeliness of claims processing deteriorated rapidly. VA made significant progress during the last half of the year, but we were not able to fully overcome the negative effects from this court decision on the timeliness of our claims processing.
The Survey of Veterans Satisfaction with the VA Compensation and Pension Claims Process is administered on an annual basis in order to measure veteran satisfaction at the national and regional office levels. In FY 2003 (the most recent annual data available), 42 percent of all survey respondents receiving compensation benefits felt they were kept informed of the full range of their available benefits. This figure is 2 percentage points higher than the previous year's level. When looking at compensation and pension recipients together, the survey revealed that 59 percent were very or somewhat satisfied with the way their claims were handled. This was 3 percentage points higher than the satisfaction level 2 years earlier. The contract for the next survey was signed in September 2004. Data for 2004 will be available in January 2005.
Program Assessment Rating Tool (PART) Evaluation
During the development of the FY 2004 budget, the Administration conducted a PART evaluation of the disability compensation program that relates to the accomplishment of Objective 1.2. This assessment reviewed the combined effectiveness of the legislative and executive branches in designing and implementing the many aspects of the disability compensation program. The PART evaluation for this program resulted in a rating of "Results Not Demonstrated." The primary reasons for this rating were a determination that the purpose of the disability compensation program is not clear, and that additional work needs to be done to develop sufficient performance measures that address the outcomes of this program.
VA's Office of Inspector General has identified the following benefits issues as major management challenges related to Objective 1.2:
- Compensation and pension timeliness - VA still needs to address recommendations made by the Office of Inspector General during its review of this program and should fully implement the recommendations made by the Secretary's Claims Processing Task Force (more information).
- Compensation and pension program's internal controls - further actions need to be taken to address program vulnerabilities (more information).
The Government Accountability Office has identified the following benefits issues as major management challenges related to Objective 1.2:
- Challenges to improving timeliness - additional work needs to be done in addressing delays in obtaining evidence to support claims, ensuring experienced staff are available for the long term, and implementing information systems to help improve productivity (more information).
- Decision accuracy and consistency - further work should be done to fully implement the Training and Performance Support System, and a system needs to be established to regularly assess and measure the degree of consistency across all levels of VA claims adjudication (more information).
- Disability criteria - disability criteria need to be aligned with medical and technological advances, and steps need to be taken to ensure disability ratings are based on current information (more information).
Program Evaluations
In November 2003, the President signed Public Law 108-136 that established the Veterans' Disability Benefits Commission. This commission will conduct an independent study of the benefits provided to compensate and assist veterans and their survivors for disabilities and deaths attributable to military service. The commission will examine and make recommendations concerning the appropriateness of the benefits, the appropriateness of the level of the benefits, and the appropriate standard(s) for determining whether a disability or death of a veteran should be compensated. A summary of the commission's findings and recommendations will be included in future reports.
New Policies and Procedures
New policies and procedures have recently been implemented in support of Objective 1.2. For example, VA has:
- Expanded the use of the Benefits Delivery at Discharge (BDD) program at military installations around the country. Conducted in close collaboration with the Department of Defense, the BDD program assists active duty military personnel in filing claims for benefits at or near their time of discharge in order to expedite the processing of these claims
- Identified service center teams within distinct functional areas to allow for greater workload control, development of expertise by the staff, higher quality decisions, and more efficient and timely processing of claims.
Beginning in FY 2005, VA will track a variety of performance measures relating to the timeliness, accuracy, and quality of compensation claims processing. This will be the first year the Department will collect and report on claims processing data separately for the compensation program. Prior to this, data on the compensation program were combined with claims processing information on the pension program.
Objective 1.2 - Key Performance Goal: Complete processing of Compensation and Pension rating-related actions within 145 days, on average.
Average Days to Process Rating-Related Actions on Compensation and Pension Claims
2000 |
173 |
2001 |
181 |
2002 |
223 |
2003 |
182 |
2004 Actual |
166 |
2004 Plan |
145 |
Strategic Target |
90 |
Description, Importance, and Results
The timeliness of claims processing is measured from the date VA receives a claim until a decision is rendered. Data are captured by the Benefits Delivery Network as a part of the claims process. Cases are periodically called in for review from the regional offices to ensure the integrity of the data being reported.
Although the goal was not met in FY 2004, an improvement in the average days to process a rating claim was made from FY 2003 performance, reducing the cumulative average by 16 days.
Management and Policy Issues
Our partnership with the Department of Defense (DoD) and our liaison work with the Center for Unit Records Research continue to be major factors in decreasing the average number of days to process a disability compensation claim. Under the Benefits Delivery at Discharge (BDD) program, VBA and VHA developed a joint examination protocol with DoD for servicemembers leaving active military service. As of August 2004, 28 out of 139 BDD sites use the Single Separation Examination Protocol, which meets DoD's discharge requirements and VA's compensation requirements.
VBA is making technological enhancements to current software applications to streamline our claims process, which will assist us in meeting our goal. We continue to prioritize the oldest claims in our inventory as well as claims from our older veteran population. VA has restructured the Veterans Service Centers at all regional offices as well as the Pension Maintenance Centers and redesigned the work flow to reflect the steps in the claims process, allowing us to achieve increased efficiencies and reduce our cycle times. As we continue to analyze and make improvements in our processing cycles and work to further reduce our pending inventory, the length of time required to process claims will continue to decline.
Data Quality
Please refer to the Key Measures Data Table.
Objective 1.2 - Key Performance Goal: Reduce Compensation and Pension rating-related cases pending to 80 days, on average.
Average Days Pending Rating-Related Actions on Compensation & Pension Claims
2000 |
138 |
2001 |
182 |
2002 |
174 |
2003 |
111 |
2004 Actual |
118 |
2004 Plan |
80 |
Strategic Target |
78 |
Description, Importance, and Results
The timeliness of claims pending is measured from the date VA receives a claim through the current date. Data are captured by the Benefits Delivery Network as a part of the claims process. Cases are periodically called in for review from the regional offices to ensure the integrity of the data being reported.
We did not meet our goal for FY 2004. While we were on track at the end of FY 2003 to make our goal for this year, our workload was severely impacted by the court decision, Paralyzed Veterans of America et al. v. the Secretary of Veterans Affairs. Over 62,000 claims were deferred, many for as much as 90 days or longer. Consequently, the effect on the number of claims pending and the timeliness of claims processing was significant. With enactment of correcting legislation, signed by the President in December 2003, VA made significant progress in reducing these numbers.
However, we have not fully recovered from the negative effects of this court decision, and continue to strive to reduce the pending backlog.
Management and Policy Issues
We will continue collaborations with DoD on information data exchange. We are currently working with DoD's Joint Requirements and Integration Office to obtain limited access to active-duty personnel data in order to process claims. Once access is granted, VA will have the ability to query the DoD database to obtain information on service members, including combat history, service dates, reserve status/drill dates, dependency information, and history of exposure to radiation, toxins, etc.
In addition, the Training, Responsibility, Involvement and Preparation of claims program will assist in meeting this goal for FY 2005. This program provides training and certification of skills to veterans service officers on the proper procedures of developing a claim. These skills result in the submission of more complete evidence, which in turn provides for quicker decisions.
Data Quality
Please refer to the Key Measures Data Table.
Objective 1.2 - Key Performance Goal: Increase to 90% the national accuracy rate for Compensation and Pension core rating work.
National Accuracy Rate for Compensation & Pension Core Rating Work
2001 |
89% |
2002 |
81% |
2003 |
86% |
2004 Actual |
87%* |
2004 Plan |
90% |
Strategic Target |
96% |
* Actual data through July 2004. Final data will be available in December 2004. |
Description, Importance, and Results
While the goal was not met, the accuracy rate slightly improved during the course of the year, and finished 1 percentage point above FY 2003. With increased sample reviews and ongoing training, it is anticipated that future accuracy goals will be met.
Management and Policy Issues
Training remains a VBA priority. A variety of mediums are used for centralized training, including satellite broadcasts, training letters, and computer-assisted training. In addition, local training is conducted based on needs identified through ongoing local individual performance reviews. Particular effort is made to ensure high-quality centralized training for new veterans service representatives and rating veterans service representatives.
We also implemented a national individual performance review plan with standardized review categories, sample size, and performance standards. In order to ensure that quality is a top priority, the regional offices must certify corrective actions for all documented errors.
Data Quality
Please refer to the Key Measures Data Table.
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