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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1.4 Improve the standard of living and income status of eligible survivors of service-disabled veterans through compensation, education, and insurance benefits. |
- Reduced to 125 the average number of days to process claims for dependency indemnity compensation (DIC) (goal was 126 days)
- 99 percent of DIC recipients were above the poverty level (goal was 75 percent)
- 80 percent of DIC recipients were satisfied that VA recognized their sacrifice (goal was 50 percent)
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$363 |
0.5% |
Performance
The primary vehicle through which the Department provides economic assistance to the survivors of veterans who had service-connected disabilities is the dependency and indemnity compensation (DIC) program. DIC is provided for surviving spouses, dependent children, and dependent parents of veterans who died of service-connected causes or while on active duty on or after January 1, 1957. During FY 2004 the Department made significant strides toward achieving Objective 1.4, based largely on the finding that 99 percent of all DIC recipients were above the poverty level. In addition, four of every five DIC recipients indicated they were satisfied that VA recognized their sacrifice. For both of these important measures, the Department exceeded the performance goals established at the beginning of the year. Not only did we largely achieve the intended outcome associated with Objective 1.4, but we also administered the DIC program in an efficient manner. VA reduced the average number of days required to process claims for DIC benefits by 18 percent during FY 2004 (from 153 days to 125 days). During FY 2004 the Department provided DIC benefit payments to more than 340,000 surviving family members.
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 1.4. This assessment reviewed the combined effectiveness of the legislative and executive branches in designing and implementing the many aspects of the disability compensation program, both for living veterans as well as their surviving spouses and dependent family members. 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.
Major Management Challenges
The major management challenges related to this objective are the same as those for Objective 1.2.
Program Evaluations
In 2001 the Department published the results of an independent study titled "Program Evaluation of Benefits for Survivors of Veterans with Service-Connected Disabilities." This independent evaluation found that several of the expected program outcomes are largely fulfilled, although there are some areas in which program changes or enhancements are required. The study outlines numerous recommendations pertaining to both the DIC and insurance programs administered by VA. Many of the suggested program changes require legislative action for implementation. The Department has thoroughly evaluated these recommendations and will continue to work towards implementing the highest priority considerations.
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
In support of Objective 1.4, VA conducts outreach visits to family members and has streamlined the application process for DIC benefits. This expedited process includes the electronic exchange of information between the Department's headquarters office in Washington, DC, and the Philadelphia Regional Office and Insurance Center to assist in processing insurance claims.
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