Inspection of VA Regional Office Sioux Falls, South Dakota

Overall, VA Office of Inspector General (OIG) benefits inspectors determined Sioux Falls VA Regional Office (VARO) claims processing staff incorrectly processed 3 of the 62 (5 percent) disability claims selected for review. The claims processing errors resulted in approximately $3,600 in improper benefits payments at the time of our inspection in June 2015. 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 Sioux Falls VARO. OIG staff found VARO staff correctly processed 29 of 30 claims related to temporary 100 percent disability evaluations, and processed all 30 traumatic brain injury claims correctly. Results in the temporary 100 percent evaluations suggests improvement since the VARO was last inspected in 2012. However, OIG reported the two cases reviewed relating to Special Monthly Compensation and ancillary benefits contained errors. Sioux Falls VARO staff accurately established the correct date of claim in an electronic system of records for all 30 claims sampled. OIG inspectors also determined VARO staff delayed taking action in processing 7 of the 30 benefits reduction cases because VARO management did not prioritize this workload. The Director of the Sioux Falls VARO concurred with OIG’s recommendations for improvement.