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Review of VA’s Compliance With the Improper Payments Elimination and Recovery Act for FY 2015

Report Information

Issue Date
Report Number
15-04252-284
VA Office
Veterans Health Administration (VHA)
Veterans Benefits Administration (VBA)
Acquisitions, Logistics, and Construction (OALC)
Office of Management (OM)
Report Author
Office of Audits and Evaluations
Report Type
Audit
Recommendations
7
Questioned Costs
$0
Better Use of Funds
$0
Congressionally Mandated
No

Summary

Summary
We conducted this review to determine whether VA complied with the requirements of the Improper Payments Elimination and Recovery Act (IPERA) for fiscal year (FY) 2015. VA reported improper payment estimates totaling approximately $5 billion in its FY 2015 Agency Financial Report (AFR), compared with $1.6 billion for FY 2014, primarily because of improvements in estimating improper payments for four programs. In both years, VA reported improper payment data based on the previous fiscal year activity. VA did not fully comply with IPERA. VA met four of six IPERA requirements for FY 2015 by publishing the AFR; performing risk assessments; publishing improper payment estimates; and providing information on corrective action plans. VA did not comply with two of six IPERA requirements by not maintaining a gross improper payment rate of less than 10 percent and meeting reduction targets for all programs published in the AFR. Two programs exceeded the 10 percent threshold: VA Community Care and Purchased Long Term Care Support and Services. Eight programs did not meet reduction targets: Compensation; Education Chapter 1606; Education Chapter 1607; VA Community Care; Purchased Long Term Services and Support; Beneficiary Travel; Supplies and Materials; and Disaster Relief Act—Hurricane Sandy. In addition, the Veterans Health Administration underestimated improper payments for one program and did not achieve the expected level of accuracy for two others. Likewise, the Veterans Benefits Administration expended considerable effort to collect improper payments because of a program design issue with drill pay, and it needs to develop a plan and seek the assistance of Office of Management and Budget to coordinate future resolution. We recommended that the Under Secretary for Health take steps to reduce improper payment rates, achieve reduction targets, and improve improper payment estimates. We recommended that the Acting Under Secretary for Benefits take steps to achieve reduction targets and address the issue of prohibited concurrent payments of certain program benefits and military reserve pay. We recommended that the Principal Executive Director Office of Acquisition, Logistics, and Construction take steps to achieve the reduction target for one program. VA management concurred with our recommendations, and we will follow up on corrective actions in the FY 2016 review.

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 Health Administration (VHA)
We recommended the Under Secretary for Health ensure implementation of the corrective action plans included in VA’s Agency Financial Report to make procurement practices for the VA Community Care and Purchased Long Term Services and Support programs compliant with laws and regulations.
No. 2
Not Implemented Recommendation Image, X character'
to Veterans Health Administration (VHA)
We recommended the Under Secretary for Health implement steps to achieve reduction targets or appropriately adjust them for the VA Community Care, Purchased Long Term Services and Support, Beneficiary Travel, and Supplies and Materials programs.
No. 3
Closed and Implemented Recommendation Image, Checkmark
to Veterans Benefits Administration (VBA)
We recommended the Acting Under Secretary for Benefits implement steps to achieve reduction targets or appropriately adjust them for the Compensation, Education Chapter 1606, and Education Chapter 1607 programs.
No. 4
Closed and Implemented Recommendation Image, Checkmark
to Acquisitions, Logistics, and Construction (OALC)
We recommended the Principal Executive Director, Office of Acquisition, Logistics, and Construction, implement steps to achieve reduction targets for the Disaster Relief Act-Hurricane Sandy program.
No. 5
Not Implemented Recommendation Image, X character'
to Veterans Health Administration (VHA)
We recommended the Under Secretary for Health implement additional training for personnel who evaluate Improper Payment Elimination and Recovery Act samples for the Supplies and Materials program.
No. 6
Closed and Implemented Recommendation Image, Checkmark
to Veterans Health Administration (VHA)
We recommended the Under Secretary for Health provide contracting expertise to the Improper Payment Elimination and Recovery Act review team, as needed.
No. 7
Closed and Implemented Recommendation Image, Checkmark
to Veterans Benefits Administration (VBA)
We recommended the Acting Under Secretary for Benefits develop a solution for correcting the concurrent payment of Compensation and Pension benefits and military drill pay and seek Office of Management and Budget assistance in coordinating a future resolution of the matter.