Inspection of the VA Regional Office Phoenix, Arizona

In early 2017, OIG evaluated the Phoenix VARO to see how VSC staff processed disability claims, timely and accurately processed proposed rating reductions, input claim information, and responded to special controlled correspondence. Staff didn't consistently process one of the two types of disability claims. OIG reviewed 30 veterans’ TBI claims and found staff accurately processed 29 of 30 claims. OIG reviewed 30 SMC benefits claims and found that RVSRs incorrectly processed 3 of 30 claims due to a lack of effective oversight. Overall, VSC staff correctly processed 56 of the 60 disability claims OIG reviewed; however, the errors resulted in 73 improper payments to three veterans totaling approximately $44,700. OIG reviewed 30 rating reductions cases and found that staff delayed or incorrectly processed 11 cases—resulting in approximately $15,500 in overpayments and $2,400 in underpayments. This was due to prioritization of other workloads. OIG reviewed 30 newly established claims and found staff didn't correctly input claim and claimant information into the electronic systems in 15 claims due to ineffective operational oversight. OIG reviewed 30 special controlled correspondences, finding inaccuracies in 11 cases because of a lack of training and outdated local guidance. Specifically, in nine of the cases, congressional liaisons didn’t upload all of the required documents, such as privacy consent documents, congressional inquiries, or final responses to the veterans’ electronic claims folders. Therefore, VBA management and staff would not be able to review issues pertaining to timeliness and accuracy of these documents in the veterans’ electronic claims folders OIG recommended the Phoenix VARO Director implement plans to improve oversight of SMC decisions; place higher priority on rating reductions; ensure data entered at the time of claims establishment are accurate; and provide training for special controlled correspondence processing. The Director concurred with our recommendations; planned corrective actions are responsive.