Inspection of the VA Regional Office Louisville, Kentucky

In December 2016, OIG evaluated the Louisville VARO to determine how well VSC staff processed disability claims, how timely and accurately they processed proposed rating reductions, how accurately they input claims-related information, and how well VARO staff responded to special controlled correspondence. Staff did not consistently process one of the two types of disability claims we reviewed. OIG reviewed 30 veterans’ TBI claims and found staff accurately processed all 30 claims. OIG reviewed 30 SMC benefits claims and found that an RQRS and RVSRs incorrectly processed 11 claims due to ineffective training and weaknesses in the VSC’s second signature review process. Overall, VSC staff incorrectly processed 11 of the 60 disability claims OIG reviewed— resulting in 160 improper payments to nine veterans totaling approximately $146,000. OIG reviewed 30 rating reductions cases and found that staff delayed 13 cases because staff placed higher priority on other workloads. This resulted in 128 improper monthly payments, representing approximately $140,000 in overpayments. OIG reviewed 30 newly established claims and found staff did not correctly input claim and claimant information into the electronic systems in 14 claims generally because staff were unaware of VBA policies. The VARO did not process any special controlled correspondence within the scope of our inspection. Therefore, we were unable to assess VARO staff’s effectiveness in this area. OIG recommended the Louisville VARO Director develop a plan to monitor the effectiveness of training, strengthen oversight, and assess the accuracy of secondary reviews involving higher-level SMC; ensure oversight of proposed rating reduction cases; and provide training for claims establishment procedures. The VARO Director concurred with our recommendations; planned corrective actions are responsive.