Timeliness of Final Competency Determinations

The VA Office of the Inspector General (OIG) reviewed VA’s Fiduciary Program to determine whether Veterans Benefits Administration (VBA) staff finalized proposed incompetency determinations timely. The OIG found VBA delays in completing final competency determinations completed from March 1 through August 31, 2017, for beneficiaries who received proposals of incompetency. Delays in completing final competency determinations can result in “incompetent” beneficiaries receiving ongoing benefits payments for extended periods without the protection of a VA-appointed fiduciary, putting these benefits at risk. The OIG estimated 13,600 unprotected beneficiaries received $62.4 million in monthly ongoing benefits payments. Also, delays in final competency determinations resulted in both competent and incompetent beneficiaries waiting longer for withheld retroactive benefits. The OIG estimated that about 12,400 beneficiaries had nearly $77.5 million in VA retroactive benefits payments withheld while awaiting final competency determinations. The OIG identified several causes for delays, including non-integrated information technology systems, the lack of prioritization of final competency determinations, National Work Queue routing rules not following VBA policy, and limited staff access to the Legacy Content Manager. The OIG made six recommendations related to entering cases requiring final competency determinations into the Beneficiary Fiduciary Field System, reminding VBA staff of their responsibility to notify Fiduciary Hubs when waivers are received, ensuring Fiduciary Hub staff have access to documents in the Legacy Content Manager, prioritizing processing of final competency determinations, meeting VBA’s established timeliness standard, and distributing final competency determinations according to VBA policy.