Handling Administrative Errors at the Chicago VA Regional Benefits Office in Illinois

The VA Office of Inspector General (OIG) conducted this review based on a confidential allegation received in March 2019 that employees at the Chicago, Illinois, VA regional benefits office were not following the Veterans Benefits Administration’s (VBA) procedures for correcting administrative errors. To correct administrative errors, employees must complete steps such as assigning numeric codes to identify types of claims or actions needed, making and approving decisions, correcting errors in VBA’s electronic system, properly notifying veterans, and ensuring debts were not improperly created. The OIG substantiated the allegation that Chicago employees did not follow VBA procedures, and based its conclusions on the procedures in place at the time each error was corrected. VBA modified its procedures for correcting administrative errors three times after the review team began work in October 2019. The OIG found claims processors did not properly correct administrative errors in 88 percent of cases reviewed. Errors resulted in improper underpayments of about $59,100 to six veterans, improper overpayments of $18,900 to two veterans, and $5,900 in debts VA had inappropriately collected from eight veterans through January 2020. VBA concurred with all the OIG-identified errors. Generally, errors occurred because claims processors did not sufficiently understand their responsibilities and procedures for correcting administrative errors. Beginning in January 2020, VBA updated its procedures manual with more detailed instructions for controlling administrative errors, determining when administrative decisions are required, preventing debts from being created, ensuring benefits are paid through the correct date, and removing erroneous benefit information from the electronic system. Chicago managers also increased oversight of administrative errors. The OIG recommended the director of the Chicago VA regional office ensure the errors identified by the review team are corrected, monitor the effectiveness of actions taken to improve the accuracy of corrections, and determine whether additional measures are needed.