Breadcrumb

Entitled Veterans Generally Received Clothing Allowance but Stronger Controls Could Decrease Costs

Report Information

Issue Date
Report Number
20-01487-142
VISN
State
District
VA Office
Veterans Health Administration (VHA)
Report Author
Office of Audits and Evaluations
Report Type
Audit
Major Management Challenges
Benefits for Veterans
Recommendations
2
Questioned Costs
$0
Better Use of Funds
$0
Congressionally Mandated
No

Summary

Summary
Veterans may apply for an annual clothing allowance benefit if they have a service-connected disability and use a prosthetic or orthopedic appliance or use a prescription skin medication that damages clothing. For fiscal year 2019, about 92,000 veterans received about $98 million in payments. The VA Office of Inspector General (OIG) determined whether entitled veterans received their annual clothing allowance benefit. The Veterans Benefits Administration (VBA) jointly administers the benefit with the Veterans Health Administration (VHA). VHA is responsible for administering and awarding benefits. VBA’s role is to inform veterans of potential entitlement, budget for the benefit, and provide data management and information technology support. VA generally ensured entitled veterans received their annual clothing allowance benefit. However, the OIG found that the VHA handbook needs detailed guidance on administering the benefit, including the roles, responsibilities, and functions of all staff involved. The OIG also found that some veterans may no longer meet entitlement requirements. Although most veterans are required to apply each year for benefits, those given “recurring status” are automatically renewed. To prevent overpayment errors, recurring status was eliminated in August 2012. If those cases were reevaluated, an estimated 31,200 veterans may not qualify based on changes in device design or technology. Reevaluation could save about $129.7 million over the next five years. The OIG recommended the under secretary for health revise the VHA clothing allowance handbook to include detailed procedures for determining and monitoring benefit entitlement. The OIG also recommended the under secretary, in collaboration with VBA, reevaluate veterans’ entitlement to recurring clothing allowance benefits.

Open Recommendation Image, SquareOpenClosed and Implemented Recommendation Image, CheckmarkClosed-ImplementedNot Implemented Recommendation Image, X character'Closed-Not Implemented
No. 1
Open Recommendation Image, Square
to Veterans Health Administration (VHA)
The OIG recommended the under secretary for health revise the Veterans Health Administration handbook to include detailed roles, responsibilities, and procedures for determining entitlement to and monitoring of the clothing allowance benefit.
No. 2
Open Recommendation Image, Square
to Veterans Health Administration (VHA)
The OIG recommended the under secretary for health develop and initiate a plan to reevaluate veterans’ entitlement to recurring clothing allowance benefits in collaboration with the Veterans Benefit Administration.
Total Monetary Impact of All Recommendations
Open: $ 129,709,810.00
Closed: $ 0.00