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GAO-01-930R 1 (2001-08-23)

handle is hein.gao/gaocrptanrp0001 and id is 1 raw text is: SGAO Accountability * Integrity * Reliability United States General Accounting Office Washington, DC 20548 August 23, 2001 The Honorable Lane Evans Ranking Democratic Member Committee on Veterans' Affairs House of Representatives Subject: Veterans' Benefits: Quality Assurance for Disability Claims Processing Dear Mr. Evans: In recent years, the accuracy of claims processing in the Veterans Benefits Administration's (VBA) compensation and pension programs has been the subject of concern and attention within the Department of Veterans Affairs (VA), the Congress, and veterans' service organizations. In October 1998, VBA implemented its Systematic Technical Accuracy Review (STAR) system to improve the measurement of the accuracy of claims processing. As designed by VBA, the STAR system determines accuracy rates for (1) the nation as a whole, (2) each VBA Service Delivery Network, and (3) each VBA regional office.' In March 1999, we reported to you that the claims-processing accuracy rates for individual regional offices are determined through quality reviews conducted by regional office staff, who themselves are involved in processing claims and who report to managers responsible for claims processing. As we reported, such an arrangement does not meet the governmental internal control standard calling for segregation of key duties, or the performance audit standard calling for organizational independence for those who review and evaluate program performance. These standards are intended to prevent bias and avoid compromised objectivity in the efforts of individuals who perform key duties, such as reviewing and evaluating program performance. We recommended that VBA correct the reported shortcomings to comply with these standards. Subsequently, the Congress enacted a 'VBA has structured its 57 regional offices into nine Service Delivery Networks. VBA expects the regional offices in each Network to collaborate, provide mutual support, share resources, use team- based principles, and share collective responsibility and accountability for the Network's overall performance of all assigned work. 2 Veterans' Benefits Claims: Further Improvements Needed in Claims-Processing Accuracy (GAO/HEHS-99-35, Mar. 1, 1999). 3 Standards for Internal Control in the Federal Government (GAO/AIMD-00-21.3.1, Nov. 1999) and Government Auditing Standards (U.S. General Accounting Office, Washington, D.C., June 1994). GAO-01-930R VBA Disability Claims Processing

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