Audit of Compensation Program Claims Brokering

This audit evaluated the effectiveness of VBA’s claims brokering. To help address VBA’s major challenge of processing the increased number of veterans’ compensation benefit claims, VBA has increased claims brokering from veterans service centers (VSCs) to resource centers or other VSCs to better align workload with staffing resources. We found VBA can improve the effectiveness of claims brokering by ensuring area offices consider additional factors affecting timeliness and accuracy. For nearly 171,000 brokered claims completed during FY 2009, we projected the average processing time of 201 days would have been 49 days less if VBA had avoided the claims processing delays identified in this report. Of nearly 117,000 claims VBA brokered for ratings, we projected area offices brokered about 54,000 (46.2 percent) to facilities with lower rating accuracy rates than original VSCs. In addition, staff at three of seven VAROs we visited brokered claims without area office approval. Increased effectiveness will reduce the risks of claims-processing inaccuracies. We recommended the VBA revise brokering policies and procedures to help improve claims-processing timeliness and accuracy, include brokered claims-processing timeliness and accuracy performance measurements in director performance plans, and evaluate VSC compliance with revised brokering policies and procedures.