Review of VA’s Compliance with the Improper Payments Elimination and Recovery Act (IPERA)

We conducted this review as required by the Improper Payments Elimination and Recovery Act (IPERA). We evaluated VA’s accuracy, completeness of reporting, and performance in reducing and recapturing improper payments. We found VA did not fully comply with the IPERA requirements. VA reported improper payment rates greater than 10 percent for three Veterans Health Administration (VHA) programs. We identified an additional fourth program also exceeded 10 percent. VHA’s statistical sampling methodology did not achieve the required margin of error and the Veterans Benefits Administration (VBA) did not consult with a statistician, nor calculate margins of error. Further, our calculated improper payment estimates did not match that reported in VA’s PAR for VBA’s Compensation and Pension programs, likely due to the Pension program’s significantly understated rate. Also, VA’s reduction targets for two programs were not met. We recommended the Department take steps to ensure compliance with IPERA. We requested VA provide us with acceptable implementation plans in 30 days of this report to address our recommendations.