Audit of VA’s Implementation of Executive Order 13520, “Reducing Improper Payments”

To evaluate VA’s implementation of Executive Order 13520, we determined if VA’s FY 2010 First Quarter High-Dollar Overpayments Report was complete and the process to identify susceptible programs was adequate. The President signed the Order in the interest of reducing payment errors and eliminating waste, fraud, and abuse in Federal programs. We found VA’s FY 2010 First Quarter High Dollar Overpayments Report was incomplete primarily because VBA misinterpreted reporting guidance. We identified 143 high-dollar overpayments totaling $623,434 that VBA did not report. VBA also did not adequately consider including an additional 39,208 potential high-dollar overpayments totaling $213 million. VBA made adjustments after the first quarter to improve the compliance with reporting guidance, but VBA’s process still did not fully follow guidance for identifying the high-dollar overpayments. We also found VHA’s FY 2009 risk assessment did not adequately assess the level of risk associated with their programs. VHA relied upon a self-assessment process that consisted of a checklist. However, the process did not adequately address all payment components. We recommended the Under Secretary for Benefits report prior period overpayments and administrative errors as required; and the Under Secretary for Health implement planned improvements to risk assessments.