Review of VA’s Compliance with the Payment Integrity Information Act for Fiscal Year 2020

The OIG determined whether VA complied with the requirements of the Payment Integrity Information Act of 2019 (PIIA) for fiscal year 2020. Several requirements focus on improper payments, or any payment that should not have been made or was made in an incorrect amount under statutory, contractual, administrative, or other legally applicable requirements. The review team found that VA did not comply with PIIA because it did not satisfy two of six requirements: • to meet reduction targets for two programs assessed to be at risk for improper payments, and • report an improper payment rate of less than 10 percent for five VA programs and activities that had improper payment estimates in the materials accompanying the annual financial statement. VA satisfied the other four requirements: • to post the annual financial statement for the most recent fiscal year and accompanying materials on PaymentAccuracy, • publish improper payment estimates for programs susceptible to significant improper payments in these materials, • publish corrective action plans for each program for which an estimate above the statutory threshold was published in these materials, and • conduct improper payment risk assessments for each program with annual outlays greater than $10 million at least once in the last three years. In fiscal year 2020, VA reported improper payment estimates totaling $11.37 billion for 12 programs and activities. To VA’s credit, it noted a decrease in improper payment estimates two years in a row and a decrease in its improper payment rates for nine programs and activities. The OIG recommended the under secretary for benefits ensure the Pension Program meets its reduction target. The OIG also recommended the acting deputy under secretary for health ensure the Purchased Long-Term Services and Supports Program meets its reduction target and reduce improper payments for five VA programs to below 10 percent.