VAOIG Audit of Veterans Benefits Administration’s Control of Veterans’ Claims Folders

Audit of Veterans Benefits Administration’s Control of Veterans’ Claims Folders 09/29/09. The Office of Inspector General (OIG) conducted this audit to evaluate the Veterans Benefits Administration’s (VBA) control of veterans’ claims folders. The objective for the audit was to determine if VBA had adequate procedures in place to locate veterans’ claims folders effectively.

VBA’s control of veterans’ claims folders, which contain personally identifiable information, was not effective because VBA managers did not track the number of lost or rebuilt folders, consistently enforce Control of Veterans Records System (COVERS) policies, and establish effective search procedures for missing claims folders. As of February 20, 2009, VBA had assigned about 4.2 million claims folders to regional offices for benefit claims processing and safeguarding. We projected the claims folders for an estimated 437,000 (10 percent) veterans were not at the location shown in COVERS. Claims folders for approximately 296,000 (7 percent) veterans were at locations different from that shown in COVERS (misplaced). Misplaced claims folders can cause unnecessary claim processing delays and increases the likelihood that folders will be lost. Claims folders for approximately 141,000 (3 percent) veterans were lost. Lost claims folders place additional burdens on the veterans and reduce the time regional office personnel have to spend processing claims. The Under Secretary for Benefits agreed with our findings and recommendations and made acceptable plans to implement appropriate actions. VAOIG