This House Committee hearing on VA spending focused on whether the VA is illegally spending taxpayer dollars in its Compensation and Pension programs. The committee explored the issue of improper payments, specifically overpayments, and discussed the VA's efforts to address them. The hearing highlighted concerns about the VA's lack of effective internal controls, resulting in significant overpayments.

VA's Position on the Legality of Spending

The VA maintains that they are not illegally spending taxpayer dollars. They emphasize that their improper payment rate is below the reporting threshold and that they are actively working to reduce it.

VA's Acknowledgment of Improper Payments

VA acknowledges that improper payments, including overpayments, occur in less than 7% of award actions processed. They emphasize that they are committed to reporting improper payments to Congress and have made significant improvements to identify and prevent such payments.

VA's Response to Concerns about Improper Payments

The VA stated that they are diligently working to safeguard veterans' financial well-being by proactively addressing and mitigating potential improper payment issues. They highlighted data-matching programs with various federal agencies to identify improper payments and reduce overpayments.

Concerns about VA's Data Quality and Oversight

The committee expressed concerns about the accuracy of income data received from the Social Security Administration (SSA) and the VA's reliance on self-reporting by veterans. They questioned how the VA can ensure that the data-matching agreement with SSA is now fixed and will prevent further overpayments.

OIG's Focus on Identifying and Preventing Improper Payments

The OIG highlighted their focus on identifying and preventing illegal and improper payments, including audits that examine underpayments and overpayments, and reviews of potential waste.

OIG's Findings on VA's Internal Controls

The Office of Inspector General (OIG) stated that improper payments are often caused by ineffective internal controls, inadequate technology, and human error. They presented examples of inadequate supervision and failures to identify overpayments after a veteran's death.

VA's Efforts to Improve Internal Controls

VA officials described efforts to improve internal controls, including advancements in dashboards, tools, and technologies to better track workloads, a review of employee performance standards, and ensuring that supervisors are not overburdened.

Committee's Concerns about VA's Prioritization

Committee members expressed concerns about the VA's prioritization of processing claims quickly over ensuring accuracy and implementing effective internal controls. They questioned whether the VA is effectively mitigating improper payments.

Concerns about Lack of Accountability for Improper Payments

Committee members expressed frustration about the lack of accountability for those responsible for the significant overpayments. They questioned whether individuals at high levels of VA have ever been held accountable for the overpayments.

VA's Efforts to Address Overpayments from Processing Delays

The VA explained that they have increased staffing, improved workload distribution, and implemented new procedures to address delays in processing dependent updates and disability compensation exams.

U.S. House Committee: Veterans Affairs

Title:“Is VA Illegally Spending Taxpayer Dollars in its Compensation and Pension Programs?”