Department of Veterans Affairs

In FY 2025, VA is reporting under a 10% error rate for all programs for the first time since FY 2014. VA is also pleased to announce that the Supplies and Materials (SM) program is reporting under statutory thresholds in FY 2025; therefore, this program will revert to fulfilling legislative requirements for risk assessments no less than every 3 years in FY 2026. In addition, VA included its largest program, Compensation, in improper and unknown payments reported this year due to the program being determined at risk of significant improper and unknown payments in FY 2024. This increased the spending subject to reporting by $160.64 billion or 397.03%. Therefore, in FY 2025, VA is reporting an overall increase of $1.75 billion to improper and unknown payments reported but an overall decrease of 3.41%, making it difficult to compare VA’s progress between FY 2024 and FY 2025. The last time VA reported improper and unknown payments for Compensation was in FY 2020. At that time, VA’s overall percentage of payments reported was 9.12% while for FY 2025 it is 1.95%.
Since FY 2018, VA has reduced improper and unknown payments by $10.82 billion, or 73.41% and removed a total of 7 programs from reporting requirements by prioritizing corrective actions on the largest proportion of errors and noncompliance with laws and regulations. VA continues to strengthen its risk assessment, test plans, and collection of error data to ensure accurate projections and inform effective remediation strategies.
PIIA requires agencies to review and assess all programs and activities with annual spending greater than $10 million for improper and unknown payment risk at least once every 3 years to identify those susceptible to significant improper payments. In addition, VA conducts off-cycle risk assessments when a significant change in legislation and/or a significant change in funding occurs as required by OMB. For FY 2025, VA is reporting 64 programs subject to risk assessment requirements with 28 programs completing an improper and unknown payment risk assessment. All of the 28 programs were determined unlikely to be at significant risk of improper and unknown payments, defined as $10 million and 1.5% of outlays or $100 million in total.
For those programs determined to be at risk of significant improper and unknown payments in the previous year, PIIA requires agencies to follow OMB implementation guidance for testing, reporting, and remediating improper and unknown payments. For FY 2025, VA is reporting a total of $3.92 billion in projected improper and unknown payments across 7 programs: Beneficiary Travel; Compensation; Medical Care Contracts and Agreements; Pension; Purchased Long Term Services and Supports; Supplies and Materials; and VA Community Care. Specifically, VA reports $1.49 billion in monetary loss, $691.14 million in non-monetary loss improper payments ($442.01 million in underpayments, $249.13 million in technically improper), and $1.74 billion in unknown payments. If VA had not added Compensation to reporting, VA would have reported an overall decrease in improper and unknown payments of $592.52 million or 27.34%.
From FY 2024 to FY 2025, VA is reporting an increase in monetary loss of $386.02 million or 34.85%. The increase is attributed to the addition of the Compensation program to VA’s reported improper and unknown payments. In FY 2025, VA’s highest contributors of monetary losses were within VA’s control and occurred when programs failed to access the data/information needed to validate correct beneficiary award amounts or that claims were not paid in accordance with contract rates. These errors accounted for $1.17 billion, or 29.80% of VA’s total improper and unknown payments. To remediate these errors, VA will conduct audits, automation, change process, cross-enterprise sharing of data, and training.
VA's highest contributor of non-monetary loss improper payments failed to access data/information needed to validate correct beneficiary award amounts, payment system errors, or because of a lack of procurement action. These errors accounted for $651.86 million, or 16.62% of VA's total improper and unknown payments. To remediate these errors, VA will continue to work internally with network contracting offices to ensure compliant contracting methods are used to process claims. In addition, VA will work to establish veterans care agreements which utilize patient driven payment model rate when appropriate and leverage integrations of transportation and medical record systems, targeted enhancements of general and application controls, and transportation scheduling automation that will streamline third-party preauthorized ordering, integrate medical qualifications, and automate claims adjudication. VA is also consolidating beneficiary travel claims processing through standardized reimbursement processes by centralizing the workload.
VA’s highest contributor of unknown payments occurred when programs needed additional supporting documentation required to validate whether a payment was proper or improper. These errors account for $1.48 billion, or 37.76% of VA’s total improper and unknown payments. To remediate these errors, VA will conduct audits, automation, cross-enterprise sharing of data, and training. For FY 2025, 3 VA programs (Pension, Purchased Long Term Services and Supports and Supplies and Materials) achieved a reduction in their improper and unknown payment rates and amounts while 2 programs (Medical Care Contracts and Agreements and VA Community Care) reported an increase. The Beneficiary Travel program reported a reduction in their improper and unknown payment rate. However, due to an increase in spending, the program had an increase in its improper and unknown payment amount. The remaining program, Compensation, is reporting neither an increase or a decrease in improper and unknown payment rates and amounts since it did not report in FY 2024. Reductions to improper and unknown payments are attributed to updating corrective action plans annually based on testing results to ensure actions are appropriately prioritized and designed to mitigate risks of improper and unknown payments. Effectiveness reviews are also conducted annually to measure if actions reduced or were properly designed to reduce improper and unknown payments using benchmarks for specific root causes.
In May 2025, VA’s Inspector General concluded that the agency was noncompliant with PIIA for FY 2024. VA was noncompliant because the improper and unknown payment rate in two programs, Pension and Purchased Long Term Services and Supports, was greater than 10%. This was Pension’s third consecutive year of noncompliance and the Purchased Long Term Services and Supports fourth consecutive year of noncompliance. To address improper and unknown payments, the Pension program conducts quarterly matches with the Social Security Administration to identify variances between the Social Security income a beneficiary is receiving and the amounts the beneficiary is reporting to VA. In addition, the program performs special reviews to ensure program compliance and payment integrity and provides staff training to ensure policies and procedures are properly applied in making accurate pension rate decisions to prevent future improper payments. The Purchased Long Term Services and Supports program continues implementation of a standardized rate schedule for community nursing home payments, transitioning more payments from a legacy system requiring manual validation to an automated claims adjudication system, resolving contracting errors involving missing signatures and working to reconcile procurement vendors to invoice vendors. Both programs reported under 10% in FY 2025 and the agency anticipates the Office of Inspector General will determine both the Pension and Purchased Long Term Services and Supports programs compliant in May 2026.

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Home > Agencies & Programs > Department of Veterans Affairs

Agency level Payment Integrity results

  • Payment accuracy rate

    (Based on federal funding spent by programs determined by agencies as susceptible to improper payments)

  • Improper payments rate

    (Based on federal funding spent by programs determined by agencies as susceptible to improper payments)

  • Unknown payments rate

    (Based on federal funding spent by programs determined by agencies as susceptible to improper payments)

  • Department of Veterans Affairs improper payment estimates over time
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    Proper payments
    Overpayment
    Underpayment
    Technically improper
    Unknown

Recovery information

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Overpayment amount identified for recapture
Overpayment amount recovered

Recovery of overpayments

Please note: Overpayment amounts recovered are reported in the year they were recovered, not the year they were identified. Therefore it is possible in some years to have a recovery rate greater than 100%.

Overpayment amount identified through recovery activities $2,079.43 M
Overpayment amount recovered through recovery activities $970.47 M
Recovery activities recovery rate 46.67 %
Overpayment amount identified through recovery audits $35.01 M
Overpayment amount recovered through recovery audits $29.95 M
Recovery audit recovery rate 85.55 %
Overpayment amount identified for recapture $2,114.44 M
Overpayment amount recovered $1,000.42 M
Overpayment recovery rate 47.31 %

Conditions giving rise to improper payments identified in recovery audits, how those conditions are being resolved, and the methods used to recover those payments

VA utilizes various methods to identify and recover overpayments. At VA, these audits are performed in two major areas: Veterans Health Administration for several unique programs providing health care and Supply Fund payments in the Office of Revolving Fund. These are discussed in more detail below.
Veterans Health Administration
The Veterans Health Administration utilizes a recovery audit contract, which will audit claims for the Civilian Health and Medical Program of the Department of Veterans Affairs, VA Community Care, and Purchased Long Term Services and Supports programs. All three programs were tested to ensure the reimbursement was based on the appropriate methodology and that the medical records support the diagnostic related group billed for the services.
Overpayments identified are often due to improper billing/coding by the provider. Specifically, the medical record did not substantiate the services billed or the coding was not accurate based on a review of documents. Solutions to resolve these conditions are being proposed but will not be implemented until FY 2026. The identified overpayments resulted in re-adjudication of the original payments in the claims processing system, leading to bills of collections being issued to the community care providers.
Office of Revolving Funds
The Office of Revolving Funds collaborates with the Office of Inspector General to perform recovery audits on VA's Supply Fund program. Overpayments identified are mostly due to non-compliance with contract billing requirements on federal supply schedule contracts. These conditions are being resolved by education provided by the Office of Inspector General to non-conforming vendors. The Office of Inspector General identifies an overpayment and a bill of collection is then prepared by the Office of Revolving Funds with appropriate terms of collection. If the vendor chooses to dispute the bill of collection Veterans Affairs will work towards appropriate resolution.
Why recovery audits are not cost effective in certain programs

VA programs that have determined that it is not cost-effective to conduct recovery audits have documented their justifications through a cost benefit analysis. For FY2025, VA had 89 programs where conducting recovery audits would not be cost-effective. Whenever possible, VA utilizes quantitative factors, such as recovery amounts and actual costs incurred in recovery audits to determine if the benefits of a payment recovery audit program would exceed the costs associated with identification and recovery of overpayments. Lacking full quantitative data, VA will also utilize qualitative factors to determine if the benefits of a payment recovery audit program would exceed the costs associated with identification and recovery of overpayments. Qualitative factors evaluate the likelihood that identified overpayments would be recovered and the likelihood that the expected recoveries would be greater than the costs incurred to identify and recover overpayments. Each of the 89 programs determined that conducting a recovery audit would not be cost effective due to the costs or expected costs of the related recovery audit outweighing the collectable overpayments.

VA determined the distribution of overpayments recovered through a recovery audit in accordance with disposition requirements. More details on these are provided below:
Veterans Health Administration
For the VA Community Care and the Purchased Long Term Services and Supports programs, after reimbursement of actual expenses incurred, 25% of the amounts collected are in process of being converted to a Financial Management Improvement Program, 25% remain in the original purpose and are unused, 5% of the amounts collected are in process of being sent to OIG for PIIA related requirements, and 45% were deposited into Fund 3200 - receivables from canceled accounts which are returned to Treasury. While overpayments have been identified for the Civilian Health and Medical Program of the Department of Veterans Affairs program in the current reporting period, funds are pending recovery. Therefore, amounts recovered have not been allocated.
Office of Revolving Funds
The amounts recovered through recovery audits are effectively utilized by the VA Supply Fund as outlined in 38 U.S. Code 8121 - Revolving Supply Fund. These recovered funds are predominantly reinvested into various initiatives that aim to bolster the efficiency of supply chain management and procurement processes.
Recovery audit amount identified this reporting period that remains outstanding $5.56 M
Recovery audit amount rate outstanding 15.88 %
Recovery audit amount this reporting period that remains outstanding for 0-6 months $4.3 M
Recovery audit amount identified this reporting period that remains outstanding for 6 months to 1 year $1.26 M
Recovery audit amount identified in this reporting period determined not collectible during this reporting period $0.0 M
Recovery audit rate identified in this reporting period determined not collectible during this reporting period 0 %

Intentional monetary loss improper payments are more commonly referred to as financial fraud and are overpayments that occur on purpose. This agency reported $37.34M of confirmed fraud in this reporting cycle.

Supplemental Information

In FY 2025, VA performed a full assessment of its use of the Treasury Working System in response to EO 14249: Protecting America’s Bank Account Against Fraud, Waste, and Abuse and determined VA utilizes Treasury Working Systems through pre-eligibility and at payment integration. Pre-eligibility entails VA matching its Vendor File to the Death Master File monthly to determine whether there is an existing obligation for the vendor. The Vendor File is a complete list of active VA Vendors (i.e., employees, commercial vendors, medical providers, Veterans, caregivers, federal vendors, etc.) who have been paid by VA within a certain timeframe by vendor type (approximately 3 years).
Payment integration consists of matching payments against available databases at the time of disbursement. Specifically, VA submits the Payment Automation Manager file to the Department of Treasury for matching against the TWS data sources. The Department of Treasury uses DNP to perform matching of PAM Payments to TWS data sources and provides a PAM count of stopped payments and/or count of matched payments. The TWS match results are available in the TWS the next business day for adjudication. VA downloads TW match results and review and adjudication of TWS matches are performed in accordance with VA processes and procedures. There are two reports available for download in the TWS. The Payment Activity Report provides VA a summary of the PAM payments, matches, and adjudication statuses. The Adjudication Summary report provides VA the summary adjudication status results each month. VA adjudicates matches within the TWS on a monthly basis. Therefore, VA is only able to use the TWS to confirm improper payments after the payment has been already made and prevent future improper payments once due process is provided for payment integration. In addition, VA utilizes single search and continuous monitoring when appropriate, unless other already established processes outside the TWS exists. Reports are not currently available from TWS on the results of single search and continuous monitoring.

The Working System has not reduced/prevented improper payments:

The Working System strives to maintain accurate data. However, the past year, VA has identified incorrect information in the Working System Annually.

VA was found non-compliant during the most recent PIIA compliance review.

Non-compliant programs:

Show full list of compliant programs Expand

Compliant programs:

  • Activities with Other Federal Agencies
  • Automobile Adaptive Equipment
  • Beneficiary Travel
  • COVID-19 Office of Information & Technology
  • COVID-19 VA Wide Payroll
  • COVID-19 VA Wide Travel
  • COVID-19 Veterans Benefits Administration (VBA) General Operating Expense
  • COVID-19 Veterans Health Administration (VHA) Supplemental Disbursements
  • Camp Lejeune Health Care Benefits
  • Canteen Service
  • Caregiver Support
  • Civilian Health and Medical Program of the VA (CHAMPVA)
  • Clothing Allowance
  • Communications, Utilities, and Other Rent
  • Compensated Work Therapy
  • Compensation
  • Dependency and Indemnity Compensation
  • DoD/VA Joint Incentive Fund
  • Education Service (Chapter 1606)
  • Education Service (Chapter 1607)
  • Education Service (Chapter 33)
  • Education Service (State Approving Agencies)
  • Education Service Survivor and Dependents Education Assistance (Chapter 35)
  • Equal Access to Justice Act
  • Equipment
  • Facility Maintenance and Operations
  • Foreign Medical Program
  • Franchise Fund
  • General Post Fund
  • Grants (Construction of State Extended Care Facilities)
  • Grants (Highly Rural Transportation)
  • Grants (Homeless Per Diem)
  • Grants (Suicide Prevention Grant Program)
  • Grants (Support Services for Veteran Families)
  • Healthcare for Homeless Veterans
  • Housing Program Fund
  • Indian Health Services/Tribal Health Program
  • Land and Structures
  • Loan Guaranty (Direct Loans)
  • Loan Guaranty (Loan Administration)
  • Loan Guaranty (Loan Production)
  • Loan Guaranty (Loan Sales)
  • Loan Guaranty (Property Management)
  • Medical Care Contracts and Agreements
  • Medical and Prosthetic Research
  • Montgomery GI Bill (Chapter 30)
  • National Cemetery Administration (NCA) Burial
  • National Service Life Insurance
  • National Veterans Sports Programs & Special Events
  • Native American Direct Loan (NADL) Program
  • Non-Medical Contracts and Agreements
  • Office of Acquisition, Logistics and Construction (Major/Minor Construction)
  • Office of Information & Technology
  • Office of Inspector General - Department of Veterans Affairs
  • Other Contracts, Services, Agreements, and Miscellaneous
  • Pharmacy (Consolidated Mail Outpatient Pharmacies)
  • Pharmacy (Medical Facilities)
  • Post Vietnam Era Education
  • Professional Services Contracts
  • Prosthetics
  • SAH Tech Grants
  • Service-Disabled Veterans Insurance
  • Servicemembers' Group Life Insurance
  • Shared Services
  • Specially Adaptive Housing
  • Spina Bifida Health Care
  • State Home Per Diem
  • Station 101 Accounting
  • Supplies and Materials
  • Supply Fund
  • The Filipino Veteran Equity Compensation
  • Transportation of Things
  • United States Government Life Insurance
  • VA Community Care
  • VA Wide Payroll
  • VA Wide Travel
  • VRE Loan Program Fund
  • Veteran Rapid Retraining Assistance Program (VRRAP)
  • Veteran Readiness and Employment
  • Veterans Affairs Life Insurance
  • Veterans Benefits Administration (VBA) Automobile Grants
  • Veterans Benefits Administration (VBA) Burial
  • Veterans Benefits Administration (VBA) General Operating Expense
  • Veterans Benefits Administration (VBA) Spina Bifida (Chapter 18)
  • Veterans Health Administration (VHA) Information Technology Services
  • Veterans Health Administration (VHA) Insurance Claims and Interest Expense
  • Veterans Insurance and Indemnities
  • Veterans Reopened Insurance
  • Veterans Special Life Insurance

Actions recommended and planned to achieve compliance

In May 2025, the VA Office of Inspector General found 72 VA programs fully compliant with PIIA. The Office of Inspector General found two programs noncompliant with the Payment Integrity Information Act of 2019, Pension and Purchased Long Term Services and Supports. This was Pension’s third consecutive year of noncompliance and the Purchased Long Term Services and Supports fourth consecutive year of noncompliance.

The Pension program was found noncompliant with compliance criteria 6, reporting an improper payment and unknown payment rate of less than 10%. VA's Inspector General recommended that the Pension program reduce improper and unknown payments to below 10%. The Pension program continues to prioritize and implement corrective actions and mitigation strategies that reduce improper payments. The Pension program reported a reduction in overall improper and unknown payments in FY 2025. The program continues quarterly matches with the Social Security Administration to identify variances between Social Security Administration income a beneficiary is receiving versus the amounts reported by a beneficiary to VA. Differences indicate potential changes in a beneficiary’s income, which could require a change to their pension benefit. Validating whether a change is needed and making changes, if necessary, prevents future improper payments. In addition, the program conducted training and special reviews to reduce overpayments. The Pension program tracks the measurable milestones included in its corrective action plan no less than quarterly throughout the fiscal year, to ensure actions planned are appropriately prioritized and designed to mitigate risks of improper and unknown payments.

In addition, the Purchased Long Term Services and Supports program was found noncompliant with compliance criteria 6, reporting an improper payment and unknown payment rate of less than 10%. The Office of Inspector General recommended that the Purchased Long Term Services and Supports program reduce improper and unknown payments to below 10%. In FY 2025, the Purchased Long Term Services and Supports program is reporting improper and unknown payments below 10% because it prioritized and implemented effective corrective actions and mitigation strategies that reduced improper and unknown payments. VA continues implementation of a standardized rate schedule for community nursing home payments, transitioning more payments from a legacy system requiring manual validation to an automated claims adjudication system, resolving contracting errors involving missing signatures and working to reconcile procurement vendors to invoice vendors.


Official(s) accountable for the progress of the agency coming into compliance

For FY 2025, within the Pension program, Kevin Friel (Executive Director), was designated as the official responsible for overseeing Pension’s PIIA compliance efforts. In FY 2026, the responsibility for PIIA compliance will shift to Jennifer Bover (Executive Director), who will serve as Pension’s accountable official.
Additionally, for the PLTTSS program, Cheryl Schmitz (Deputy Executive Director, Geriatrics and Extended Care) served as the accountable official for PIIA compliance in FY 2025 and will continue in this role in FY 2026.
The listed accountable officials for both Pension and PLTSS are responsible for directing compliance activities and ensuring ongoing adherence to all applicable statutory requirements.


Accountability mechanism tied to the success of the official designated in leading the efforts to come Into compliance

The Pension program was determined noncompliant with PIIA for FY 2024 by the OIG in May 2025. However, the program is reporting improper and unknown payments below 10% in FY 2025. VA anticipates the OIG will determine the program compliant in May 2026. In FY 2026, the Executive Director for Pension and Fiduciary Service will be focused on prevention and recovery of overpayments as appropriate. This will include mitigation strategies audit, automation, and training. These actions will help continue to reduce errors associated with failure to access data/information and unknown payments attributed to being unable to determine whether proper or improper. The Executive Director for Pension and Fiduciary Service’s performance plan will include a performance metric to promote the financial integrity and operational efficiency of their program and ensure that performance-based pay is linked to achieving payment integrity goals.

The Purchased Long Term Services Supports program was determined noncompliant with PIIA for FY 2024 by the OIG in May 2025. However, the program is reporting improper and unknown payments below 10% in FY 2025. In FY 2026, the Deputy Executive Director for Geriatrics and Extended Care will be focused on prevention and recovery of overpayments as appropriate. This will include mitigation strategies automation, change process, and training. These actions will help continue to reduce errors associated with failure to access data/information, statutory requirements of program not met, and unknown payments attributed to being unable to determine whether proper or improper. The Executive Director for Geriatrics and Extended Care’s performance plan will include a performance metric to promote the financial integrity and operational efficiency of their program and ensure that performance-based pay is linked to achieving payment integrity goals.

Generally, VA Senior Executives are held accountable via the performance appraisal process as established by VA’s Corporate Senior Executive Management Office. This process includes oversight from VA’s Performance Review Board, which evaluates each executive’s performance appraisal, the executive’s response to the initial summary rating, if any, and the results of any higher-level official’s findings and recommendations. Performance bonuses and/or salary increases are aligned with each Senior Executive’s overall level of performance.


Program name When was the last improper payment risk assessment conducted? Likely to be susceptible to significant improper payments? Substantial changes made to the assessment methodology used for the reporting cycle
Activities with Other Federal Agencies 2025 No No
Automobile Adaptive Equipment 2023 No No
Beneficiary Travel 2025 No Yes
Camp Lejeune Health Care Benefits *
Canteen Service *
Caregiver Support 2024 No No
Civilian Health and Medical Program of the VA (CHAMPVA) 2023 No No
Clothing Allowance 2025 No No
Communications, Utilities, and Other Rent 2024 No No
Compensated Work Therapy 2025 No No
Compensation 2025 No Yes
COVID-19 Office of Information & Technology 2023 No No
COVID-19 VA Wide Payroll 2022 No No
COVID-19 VA Wide Travel *
COVID-19 Veterans Benefits Administration (VBA) General Operating Expense 2023 No No
COVID-19 Veterans Health Administration (VHA) Supplemental Disbursements 2025 No No
Dependency and Indemnity Compensation 2023 No No
DoD/VA Joint Incentive Fund *
Education Service (Chapter 1606) 2024 No No
Education Service (Chapter 1607) *
Education Service (Chapter 33) 2024 No No
Education Service (State Approving Agencies) 2023 No No
Education Service Survivor and Dependents Education Assistance (Chapter 35) 2025 No No
Equal Access to Justice Act 2023 No No
Equipment 2025 No No
Facility Maintenance and Operations 2023 No No
Foreign Medical Program 2023 No No
Franchise Fund 2023 No No
General Post Fund 2024 No No
Grants (Construction of State Extended Care Facilities) 2023 No No
Grants (Highly Rural Transportation) *
Grants (Homeless Per Diem) 2024 No No
Grants (Suicide Prevention Grant Program) 2025 No No
Grants (Support Services for Veteran Families) 2024 No No
Healthcare for Homeless Veterans 2023 No No
Housing Program Fund *
Indian Health Services/Tribal Health Program 2023 No No
Land and Structures 2025 No No
Loan Guaranty (Direct Loans) 2023 No No
Loan Guaranty (Loan Administration) 2024 No No
Loan Guaranty (Loan Production) 2024 No No
Loan Guaranty (Loan Sales) *
Loan Guaranty (Property Management) 2024 No No
Medical and Prosthetic Research 2025 No No
Medical Care Contracts and Agreements 2025 No Yes
Montgomery GI Bill (Chapter 30) 2024 No No
National Cemetery Administration (NCA) Burial 2025 No No
National Service Life Insurance 2024 No No
National Veterans Sports Programs & Special Events 2023 No No
Native American Direct Loan (NADL) Program *
Non-Medical Contracts and Agreements 2025 No No
Office of Acquisition, Logistics and Construction (Major/Minor Construction) 2024 No No
Office of Information & Technology 2024 No No
Office of Inspector General - Department of Veterans Affairs 2025 No No
Other Contracts, Services, Agreements, and Miscellaneous 2024 No No
Pension 2025 No Yes
Pharmacy (Consolidated Mail Outpatient Pharmacies) 2025 No No
Pharmacy (Medical Facilities) 2025 No No
Post Vietnam Era Education *
Professional Services Contracts 2025 No No
Prosthetics 2025 No No
Purchased Long Term Services and Supports 2025 No Yes
SAH Tech Grants *
Service-Disabled Veterans Insurance 2025 No No
Servicemembers' Group Life Insurance 2024 No No
Shared Services 2025 No No
Specially Adaptive Housing 2023 No No
Spina Bifida Health Care 2025 No No
State Home Per Diem 2025 No No
Station 101 Accounting 2025 No No
Supplies and Materials 2025 No No
Supply Fund 2025 No No
The Filipino Veteran Equity Compensation *
Transportation of Things 2023 No No
United States Government Life Insurance *
VA Community Care 2025 No Yes
VA Wide Payroll 2025 No No
VA Wide Travel 2025 No No
Veteran Rapid Retraining Assistance Program (VRRAP) 2025 No No
Veteran Readiness and Employment 2024 No No
Veterans Affairs Life Insurance *
Veterans Benefits Administration (VBA) Automobile Grants 2020 No No
Veterans Benefits Administration (VBA) Burial 2025 No No
Veterans Benefits Administration (VBA) General Operating Expense 2024 No No
Veterans Benefits Administration (VBA) Spina Bifida (Chapter 18) 2025 No No
Veterans Health Administration (VHA) Information Technology Services 2023 No No
Veterans Health Administration (VHA) Insurance Claims and Interest Expense 2024 No No
Veterans Insurance and Indemnities 2025 No No
Veterans Reopened Insurance 2021 No No
Veterans Special Life Insurance 2024 No No
VRE Loan Program Fund *

* Assessment year is not displayed because one or more of the following statements is true:

  1. Not required to conduct a risk assessment under the Payment Integrity Information Act of 2019,
  2. Already assessed for improper payment risk under a different name in a prior reporting period, and/or
  3. New and planning to perform a risk assessment in the future.

VA has invested in payment integrity efforts, where appropriate, to prevent improper payments from occurring. This is evidenced by VA’s continued progress in reducing overall improper and unknown payment percentages as well as individual program accomplishments. These efforts have also allowed VA to remove a total of seven programs, from reporting improper and unknown payments since FY 2028. In FY 2026, VA will also remove the Supplies and Materials program from improper and unknown payment reporting requirements due to its reporting under the statutory thresholds. Below are some highlighted activities occurring across the Department to ensure that taxpayer dollars are spent as intended and VA fulfills this nation’s promise to its Veterans.

Veterans Health Administration
Veterans Health Administration has developed effective internal controls to identify potential improper payments on a continual (real-time) basis in multiple systems at multiple levels throughout the life cycle of a claim from when the medical provider/third-party administrator submits the claim, to the claim processing through the VA source system, and when the claim is issued for payment and adjudication. Significant reduction in and prevention of improper and unknown payments are attributed to the development of proactive business rules built into the claims processing systems that allows claims that meet all rules to auto-adjudicate without human intervention. Artificial intelligence and pre-payment control logic is also built in and includes, but is not limited to, duplicate checks, aberrant billing patterns, coding and billing errors, and checks against the List of Excluded Individuals and Entities. Additional checks include service, equipment, or drugs not covered; charge exceeds the maximum allowable rate; or the provider was not certified/eligible to be paid for the procedure/service on the date of service. In addition, VA is moving community nursing home payments to a standardized rate schedule to transition from a legacy system to an automated claims processing system. VA clarified community care contract language, payment methodology, claims processing and timely filing criteria. VA also provided education and training to resolve missing documentation errors related to authorization, payment and Veteran level of care to support the payment process.

Veterans Health Administration also continues to prioritize and implement corrective actions and mitigation strategies that reduce improper and unknown payments. Since the enactment of the Payment Integrity Information Act of 2019 in FY 2020, Veterans Health Administration achieved an improper and unknown payment rate under the statutory threshold for significant improper and unknown payments of both 1.5% and over $10 million for four programs and reduced improper and unknown payments by $9.66 billion, or 88.79%, despite an increase of $15.26 billion in program outlays.

In FY 2025, the Purchased Long Term Services and Supports program achieved an error rate of less than 10% and reduced monetary loss to less than $100 million resulting in it no longer being reported as a high-priority program in FY 2026. The program expects to be determined compliant in FY 2026 and to see continued positive impact of these actions on its FY 2026 improper and unknown payment rate.
Additionally in FY 2025, the Supplies and Materials program achieved an improper and unknown payment rate under the statutory threshold for significant improper and unknown payments of both 1.5% and over $10 million. As a result, the program will no longer be considered a high-risk program nor require improper and unknown payment testing, saving VHA significant time, effort, and money to be reallocated for other high-impact priorities in FY 2026.

Veterans Benefits Administration
As part of Veterans Benefits Administration Do Not Pay - Activities, multiple internal and external activities outside of the Treasury Working System are in place that focus on the prevention of overpayments. Veterans Benefits Administration receives continuous information from several Federal agencies, which it uses to verify the status of Veterans Affairs beneficiaries. This information identifies instances where there may be inconsistencies between VA records and data furnished by other Federal agencies that may affect entitlement to Compensation and Pension benefits. The following describes the various agreements:

Fugitive Felon Match - The Office of Inspector General entered into a computer matching agreement with law enforcement agencies for a list of individuals with felony arrest warrants to match against VA records, identifying beneficiaries that might be fugitive felons.

Social Security Verification Match - Quarterly, the Social Security Administration provides information on Social Security Administration rates for recipients of VA Pension and Parents' Dependency and Indemnity Compensation to verify reported income.

Social Security Administration Prison Match - The Social Security Administration provides VA with information on prisoners. Periodically, data from Compensation and Pension records are run against Social Security's inmate database to identify VA beneficiaries who may be subject to reduction or termination of benefits.

The Bureau of Prisons Match - Provides Veterans Benefits Administration with information on Federal prisoners. On a monthly basis, Compensation and Pension files are matched with Bureau of Prisons' inmate database to identify incarcerated beneficiaries, which may require a reduction of termination of benefits.

The Social Security Death Master File - The Social Security Administration provides VA a list of deceased individuals. On a weekly basis, Compensation and Pension records are matched with the Death Master File to identify possible deceased beneficiaries to determine if benefits need to be terminated.

The Federal Tax Information Match – Weekly, the Internal Revenue Service provides income and net worth information. Claimant records who are initially applying for VA Pension and Parents' Dependency and Indemnity Compensation are matched to verify reported income and assets.

Veterans Benefits Administration also continues to prioritize improving payment integrity. In FY 2025, Pension achieved an error rate of less than 10%, marking its first compliance with PIIA since FY 2021. Compensation also reported improper and unknown payments for the first time since FY 2020, acknowledging the risk had increased with program changes in recent years. Both programs work to implement corrective actions that will maintain compliance with PIIA and further reduce improper and unknown payments in future years.

Financial Services Center
The Financial Services Center leverages data available within the Treasury Working System via Computer Matching Agreements with Treasury to continually update the vendor file used to store payee information for individuals and vendors doing business with VA. Potential matches are identified in the file and will be used if invoices/claims are submitted from matched individuals and vendors in the future. The FSC is continuing the partnership with Treasury to utilize additional data that will improve customer service, to include reducing the time it takes to validate new vendors or changes to existing vendor information. This partnership and use of data made available to Treasury by various federal agencies will improve VA’s ability to stop future potential improper payments in a pre-payment state. The FSC is currently working with Treasury to perform an Account Verification System and Electronic Verification of Vital Events check on all vendor records then any subsequent new ones.

Additionally, FSC reviews prepayments scheduled for future payment for all customer field stations against any other scheduled payments and payment history daily. FSC utilizes the Invoice Payment Processing System and Business Activity Monitoring system as part of the invoice review process, and the data sources contain business rules designed to assist with the identification and prevention of improper payments. Payments determined to be duplicates are denied before the payment is disbursed.

Programs with Recovery Audit Recommendations
In FY 2025, VA utilized a recovery audit contractor for Civilian Health and Medical Program of the Department of Veterans Affairs, Purchased Long Term Services and Supports, Spina Bifida Health Care, and VA Community Care. The recovery audit contractor has made one recommendation that could prevent future overpayments: VA engage or expand the available provider education resources to include the following: documentation standards and billing/coding guidelines. To address the recommendation, VA’s actions taken included establishing a workgroup to create a provider manual for Veteran and beneficiary community care programs. In addition, VA created an external stakeholder presentation to educate providers on the lifecycle of a claim with guidance on preventing coding rejects. Additionally, VA updated the Alaska Tribal Health Program Guidebook, the Indian Health Services claims guide and the Community Care website, which houses billing slides. Finally, VA provided annual training to both the Alaska Tribal Health and 48 contiguous states to assure proper billing practices. VA is also planning to create a provider manual for Veteran and beneficiary community care programs. The manual will educate providers on both authorization and payment processes and requirements. In addition, VA is educating providers on the lifecycle of a claim with guidance on preventing coding rejects. Community care providers falling under the VA Community Care are the target audience.