VA Office of Inspector General

OFFICE OF AUDITS AND EVALUATIONS

Veterans Benefits 

Administration 

Audit of 

the Efforts to 

Effectively Obtain 

Veterans’ Service 

Treatment Records 

August 28, 2014 

14-00657-261 
ACRONYMS AND ABBREVIATIONS 

DoD Department of Defense 

HAIMS Healthcare Artifacts and Image Management Solution 

NPRC National Personnel Records Center 

OIG Office of Inspector General 

POC Point of Contact 

RAD Release from Active Duty 

RMC Records Management Center 

STR Service Treatment Record 

VA Veterans Affairs 

VALO VA Liaison Office 

VARO Veterans Affairs Regional Office 

VBA Veterans Benefits Administration 

VBMS Veterans Benefits Management System 

To Report Suspected Wrongdoing in VA Programs and Operations: 

Telephone: 1-800-488-8244 

Email: vaoighotline@va.gov
 

(Hotline Information: www.va.gov/oig/hotline) 
 

Report Highlights: Audit of VBA’s 

Efforts to Effectively Obtain Veterans’ 

Service Treatment Records 

Why We Did This Audit 

This audit was Congressionally required by 

the Consolidated Appropriations Act, 2014. 

The Act directed the Department of Veterans 

Affairs (VA) Office of Inspector General 

(OIG), in coordination with the Department of 

Defense (DoD) OIG, to examine the 

processes and procedures for transmitting 

service treatment records (STRs) and 

personnel records from DoD to VA. 

We focused our efforts on the Veterans 

Benefits Administration’s (VBA) processes 

and timeliness of requesting paper STRs and 

providing them to VA Regional Office 

(VARO) staff, who need the records to make 

decisions on veterans’ disability 

compensation claims. We also assessed 

initial timeliness of receiving electronic STRs 

from DoD, which is a process that began in 

January 2014. 

What We Found 

We determined that DoD is not timely in 

providing VBA electronic STRs. From 

January 1, 2014, through June 3, 2014, VBA 

submitted 7,278 STR requests to DoD for 

veterans who submitted claims and separated 

from military service on or after 

January 1, 2014. Of those, DoD only 

completed 2,111 requests (29 percent) and 

5,167 requests (71 percent) were pending. Of 

the 2,111 completed STR requests, 

377 requests (18 percent) were received by 

VBA within 45 calendar days of the veterans’ 

separation from military service. This 

occurred because DoD reported experiencing 

challenges and delays implementing the 

process of transmitting electronic STRs to 

VBA. 

Based on a review of 400 statistically selected 

original disability compensation claims 

completed during calendar year 2013, we 

identified delays within VBA’s processes. 

Delays occurred with VARO staff 

establishing claims, requesting STRs, and 

receiving requested STRs. Overall, we 

attributed a total of about 131 days to these 

actions. Delays occurred primarily because of 

VBA’s focus on eliminating the disability 

claims backlog. As a result of these delays, 

DoD and VBA need to improve timeliness of 

their current STR processes in order for VBA 

to achieve its timeliness goal of processing all 

claims within 125 days. 

What We Recommended 

We made recommendations to the Under 

Secretary for Benefits to improve VBA’s 

processes of requesting and providing STRs 

to VARO staff. 

Agency Comments 

The Under Secretary for Benefits concurred 

with our recommendations and provided an 

acceptable action plan. We will follow up on 

the implementation of the corrective actions. 

LINDA A. HALLIDAY 

Assistant Inspector General 

for Audits and Evaluations 
TABLE OF CONTENTS 

Introduction......................................................................................................................................1
 

Results and Recommendations ........................................................................................................2
 

Finding Despite New Process of DoD Transmitting Electronic STRs, VBA 

Needs To Improve Timeliness of Its Paper STR Processes................................2
 

Recommendations .............................................................................................11
 

Appendix A Background .......................................................................................................12
 

Appendix B Scope and Methodology....................................................................................14
 

Appendix C Statistical Sampling Methodology ....................................................................16
 

Appendix D Under Secretary for Benefits Comments.......................................................... 20
 

Appendix E Office of Inspector General Contact and Staff Acknowledgments .................. 23
 

Appendix F Report Distribution........................................................................................... 24
 
Audit of VBA’s Efforts to Effectively Obtain Veterans’ STRs 

Objective 

Service 

Treatment 

Records 

Other 

Information 

INTRODUCTION 

This audit was Congressionally required by the Consolidated Appropriations 

Act, 2014. The Act directed the Department of Veterans Affairs (VA) Office 

of Inspector General (OIG), in coordination with the Department of Defense 

(DoD) OIG, to examine the processes and procedures for transmitting service 

treatment records (STRs) and personnel records from DoD to VA. 

We focused our efforts on the Veterans Benefits Administration’s (VBA) 

processes and timeliness of requesting paper STRs and providing them to 

VA Regional Office (VARO) staff, who need the records to make decisions 

on veterans’ disability compensation claims. We also assessed initial 

timeliness of receiving electronic STRs from DoD, which is a process that 

began in January 2014. Based on discussions with Senate Appropriations 

Committee staff, we focused the audit on the transmission of STRs and did 

not review the transmission of personnel records. DoD OIG focused on 

determining whether DoD was providing timely and complete STRs to VA. 

STRs are veterans’ military health records that typically include medical 

history, physical and dental examinations, military entrance and discharge 

examinations, and outpatient treatments. STRs are a source of evidence 

required to establish a relationship between a disability claim and an injury, 

disease, or event during military service. When a servicemember separates 

from military service, DoD is responsible for providing VBA the 

individual’s complete and certified STR within 45 business days from the 

release from active duty (RAD) date. VBA officials reported that VBA 

tracks compliance based on 45 calendar days from the RAD date, and 

discussions are ongoing with DoD to agree on a common standard. 

Prior to 2014, DoD sent paper STRs to VBA’s Records Management Center 

(RMC) or to the National Personnel Records Center (NPRC). Starting in 

January 2014, DoD changed its processes, and military service departments 

began scanning their paper STRs into DoD’s Healthcare Artifacts and Image 

Management Solution (HAIMS). Once in HAIMS, electronic STRs are 

uploaded to the Veterans Benefits Management System (VBMS) when 

VARO staff establishes a veteran’s claim. 

 Appendix A provides additional background information. 

 Appendix B provides details on our scope and methodology. 

 Appendix C provides details on our statistical sampling methodology. 

VA Office of Inspector General 1 
Audit of VBA’s Efforts to Effectively Obtain Veterans’ STRs 

RESULTS AND RECOMMENDATIONS 

Finding Despite New Process of DoD Transmitting Electronic 

STRs, VBA Needs To Improve Timeliness of Its Paper 

STR Processes 

We determined that DoD is not timely in providing VBA electronic STRs. 

From January 1, 2014, through June 3, 2014, VBA submitted 7,278 STR 

requests to DoD for veterans who submitted claims and separated from 

military service on or after January 1, 2014. Of those, DoD only completed 

2,111 requests (29 percent) and 5,167 requests (71 percent) were pending. 

Of the 2,111 completed STR requests, DoD only provided 377 requests 

(18 percent) to VBA within 45 calendar days of the veterans’ separation 

from military service. This occurred because DoD reported experiencing 

challenges and delays implementing the process of transmitting electronic 

STRs to VBA. 

Although in January 2014 DoD stopped sending paper STRs to VBA, this 

new initiative is not expected to significantly help VBA in the near term. 

VBA’s processes will continue to involve requesting and scanning paper 

STRs because prior to January 1, 2014, DoD mailed paper STRs to RMC or 

NPRC when a servicemember separated from military service. VBA does 

not have plans to scan all paper STRs located at RMC and NPRC. It plans to 

scan STRs only as they are requested. Thus, VBA will rely on its current 

processes for the foreseeable future. 

Based on a review of 400 statistically selected original disability 

compensation claims completed during calendar year 2013, we identified 

delays within VBA’s current processes. Delays occurred with VARO staff 

establishing claims, requesting STRs, and receiving requested STRs. 

Overall, we attributed a total of about 131 days to these actions, which 

precede VARO staff having all key evidence needed to process veterans’ 

disability compensation claims. This period goes beyond the 125 days VBA 

set as the timeliness goal for processing claims. VBA reported the average 

days to complete original disability compensation claims in calendar 

year 2013 was about 387 days and nearly 34 percent of that time could be 

attributed to VARO staff establishing claims, requesting STRs, and waiting 

to receive requested STRs. 

Delays occurred primarily because of VBA’s focus on eliminating the 

disability claims backlog. This focus had a negative influence on VBA 

effectively monitoring its timeliness standard for establishing claims. 

Further, VBA did not develop a timeliness standard for generating initial 

requests for STRs. The process of requesting records for National Guard and 

Reserve veterans also had a significant effect on receiving STRs, resulting in 

delays. 

VA Office of Inspector General 2 
 

 

 

Audit of VBA’s Efforts to Effectively Obtain Veterans’ STRs 

Initial Delays

With New 

Process 

Veterans who separated from military service prior to January 1, 2014, are 

expected to make up a significant portion of VBA’s claims workload in the 

foreseeable future. Therefore, VBA needs to improve timeliness within its 

current STR processes in order to achieve its timeliness goal of processing 

all claims within 125 days. 

Starting in January 2014, DoD began transferring STRs to VBA 

electronically for veterans separating from military service. To assess initial 

timeliness of this initiative, we reviewed VBA’s summary data on completed 

and pending requests for electronic STRs from January 1, 2014, through 

June 3, 2014. We determined that DoD is encountering delays providing 

VBA with requested STRs. During this period, VBA submitted 7,278 STR 

requests for veterans who submitted a claim and separated from military 

service on or after January 1, 2014. Of those, DoD only completed 

2,111 (29 percent) of VBA’s requests and 5,167 requests (71 percent) were 

pending. Table 1 summarizes this information by each military service 

department. 

Table 1. Electronic STR Requests—Completed and Pending 

Service 

Department 

STR 

Requests 

Completed 

Requests 

Pending 

Requests 

Army 3,317 521 (16%) 2,796 (84%) 

Air Force 1,318 849 (64%) 469 (36%) 

Navy 1,482 426 (29%) 1,056 (71%) 

Marine Corps 1,161 315 (27%) 846 (73%) 

Total 7,278 2,111 (29%) 5,167 (71%) 

Source: VBA Compensation Service (as of June 3, 2014) 

Note: Percent estimates are rounded. 

Completed Of the 2,111 completed STR requests, DoD provided only 377 (18 percent) 

Requests Not of VBA’s requests within 45 calendar days1

 of the veterans’ separation from Timely military service. The remaining 1,734 requests were not completed timely. 

1

 VBA officials reported that it tracks compliance based on 45 calendar days even though 

DoD’s standard is to provide STRs to VA within 45 business days. VBA officials further 

reported that discussions are ongoing with DoD to agree to a common standard. 

VA Office of Inspector General 3 
Audit of VBA’s Efforts to Effectively Obtain Veterans’ STRs 

Table 2 summarizes this information by military service department. 

Table 2. Electronic STR Requests—Completed 

Service 

Department 

Completed 

STR Requests 

Completed 

Timely (within 

45 days) 

Completed 

Late (over 

45 days) 

Army 521 28 (5%) 493 (95%) 

Air Force 849 213 (25%) 636 (75%) 

Navy 426 68 (16%) 358 (84%) 

Marine Corps 315 68 (22%) 247 (78%) 

Total 2,111 377 (18%) 1,734 (82%) 

Pending 

Requests 

Overdue 

Source: VBA Compensation Service (as of June 3, 2014) 

Note: Percent estimates are rounded. 

Of the 5,167 pending STR requests, only 923 (18 percent) requests were 

pending within the 45 calendar days after the veterans’ RAD date. The 

remaining 4,244 (82 percent) requests were overdue because they were 

pending for more than 45 calendar days from the veterans’ RAD date. 

Table 3 summarizes this information by each military service department. 

Table 3. Electronic STR Requests—Pending 

Service 

Department 

Pending STR 

Requests 

Pending 

Within 

45 Days 

Pending 

Overdue 

(more than 45 

days) 

Army 2,796 300 (11%) 2,496 (89%) 

Air Force 469 167 (36%) 302 (64%) 

Navy 1,056 237 (22%) 819 (78%) 

Marine Corps 846 219 (26%) 627 (74%) 

Total 5,167 923 (18%) 4,244 (82%) 

Source: VBA Compensation Service (as of June 3, 2014) 

Note: Percent estimates are rounded. 

DoD military service departments established Central Cells where paper 

STRs are scanned into HAIMS and merged with electronic health 

information stored in the Armed Forces Health Longitudinal Technology 

VA Office of Inspector General 4 
 

 

 

Audit of VBA’s Efforts to Effectively Obtain Veterans’ STRs 

Coordination 

With DoD 

DoD’s 

Initiative Not 

Expected To

Significantly 

Improve VBA 

Timeliness in 

the Near Term 

Majority of 

Veterans’ RAD 

Prior to 2010 

Application2 after a servicemember separates from that military service. A 

VBA Compensation Service official reported that the Army and Air Force 

established a Central Cell in San Antonio, TX, and the Navy and Marine 

Corps established a Central Cell in Chantilly, VA. DoD reported 

experiencing challenges and delays implementing the process of transmitting 

electronic STRs to VBA. For example, DoD officials attributed delays to 

initial setbacks in training and obtaining background checks for contractor 

personnel. 

VBA officials stated that VBA currently provides DoD a report containing 

newly submitted electronic STR requests, newly completed STR requests, 

and pending electronic STR requests. The officials said the report is 

provided to help DoD prioritize its workload, and the data are used for 

regular discussions between VBA and DoD. VBA officials further noted 

that continued coordination with DoD is needed to ensure all electronic STR 

documentation is provided in searchable, portable document format because 

VBMS will only accept images in this format for the foreseeable future. 

Although on January 1, 2014, DoD stopped sending paper STRs to VBA, 

this new initiative is not expected to significantly help VBA in the near term 

with achieving its timeliness goal of processing all claims within 125 days. 

For veterans with a RAD date prior to January 1, 2014, VBA’s processes to 

obtain STRs will continue to rely on requesting paper STRs stored at RMC 

and NPRC. Prior to January 1, 2014, DoD mailed paper STRs to RMC or 

NPRC when a servicemember separated from military service. 

VBA reported all VAROs started using VBMS to process claims 

electronically by June 2013. In order to convert requested STRs into an 

electronic format, VBA sends paper STRs located at RMC or NPRC to 

contract vendors for scanning. This process eliminates sending paper records 

to VAROs and provides VARO staff access to searchable, electronic STRs. 

VBA does not have plans to scan all paper STRs located at RMC and NPRC. 

It plans to scan STRs only as they are requested. Thus, VBA will rely on its 

current processes for the foreseeable future. 

It is expected that VBA’s disability claims workload will continue to be 

made up of veterans who separated from military service prior to the 

electronic STR initiative. For example, we reviewed 400 statistically 

selected original disability compensation claims completed during calendar 

year 2013 and nearly 75 percent of the claims in our sample were for 

veterans with a RAD date prior to 2010. 

2

 The Armed Forces Health Longitudinal Technology Application is an electronic medical 

record system used by DoD medical providers who enter progress notes, put in orders, and 

document procedures performed. 

VA Office of Inspector General 5 
 

Audit of VBA’s Efforts to Effectively Obtain Veterans’ STRs 

Establishing 

Claims and 

Requesting 

and Receiving 

STRs Can Be 

Improved 

Table 4 summarizes estimates for veterans’ RAD dates, based on our claims 

review and stratified by decades. 

Table 4. Veterans’ RAD Dates 

Time of RAD Number From 

Universe 

Percent of 

Universe 

1940s and 1950s 12,300 5 percent 

1960s and 1970s 83,200 31 percent 

1980s and 1990s 57,300 22 percent 

2000s 40,500 16 percent 

2010s 66,200 26 percent 

Source: VA OIG analysis of 400 statistically selected original disability 

compensation claims 

Note: Estimates are rounded. 

Based on our review of 400 statistically selected original disability 

compensation claims completed during calendar year 2013, we identified 

delays within VBA’s current processes. Delays occurred with VARO staff 

establishing claims, requesting STRs, and receiving requested STRs. 

Overall, we attributed a total of about 131 days to these actions, which 

precede VARO staff having all key evidence needed to process veterans’ 

disability compensation claims. This period goes beyond the 125 days VBA 

set as the timeliness goal for processing claims. VBA reported the average 

days to complete original disability compensation claims in calendar 

year 2013 was about 387 days and nearly 34 percent of that time could be 

attributed to VARO staff establishing claims, requesting STRs, and waiting 

to receive requested STRs. 

VA Office of Inspector General 6 
   

Audit of VBA’s Efforts to Effectively Obtain Veterans’ STRs 

Establishing 

Claims 

The following figure demonstrates average days for VARO staff establishing 

claims, requesting STRs, and waiting to receive requested STRs that make 

up the 131-day total for these actions, based on our claims review. 

Figure. VBA’s STR Process Time (Total 131 Days) 

Establishing

Claims

Requesting

STRs

Waiting To

Receive

Requested STRs

Average

68 Days

Average

48 Days

Average

15 Days

Source: VA OIG analysis of 400 statistically selected original disability compensation 

claims 

When VBA receives a veteran’s disability compensation claim, VARO staff 

are required to establish the claim in VBA’s data systems within 7 days of 

receipt. We determined VARO staff were not achieving this result as it took 

an average of 15 days for VARO staff to complete this step. This is 

significant because without establishing a claim, the VARO does not track or 

assign it to staff to initiate development action. Additionally, VARO staff 

must establish claims in VBA’s data systems before the claims are included 

in VBA’s reported workload statistics. Table 5 summarizes time estimates 

for establishing claims within VBA’s data systems, based on our claims 

review. 

Table 5. Time To Establish Claims 

Establishing Claims Estimate for Universe 

0 to 7 Days 72 percent 

8 to 30 Days 17 percent 

31 to 90 Days 6 percent 

More Than 90 Days 5 percent 

Source: VA OIG analysis of 400 statistically selected original disability 

compensation claims 

Note: Estimates are rounded. 

VA Office of Inspector General 7 
Audit of VBA’s Efforts to Effectively Obtain Veterans’ STRs 

Requesting 

STRs 

Receiving STRs 

VARO staff request STRs from the RMC, NPRC, and in some instances 

from individual National Guard or Reserve units. We determined VARO 

staff did not request STRs in a timely manner. Specifically, it took an 

average of 68 days for VARO staff to request STRs when measured from the 

date the claims were established. Since STRs are a major source of evidence 

required for VARO staff to make decisions on veterans’ disability 

compensation claims, it is vital to request the records in a timely manner to 

minimize processing delays. Table 6 summarizes time estimates for 

requesting STRs, based on our claims review. 

Table 6. Time To Request STRs 

Requesting STRs Estimate for Universe 

0 to 7 Days 31 percent 

8 to 30 Days 18 percent 

31 to 90 Days 23 percent 

More Than 90 Days 28 percent 

Source: VA OIG analysis of 400 statistically selected original disability 

compensation claims 

Note: Estimates are rounded. 

We measured the time it took STRs to be available to the requesting VARO. 

The measurement was determined by the date paper STRs were received at 

the VARO or date electronic STRs were available in VBMS after scanning. 

We identified delays in this process. Specifically, it took an average of 

48 days to receive STRs when measured from the STR request date. VBA 

reported that RMC staff prepares and sends most requested STRs to vendors 

for scanning into VBMS. We recognize that the preparation, shipping, and 

scanning process may negatively affect the overall timeliness of providing 

STRs to the requesting VARO. However, the scanning process has 

immediate and future benefits because it eliminates the need to send paper 

records to VAROs and provides VARO staff access to searchable, electronic 

STRs in VBMS. 

The process of requesting records for National Guard and Reserve veterans 

also had a significant effect on receiving STRs, resulting in delays. Paper 

STRs for veterans who separated from National Guard or Reserve 

components are not always located at RMC or NPRC because sometimes 

DoD retained the records at the individual units. In these cases, VARO staff 

are responsible for identifying the appropriate sources and points of contact 

(POCs) for requesting and obtaining the STRs. VBA reported that there are 

at least 108 individual National Guard locations and more than 

4,400 individual Reserve units where paper STRs could potentially be 

located. During interviews, VARO staff said that it was a challenge to 

identify the appropriate sources and POCs for making these requests, which 

VA Office of Inspector General 8 
 

 

Audit of VBA’s Efforts to Effectively Obtain Veterans’ STRs 

Causes for 

STR Process 

Delays 

VBA Pilot 

Program 

had a negative effect on the timeliness of the STR process. 

Table 7 summarizes time estimates for receiving requested STRs, based on 

our claims review. 

Table 7. Time To Receive Requested STRs 

Receiving Requested STRs Estimate for Universe 

0 to 7 Days 23 percent 

8 to 30 Days 56 percent 

31 to 90 Days 14 percent 

More Than 90 Days 7 percent 

Source: VA OIG analysis of 400 statistically selected original disability 

compensation claims 

Note: Estimates are rounded. 

Delays within VBA’s processes occurred primarily because of VBA’s focus 

on eliminating the disability claims backlog. This focus had a negative effect 

on timeliness in other areas. VBA did not effectively monitor its timeliness 

standard for establishing claims within 7 days of receipt. VBA also has not 

developed a timeliness standard for making initial requests for STRs. 

The process of requesting and receiving records for National Guard and 

Reserve veterans also had a significant effect on receiving STRs, resulting in 

delays. For this group of veterans, VARO staff reported difficulties in 

identifying the appropriate sources and POCs for making STR requests when 

records were not located at RMC or NPRC. VBA was not maximizing the 

use of the Veterans Information Solution—a system VARO staff reported 

would be beneficial to identify information on National Guard and Reserve 

units. Access to the Veterans Information Solution was limited to only a few 

staff at each VARO; many of the staff we interviewed who requested STRs 

reported having limited or no access to the Veterans Information Solution. 

VBA has recognized the issues and challenges with obtaining STRs for 

National Guard and Reserve veterans. Thus, VBA reported it is currently 

testing a pilot program that centralizes the STR request process and places 

the responsibility on DoD to validate veterans’ National Guard and Reserve 

service and request records from the appropriate source. 

Under the pilot program, VARO staff submits STR requests for National 

Guard and Reserve veterans through the VA Liaison Office (VALO), which 

is part of RMC. VALO staff contacts each military service’s POC for 

assistance in obtaining STRs for National Guard and Reserve veterans. Each 

POC is responsible for validating the veteran’s service, component, and unit. 

Once this information is validated, the POC requests the STRs from the 

appropriate source. When STRs are located, each military service scans and 

VA Office of Inspector General 9 
Audit of VBA’s Efforts to Effectively Obtain Veterans’ STRs 

Effects of STR 

Process 

Delays 

Conclusion 

uploads the records into HAIMS, and an automatic notification is sent to the 

requesting VARO that the STR is available. 

A VBA Compensation Service official notified us that VBMS is not 

configured to accept electronic STRs from HAIMS for these National Guard 

and Reserve veterans. As a result, VBA Central Office staff needs to 

manually retrieve the electronic STRs from HAIMS and upload them into 

VBMS. The official further stated that VBA is waiting on system 

modifications within VBMS to support the receipt of electronic STRs for 

National Guard and Reserve veterans. VBA expects these modifications to 

eliminate the manual process currently in place. Once VBA confirms a 

release date for the system modifications, it plans to establish a timeline to 

roll out the pilot program nationally. 

We attributed a total of about 131 days to VBA’s STR processes, which 

precede VARO staff having all key evidence needed to process veterans’ 

disability compensation claims. Though our audit did not focus on the 

overall disability claims process, VBA reported the average days to complete 

original disability compensation claims in calendar year 2013 was 

about 387 days. If we consider that result for claims in our sample, VBA 

could attribute nearly 34 percent of overall claims processing time to VARO 

staff establishing claims, requesting STRs, and waiting to receive requested 

STRs. Since VBA’s current STR process is expected to continue for an 

indefinite period, VBA needs to make improvements in order to achieve its 

goal of processing all claims within 125 days. 

We determined that DoD is not timely in providing VBA electronic STRs. 

Additionally, VBA needs to improve timeliness of its current processes for 

requesting and providing STRs to VARO staff. It is expected that veterans 

who separated from military service prior to January 1, 2014, will continue 

to make up a significant portion of VBA’s claims workload in the 

foreseeable future. Therefore, the process of requesting paper STRs from 

RMC and NPRC remains important. Without addressing issues and making 

improvements, VBA may continue to face challenges in achieving its 

timeliness goal of processing all claims within 125 days. Therefore, DoD 

and VBA need to make improvements within their current STR processes. 

VA Office of Inspector General 10 
Audit of VBA’s Efforts to Effectively Obtain Veterans’ STRs 

Management 

Comments 

and OIG 

Response 

Recommendations 

1.	 We recommended the Under Secretary for Benefits improve monitoring 

to ensure Veterans Affairs Regional Office staff establish claims in the 

Veteran Benefits Administration’s data systems within 7 days of receipt. 

2.	 We recommended the Under Secretary for Benefits develop a timeliness 

standard for Veterans Affairs Regional Office staff making initial 

requests for service treatment records. 

3.	 We recommended the Under Secretary for Benefits expand access to the 

Veterans Information Solution to all Veterans Affairs Regional Office 

staff who have the responsibility of requesting service treatment records 

for National Guard and Reserve veterans. 

4.	 We recommended the Under Secretary for Benefits complete testing of 

the National Guard and Reserve pilot program and consider nationwide 

implementation based on results of the testing. 

The Under Secretary for Benefits agreed with our findings and 

recommendations and plans to address our recommendations by 

December 31, 2015. To address timeliness of establishing claims, VBA is 

relying on technological advancements to automate processes. This includes 

implementing centralized mail processing to speed the intake of veterans’ 

compensation claims information into VBMS, instead of relying on a manual 

process to establish claims within 7 days of receipt. 

For servicemembers discharged on or after January 1, 2014, an automatic 

request for STRs is sent to HAIMS upon claim establishment. For 

servicemembers discharged prior to January 1, 2014, an automatic request is 

sent to RMC upon claim establishment. While these automatic requests may 

improve timeliness of making initial requests for STRs, we have continued 

concerns regarding requests for STRs located at NPRC. VARO staff 

manually request these STRs through the VA Liaison Office, and VBA 

should explore options for automating these initial requests as well. 

VBA plans to work with the Office of Information and Technology to 

develop a more robust version of the Veterans Information Solution and 

update its guidance to reflect that all VBA claims processors should have 

access. VBA also plans to finalize the National Guard and Reserve pilot 

program and deploy the process for requesting these STRs centrally. 

The Under Secretary provided a responsive action plan to address our 

recommendations. We will monitor VBA’s progress and follow up on its 

implementation until all proposed actions are completed. Appendix D 

provides the full text of the Under Secretary’s comments. 

VA Office of Inspector General 11 
 

Audit of VBA’s Efforts to Effectively Obtain Veterans’ STRs 

Appendix A 

Interim Report 

NPRC and RMC 

Background 

During this audit, we conducted a site visit at the VARO in 

St. Petersburg, FL. We identified file storage and mail processing issues 

requiring attention and action by the Under Secretary for Benefits. To allow 

VBA the opportunity to take timely corrective action, we issued an interim 

report, Efforts to Effectively Obtain Service Treatment Records and Official 

Military Personnel Files (Report No. 14-00657-144, May 15, 2014). The 

interim report included three recommendations to help ensure efficient file 

storage and mail processing at the VARO. The Under Secretary for Benefits 

concurred with our recommendations and provided suitable action plans. 

The NPRC, which is located in St. Louis, MO, houses veterans’ STRs and 

personnel records. It maintains STRs for veterans who separated from 

military service prior to 1994. VALO, which is physically located at the 

NPRC, processes requests for STRs and personnel records from VARO staff. 

VBA’s RMC, which is also located in St. Louis, MO, was established on 

October 1, 1995, and is responsible for maintaining STRs for veterans who 

separated from military service after 1994. Requests for STRs located at 

RMC are made primarily through email correspondence or through an 

automatic request when VARO staff establish a claim. 

Table 8 summarizes locations for paper STRs, which is based on the 

veteran’s military service department and RAD date. 

Table 8. Location of Paper STRs 

Service 

Department Located at NPRC Located at RMC 

Army RAD date before 

October 16, 1992 

RAD date on/after 

October 16, 1992 

Air Force RAD date before 

May 1, 1994 

RAD date on/after 

May 1, 1994 

Navy RAD date before 

January 31, 1994 

RAD date on/after 

January 31, 1994 

Marine Corps RAD date before 

May 1, 1994 

RAD date on/after 

May 1, 1994 

Source: VBA Records Management Center 

VA Office of Inspector General 12 
Audit of VBA’s Efforts to Effectively Obtain Veterans’ STRs 

VBA Scanning VBA established the Veterans Claims Intake Program to streamline 

processes for receiving records and data into VBMS and other VBA systems. 

Scanning operations and the transfer of veteran data into VBMS are primary 

intake capabilities that are managed by the Veterans Claims Intake Program. 

VBA currently has contracts with two scanning vendors—CACI-ISS, Inc. 

and Systems Made Simple, Inc. According to Veterans Claims Intake 

Program staff, both scanning vendors scan about 2.4 million documents per 

day. 

VA Office of Inspector General 13 
 

Audit of VBA’s Efforts to Effectively Obtain Veterans’ STRs 

Appendix B 

Scope 

Methodology 

Fraud 

Assessment 

Scope and Methodology 

We conducted our review from November 2013 through July 2014. The 

scope of our audit focused on VBA’s processes for requesting and providing 

STRs to VARO staff for initial disability compensation claims completed 

during calendar year 2013. We also reviewed VBA’s summary data on 

completed and pending STR requests in DoD’s HAIMS submitted from 

January 1, 2014, through June 3, 2014. We coordinated our audit with DoD 

OIG. 

To determine whether VBA was effectively receiving STRs to timely 

process veterans’ disability compensation claims, we reviewed applicable 

Federal laws, regulations, and VBA policies. We interviewed management 

and staff from VBA Central Office, including Compensation Service, 

Performance Analysis and Integrity, Office of Field Operations, and the 

Veterans Claims Intake Program to obtain information on roles and 

responsibilities related to the STR process. 

We conducted site visits to three randomly selected VAROs located in 

Waco, TX; Providence, RI; and St. Petersburg, FL. During the site visits, we 

conducted physical tours of the facilities and viewed demonstrations of the 

STR process. We also interviewed Veterans Service Center Managers, 

Rating Veterans Service Representatives, Veterans Service Representatives, 

Claims Assistants, and training staff. 

We conducted site visits to RMC and NPRC in St. Louis, MO, to assess the 

process of providing requested STRs to VARO staff. We also conducted a 

site visit to one of VBA’s contracted scan vendors, Systems Made 

Simple, Inc., to tour its facilities and interview management and staff 

regarding the scanning process. 

To measure and assess VBA timeliness for requesting and providing STRs to 

VARO staff, we reviewed 400 statistically selected original disability 

compensation claims completed during calendar year 2013. Appendix C 

provides details on our statistical sampling methodology. 

The audit team assessed the risk that fraud, violations of legal and regulatory 

requirements, and abuse could occur during this audit. The audit team 

exercised due diligence in staying alert to any fraud indicators by taking 

actions such as: 

 Soliciting the OIG’s Office of Investigations for indicators 

 Interviewing VARO staff concerning potential fraudulent activity 

We did not identify any instances of fraud during this audit. 

VA Office of Inspector General 14 
Audit of VBA’s Efforts to Effectively Obtain Veterans’ STRs 

Data Reliability 

Government 

Standards 

VBA Compensation Service staff provided us summary data on completed 

and pending requests for electronic STRs since January 1, 2014 (as of 

June 3, 2014), for veterans who served in the Army, Air Force, Navy, and 

Marine Corps. 

To support our audit findings and conclusions related to the process of 

obtaining electronic STRs, we interviewed staff from VBA Central Office 

regarding the security and validation of the data. Based on their responses, 

we determined the data provided were sufficiently reliable for the purpose of 

the audit. 

To support our audit findings and conclusions related to the process of 

requesting paper STRs, we relied on hard-copy data from veterans’ claims 

folders, as well as electronic data in VBA’s Modern Award 

Processing-Development system, VBMS, Personnel Information Exchange 

System, and Share. We determined that the evidence was sufficiently 

reliable for the purposes of the audit. 

Our assessment of internal controls focused on those controls relating to our 

audit objectives. We conducted this performance audit in accordance with 

generally accepted government auditing standards. These standards require 

that we plan and perform the audit to obtain sufficient, appropriate evidence 

to provide a reasonable basis for our findings and conclusions based on our 

audit objective. We believe that the evidence obtained provides a reasonable 

basis for our findings and conclusions based on our audit objective. 

VA Office of Inspector General 15 
 

Audit of VBA’s Efforts to Effectively Obtain Veterans’ STRs 

Appendix C 

Population 

Sampling 

Design 

Weights 

Estimates and 

Margins of 

Error 

Statistical Sampling Methodology 

We used statistical sampling to measure and assess VBA timeliness for 

requesting and providing STRs to VARO staff who need the records to make 

decisions on veterans’ disability compensation claims. Specifically, we 

reviewed 400 statistically selected original disability compensation claims 

completed during calendar year 2013. 

The population consisted of 263,128 original disability compensation claims 

VBA completed during calendar year 2013. 

We segregated the population into two groups based on how VBA processed 

the claims. The first group, which contained 29,284 records, included claims 

marked with the VBMS special issue flash to represent claims VBA 

processed electronically. The second group, which contained 

233,844 records, included claims not marked with the VBMS special issue 

flash to represent claims VBA processed in paper. We selected a statistical 

random sample within each group. All records had a known chance of 

selection, which allowed us to make estimates over the entire population. In 

order to facilitate the stratification selection of records, we used the survey 

select procedure in the Statistical Analysis Software. We generated random 

numbers for the selection of records within each stratum. 

We calculated estimates in this report using weighted sample data. Sampling 

weights are computed by taking the product of the inverse of the 

probabilities of selection at each stage of sampling. 

The margins of error and confidence intervals are indicators of the precision 

of the estimates. If we repeated this audit with multiple samples, the 

confidence intervals would differ for each sample, but would include the true 

population value 90 percent of the time. The following series of tables 

present estimates to the population including the estimate, margin of error, 

lower 90 percent value, and upper 90 percent value. 

VA Office of Inspector General 16 
 

 

 

Audit of VBA’s Efforts to Effectively Obtain Veterans’ STRs 

Table 9 summarizes estimates for the number of veterans by decade based on 

RAD dates. 

Table 9. Statistical Estimates—Veterans’ RAD Dates (Value) 

RAD Date Estimate 

(Count) 

Margin of 

Error 

Lower 

90% 

Upper 

90% 

Sample 

Size 

1940s and 1950s 12,300 5,453 6,829 17,735 28 

1960s and 1970s 83,200 12,796 70,382 95,974 128 

1980s and 1990s 57,300 11,481 45,819 68,782 77 

2000s 40,500 9,964 30,528 50,456 60 

2010s 66,200 11,930 54,291 78,151 103 

Source: VA OIG analysis of 400 statistically selected original disability compensation 

claims 

Note: Estimates are rounded. 

Table 10 summarizes estimates for the percent of veterans by decade based 

on RAD dates. 

Table 10. Statistical Estimates—Veterans’ RAD Dates (Percent) 

RAD Date Estimate 

(Percent) 

Margin of 

Error 

Lower 

90% 

Upper 

90% 

Sample 

Size 

1940s and 1950s 5 2.1 2.6 6.8 28 

1960s and 1970s 31 4.9 27.1 37.0 128 

1980s and 1990s 22 4.4 17.7 26.5 77 

2000s 16 3.8 11.8 19.4 60 

2010s 26 4.6 20.9 30.1 103 

Source: VA OIG analysis of 400 statistically selected original disability compensation 

claims 

Note: Estimates are rounded. 

VA Office of Inspector General 17 
 

Audit of VBA’s Efforts to Effectively Obtain Veterans’ STRs 

Table 11 summarizes estimates for average times within VBA’s STR 

processes. 

Table 11. Statistical Estimates—STR Process Delays 

Step in VBA 

Process 

Estimate 

(Days) 

Margin of 

Error 

Lower 

90% 

Upper 

90% 

Sample 

Size 

Establishing 

Claims 15 6 8 21 121 

Requesting STRs 68 21 47 90 121 

Receiving STRs 48 27 21 75 121 

Total STR 

Process 131 35 96 167 121 

Source: VA OIG analysis of 400 statistically selected original disability compensation 

claims 

Note: Estimates are rounded. 

Table 12 summarizes estimates for time to establish claims. 

Table 12. Statistical Estimates—Establishing Claims 

Establishing 

Claims 

Estimate 

(Percent) 

Margin of 

Error 

Lower 

90% 

Upper 

90% 

Sample 

Size 

0 to 7 Days 72 4.8 67.5 77.1 222 

8 to 30 Days 17 4.1 13.0 21.2 71 

31 to 90 Days 6 2.4 3.2 8.1 28 

More Than 90 

Days 5 2.1 2.9 7.0 37 

Source: VA OIG analysis of 400 statistically selected original disability compensation 

claims 

Note: Estimates are rounded. 

VA Office of Inspector General 18 
Audit of VBA’s Efforts to Effectively Obtain Veterans’ STRs 

Table 13 summarizes estimates for times to request STRs. 

Table 13. Statistical Estimates—Requesting STRs 

Requesting STRs Estimate 

(Percent) 

Margin of 

Error 

Lower 

90% 

Upper 

90% 

Sample 

Size 

0 to 7 Days 31 5.7 25.9 37.2 73 

8 to 30 Days 18 4.6 12.9 22.2 47 

31 to 90 Days 23 4.9 17.7 27.5 89 

More Than 90 

Days 28 5.5 22.8 33.8 70 

Source: VA OIG analysis of 400 statistically selected original disability compensation 

claims 

Note: Estimates are rounded. 

Table 14 summarizes estimates for time to receive requested STRs. 

Table 14. Statistical Estimates—Receiving Requested STRs 

Receiving STRs Estimate 

(Percent) 

Margin of 

Error 

Lower 

90% 

Upper 

90% 

Sample 

Size 

0 to 7 Days 23 5.2 17.8 28.2 70 

8 to 30 Days 56 6.2 50.1 62.5 133 

31 to 90 Days 14 4.2 9.4 17.7 47 

More Than 90 

Days 7 3.3 3.9 10.5 15 

Source: VA OIG analysis of 400 statistically selected original disability compensation 

claims 

Note: Estimates are rounded. 

VA Office of Inspector General 19 
 

Audit of VBA’s Efforts to Effectively Obtain Veterans’ STRs 

Appendix D Under Secretary for Benefits Comments 

Department of Memorandum 

Veterans Affairs 

Date: August 8, 2014 

From: Under Secretary for Benefits (20) 

Subj: OIG Draft Report—Audit of VBA’s Efforts to Effectively Obtain Service Treatment 

Records 

To: Assistant Inspector General for Audits and Evaluations (52) 

1. Attached is VBA’s response to the OIG draft report: Audit of VBA’s Efforts to Effectively 

Obtain Service Treatment Records. 

2. Questions may be referred to Christine Ras, Program Analyst, at 461-9057. 

Attachment 

VA Office of Inspector General 20 
 

 

Audit of VBA’s Efforts to Effectively Obtain Veterans’ STRs 

Attachment 

Veterans Benefits Administration (VBA)

Comments on OIG Draft Report
 

Audit of VBA’s Efforts to Effectively Obtain Service Treatment Records
 

VBA concurs with OIG’s findings in the draft report and provides the following comments in 

response to the recommendations: 

Recommendation 1: We recommended the Under Secretary for Benefits improve monitoring to ensure 

Veterans Affairs Regional Office staff establish claims in the Veteran Benefits Administration’s data 

systems within 7 days of receipt. 

VBA Response: Concur. To address the need to timely control claims establishment, VBA is relying on 

technological advancements to automate processes. 

VBA currently receives mail from a variety of sources in various formats, templates, fonts, and methods. 

Incoming mail is handled multiple times before it is available to be processed. VBA is implementing 

centralized mail (CM) processing to speed the intake of Veterans’ compensation claims information into 

the Veterans Benefits Management System (VBMS), instead of relying on a manual process to establish 

claims within seven days of receipt. By transforming from decentralized mail intake at the regional offices 

(ROs) to a more efficient CM operation, VBA will be able to reduce processing time, increase mail 

monitoring, and improve timeliness of claims establishment. 

CM has deployed to 42 ROs and rollout will continue to the remaining ROs in the upcoming months. It is 

expected the CM process will auto-establish claims filed on VA Form 21-526, Veteran’s Application For 

Compensation and/or Pension, by December 2014. The auto-establish feature will continue to be 

associated with additional VA forms throughout 2015. 

Target Completion Date: December 31, 2015 

Recommendation 2: We recommended the Under Secretary for Benefits develop a timeliness standard 

for Veterans Affairs Regional Office staff making initial requests for service treatment records. 

VBA Response: Concur. VBA’s transformation is ending the reliance on the outmoded paper-intensive 

processes that thwart timely and accurate claims processing. In June 2014, VA and the Department of 

Defense (DoD) transitioned to the electronic transmission of the certified complete service treatment 

records (STRs) from DoD’s Healthcare Artifacts and Images Management Solution (HAIMS) system and 

VBA’s VBMS. For Servicemembers discharged on or after January 1, 2014, an automatic request for 

STRs is sent to HAIMS upon claim establishment. For Servicemembers discharged prior to 

January 1, 2014, an automatic request for STRs is sent to the Records Management Center upon claim 

establishment. VBA continues to work with DoD to establish a streamlined process to request STRs for 

National Guard and Reserve members. All of these processes aim to reduce claims processing 

timeliness by having systems automatically request STRs upon claim establishment. 

Target Completion Date: March 31, 2015 

Recommendation 3: We recommended the Under Secretary for Benefits expand access to the Veterans 

Information Solution to all Veterans Affairs Regional Office staff who have the responsibility of requesting 

service treatment records for National Guard and Reserve veterans. 

VBA Response: Concur. In November 2004, VBA nationally deployed the Veterans Information Solution 

(VIS) to verify military service. The manual reference M21-1 Manual Rewrite Part III, Subpart ii, 

VA Office of Inspector General 21 
 

 

Audit of VBA’s Efforts to Effectively Obtain Veterans’ STRs 

Chapter 6, Section 6, Topic c (Attachment A*) identifies VIS as an acceptable method of verifying service. 

However, VBA noticed a concern with Fast Letter 04-32, Regional Office and VA Medical Center Access 

to the Veterans Information Solution (VIS) for Electronic Service Member Discharge Data, (Attachment 

B*) limiting ROs to only two VIS users. Compensation Service plans to update guidance in this fast letter 

by September 1, 2014, to reflect that all claims processors should be granted access to VIS. VBA is also 

working with the Office of Information and Technology to develop and deploy a more robust version of 

VIS to all ROs. VBA expects to deploy a more robust version of VIS to all ROs by December 31, 2014. 

Target Completion Date: December 31, 2014 

*Note: Attachments A and B not included in this report. 

Recommendation 4: We recommended the Under Secretary for Benefits complete testing of the National 

Guard and Reserve pilot program and consider nationwide implementation based on results of the 

testing. 

VBA Response: Concur. On January 6, 2014, VBA began a pilot program that will centralize requests 

for National Guard and Reserve records to DoD. The pilot program is still ongoing to establish processes 

for electronic requests and electronic receipt of National Guard and Reserve records. The pilot program 

consists of three phases: 

	 Phase 1 involved the proof-of-concept and testing that occurred between the ROs, VA Liaison 

Office (VALO), and DoD. During this phase, two system modifications were identified and 

initiated to accommodate electronic processing. Phase 1 ended on May 31, 2014. 

	 Phase 2 involved system modifications which allowed ROs to electronically submit requests for 

National Guard and Reserve records to VALO, and for VALO to consolidate the requests for 

electronic delivery to DoD. Phase 2 ended on May 31, 2014. 

	 Phase 3 involves major system enhancements that will allow VA to retrieve National Guard and 

Reserve electronic STRs that DoD uploads into HAIMS, and then ingest those images into the 

VBMS eFolder for claims adjudication. This functionality within VBMS is anticipated to be 

released March 2015. It will require approval and implementation of an additional 14 full-time 

employees at the VALO in St. Louis to process requests for STRs for all 56 VA Regional 

Offices. 

The deployment will eliminate the need for ROs to mail letters to over 4,000 National Guard and Reserve 

units to request records. Instead, ROs will submit these requests electronically to the centralized location 

at VALO. 

Target Completion Date: March 30, 2015 

VA Office of Inspector General 22 
Audit of VBA’s Efforts to Effectively Obtain Veterans’ STRs 

Appendix E Office of Inspector General Contact and Staff 

Acknowledgments 

OIG Contact For more information about this report, please 

contact the Office of Inspector General at 

(202) 461-4720. 

Acknowledgments	 Nick Dahl, Director 

Stephen Bracci 

Michael Cannata 

John Cintolo 

Ron Comtois 

Lee Giesbrecht 

Karen Hatch 

C. Russell Lewis 

Jason D. Schuenemann 

Joseph Vivolo 

VA Office of Inspector General 23 
Audit of VBA’s Efforts to Effectively Obtain Veterans’ STRs 

Appendix F Report Distribution 

VA Distribution 

Office of the Secretary 

Veterans Health Administration 

Veterans Benefits Administration 

National Cemetery Administration 

Assistant Secretaries 

Office of General Counsel 

Non-VA Distribution 

House Committee on Veterans’ Affairs 

House Appropriations Subcommittee on Military Construction, Veterans 

Affairs, and Related Agencies 

House Committee on Oversight and Government Reform 

Senate Committee on Veterans’ Affairs 

Senate Appropriations Subcommittee on Military Construction, Veterans 

Affairs, and Related Agencies 

Senate Committee on Homeland Security and Governmental Affairs 

National Veterans Service Organizations 

Government Accountability Office 

Office of Management and Budget 

This report is available on our Web site at ww.va.gov/oig. 

VA Office of Inspector General 24