What We Did:
The objective of this audit was to determine whether the Department of the Navy (DON) effectively managed the Federal Employees’ Compensation Act (FECA) Program, including reducing claimant fraud, waste, or abuse.
What We Found:
The DON did not effectively manage the FECA Program. The DON commands we reviewed did not consistently implement the FECA Program, such as assigning staff, completing chargeback reviews, and tracking and monitoring overpayments. This occurred because the Assistant Secretary of the Navy (Manpower and Reserve Affairs) did not issue detailed guidance for administering the FECA Program and adequately oversee how commands implemented the program. In addition, the ICPAs generally processed initial claims with the Department of Labor Office of Workers’ Compensation Programs as required. However, the ICPAs did not always maintain complete records needed to implement the FECA Program, perform annual reviews of a sample of long-term claim files, request current medical reports from the Department of Labor Office of Workers’ Compensation Programs, or identify claimants who could return to work. This occurred because the:
• Assistant Secretary of the Navy (Manpower and Reserve Affairs) did not establish timeframes for completing FECA training and the HRO Directors did not ensure that the ICPAs completed the training;
• HRO Directors and the Defense Civilian Personnel Advisory Service did not ensure that the ICPAs had access to the necessary documentation, software, and databases; and
• Under Secretary of Defense for Personnel and Readiness did not provide guidance that clearly established ICPA roles and responsibilities.
As a result, the DON did not have the ability to verify the accuracy of the DON FECA chargeback costs, overpaid at least $325,070 for FECA benefits that claimants or their beneficiaries were not entitled to receive, and missed opportunities to return employees to work.
What We Recommend:
We recommend that the Under Secretary of Defense for Personnel and Readiness update FECA guidance to clearly establish the ICPA roles and responsibilities.
We recommend that the Assistant Secretary of the Navy (Manpower and Reserve Affairs) develop and issue guidance providing a consistent approach for implementing the FECA Program and command assessments, establish timeframes for ICPAs to complete training, and complete a workforce study that identifies the number of DON personnel required to adequately implement and oversee the FECA Program.
We recommend that the Defense Civilian Personnel Advisory Service Director conduct an analysis of the software and databases needed to manage FECA claims and provide ICPAs access as appropriate.
We recommend that the Chief of Naval Operations and the Commandant of the Marine Corps direct the HRO Directors to:
• ensure the ICPAs complete the required ICPA Level I training;
• conduct reviews to ensure that the ICPAs are maintaining adequate documentation in the claim files and elevating documentation requests to Defense Civilian Personnel Advisory Service Injury Compensation Management Advisors when the Department of Labor Office of Workers’ Compensation Programs is unresponsive; and
• report training compliance and overpayment information to the OCHR.