Digitized by the Internet Archive in 2010 with funding from IVIontana State Library http://www.archive.org/details/montanaboardofve2003mont MONTANASTATELIBRARY 353.538 L72MBVA LEGISLATIVE AUDIT DIVISION ^ °«®^ ^°o^ ^692 9 2003 Deputy Legislative Auditors: Scott A. Seacat, Legislative Auditor Jim Pellegrini, Performance Audit I John W. Northey, Legal Counsel Tori Hunthausen, IS Audit & Operations James Gillett, Financial-Compliance Audit MEMORANDUM TO: Legislative Audit Committee Members FROM: Jim Pellegrini, Deputy Legislative Auditor, Performance Audits '\j DATE: August 2003 iSTATE DOnUMEMTS COLLECilO. RE: Follow-up Performance Audit: Montana Board ofVeterans' Affairs Montana Veterans' Affairs Division (Audit # 02P-07) INTRODUCTION We presented ourperformance audit ofthe Montana Board ofVeterans' Affairs (Board) and Montana Veterans' Affairs Division (MVAD) to the Legislative Audit Committee in June 2002. The report contains eight recommendations to the Board and MVAD. We MVAD requested and received information from regarding progress toward implementation ofour report recommendations. To verify implementation status ofthe eight recommendations, we requested information from MVAD, interviewed division staff, visited a field office, and reviewed related documentation. Based on our follow-up audit review, we determined the following status ofthe eight recommendations: Implemented 2 Partially Implemented 2 Being Implemented 2 Not Implemented 2 Total 8 MVAD January 2004 is the target for implementation ofthe remaining recommendations. The 2003 Legislature established additional fiinding and FTE, effective January 2004. AUDIT SUMMARY At the request ofthe Subcommittee on Military and Veterans' Affairs ofthe Interim Committee for State Administration and Veterans' Affairs, the Legislative Audit Committee recommended a performance audit ofthe Board and MVAD. We based audit work on three objectives: • Do statutes provide the Board/ MVAD the authority and responsibility to accomplish its mission? Room 160, State Capitol. POBox201705 Helena iVlT59620-1705 Phone (406)444-3122 R\X (406)444-9784 E-Mail [email protected] Legislative Audit Committee Members August 2003 Page 2 • Could reallocation ofBoard/MVAD resources improve mission support? MVAD • Could veterans' claims processingbe improved? We concluded Montana law provides broad authority for the Board/MVAD mission and noted compliance with this law. hi addition, we concluded reallocation ofresources by MVAD could improve support to veterans. Finally, we found the claims process could be improved. AUDIT FINDINGS In the audit report, we presented eight findings and recommendations related to the use of Board/MVAD resources and veterans' services/claims processing. In the following sections, we list the eight audit recommendations and provide an assessment of implementation status. Prior Audit Recommendation #1 We recommend the Board/MVAD and the Department ofMilitary Affairs seek legislation to revise statute to reflect cemetery oversight by the Board/MVAD. Follow-up review The 2003 Legislature revised statute, assigning responsibility : for cemetery oversight to the Board, effective January 2004. Status Implemented. : Prior Audit Recommendation #2 We recommend MVAD improve veterans' services by upgrading management information systems and communications equipment. Follow-up review The division administrator developed a proposed budget of : $63,680 (approximately $7,500 for each field office) for fiscal year2005 management information systems upgrade. The federal Department ofVeterans' Affairs is currently in the process ofupgrading their management system (used MVAD for veterans' claims management) and has determined it is appropriate to wait until the federal system is installed and operating. Funding forthe system upgrade is based on projections stemming fi-om the $.50 veterans' automobile license fee approved by the 2003 Legislature. We noted service officers continue to use personal cell phones. Status Being Implemented. : Prior Audit Recommendation #3 We recommend MVAD evaluate stafftravel efficiency and develop alternatives for providing rural outreach services. MVAD Follow-up review reassigned staffto improve travel coverage and : provide outreach to more veterans. While the intent ofour recommendation was to identify and assess alternative travel and outreach locations, the administrator made initial decisions based on staffturnover and a reduction in force occurring as a result ofthe 2002 Special Legislative Session. The additional funding Legislative Audit Committee Members August 2003 Page 3 provided by the 2003 Legislature provides for three additional FTE, effective January 2004. With these new positions, the administrator plans to replace the officer lost due to the reduction in force and establish an office responsible for the Hi-line area and the four Indian reservations in northern Montana. In addition, current plans reflect the establishment ofa mobile service office. Based on the mobile service office concept used by other states, the administrator expects to provide outreach to more rural Montana areas. Status Being Implemented. : Prior Audit Recommendation #4 We recommend MVAD establish a comprehensive quality control process, including on- site review. Follow-up review Our recommendation focused on using the senior service : officer for on-site quality control reviews ofveterans' claims. The senior service office will be providing outreach coverage until January 2004. As a result, while the administrator supports and intends to implement an on-site quality control process, this recommendation will not be implemented until January 2004 when the additional service officers are in place. Status Not Implemented. : Prior Audit Recommendation #5 We recommend the Board/MVAD establish policy for key activities including: records management, claims evidence standards, outreach materials, home visits, overtime, and outreach facilities. Follow-up review We found the administratorhad provided a memorandum to : service officers addressing each ofthe activities identified in our audit report. However, our field observations indicated reluctance by staffto comply with all aspects ofthe memorandum. The result is the level and types ofservices provided to veterans across the state continue to be inconsistent. The administrator indicated the intent to develop a standard operating procedures manual to address these types ofactivities and incorporate them into their training program. The administrator is evaluating examples ofprocedures manuals obtained fi-om other states. Status Partially Implemented. : Prior Audit Recommendation #6 We recommend MVAD review and revise technician and officer classifications to reflect current duties and responsibilities. Follow-up review During August 2003,job profiles for veterans' service : technicians and officers are being updated to reflect common duties and responsibilities. Re-classification is scheduled following the profile update. For those field offices with two staff, one will be designated the lead. However, both Legislative Audit Committee Members August 2003 Page 4 will be responsible for the fiill range ofservice provided to veterans. Re- classification should improve office flexibility and veterans' support. Status Implemented. : Prior Audit Recommendation #7 We recommend MVAD strengthen stafftraining by providing additional training and formalizing a mentoring methodology. Follow-up revieyy The administrator initiated an approach to training that relies : on utilization ofveterans' service professionals rather than available in-house expertise. To support this training approach, the administrator budgeted $35,000 annually. Our recommendation to implement a mentoring approach has not been formalized because ofstaffturnover and the reduction in force. The administrator continues to support this concept and expects to implement it when the additional service officers are in place in January 2004. Status Partially Implemented. : Prior Audit Recommendation #8 We recommend MVAD establish a workload evaluation methodology to assess staff activities and work priorities. Follow-up review The administrator indicated workload prioritization focused : on maintaining veterans outreach. The need to hire and train new staffby January 2004 is the next priority. Discussions with field staffindicate they continue to submit the types offield statistics identified during the original audit. Staffdo not believe this data provides abasis for management or workload decision-making. Status Not Implemented. : OVERALL FOLLOW-UP CONCLUSION MVAD Based on information provided by and our observations, it appears audit MVAD recommendations are either implemented or has adequately demonstrated their intent to complete implementation. As a result, we conclude no further audit work is necessary. Since significant implementation effort is planned for the period after January MVAD? 2004, does the Committee want additional implementation status reported by TC:I:ADMIN:PERFORM:VA;02P-07followup.mem-doc;lic