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An inspector general report has said the Navy is not effectively managing the Federal Employees Compensation Program, finding that components did not consistently take actions “such as assigning staff, completing chargeback reviews, and tracking and monitoring overpayments.”
That occurred because Navy headquarters has not issued needed guidance to components nor monitored how they are implementing the injury compensation program, which over 2019-‘21 resulted in costs above $490 million, a report said.
And while injury compensation program administrators generally processed claims as required, they didn’t always maintain the types of records needed to review long-term claim files “or identify claimants who could return to work.” That bears attention due to the “high number of long-term claims,” it said—in a sample of 180, all but 10 had been ongoing longer than two years.
Eight of the 11 commands that auditors reviewed further did not track whether identified overpayments had been repaid, it said.
It said the Navy agreed to develop a single source of guidance, re-establish FECA assessments, require annual refresher training, and identify the personnel needed to more tightly oversee the program.
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