Overview
During the audit period, the Office of the State Treasurer and Receiver General’s (OST’s) Veterans’ Bonus (VB) Division did not pay certain approved VB claims correctly. Specifically, we found that 5 (21%) of the 24 amended claims that we tested were inaccurately voided, resulting in eligible veterans not receiving their bonus payments. The bonus payments were delayed by an average of approximately 540 days between the date of the claim approval and the date of the bonus payment issuance. These bonus payments totaled $3,800 in VBs. These payments were not issued until after we brought this finding to OST’s attention, at which time the claims were corrected and the veterans subsequently received their due payments.
All other claims that we reviewed were processed correctly, indicating that the processing errors may have been limited to these specific amended claims.
If OST’s VB Division does not ensure that all eligible VB claims are processed correctly, then eligible veterans may experience delays in receiving their payments or may not receive them at all. Such delays could reduce confidence in the Commonwealth’s ability to effectively administer programs established for veterans.
Authoritative Guidance
The “Procedures for Implementation” section of the VB Division’s “Application Review Policy” states that “the bonus applications are processed for payment in a timely manner.” Additionally, the VB Division’s “Determination of Eligibility Policy” states that “the purpose of this policy is to provide a uniform eligibility determination process for Veterans’ Bonus applications to ensure that eligible applicants are paid in a timely manner.”
According to the VB Division’s website, “payments take approximately 4–6 weeks to process and deliver, via mailed check.”
Reasons for Issue
VB claims are submitted to the Massachusetts Management Accounting and Reporting System (MMARS) in batches. If MMARS detects errors, such as batch processing10 errors or invalid vendor codes, then it voids all claims within the affected batch. The claims in question and referenced in this finding were part of batches voided for such reasons. These claims should have been promptly recreated or reprocessed by the VB Division; however, it did not do so. OST’s VB Division did not have adequate monitoring controls in place to ensure that claims voided by MMARS were reviewed for accuracy and reprocessed, if necessary.
Recommendation
OST’s VB Division should implement adequate monitoring controls to ensure that claims voided by MMARS are reviewed for accuracy and reprocessed, if necessary.
Auditee’s Response
The OST’s VB Division agrees with this finding and understands the importance of having adequate controls in place to ensure that all claims are completed accurately and timely. We are currently in the final phase of transitioning to a new system to process claims. The system is designed to flag claims that have been rejected by MMARS and will ensure that those claims are recreated in a timely manner. In addition, we are in the process of reviewing and updating our policies and procedures for processing claims.
Auditor’s Reply
Based on its response, OST is taking measures to address our concerns regarding this matter. As part of our post-audit review process, we will follow up on this matter in approximately six months.
| Date published: | December 18, 2025 |
|---|