**CONTENTS**

**CHAPTER 1. ADMINISTRATIVE ISSUES**

**SUBCHAPTER I. JURISDICTION AND TRANSFER**

PARAGRAPH PAGE

1.01 General 1-1

1.02 Jurisdiction between RPOs -- All Education Benefits

(Except Section 901) 1-\[3\]

1.03 Jurisdiction Over Foreign Training -- All Education Benefits

(Except Section 901) 1-\[4a\]

1.04 Transfer - ALL Education Benefits (Except Section 901) 1-\[4a\]

1.05 Special RPO Actions to Request Education Material From Claim
Folders

Located in a Different Regional Office 1-6

1.06 Reserved 1-6

1.07 Reserved 1-6

1.08 Reserved 1-6

1.09 Reserved 1-6

1.10 Reserved 1-6

1.11 Jurisdiction -- Section 901 1-6

1.12 Transfer -- Section 901 1-7

**SUBCHAPTER II. MAIL AND FOLDER PROCEDURES**

1.13 Mail Analysis 1-7

1.14 Division Mail Management 1-7

1.15 Reserved 1-7

1.16 Mail Classification 1-7

1.17 File Number Establishment 1-7

1.18 Folder Establishment 1-7

1.19 Filing Material in Folders 1-8

1.20 Files and Folder Control 1-9

**CONTENTS (CONTINUED)**

**SUBCHAPTER III. CONTROLS ON PENDING ISSUES\]**

PARAGRAPH PAGE

1.21 General 1-9

1.22 Pending Issue Control 1-9

1.23 Future Diary Control 1-10

1.24 Other Controls 1-10

1.25 BDN WIPP (Work-In-Process) Subsystem 1-11

**SUBCHAPTER IV. WORKFLOW**

1.26 General 1-11

1.27 Screening Education Claims and Issues 1-11

1.28 Claims Which May Be Processed Without Folders 1-11

1.29 Claims Which Should Be Processed With Folders 1-13

1.30 Processing Claims With Temporary Folders 1-13

**SUBCHAPTER V. DELEGATION OF AUTHORITY FOR EDUCATION CLAIMS**

1.31 Correspondence 1-14

1.32 Single Signature Authority 1-15

**SUBCHAPTER VI. FILE NUMBER ADJUSTMENTS**

1.33 General 1-15

1.34 Chapter 30 File Number Adjustments 1-15

1.35 Chapter 32 File Number Adjustments 1-15

1.36 Chapter 35 File Number Adjustments 1-15

1.37 Chapter 1606 File Number Adjustments 1-16

FIGURE PAGE

1.01 Consolidation List (by Station) 1-4

1.02 Consolidation List (by State) 1-4

**CHAPTER 1. ADMINISTRATIVE ISSUES**

**SUBCHAPTER I. JURISDICTION AND TRANSFER**

**1.01 GENERAL**

**a. \[Overview.** This chapter covers certain administrative aspects of
education claims processing. Topics include mail analysis, jurisdiction,
file number establishment, folder establishment, pending issue controls,
two signature requirements, and file number adjustments. The procedures
described below will be used by Education Division personnel. However,
if a particular function is performed outside the Education Division,
these procedures still apply. This chapter refers to paper folders as
well as the current electronic folder management system, currently
designated as TIMS (The Imaging Management System).\]

**b. RPO Responsibility**

\(1\) RPOs (Regional Processing Offices) are responsible for processing
education benefits under chapters 30, 32, 35 of title 38, U.S. Code,
chapter 1606 of title 10, U.S. Code, and section 903 of Public Law
96-342. For section 901 cases, see paragraph 1.11. Except for section
901 cases, see the following:

\(a\) Paragraph 1.02 for jurisdiction of the RPOs.

\(b\) Paragraph 1.03 for jurisdiction over foreign training.

\(c\) Paragraph 1.04 for transfer issues.

\(2\) If an RO (Regional Office) that does not process education
benefits receives an application for education benefits, that RO will
forward the application to the RPO with jurisdiction.

**c. RO \[Responsibility.\]** [All]{.underline} ROs (Regional Offices)
are responsible for the following:

\(1\) Handling requests for general information. (ROs should send
inquiries regarding specific claims and related information to RPOs.)

\(2\) Preparing chapter 35 extracts upon request of an RPO.

\(3\) Reserved for future use.

\(4\) Processing work-study claims for claimants within its
jurisdiction. (These claims are being consolidated at RPOs using the
Work-Study Management System. See pt. I, par. 9.02c.)

\(5\) Processing chapter 32 refunds for veterans within its
jurisdiction. This also includes death refund development and payments.
(RPOs have the option of consolidating these functions.)\]

**d. \[Paper Education Folders.** Paper folders are currently seldom
used and are seldom created. The four types of paper folders used in
processing education claims are listed below. The generic term
\"claimant\'s education folder\" is used extensively throughout this
chapter and refers to the folder types mentioned in this subparagraph
and subparagraph e. Although paper folders are seldom created (see
subpar. e), BIRLS (Beneficiary Identification and Records Locator
Subsystem) continues to indicate the existence of one of these paper
folder types for each case.

\(1\) [Claims Folder]{.underline}. This is a paper folder (as defined in
M21-1, pt. II, par. 2.04) containing an application for chapter 32,
chapter 1606, section 901, or section 903 benefits. Claims folders were
used to process chapter 32, section 903, and chapter 1606 benefits
before June 1994. Since June 1994, EDU (Education) folders were used for
these benefits. Section 901 continues to use claims folders.

\(2\) [Chapter 30 Folder]{.underline}. This is a two-part paper folder
containing an application for chapter 30. \[Initially, RPOs built
two-part grey folders for chapter 30 claims until the stock of those
folders was used up. Then the RPOs used kraft folders (light brown in
color) for chapter 30 claims. Paper folders are seldom currently used
due to electronic processing. See the NOTE below.\]

\(3\) [EDU Folder]{.underline}. This is a two-part kraft paper folder
containing an application for chapter 30, 32, 1606, or section 901 or
903 benefits. Paper folders are seldom currently used due to electronic
processing. See the NOTE below.

*NOTE: \[If claims for multiple benefits were received before October 1,
2000, BIRLS may indicate the existence of both a chapter 30 folder and
an EDU folder. This is because chapter 30 CEST (Claims Establishment)
processing created a chapter 30 folder in BIRLS and chapter 32 or 1606
CEST processing created an EDU folder in BIRLS. CEST processing was
changed effective October 1, 2000, to automatically create only an EDU
folder in BIRLS for chapter 30, 32, 1606 or section 903 benefits.\]*

\(4\) [DEA (Dependents\' Educational Assistance) Folder]{.underline}.
This is a two-part blue paper folder containing an application for
chapter 35 benefits. Paper folders are seldom currently used due to
electronic processing.

*\[NOTE: See pt. I, par 4.13j regarding temporary transfer of folders to
other ROs for hearings or so the claimant can review his or her
folder.)*

**e. Electronic Folder Management System.** Education processing
currently does not usually use paper folders. Most processing is done in
TIMS. (See pt. II, par. 1.19.)\].

**1.02 JURISDICTION BETWEEN RPOS - ALL EDUCATION BENEFITS (EXCEPT
SECTION 901)**

**a. General.** The following jurisdiction rules apply for all education
benefits except section 901:

\(1\) [School Known]{.underline}. If the claim is for enrollment in a
specific school or training establishment, the RPO with jurisdiction
over the school will have jurisdiction over the claim. \[This does not
apply to correspondence training, licensing and certification tests, nor
Tuition Assistance Top-Up.

*NOTE: Education Service is working to revise part IV, paragraph 1.09
for supplemental enrollments. When published, see that manual change for
supplemental enrollments.\]*

\(2\) [School Not Known]{.underline}. If the claim does
[not]{.underline} specify enrollment in a particular school or training
establishment, the RPO with jurisdiction over the claimant\'s place of
residence will have jurisdiction over the claim. If an enrollment
certification is later received showing jurisdiction of a different RPO,
the claimant\'s folder will be transferred to the RPO having
jurisdiction over the school\'s address. That RPO will then process the
education award.

> \(3\) [Correspondence School]{.underline}. If the claim is for
> enrollment in a correspondence or combination correspondence and
> residence school, the RPO with jurisdiction over the claimant\'s place
> of residence will have jurisdiction over the claim. If no folder
> exists for the claimant, that RPO will be responsible for creating the
> chapter 30, EDU, or DEA folder. That RPO will then process the
> education award.

\[(4) [Licensing and Certification Tests]{.underline}. The RPO with an
existing education folder will have jurisdiction over the licensing and
certification claim. If no education folder exists, the RPO with
jurisdiction over the claimant\'s residence address will have
jurisdiction.\]

\[(5) [Tuition Assistance Top-Up]{.underline}. The RPO with an existing
education folder will have jurisdiction over any tuition assistance
top-up claim. If no education folder exists, the RPO with jurisdiction
over the claimant\'s residence address will have jurisdiction.\]

\[(6) Figures 1.01 and 1.02 show each RPO\'s jurisdiction\] by RO and by
State.

  ------------------- --------------------- ---------------- ------------------
  **Buffalo**         **Muskogee**          **St. Louis**    **Atlanta**

  Baltimore           Albuquerque           Chicago          Columbia

  Boston              Anchorage             Denver           Jackson

  Cleveland           Boise                 Des Moines       Montgomery

  Hartford            Honolulu              Detroit          Nashville

  Huntington          Houston               Fargo            San Juan

  Manchester          \[\*Little Rock\]     Ft. Harrison     St. Petersburg

  Newark              Los Angeles           Indianapolis     Winston-Salem

  New York            Oakland               Lincoln          \[US Virgin
                                                             Islands\]

  Philadelphia        Phoenix               Louisville       

  Pittsburgh          Portland              Milwaukee        

  Providence          Manila (ch. 30)       Sioux Falls      

  Roanoke             \[\*\*New Orleans\]   St. Paul         

  Togus               Reno                  Wichita          

  Washington, DC      San Diego                              

  White River         Salt Lake City                         
  Junction                                                   

  Wilmington          Seattle                                

                      Waco                                   

                      \[Pacific Islands\]                    
  ------------------- --------------------- ---------------- ------------------

\[\* Jurisdiction for Little Rock changed from Atlanta effective April
1, 2002.

\*\* Jurisdiction for New Orleans to be changed from Atlanta effective
July, 1, 2002.\]

**Figure 1.01. Consolidation List (by Station)**

\[(6)\] Figure 1.02 shows the jurisdiction of education processing by
state:

  ------------------ ------------------ --------------- ------------------
  **Buffalo**        **Muskogee**       **St. Louis**   **Atlanta**

  Connecticut        Alaska             Colorado        Alabama

  Delaware           Arizona            Illinois        Florida

  Maine              \[\* Arkansas\]    Indiana         Georgia

  Maryland           California         Iowa            Mississippi

  Massachusetts      Hawaii             Kansas          North Carolina

  New Jersey         Idaho              Kentucky        Puerto Rico

  New York           \[\*\* Louisiana\] Michigan        South Carolina

  New Hampshire      Nevada             Minnesota       Tennessee

  Ohio               New Mexico         Missouri        \[US Virgin
                                                        Islands\]

  Pennsylvania       Oklahoma           Montana         

  Rhode Island       Oregon             Nebraska        

  Vermont            Philippines (ch.   North Dakota    
                     30)                                

  Virginia           Texas              South Dakota    

  Washington, DC     Utah               Wisconsin       

  West Virginia      Washington         Wyoming         

                     \[Pacific                          
                     Islands\]                          

                                                        
  ------------------ ------------------ --------------- ------------------

\[\* Jurisdiction for Arkansas changed from Atlanta effective April 1,
2002.

\*\* Jurisdiction for Louisiana to be changed from Atlanta effective
July, 1, 2002.\]

**Figure 1.02. Consolidation List (by State)**

**1.03 JURISDICTION OVER FOREIGN TRAINING - ALL EDUCATION BENEFITS**

**(EXCEPT SECTION 901)**

Special rules apply for determining jurisdiction in cases involving
foreign training.

**a. General.** Effective October 1, 1995, Buffalo will process foreign
enrollments for chapters 30, 32, 35, 1606, and section 903 with the
following exceptions:

\(1\) The Atlanta RPO will process all claims for training in Puerto
Rico and the U.S. Virgin Islands.

\(2\) The Muskogee RPO will process all chapter 30 claims if the school
is in the Philippines.

\(3\) The Manila RO will process all \[chapter 35 claims if the school
is in the Philippines\].

\(4\) The Muskogee RPO will process all claims for training in American
Samoa, Guam, Midway, Wake, any of the islands in the Federated States of
the Marshall Islands, the Republic of Micronesia, and the Republic of
Palau.

**b. Foreign Branches of U.S. Schools.** Foreign branches of U.S.
schools are under the jurisdiction of the RPO having claim processing
authority over the parent school.

**1.04 TRANSFER - ALL EDUCATION BENEFITS EXCEPT SECTION 901**

**a. Permanent Transfer**

\(1\) An RPO will transfer the claimant\'s \[electronic\] education
folder to another RPO when that RPO has jurisdiction (as indicated in
par. 1.02 or 1.03 above) upon receipt of an application for education
benefits indicating training under another RPO\'s jurisdiction; or upon
receipt of a request for transfer from an RPO holding an application for
education benefits.

\(2\) Folder transfer may be authorized by an employee \[whose position
or authority is specified by the Education Officer\].

\[(3) Before the RPO transfers the electronic folder, scan all paper
documents in a claimant\'s paper education folder and transfer all
information electronically to the second RPO. \].

*NOTE: Also see subparagraphs c through e and paragraph 1.05.*

**b. Exception to Permanent Transfer.** A folder can be temporarily
transferred under the following situations:

\(1\) Transferred to an RO for a personal hearing when the RO is located
near a claimant\'s address.

\(2\) Transferred to \[the Board of Veterans Appeals for appellate
review.\]

**c. Folders With Active Education Awards.** An RPO will not transfer an
education folder with an active education award (type A master record)
to another RPO before first stopping the running award. An education
clerk or adjudicator must review and develop to determine if the
claimant has terminated his or her enrollment at the school upon which
the award is based. After stopping the award, transfer the education
folder to another RPO if a valid reason applies. One example of a valid
reason is that the claimant states that she has stopped training to move
to another location (city and state) and will resume training in the
near future (at a specified date). RO personnel are expected to use good
judgment in accepting or rejecting the reason stated.

**d. Request of Director or Supervisory Designee.** When the Director or
supervisory designee, no lower than a section chief, considers that the
best interest of the claimant would be served, transfer the case to
another RPO, provided the claimant resides within the jurisdiction of
the RPO to which the folder is being sent.

**e. Transfer Procedures as Specified in M21-1**. Follow the procedures
outlined in M21-1 on the topics indicated below:

\(1\) [Procedures for Permanent Transfer - VA Employee-Veteran
Records]{.underline}. See M21-1, part II, paragraph 4.07.

*NOTE: Folders for veteran-employees, should be retained at the
employing station and stored in locked files. (See M21-1, pt. III, par.
2.07, regarding the processing of veteran-employee claims.)*

\(2\) [Records to Accompany Claims Folder - Permanent
Transfer]{.underline}. See M21-1, part II, paragraph 4.09.

\(3\) [Procedures for Permanent Transfer-Out of Claims
Folders]{.underline}. See M21-1, part II, paragraph 4.10.

\(4\) [Procedures for Permanent Transfer-In of Claims
Folders]{.underline}. See M21-1, part II, paragraph 4.11.

\(5\) [Procedures for Temporary Transfer of Claims Folders]{.underline}.
See M21-1, part II, paragraph 4.13.

\(6\) [Association of Miscellaneous Material With Records on Temporary
Transfer]{.underline}. See M21-1, part II, paragraph 4.14.

\(7\) [Procedures for Temporary Transfers to Central
Office]{.underline}. See M21-1, part II, paragraph 4.15.

\(8\) [Processing and Disposition of Folders in Litigated
Cases]{.underline}. See M21-1, part II, paragraph 4.16.

\(9\) [Procedures for Control of Folders Eligible for COVA (United
States Court of Veterans Appeals) Review]{.underline}. See M21-1, part
II, paragraph 3.25. For transfer of these folders, see M21-1, part II,
paragraph 4.18.

**1.05 SPECIAL RPO ACTIONS TO REQUEST EDUCATION MATERIAL FROM CLAIMS
FOLDERS LOCATED IN A DIFFERENT REGIONAL OFFICE**

**a. General.** Claims folders were used to process chapter 32, section
903, and chapter 1606 benefits before June 1994. There remain many
folders at ROs and at the RMC (Records Management Center) containing
education claims. Only those claims folders having active master records
as of a certain date (normally 2 years before transfer to an RPO) were
selected for review and transfer during consolidation actions.
Additional claims folders containing education material were not
selected for the initial consolidation review. When appropriate, the RPO
will need to request ROs to transfer education material residing in
those claims folders.

**b. RPO Actions.** When an RPO receives a claim, the RPO should bring
this claim under control as described in paragraph 1.22. Normally, this
involves processing a CEST (Claims Establishment) action for the claim.
CEST action for chapters 32, 1606, and section 903 will automatically
create an EDU folder in BIRLS. If BDN shows that the claimant has a
master record (M21), the RPO should contact the RO having jurisdiction
over the claims folder and request that the RO review the claims folder
for material which may affect the education claim. (If the claims folder
is located at the RMC, the RPO should request transfer of it.) The RPO
can contact the RO using E-Mail, fax, or telephone.

**c. RO Actions.** The RO will review the claims folder and take
appropriate action depending on what material is in the claims folder:

\(1\) If the claims folder has both C&P and education material, the RO
should remove all education material (along with any necessary
supporting documents such as a certified copy of DD Form 214) and send
it to the RPO.

*NOTE: Before transferring the education material, make copies of any
certified copies of supporting documents. Annotate the copies according
to M21-1, part IV, paragraph 9.03.*

\(2\) If the claims folder has only education material, the RO should
transfer the claims folder to the RPO. When the RPO receives the claims
folder, the RPO should consolidate all information into the EDU folder.

\(3\) If the claims folder is no longer needed, the RPO will notify the
RMC Administrative Unit (formerly the BIRLS Adjustment Unit) to delete
the claims folder from BIRLS and replace the information for the claims
folder with the system code \"NFE C32.\" The RPO can contact the RMC
Adjustment Unit by directing E-Mail to \[\"VAVBASTL/RMC/UPD\].\" (This
\"NFE C32\" code indicates that a claims folder previously existed and
was converted to an education folder.)

**1.06 RESERVED**

**1.07 RESERVED**

**1.08 RESERVED**

**1.09 RESERVED**

**1.10 RESERVED**

**1.11 JURISDICTION - SECTION 901**

The Waco RO has jurisdiction over [all]{.underline} claims for section
901 benefits.

a\. A folder containing an application for section 901 benefits will be
considered the equivalent of a claims folder and will be under the
jurisdiction of the Waco RO. (See par. 1.12 for converting a claims
folder to an education folder if the veteran submits a claim for
compensation or pension.)

b\. An application for section 901 benefits submitted with or without an
enrollment certification will be forwarded to the Waco RO for initial
processing, to include file number assignment and claims folder
establishment (see subch. II).

**1.12 TRANSFER - SECTION 901**

The claims folder of a veteran or serviceperson will be transferred to
the Waco RO upon receipt of an application for section 901 benefits, or
upon receipt of a request for transfer from the Waco RO. An RO will
transfer the claims folder to the Waco RO regardless of whether or not
there is an active C&P master record. The claims or education folder can
contain information or applications from the veteran\'s dependent if the
veteran has transferred section 901 entitlement to a dependent. Other
transfers may be made as follows:

**a. Claim for Compensation or Pension Involved.** If the section 901
claim was processed using a claims folder and the veteran then submits a
claim for compensation or pension, the Waco RO will build an education
folder and rejacket all section 901 material into the education folder,
permanently transfer the claims folder to the RO having compensation and
pension jurisdiction, and retain the education folder.

**b. Claims Inactivated or Disallowed.** If a section 901 claim has been
disallowed or becomes inactive, the Waco RO will retain the claims
folder unless there is a compensation or pension award involved. If
compensation or pension is being paid, the Waco RO will take the actions
specified in subparagraph a.

**SUBCHAPTER II. MAIL AND FOLDER PROCEDURES**

**1.13 MAIL ANALYSIS**

The processing of education claims or issues begins with the analysis of
incoming mail at an RO. The overall mail management program is the
responsibility of the Administrative Support or Support Services
Division, under M23‑1, part I, chapter 1. Education mail is any form
with a 22 prefix or any document which pertains to a benefit covered by
this manual. (See pt. I, ch. 1, for the list of benefits.) Some
education mail constitutes a formal or informal claim for benefits. (See
ch. 3.) All mail received from the public must be properly analyzed to
determine the appropriate action. Since there are numerous VA education
benefits, multiple computer databases to consider, several types of
claimant folders, and variable station jurisdiction over claims, *it is
essential that education mail be analyzed by persons qualified to
determine the proper action.* Otherwise, education mail may be misrouted
or mishandled, resulting in unnecessary delays and mistakes.

**1.14 DIVISION MAIL MANAGEMENT**

Apply M21-1, part II, paragraph 1.07.

**1.15 RESERVED**

**1.16 MAIL CLASSIFICATION**

Apply M21-1, part II, paragraph 1.09.

**1.17 FILE NUMBER ESTABLISHMENT**

Apply M21-1, part II, paragraphs 2.02 and 2.03.

**1.18 FOLDER ESTABLISHMENT**

**a. All Education Folder Establishment.** Apply M21‑1, part II,
paragraphs 2.04 through 2.09.

*NOTE 1: For chapter 32 refund requests, an education folder will not be
established and a file number will not be assigned through BIRLS.*

*NOTE 2: See part VII, paragraph 8.03, for chapter 35 claims
establishment procedures to establish a BID record and a DEA folder.*

**b. Additional Chapter 30 Folder Procedures.** Each RPO will establish
a chapter 30 folder for chapter 30 claims in its jurisdiction. A chapter
30 CEST action should automatically establish a chapter 30 folder in
BIRLS. (See pt. II, par 6.04, for CEST information.)

**c. Additional EDU Folder Procedures.** Each RPO will establish an EDU
folder for chapters 32, 1606, and section 903 claims in its
jurisdiction. A chapter 32, 1606 or section 903 CEST action should
automatically establish an EDU folder in BIRLS.

*NOTE: \[If a veteran has both types of folders, RPOs have two options;
to retain both folders, or to destroy one folder and retain only one
folder. If the RPO decides to destroy the second folder, the RPO needs
to request the Records Management Center BIRLS Adjustment Unit to delete
that folder from BIRLS. To do this, send an Exchange E-mail to
\"VAVBASTL/RMC/UPD.\" RPOs must establish a physical folder or a TIMS
folder to reflect each folder shown in BIRLS.\]*

**1.19 FILING MATERIAL IN FOLDERS**

**a. Removal of Unnecessary Material.** Only documents and forms with
probative value will be maintained in a claimant\'s education folder.
Dispose of material which does not directly support a claim or a VA
award action, including duplicate or redundant material, in accordance
with Records Control Schedule VB‑1, part I, item \# 13-052.200. (See
M21‑1, pt. II, par. 2.08, for a listing of some of the material which
may be removed as unnecessary.)

*NOTE: All individuals who handle claims, EDU, DEA, and chapter 30
folders should be careful not to destroy or discard any material which
may have value to the claimant. When such material is no longer
necessary for documentation, return the material to the claimant with an
explanatory letter.*

**b. Order of Filing Material in Claims Folders.** See M21-1, part II,
paragraph 2.08.

**c. Order of Filing Material in EDU, DEA, and Chapter 30 Folders**

\(1\) File all authorization documents relating to awards and
disallowances on the left flap. These include but are not limited to the
following:

\(a\) All BDN award prints, disallowances, records of payments and
overpayments, and other award forms, and copies of \"quit\"
certifications of attendance.

\(b\) Copies of \[BDN\] NOE (Notice of Exception) messages and other
computer-generated notices.

\(c\) Documents listed in M21-1, part II, paragraph 2.08f(1).

\(2\) File all applications, award letters, and any other type of
evidence such as birth certificates, marriage certificates, divorce
decrees, legal documents, and any other permanent type of adjudicative
material on the right flap. These include but are not limited to the
following documents:

\(a\) Applications.

\(b\) Records of service.

\(c\) Records of dependency.

\(d\) Administrative decisions.

\(e\) DOD (Department of Defense) records (e.g., 30D/DOD screens, DD
Forms 214).

\(f\) Correspondence (including computer-generated letters).

\(g\) Enrollment certifications, notices of change in student status,
and certification of attendance and verification of pursuit forms (e.g.,
VA Form 22-1999, VA Form 22-1999b, Notice of Change in Student Status -
Institutional Courses Only; VA Form 22-6553, Verification of Pursuit of
Course; VA Form 22-8979, Student Verification of Enrollment).

\(h\) Power of attorney forms or statements of representation (e.g., VA
Form 23-22, Appointment of Veterans Service Organization as Claimant\'s
Representative; VA Form 2-22a, Appointment of Attorney or Agent as
Claimant\'s Representative). These forms will be back filed so as to
remain at the top of all documents. (See M21-1, pt. III, ch. 12,
regarding procedures for processing powers of attorney.)

\(i\) Copies of VA Form 22-1993a, Certificate of Eligibility.

\(j\) Other legal documents.

**1.20 FILES AND FOLDER CONTROL**

Apply the procedures in M21-1, part II, chapter 3.

**SUBCHAPTER III. CONTROLS ON PENDING ISSUES**

**1.21 GENERAL**

The Adjudication Division uses controls to insure that appropriate,
timely action is taken on claims and other issues requiring action
(e.g., receipt of VA Form 22-1999). Types of controls and how they are
established, cleared, and canceled are detailed in M21-1, part V,
chapter 16, subchapters I & II.

**1.22 PENDING ISSUE CONTROL**

Pending issues *must* be established for all formal claims (see ch. 3
for definition) and for all other issues that require adjudicative
action. A PIF (Pending Issue File) is established on BDN through the
CEST, and CADJ (Claims Adjudication) commands. (See pt. II, ch. 6, for a
discussion of these commands.) For specific data entry procedures, see
M21-1, part II, paragraphs 1.05 and 1.06. Pending issue controls are
cleared under the CAUT (Claims Authorization) and PCLR (Pending Issue
Clear) commands and canceled under the PCAN (Pending Issue Canceled)
command.

EXCEPTION: Supplemental chapter 1606 claims requiring no development
will not be placed under pending issue control. This is because the
chapter 1606 interim BDN system will establish a PIF only through the
CEST command. See part VIII, paragraph 4.10.

**a. Suspense Dates.** Every pending claim or issue is assigned an EPC
(End Product Code) which has an automatic suspense date (i.e., date when
the pending issue requires review). Currently, every pending EPC will
have an automatic suspense date of 30 days except for EPC 270 (Notice of
Disagreement) which will have a suspense date of 60 days. If the
automatically generated control period is inappropriate for a particular
issue, enter the desired suspense date in the SUSPENSE DATE field on the
101 screen. (See Circular 22-91-7 for a list of the EPCs for education
issues.)

**b. Date of Claim.** The date of claim (required on the 101 screen)
will be the earliest date on which the claims document was received by
an RO. If the claim was handled by an U. S. embassy or consul, the date
of claim will be the earliest date in the embassy or consul. If multiple
documents are received on one claim, use the earliest date of receipt as
the date of claim. For example, an application may be received in the
New York RO on July 1, and not received in the Buffalo RPO (the office
of jurisdiction) until July 15. When establishing the pending issue
control, the Buffalo office must use

*July 1* as the date of claim.

**c. Timeliness.** All mail must be reviewed within 7 calendar days from
the date of receipt. A PIF must be established within this period (if
one does not already exist). This is true even if a claim cannot be
adjudicated within the 7-day period. It is permissible to establish a
PIF before the folder is pulled for review. However, before
establishment of the pending issue, all master records and PIFs already
existing for the file number should be reviewed through the SINQ (Status
Inquiry) command. This will reduce the possibility of the establishment
of an improper end product. The 7-day timeliness period will
[not]{.underline} be extended if a pending issue must be changed or
canceled and reestablished.

[EXCEPTION]{.underline}: The 7-day rule for establishing PIFs does not
apply to supplemental chapter 1606 claims unless development is
required. However, these claims should be worked within 7 days to the
extent possible.

**d. Final Disposition of BDN Pending Issue Control.** Leave the control
pending in BDN until [final]{.underline} resolution of [all]{.underline}
related issues.

**1.23 FUTURE DIARY CONTROL**

a\. A BDN future diary control is generally used when a control period
of more than 60 days is appropriate.

b\. When establishing a future diary control, the EPC entered on the
Ready screen is based upon the action required when the diary matures.
On the 101 screen, control code 39 is entered in the FUTURE DATE REASON
field, and the desired suspense date (at least 10 calendar days but not
more than 1 year in the future) is entered in the SUSPENSE DATE field.

c\. Upon maturity, the future diary control converts to a pending issue
control which may be cleared under the CAUT or PCLR command or canceled
under the PCAN command. Before maturity, a future diary control may be
canceled under the PCAN command.

**1.24 OTHER CONTROLS**

When necessary control cannot be maintained on BDN, an alternate method
of local control is VA Form 21-693, Diary Slip.

**1.25 BDN WIPP (WORK-IN-PROCESS) SUBSYSTEM**

The BDN WIPP (Work-In-Process) subsystem assists management in
identifying areas which require attention and analysis. It provides
information from the PIF concerning processing timeliness by end
product, during the current and previous calendar months, as well as
information on all cases in a pending status. (See M22-3, ch. 4,
regarding the use of WIPP review.)

**SUBCHAPTER IV. WORKFLOW**

**1.26 GENERAL**

a\. This subchapter provides general guidelines for the movement of all
types of education claims and issues through the Adjudication Division.
Each RPO should establish detailed workflow procedures according to that
office\'s unique conditions.

b\. See M21-1, part II, paragraphs 3.07 and 3.08, regarding the control
of active and file mail.

c\. See M21-1, part II, chapter 1, regarding claims establishment and
mail classification.

**1.27 SCREENING EDUCATION CLAIMS AND ISSUES**

Education claims and issues entering the Adjudication Division should be
screened and separated into two categories, those which may be processed
without reviewing the claimant\'s folder and those which should be
processed with the claimant\'s folder.

*NOTE: At field station discretion, claims and issues may be initially
separated into multiple subcategories within the two basic categories.*

**1.28 CLAIMS WHICH MAY BE PROCESSED WITHOUT FOLDERS**

**a. Claims Processing.** The decision whether or not to process an
education claim without the folder will depend on the type of claim
received.

\(1\) [Folder Required]{.underline}. Original applications or claims
involving education loans, tutorial assistance, NCD (Non‑College Degree)
enrollment, children over age 18, or changes of program or place of
training must be processed with the folder.

\(2\) [Folder Not Required]{.underline}. Most other types of claims can
be considered for processing without the folder. These include the
following:

\(a\) IHL (Institutions of Higher Learning) Enrollment Certifications
(VA Forms 22-1999, 22‑1999‑2, 22-1999-3) or IHL Reenrollment
Certifications (VA Forms 22-1999-1);

\(b\) Notices of Change in Student Status (VA Forms 22-1999b and
22-1999b-1 );

\(c\) Certifications of Delivery (VA Forms 22-1999V); or

\(d\) Certifications of Attendance (VA Forms 22-6553 , 22-6553b,
22-6553b-1, 22-6553c, 22-6553d and 22-6553d-1 ), and Verifications of
Student Enrollment (VA Form 22-8979 and 22-8979-1 ).

\(3\) NOE messages should be reviewed individually to see if the message
code under which the document was produced will require a review of the
folder in order to adjust the award.

**b. MINQ (Master Record Inquiry) Screen Review.** Before processing any
claim without the folder, review the BDN MINQ screen carefully to insure
that the claim is in order. The review also will help to determine the
proper EPC to assign to the pending issue.

\(1\) Compare the address on the claim document with the screen address.
If they differ, and the correct one cannot be determined, pull the
folder.

\(2\) Compare the school name or facility code on the document with the
screen facility code. If they are different, pull the folder for review.

\(3\) Check the reason code associated with last END DATE on the MINQ
screen. The folder should be pulled for review if any of the following
reason codes are on the last line of the award:

\(a\) Reason code 62 indicates unsatisfactory progress, conduct, or
attendance (interval pay is probably not appropriate).

\(b\) Reason code 64 indicates voluntary withdrawal (interval pay is
probably not appropriate).

\(c\) Reason code 65 indicates no (further) extensions of entitlement
are appropriate.

\(d\) Reason code 66 indicates the delimiting date has passed or will
pass.

\(e\) Reason code 99 indicates the record has been suspended or
terminated due to a change in DOD eligibility status.

\(4\) Check the PAY STATUS field on the screen to see if the claim is
suspended, requires a certificate of delivery, etc., and take action as
appropriate.

\(5\) When processing reenrollments, check to see if an interval payment
is in order. When it is appropriate, it should be entered via amended or
reentrance award.

\(6\) When processing IHL enrollments, check to see if the claimant may
be taking excessive credits in his or her program.

\(a\) If the claimant is in a 2-year program, routinely pull the folder
if he or she has already used more than 18 months of entitlement.

\(b\) If the claimant is in a 4-year program, routinely pull the folder
if he or she has used more than 30 months of entitlement.

\(7\) Check for a \"File Pull\" message at the bottom of the screen
(message legends for the various file pull indicator codes are shown in
pt. II, par. 9.09). If one of these messages is displayed, the EDU or
claims folder should be pulled for review. For chapter 30, there is a
message line. If an appropriate message is shown, pull the chapter 30
folder. (See subpar. d.)

**c. The File Pull Indicator for Chapters 32, 35, and 1606.** The file
pull indicator is a part of each claimant\'s education record and should
be used to identify unusual conditions which require special handling.
If a claim is being processed, and a condition is found which will
necessitate review of the folder in future processing, then set the
indicator.

\(1\) The indicator is set or deleted by entry to the BDN screen field
entitled FOLDER PULL REQUIRED. This field is accessible on the M24
screen under the CORR (Correction) command and on the 501 screen (under
the CAUT command).

*NOTE: The FOLDER PULL REQUIRED field is accessible in the interim
chapter 1606 system only on the 350 screen under the CAUT command. The
CORR command is not available for this system. If the folder pull
indicator is not set or deleted during normal award processing, the
adjudicator must process an amended chapter 1606 award to accomplish
this. The BDN letter generated by the amended award must be suppressed
and the award sheet annotated with the reason for the action.*

\(2\) All entry codes except \"Y\" relate to specific conditions which
require folder review. Entry code \"Y\" is a general purpose code used
when none of the others are appropriate. When the indicator is set in a
record, the appropriate message will be displayed on the M21, M22, M23,
M24, 406, 312, 412, 350, 351, 352, 353, and 501 screens.

\(3\) If a record\'s indicator has been set and it is no longer
required, then it should be deleted. The only acceptable entry to
*delete* the file pull indicator is \"0\" (zero). The letter \"O\" is
[not]{.underline} an acceptable substitute entry to delete the existing
indicator nor is it an acceptable entry to [set]{.underline} the
indicator.

**d. Message Line for Chapter 30.** The message line in chapter 30
records serves the same purpose as the pull file indicator does in
chapters 32, 35, and 1606 records.

**e. Processing Education Claims Without Folders.** The successful
processing of education claims without folders can be accomplished
without any significant increase in processing errors provided a careful
review of MINQ screens is coupled with the appropriate use of the file
pull indicator. All RPOs are encouraged to use this processing
capability as a means of expediting education claims, particularly
during periods of peak workloads.

**1.29 CLAIMS WHICH SHOULD BE PROCESSED WITH FOLDERS**

Claims and issues which should be worked with the claimant\'s folder are
forwarded to the Files activity for association with the folders. The
folders are then routed to the appropriate Authorization activity
personnel for claims processing. Priority attention is given to issues
involving potential benefit overpayments in order to eliminate or reduce
the amount of the debt.

**1.30 PROCESSING CLAIMS WITH TEMPORARY FOLDERS**

In some cases, a temporary folder may be established if the claims, EDU,
DEA, or chapter 30 folder is required and is not available.

**a. Limitations.** An award may be processed on a temporary folder
[only]{.underline} for an enrollment certification for reentrance in an
IHL or an institutional NCD course. The effective date of the enrollment
must be within 30 calendar days.

**b. Master Record Request.** In all claims with temporary folders,
obtain a complete MINQ. Review the master record for the claimant\'s
remaining entitlement, delimiting date or extended delimiting date, type
master record, facility code of last school, current program, ending
date of last award, dependency status, and the claims folder location.

**c. Review of Folder Location**

The individual reviewing the mail should check BIRLS to verify the
existence and location of a claims, EDU, DEA, or chapter 30 folder. If
any of the following conditions exist, the adjudicator or education
claims clerk should follow the procedures for reviewing, developing, and
processing an award as outlined in subparagraph d below:

\(1\) BIRLS shows that the folder is located in the processing RO, but
it cannot be physically located after normal search procedures have been
followed.

\(2\) BIRLS shows that the folder is located at another RO and more than
5 workdays have passed [since]{.underline} a request for folder
transfer.

\(3\) BIRLS shows that the folder is located in another RO and 5
workdays have passed *before* request for folder transfer has been made
and monies are due and payable. In this situation, an adjudicator or
education claims clerk will take the following actions:

\(a\) Call the office of folder location to obtain the necessary
information in order to award benefits.

\(b\) Request the other station to transfer the folder immediately via
the BDN BUPD (BIRLS Update) command.

*NOTE: Award action cannot be taken until the location of the folder in
BIRLS has been changed (via the BUPD command) to show the station number
of the processing office.*

\(c\) Complete VA Form 119, Report of Contact, to report the telephone
call to the other RPO requesting the temporary folder and to report any
additional information requested from the folder.

\(d\) See subparagraph b above regarding the use of MINQ to obtain the
information necessary to process the award.

**d. Review, Development, and Award Preparation With a Temporary
Folder**

\(1\) Review the enrollment document and take any necessary development
action.

\(2\) For chapters 32, 35 and 1606 cases, set the file pull indicator on
the M24 or the 350 screen to \"E\", TEMPORARY FOLDER HAS BEEN
ESTABLISHED. For chapter 30 cases, type the message in the appropriate
field on the M21 screen.

*NOTE: If the file pull indicator is already set for another code, do
not reset the indicator, and do not process an award until the folder is
received. Establish a diary for receipt of the folder.*

\(3\) When all the necessary information is received, prepare an award
on BDN and file all available documentation in the temporary folder.

\(4\) All evidence and award documents should be incorporated in the
claims, EDU, DEA, or chapter 30 folder when it is received in the
processing office.

**e. Circularization for Lost Folder.** If a folder cannot be located
after an extensive search has been conducted, follow the procedures for
circularization outlined in M21-1, part II, paragraphs 3.13 and 3.14.

**SUBCHAPTER V. DELEGATION OF AUTHORITY FOR EDUCATION CLAIMS**

**1.31 CORRESPONDENCE**

The Adjudication Officer may delegate authority to sign his or her name
to such categories of correspondence relating to education claims as he
or she deems advisable.

**1.32 SINGLE SIGNATURE AUTHORITY**

The Adjudication Officer, at his or her discretion, may designate single
signature authority. This authority can be to specific individuals or
for specific types of actions. Such authority allows individuals to
approve award actions with only the signature of an adjudicator or
education claims processor in the space for approval. Single signature
authority will be given based on demonstrated competence in education
award processing. The actions listed below, however, must be reviewed
and signed by \[two or more persons\] unless otherwise indicated:

a\. Original basic eligibility determinations and changes in basic
eligibility.

*NOTE: For original chapter 35 eligibility determinations, Adjudication
Officers can give single signature authority to specific claims
examiners.*

b\. Awards for claimants who are VA employees.

c\. Awards resulting from administrative decisions.

d\. Chapter 30 awards involving use of an override indicator for the
rate of eligibility.

\[e. Awards in excess of \$4,000. Awards in excess of \$4,000 require
three signatures (i.e., an adjudicator or education claims processor, an
authorizer, and the Adjudication Officer or designee no lower than a
unit chief).\]

*NOTE 1: Administrative decisions, while not strictly awards, must be
reviewed and signed by a unit chief, section chief, or the Adjudication
Officer, as required by regulations or other publications.*

*NOTE 2: Currently, BDN \[requires two signatures in certain cases where
this paragraph does not require two signatures.\] Until these BDN edits
are removed, \[RPOs\] can approve these awards by having the second
individual approve the award (CAUT command) without reviewing the
claimant\'s folder. Ensure that inappropriate letters are suppressed and
controls are maintained.*

*NOTE 3: RPOs using optical disk technology do not have to physically
sign awards.*

**SUBCHAPTER VI. FILE NUMBER ADJUSTMENTS**

**1.33 GENERAL**

BDN automatically assigns file numbers to claimant\'s records as part of
CEST processing. (See M21-1, pars. 2.02 and 2.03). However, other
procedures (such as DUPC - Duplicate Record Consolidation or CNUM -
Change of File Number) require ROs to adjust the file numbers shown on
folders or to take other actions.

**1.34 CHAPTER 30 FILE NUMBER ADJUSTMENTS**

See part V, paragraphs 2.22 and 2.23.

**1.35 CHAPTER 32 FILE NUMBER ADJUSTMENTS**

Information to be place in part VI, paragraph 4.16.

**1.36 CHAPTER 35 FILE NUMBER ADJUSTMENTS**

For chapter 35 file number adjustments, see part II, chapter 8,
subchapter II. For DUPC (Duplicate Record Consolidation) actions, see
paragraph 8.08. For CNUM (Change of File Number) actions, see paragraph
8.09.

**1.37 CHAPTER 1606 FILE NUMBER ADJUSTMENTS**

For chapter 1606 file number adjustments, see part VIII, paragraph 4.20.