**October 1, 1992 M21-1, Part V**

**Change** **2**

## CHAPTER 9. AUTHORIZATION AND THE 501 SCREEN

## CONTENTS

# PARAGRAPH PAGE

9.01 Authorization Policy 9-1

9.02 Screen Data 9-2

**9-i**

**October 6, 2004 M21-1, Part V**

**Change 32**

**CHAPTER 9. AUTHORIZATION AND THE 501 SCREEN**

**9.01 AUTHORIZATION POLICY**

a\. **Basic Requirements**. All awards and disallowances generated under
the CADT or CADJ commands are subject to review and approval by both a
Veterans Service Representative (which includes an employee classified
as a Veterans Claims Examiner) and an authorizer. The authorization
command (CAUT-C&P) authority should be limited to GS-11 and GS-12
Veterans Service Representatives (or Veterans Claims Examiners) or
higher. The separate authorization for burials (CAUT-BUR) may be issued
to employees below the GS-11 level. The signatures and dates will be
entered in the spaces provided on the award document prior to
authorization (CAUT) on the 501 screen.

*Note 1:* All award documents must be signed in *ink*.

*Note 2:* For the purposes of this manual, unless stated otherwise, the
term "Veterans Service Representatives" includes Veterans Claims
Examiners.

b\. **Three-Signature Awards**. Three signatures will be required for
awards where the retroactive payment of any benefit exceeds \$25,000.
After the Veterans Service Representative (VSR) has signed the award,
the GS-11/12 VSR will review the award for accuracy. The GS-11/12 VSR
will sign and date the award in the lower right hand margin
***beneath*** the signature block. The award will then be submitted to
the Veterans Service Center Manager (VSCM) or supervisory designee not
lower than coach for review. The VSCM or supervisory designee will
authorize (CAUT) the award on the 501 screen. If a retroactive award
exceeding \$25,000 involves an incompetent beneficiary, forward it to
the supervisor of the Fiduciary Activity for review of the payment
method ***before*** payment is authorized.

\(1\) The VSCM or supervisory designee not lower than a coach will sign,
date and add his or her title in the signature block located at the
lower right hand margin on the award document.

\(2\) Although a BDN-generated message, "AWARD OVER 1 YEAR RETRO --
REVIEW IF INCREASE" will be printed on the award document with an
effective date more than 1 year in the past, a third signature is
necessary only when the payment exceeds \$25,000.

\(3\) A BDN-generated message, \"POTENTIAL LARGE RETRO − REVIEW,\" will
be printed on the award document whenever the award data, without
consideration of prior pay, would indicate potential payment as
described above. Authorization will consider prior pay when determining
whether a third signature is necessary.

c\. **Importance of Accuracy**. Accuracy as to form and content is
essential.

\(1\) The signature on an award by a Veterans Service Representative or
authorizer is a certification the findings of fact and law therein are
correct and the person named thereon is entitled to the benefits
authorized under the provisions of the applicable laws.

\(2\) Absolute accuracy is especially important in entries of effective
dates and retroactive data where errors may not be detected by computer
edit or audit.

**9-1**

**M21-1, Part V October 6, 2004**

**Change 32**

**9.02 SCREEN DATA**

a\. **TRANSACTION**. The three-digit transaction code followed by AWARD
or DISALLOWANCE depending on the issue. Codes include (\* = Any Valid
Modifier):

11\* = C&P Original Award

13\* = C&P Amended Award

27 = C&P Disallowance

05\* = Burial Award

05\* = Burial Disallowance

09\* = Stop Payment

10\* = Suspend

16\* = Resume

b\. **RELATED ISSUES**. A display of all related issues on the PIF for
the file number. Displays a two-digit payee number followed by the
three-digit end product code for all claims and all payees on this file
number.

c\. **AUTHORIZED**. Used to indicate if a claim has been approved. Enter
a Y for approval or N if approval is not granted. If N is entered, no
other entries on the screen are permitted and the disposition screen
will be displayed for proper routing for required corrective action.
Destroy the award document print if authorization approval is denied.

d\. **SUPPLEMENTAL PAYMENT**. Use this field to indicate a supplemental
amount is being paid on a burial claim. The only valid entry is Y and
entry is restricted to burial awards.

e\. **COLLECTION CODE**. A code describing a debt owed to the government
from a previous award. Acceptable entries are 0, 1, 2 and 5. The data
for this field are entered by the Finance activity under the FISA
command and are displayed at the time of authorization. Prior to
authorization of an original or reopened award, review the M01 screen to
determine if there is any existing overpayment. If there is, refer the
file and the award to the Operations Section of the Finance activity.
The Finance activity will enter the appropriate collection code and
collection amount and notify the claimant of the action to be taken.

f\. **AMOUNT**. Entry must be completed as dollars, decimal and cents.
No entry is accepted if COLLECTION CODE is 2.

g\. **LETTER SUPPRESSOR**. If entered, the normally-generated
award/disallowance letter is precluded. The only valid entry is X. If
entered, no entries are permitted in the SPECIAL LETTER ATTACHMENTS
fields.

*Note:* During GAP processing, if the system determines it cannot
generate a letter, the letter suppressor will be automatically set and
the message DICTATED LETTER REQUIRED displayed. The specific reason why
a letter cannot be generated is printed as remarks on the dedicated
award print.

h\. **FOLDER PULL REQUIRED**. Used only for education issues.

**9-2**

**August 16, 1993 M21-1, Part V**

#  Change 5

i\. **SC DEATH PENDING**. Entry indicates payment of death pension
pending resolution of a claim for service-connected death. Entry will
result in appropriate notification being furnished in the award letter.

\(1\) The only valid entry is X.

(2) Benefit must be CPD.

(3) Payee must be 10, 11-19 or 31-39.

(4) If entered, a date is required in CONTINUE CONTROL SUSPENSE DATE and
    LETTER

SUPPRESSOR cannot be entered.

j\. **SECTION 156 REPS**. Indicates entitlement to reinstatement of SSA
benefits for DIC or DEA payee. May also be established on the M15
Screen. Enter Y to establish the indicator in the master record or N to
remove the REPS indicator from the master record.

\(1\) Benefit type must be CPD with payee number 10, 11-19 or 31-39.

\(2\) If entered for transaction 11, LETTER SUPPRESSOR cannot be
entered.

k\. **OVERPAYMENT PARAGRAPH**. The only valid entry is X. Use of this
indicator will result in appropriate notification being furnished in the
award letter.

1\. **AUD REL A/R**. This indicator is used to identify cases containing
a type 30B accounts receivable resulting from either an IG or GAO audit
and sets the indicator in the master record. Enter X to the left of the
legend. In the field to the right, enter the appropriate audit number as
furnished in the IG report. This is a nine-position field. If the IG
number is less than nine positions, preface with zeroes. If entered,
either the overpayment paragraph or letter suppressor must also be
entered.

m\. **CHANGE END PRODUCT**. This field is used to change the existing
EPC. The first two positions of the code entered cannot be the same as
the current end product code. The new code must be compatible with the
benefit and payee number. If entered, the ESTABLISH NEW ISSUE field
cannot be entered.

n\. **SERVICE VERIFIED**. Used to establish the verified indicator in
the BIRLS master record via a BMOD transaction. The only valid entry is
X.

o..**CONTINUE CONTROL SUSPENSE DATE**. If the authorization action being
taken is an interim action and the EPC is not to be cleared, enter the
applicable suspense date in any acceptable date format. If entered,
CANCEL PENDING ISSUE field must be blank.

**NOTE**: If the Continue Control option is selected, the operator can
enter a 200-series screen in the NEXT SCREEN field without completing
the ADD\'L DEVELOPMENT PARAGRAPH indicator.

p\. **RATING BOARD ACTION**. This field is now protected from entry.

**9-3**

**M21-1, Part V August 16, 1993**

# Change 5

q\. **CANCEL PENDING ISSUE**. Enter X if no work credit is to be taken
for the award or disallowance.

r\. **ESTABLISH NEW ISSUE**

\(1\) If review reveals an additional issue should be established on the
claim, enter the appropriate end-product code for the new issue in this
field.

\(2\) The Pending Issue Control Establishment Screen (101) will be
displayed. Available fields from the prior claim will be displayed when
the screen is presented. Make any appropriate entries as required for
CEST processing.

\(3\) If 707 is entered, the CHAPTER 31 ELIGIBILITY field must be X or Y
OR the LETTER SUPPRESSOR must be X.

s\. **SPECIAL LETTER ATTACHMENTS**

\(1\) **CLOTHING ALLOWANCE**. Enter X or Y if a clothing allowance
application is to be attached to the award letter.

\(2\) **SPECIALLY ADAPTED HOUSING**. Enter X or Y if an application for
specially adapted housing is to be attached to the award letter.

\(3\) **AUTOMOBILE ALLOWANCE**. Enter X or Y if an application for
one-time automobile allowance is to be attached to the award letter.

\(4\) **CHAPTER 31 ELIGIBILITY**. Enter X or Y if the claimant may be
entitled to CH31 benefits. If X or Y is entered, ESTABLISH NEW ISSUE
field must be 707 and entry cannot be made in LETTER SUPPRESSOR. If
entitlement is not an issue, N may be entered. If N is entered,
ESTABLISH NEW ISSUE cannot be 707.

\(5\) **SPOUSE CHILD CHAPTER 35 ELIGIBILITY**. Enter X or Y if spouse,
surviving spouse or child may be eligible for CH35 benefits. SPOUSE may
only be entered if the payee number is 00 with benefit type CPL or if
payee number is 10 with benefit type CPD. Entry in child is only valid
for payee 00, benefit type CPL, or payee 10, 11-19 or 31-39 with benefit
type CPD.

\(6\) **ADD\'L DEVELOPMENT PARAGRAPHS**. Enter X to access development
processing so that development paragraphs may be included with the award
letter. Enter the appropriate 200-series screen number in the NEXT
SCREEN field.

t\. **FILE NUMBER**. Used to authorize multiple C&P issues without
returning to the Ready Screen. To authorize another case, enter the file
number in this field in any acceptable format. Entry is prohibited when
the current issue being authorized is not CPL or CPD, when AUTHORIZED
entry is N or an entry is made in ESTABLISH NEW ISSUE or ADD\'L
DEVELOPMENT PARAGRAPHS.

u\. **PAYEE**. When entered, FILE NUMBER, EPC and BENE must be entered
on the same line. Use this field to further identify the next issue for
authorization. Entry is limited to valid C&P payees.

v\. **EPC**. When entered, FILE NUMBER, PAYEE and BENE must be entered
on the same line. Use this field to further identify the next issue for
authorization. Entry must be a valid C&P end product code.

**9-4**

**October 1, 1992 M21-1, Part V**

#  Change 2

w\. **BENE**. When entered, FILE NUMBER, PAYEE and EPC must be entered
on the same line. Use this field to further identify the next issue for
authorization. Entry must be CPL or CPD.

**NEXT SCREEN**. If AUTHORIZED entry is Y, no entry is required in this
field. The system will automatically dispose of issue to files. If N
option was selected, the S99 Screen will automatically be displayed. If
ADD\'L DEVELOPMENT PARAGRAPHS indicator was selected and no NEXT SCREEN
entry was made, the 200-menu screen will be displayed.

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

501 AUTHORIZATION XX-XX-XX

FILE NUMBER XXXXXXXXXXX-XX END PRODUCT XXX NAME X X XXXXX

TRANSACTION XXX XXXXXXXXXXXXX RELATED ISSUES

PAYEE \# EPC

X AUTHORIZED X SUPPLEMENTAL PYMT XX XXX

X COLLECTION CODE XXXXXXX AMOUNT XX XXX

X LETTER SUPPRESSOR X FOLDER PULL REQD XX XXX

X SC DEATH PENDING X SECTION 156 REPS XX XXX

X OVERPAYMENT PARAGRAPH X AUD REL A/R XXXXXXX

XXX CHANGE END PRODUCT X SERVICE VERIFIED

XXXXXXXX CONTINUE CONTROL SUSPENSE DATE X RATING BOARD ACTION

X CANCEL PENDING ISSUE X CHECK INTERCEPT REQD?

XXX ESTABLISH NEW ISSUE

X A/R DUE TO NO MITIGATING CIRCUMSTANCES?

SPECIAL LETTER ATTACHMENTS

X CLOTHING ALLOWANCE (21-8678)

X SPECIALLY ADAPTED HOUSING (26-4555)

X AUTOMOBILE ALLOWANCE (21-4502)

X CHAPTER 31 ELIGIBILITY (28-8890 28-1900)

X SPOUSE X CHILD CHAPTER 35 ELIGIBILITY (22-73-3 22-5490)

X ADD\'L DEVELOPMENT PARAGRAPHS

FILE NUMBER: XXXXXXXXXXX PAYEE: XX EPC: XXX BENE: XXXX NEXT SCREEN XXX

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

[FIGURE 9.01. AUTHORIZATION (501) SCREEN LAYOUT]{.underline}

**9-5**