**CHAPTER 8. ACCRUED AWARD/DISALLOWANCE PROCESSING**

**CONTENTS**

PARAGRAPH PAGE

8.01 General 8-1

8.02 Completion of the 407 Screen 8-1

8.03 Authorization. 8-3

8.04 Notice of Award. 8-3

**CHAPTER 8. ACCRUED AWARD/DISALLOWANCE PROCESSING**

**8.01 GENERAL**

Payment or disallowance of accrued benefits is accomplished through
entries on the 407 Screen, Accrued Award/Disallowance. For information
on determining entitlement/eligibility to accrued benefits, see part IV,
chapter 27.

**8.02 COMPLETION OF THE 407 SCREEN**

The 407 Screen may be accessed under the CADJ command after
establishment of the issue (CEST with payee number 00, end product code
165, benefit type CPD). Enter the command CADJ, password, Screen number
407 and the applicable file number on the Ready Screen. An accrued award
may only be processed if the master record type is D or E or there is no
master record. The 407 Screen is divided into three entry areas: Address
Data, Disallowance Reason and Award Data.

a\. **Address Data.** The claimant\'s name and address are displayed as
entered during claims establishment. The line following the claimant\'s
name must contain \"A/C\" (account of) followed by the veteran\'s
initials and surname. Verify both the accuracy of the address segment
and that the person indicated is the proper claimant. The payment check
or disallowance letter is mailed to the name and address shown. If any
part of this field is incorrect, make the required corrections.

b\. **Disallowance Reason.** Indicate the reason for disallowance of
accrued payments by entering an X in front of the appropriate reason
legend shown or OTHER. Only one reason can be entered. The payment
portion of the screen must be blank if a disallowance reason is entered.

c\. **Award Data.** The third section of the screen is used to enter
data necessary for payment of accrued benefits to the claimant.

\(1\) **REIMBURSEMENT.** Enter an X in this field if the claimant paid
the last illness or burial expenses or assumed responsibility for any
debts of the deceased. If entered, RELATIONSHIP must be blank **AND**
TOTAL EXPENSES must be entered.

\(2\) **TOTAL EXPENSES.** This refers to the total dollar amount of
expenses incurred for the veteran\'s last illness and burial or any
outstanding debts of the deceased. Enter the exact amount in dollars and
cents (99999.99). This entry must be greater than or equal to AMT PAID
BY PAYEE. If entered, RELATIONSHIP cannot be entered.

\(3\) **AMT PAID BY PAYEE.** This represents the amount paid by the
claimant as shown by approved receipted bills. Enter the exact amount in
dollars and cents. If entered, an entry is required in TOTAL EXPENSES.

\(4\) **RELATIONSHIP.** Entry in this field indicates entitlement based
on the claimant\'s relationship to the deceased. The only allowable
entry is X and, if entered, REIMBURSEMENT cannot be entered.

\(5\) **THIS SHARE.** Enter the number of persons being awarded payment
of the accrued amount available on **THIS** award. The required entry
will normally be 1 except for consolidated awards or if one claimant is
being awarded the share of any disqualified claimant (including any
claimant who fails to apply timely). If only an additional share or
shares is authorized by supplemental award, enter the number which
reflects the number of additional shares paid on this award.

\(6\) **ENTITLED.** Enter the total number of persons in the preferred
class entitled to share in the accrued amount available without regard
to whether or not claim has been made by all.

\(7\) **ENTITLEMENT CODE.** Enter the entitlement code under which the
deceased would have received the accrued amount. If a master record is
present, the code entered must match the master record entitlement code.
This entry is required unless a DISALLOWANCE REASON is entered.

d\. **Pay Option Entries.** At least one of these fields must be entered
to make a payment. To calculate the amount that will be paid, all three
pay fields are added together to produce the total payable. If the
REIMBURSEMENT fields have entries, the AMT PAID BY PAYEE is compared to
the total payable as computed. The lesser of the two minus any offset
amount is the amount to be paid.

\(1\) **PROCEEDS.** The accumulated amount of all returned and canceled
checks as well as any amount accruing from termination of compensation
or pension by death. In dollars and cents, enter the amount of proceeds
as shown in the master record. If a master record exists, the amount
entered is compared with the amount contained in the master record.

\(2\) **LUMP SUM.** In dollars and cents, enter the amount withheld by
reason of the hospitalization of a competent veteran (38 CFR 3.551b).

\(3\) **COMPUTED AMOUNT.** Enter this field if system generation of the
amount due is desired. Use this field if the deceased had all evidence
on file to entitle him or her to a retroactive award or increase that
had not yet been awarded at the time of death.

\(a\) **Indicator.** Enter an X to the left of the legend, COMPUTED
AMOUNT, to indicate the system should compute the total amount payable.
This is the only valid entry. If entered, at least one set of FROM, TO
and GROSS DUE fields must also be entered.

\(b\) **FROM (four occurrences).** For payee 00, this entry must be
earlier than the first of month of death in the BIRLS record. For payees
other than 00, entry must be earlier than the first of the current
month. If entered, TO and GROSS DUE must be entered on the same line
**and** PROCEEDS and LUMP SUM cannot be entered. This date must be
earlier than the TO date on the same line.

\(c\) **TO (four occurrences).** For payee 00, this entry must be
earlier than the first of the month of death in the BIRLS record. For
payees other than 00, the entry must be earlier than, or equal to, the
first of the current month. If this field is entered, FROM and GROSS DUE
must be entered on the same line and PROCEEDS and LUMP SUM cannot be
entered. This date must be later than the FROM date on the same line and
earlier than the FROM date on the next line if a next line is entered.

\(d\) **GROSS DUE (four occurrences).** Enter the monthly amount of the
award to which the deceased was entitled during the period entered in
FROM-TO fields. If entered, an entry is required in FROM and TO on the
same line.

\(e\) **PREV GROSS (four occurrences).** Enter the monthly amount, if
any, that the deceased actually received during the period shown in
FROM-TO fields. This entry must be less than the GROSS DUE.

\(f\) **OFFSET AMOUNT.** If the deceased owed VA money for any reason,
it must be recouped before any accrued payments can be made. Enter the
exact amount to be recouped in dollars and cents. If entered, an entry
in APPLY TO PAYEE is required.

\(g\) **APPLY TO PAYEE.** Enter the payee number of the deceased. If
entered, an entry in OFFSET AMOUNT is required. Valid entries are 00,
10, 11-19, 31-39, 50 or 60.

\(h\) **TOTAL PAYABLE.** This is the unlabeled field to the right of
COMPUTED AMOUNT. It represents the amount of payment due as calculated
by the system upon initial entry of the completed 407 Screen. This is a
protected field.

e\. **NEXT SCREEN.** Entry in this field is required. Valid entries are
GAD, GAP, DEL, RES, END or S99.

f\. **Validation.** Upon entry of the completed screen with GAP in NEXT
SCREEN, the entries are validated. If all edits are passed, the case is
DISPed to authorization and a dedicated award print is generated. The
transaction will be:

05D Accrued Disallowance

05X Accrued as Reimbursement

05Y Accrued by Relationship

g\. **Remarks.** Restrict entries to the minimum necessary for an
understanding on review.

8.03 **AUTHORIZATION**

Adjudicators will prepare awards and disallowances for approval by an
authorizer who will use the 501 Screen to authorize these actions.

8.04 **NOTICE OF AWARD**

Notify the claimant and holder of a valid power of attorney of the award
action. If the generated letter is not sufficient, enter the LETTER
SUPPRESSOR on the 501 Screen and send a locally generated letter.

407 ACCRUED AWARD/DISALLOWANCE XX-XX-XX

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

XXXXXXXXXXXXXXXXXXXX CLAIMANT DISALLOWANCE REASON

XXXXXXXXXXXXXXXXXXXX X NO ACCRUED EXISTS

XXXXXXXXXXXXXXXXXXXX X NOT PROPER CLAIMANT

XXXXXXXXXXXXXXXXXXXX X CLAIM FILED AFTER STATUTORY YEAR

XXXXXXXXXXXXXXXXXXXX X CLAIM FILED AFTER STATUTORY 5 YEARS

XXXXXXXXXXXXXXXXXXXX XXXXX X NOT PROSECUTED IN STATUTORY YEAR

X NOT PROSECUTED IN STATUTORY 6 MONTHS

X OTHER

PAYMENT BASIS:

X REIMBURSEMENT TOTAL EXPENSES XXXXXXXX AMT PAID BY PAYEE XXXXXXXX

X RELATIONSHIP THIS SHARE XX OF XX ENTITLED

ENTITLEMENT CODE XX

PAY: PROCEEDS XXXXXXXX LUMP SUM XXXXXXXX X COMPUTED AMOUNT XXXXXXXX

FROM XX-XX-XX TO XX-XX-XX GROSS DUE XXXXXXX PREV GROSS XXXXXXX

FROM XX-XX-XX TO XX-XX-XX GROSS DUE XXXXXXX PREV GROSS XXXXXXX

FROM XX-XX-XX TO XX-XX-XX GROSS DUE XXXXXXX PREV GROSS XXXXXXX

FROM XX-XX-XX TO XX-XX-XX GROSS DUE XXXXXXX PREV GROSS XXXXXXX

OFFSET AMOUNT XXXXXXXX APPLY TO PAYEE XX NEXT SCREEN XXX

Figure 8.01. ACCRUED AWARD/DISALLOWANCE 407 SCREEN LAYOUT