## M21-1MR, Part IX, Subpart i, Chapter 7, Table of Contents

## Chapter 7. Clothing Allowance

####  Table of Contents

> 1\. Eligibility for the Annual Clothing Allowance 7-2
>
> 2\. Payment of the Annual Clothing Allowance 7-5
>
> 3\. Payment of the Annual Clothing Allowance for Incarcerated Veterans
> 7-7
>
> 4\. Computer Processing of the Annual Clothing Allowance Payment
> (ACAP) 7-9
>
> 5\. Computer Processing of the ACAP for Incarcerated Veterans 7-12
>
> 6\. Processing Notices of Disagreement (NODs) or Substantive Appeals
> 7-15

## Chapter 7. Clothing Allowance

#### Overview

+------------+---------------------------------------------------------+
| #          | > This chapter contains the following topics:           |
| #### In th |                                                         |
| is Chapter |                                                         |
+------------+---------------------------------------------------------+

  ----------- ----------------------------------------------- ------------
  Topic       Topic Name                                      See Page

  1           Eligibility for the Annual Clothing Allowance   7-2

  2           Payment of the Annual Clothing Allowance        7-5

  3           Payment of the Annual Clothing Allowance for    7-7
              Incarcerated Veterans                           

  4           Computer Processing of the Annual Clothing      7-9
              Allowance Payment (ACAP)                        

  5           Computer Processing of the ACAP for             7-12
              Incarcerated Veterans                           

  6           Processing Notices of Disagreement (NODs) or    7-15
              Substantive Appeals                             
  ----------- ----------------------------------------------- ------------

#### 1. Eligibility for the Annual Clothing Allowance 

+------------+---------------------------------------------------------+
| ##### In   | > This topic contains information on the eligibility    |
| troduction | > requirements for the annual clothing allowance. It    |
|            | > includes information on                               |
|            |                                                         |
|            | -   the general eligibility requirements                |
|            |                                                         |
|            | -   the eligibility requirements for veterans with a    |
|            |     skin condition                                      |
|            |                                                         |
|            | -   jurisdiction of processing                          |
|            |                                                         |
|            | -   informing veterans of potential eligibility for the |
|            |     ACAP                                                |
|            |                                                         |
|            | -   entitlement determinations                          |
|            |                                                         |
|            | -   medical determinations                              |
|            |                                                         |
|            | -   continuing entitlement                              |
|            |                                                         |
|            | -   communication which constitutes a claim, and        |
|            |                                                         |
|            | -   hospitalized veterans.                              |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### C    | > January 21, 2005                                      |
| hange Date |                                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| #          | > Under [38 U.S.C.                                      |
| #### a. Ge | > 1162](http://assembler.law.cornell.edu/               |
| neral Elig | uscode/html/uscode38/usc_sec_38_00001162----000-.html), |
| ibility Re | > Department of Veterans Affairs (VA) may pay an annual |
| quirements | > clothing allowance to a veteran, if he/she has a      |
|            | > service-connected (SC) disability or condition or a   |
|            | > disability compensable under [38 U.S.C.               |
|            | > 1151](http://assembler.law.cornell.edu/               |
|            | uscode/html/uscode38/usc_sec_38_00001151----000-.html), |
|            | > that requires the veteran to wear or use a prosthetic |
|            | > or orthopedic device that wears out or tears          |
|            | > clothing.                                             |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### b.   | > VA may also pay the annual clothing allowance to a    |
|  Eligibili | > veteran if he/she uses medication prescribed by a     |
| ty Require | > physician for a SC skin condition, which causes       |
| ments for  | > irreparable damage to the veteran's outer garments.   |
| Veterans w | >                                                       |
| ith a Skin | > ***Notes***:                                          |
|  Condition |                                                         |
|            | -   Approval of a claim based on use of medication      |
|            |     *requires* a medical determination.                 |
|            |                                                         |
|            | -   A skin condition requiring use of medication is     |
|            |     *not* considered static and a re-determination is   |
|            |     required each year.                                 |
|            |                                                         |
|            | -   Irreparable damage does *not* include stains that   |
|            |     are removable through regular laundering or dry     |
|            |     cleaning.                                           |
+------------+---------------------------------------------------------+

Continued on next page

1\. Eligibility for the Annual Clothing Allowance, Continued

+------------+---------------------------------------------------------+
| #####      | > In August 2003, the Veterans Benefits Administration  |
|  c. Jurisd | > (VBA) transitioned the processing of annual clothing  |
| iction of  | > allowance claims to the Veterans Health               |
| Processing | > Administration (VHA).                                 |
|            | >                                                       |
|            | > Any clothing allowance claims received by a regional  |
|            | > office should be forwarded to the VA Medical Center   |
|            | > (VAMC) or Outpatient Clinic (OPC) of jurisdiction,    |
|            | > for the attention of the Prosthetic and Sensory Aids  |
|            | > Service.                                              |
|            | >                                                       |
|            | > ***Exception***: Claims for accrued clothing          |
|            | > allowance are to be processed by the regional office  |
|            | > of jurisdiction. For additional information on        |
|            | > accrued clothing allowance, see [M21-1MR, Part        |
|            | > IX.i.7.2.e](../pt09_sp01_ch07.xml#IX.i.7.2.e).        |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### d.   | > If a rating decision establishes service connection   |
| Informing  | > for the anatomical loss or loss of use of a hand or   |
| Veterans o | > foot, in the notification letter                      |
| f Potentia |                                                         |
| l Entitlem | -   inform the veteran of potential eligibility for the |
| ent for th |     clothing allowance                                  |
| e Clothing |                                                         |
|  Allowance | -   enclose *VA Form 10-8678, Application for Annual    |
|            |     Clothing Allowance*                                 |
|            |                                                         |
|            | -   provide contact information for the VAMC or OPC of  |
|            |     jurisdiction, and                                   |
|            |                                                         |
|            | -   inform the veteran to return the application to the |
|            |     VAMC or OPC, for the attention of Prosthetic and    |
|            |     Sensory Aids Service.                               |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| #####      | > A veteran is determined to be entitled to the ACAP if |
|  e. Entitl |                                                         |
| ement Dete | -   the veteran is service-connected for anatomical     |
| rminations |     loss or loss of use of a hand or foot               |
|            |                                                         |
|            | -   the veteran certifies, because of that disability,  |
|            |     he/she wears or uses an artificial limb, rigid      |
|            |     extremity brace, wheelchair, or crutches, and       |
|            |                                                         |
|            | -   the use of the prosthetic or orthopedic device is   |
|            |     not contradicted by medical evidence of record.     |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| #          | > A medical determination by the designee of the VA OPC |
| #### f. Me | > Director is required to determine eligibility in all  |
| dical Dete | > initial claims.                                       |
| rminations | >                                                       |
|            | > ***Exception***: A medical determination is not       |
|            | > required if the veteran meets all three criteria      |
|            | > listed in [M21-1MR, Part                              |
|            | > IX.i.7.1.e](../pt09_sp01_ch07.xml#IX.i.7.1.e).        |
+------------+---------------------------------------------------------+

Continued on next page

1\. Eligibility for the Annual Clothing Allowance, Continued

+------------+---------------------------------------------------------+
| ##         | > Consider a veteran to have continued eligibility to   |
| ### g. Con | > the annual clothing allowance if                      |
| tinuing En |                                                         |
| titlement  | -   service-connection has been established for         |
|            |     anatomical loss or loss of use of a hand or foot,   |
|            |     and                                                 |
|            |                                                         |
|            | -   the disability requires use of a prosthetic or      |
|            |     orthopedic device that wears out or tears clothing. |
|            |                                                         |
|            | > ***Note***: Process initial payment of the ACAP to    |
|            | > include master record code to provide recurring       |
|            | > annual payments without the need for the veteran to   |
|            | > submit supplemental claims.                           |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### h.   | > A claim for ACAP may be any communication from a      |
|  Communica | > veteran that                                          |
| tion Which |                                                         |
|  Constitut | -   describes the device or medication used because of  |
| es a Claim |     a service-connected or [38 U.S.C.                   |
|            |     1151](http://assembler.law.cornell.edu              |
|            | /uscode/html/uscode38/usc_sec_38_00001151----000-.html) |
|            |     disability/condition, and                           |
|            |                                                         |
|            | -   requests payment of the clothing allowance.         |
|            |                                                         |
|            | > ***Note***: If an application for ACAP is received,   |
|            | > but no claim for compensation has been filed          |
|            |                                                         |
|            | -   forward *VA Form 21-526, Veteran's Application for  |
|            |     Compensation or Pension* to the claimant, and       |
|            |                                                         |
|            | -   inform the veteran that a prerequisite for          |
|            |     consideration of entitlement to the ACAP is that    |
|            |     the veteran be service-connected for                |
|            |                                                         |
|            | ```{=html}                                              |
|            | <!-- -->                                                |
|            | ```                                                     |
|            | -   a disability requiring the use of a prosthetic or   |
|            |     orthopedic device, or                               |
|            |                                                         |
|            | -   a skin condition.                                   |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### i. H | > A hospitalized veteran, competent or incompetent,     |
| ospitalize | > remains eligible for the annual clothing allowance.   |
| d Veterans |                                                         |
+------------+---------------------------------------------------------+

#### 2. Payment of the Annual Clothing Allowance

+------------+---------------------------------------------------------+
| ##### In   | > This topic contains information on making payments of |
| troduction | > the annual clothing allowance, including information  |
|            | > on                                                    |
|            |                                                         |
|            | -   the pay date for the annual clothing allowance      |
|            |     payment (ACAP)                                      |
|            |                                                         |
|            | -   the pay date for authorized recurring ACAPs         |
|            |                                                         |
|            | -   payment to veterans in receipt of retired pay       |
|            |                                                         |
|            | -   payment in Philippine cases, and                    |
|            |                                                         |
|            | -   payment of the accrued clothing allowance           |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### C    | > January 21, 2005                                      |
| hange Date |                                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### a. P | > VA issues the ACAP to veterans who have existing      |
| ay Date fo | > eligibility as of August 1^st^. Each ACAP requires    |
| r the ACAP | > entitlement on August 1^st^ of the year for which     |
|            | > payment is made.                                      |
|            | >                                                       |
|            | > Generally, the ACAP is paid on or about September     |
|            | > 1^st^. The ACAP may be paid upon processing of the    |
|            | > clothing allowance transaction if processing after    |
|            | > the last processing cycle in August of the ACAP year. |
|            | >                                                       |
|            | > ***Example***: A veteran eligible as of August 1,     |
|            | > 2003, is entitled to receive the 2003 ACAP.           |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### b.   | > The pay date for authorized recurring ACAPs based on  |
|  Pay Date  | > recorded master record data is September 1^st^.       |
| for Author | > Processing authorization for payment of future or     |
| ized Recur | > current ACAP establishes a Compensation and Pension   |
| ring ACAPs | > (C&P) master record code to provide                   |
|            |                                                         |
|            | -   recurring annual payments, or                       |
|            |                                                         |
|            | -   a computer-generated development letter/application |
|            |     for a subsequent ACAP.                              |
|            |                                                         |
|            | > ***Reference***: For more information on master       |
|            | > record codes relating to ACAPs, see [M21-1, Part V,   |
|            | > Chapter                                               |
|            | > 11](htt                                               |
|            | p://www.warms.vba.va.gov/admin21/m21_1/part5/ch11.doc). |
+------------+---------------------------------------------------------+

Continued on next page

2\. Payment of the Annual Clothing Allowance, Continued

+------------+---------------------------------------------------------+
| #####      | > A veteran receiving retired pay is *not* required to  |
|  c. Paymen | > waive any portion of his/her retired pay to receive   |
| ts to Vete | > the clothing allowance.                               |
| rans in Re | >                                                       |
| ceipt of R | > ***Note***: Authorization of the ACAP to veterans who |
| etired Pay | > are not receiving compensation because they have not  |
|            | > waived their retired pay can be made only for the     |
|            | > current annual payment. Master record codes cannot be |
|            | > used to establish recurring annual payments.          |
|            | >                                                       |
|            | > A re-determination of eligibility on the basis of a   |
|            | > subsequent claim is *not* required if the initial     |
|            | > approval was based on a static qualifying disability. |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| #####      | > Claims authorized for veterans of the U.S. Army and   |
| d. Payment | > Regular Scouts are paid in dollars.                   |
|  in Philip | >                                                       |
| pine Cases | > Persons who enlisted under, Section 14 *Public Law    |
|            | > (PL) 79-190* (The Armed Forces Voluntary Recruitment  |
|            | > Act of October 6, 1945), include other Philippine     |
|            | > Scouts, Commonwealth Army of the Philippines,         |
|            | > Guerilla Service. These persons are to be paid at a   |
|            | > rate in Philippine pesos equivalent to \$.50 for each |
|            | > dollar authorized under law.                          |
|            | >                                                       |
|            | > ***Note***: The Manila Treasury Disbursing Office     |
|            | > makes the payment.                                    |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### e. P | > If a rating decision or evidence in file at the date  |
| ayment of  | > of death indicates that the veteran met the           |
| the Accrue | > eligibility requirements as of the August 1^st^ date  |
| d Clothing | > prior to death, then the lump-sum clothing allowance  |
|  Allowance | > is due and payable.                                   |
|            | >                                                       |
|            | > ***Note***: The full lump-sum is payable without pro  |
|            | > rata accumulation for any portion of a year.          |
|            | >                                                       |
|            | > ***Reference***: For more information on payment of   |
|            | > accrued benefits, see [M21-1MR, Part                  |
|            | > VIII](../pt08_ch01.xml#VIII.1).                       |
+------------+---------------------------------------------------------+

#### 3. Payment of the Annual Clothing Allowance for Incarcerated Veterans

+------------+---------------------------------------------------------+
| ##### In   | > This topic contains information on the payment of the |
| troduction | > annual clothing allowance for incarcerated veterans,  |
|            | > including information on the                          |
|            |                                                         |
|            | -   provisions of Section 502 of *PL 104-275*           |
|            |                                                         |
|            | -   payment during the initial period of incarceration  |
|            |                                                         |
|            | -   payment when the veteran is incarcerated for the    |
|            |     entire clothing allowance year                      |
|            |                                                         |
|            | -   payment when the veteran is released from           |
|            |     incarceration during the clothing allowance year,   |
|            |     and                                                 |
|            |                                                         |
|            | -   reduction of the 1997 clothing allowance.           |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### C    | > January 21, 2005                                      |
| hange Date |                                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| #####      | > [*PL                                                  |
| a. Provisi | > 104-275                                               |
| ons of Sec | *](http://www.access.gpo.gov/nara/publaw/104publ.html), |
| tion 502 o | > Section 502, limits the clothing allowance for        |
| f Public L | > veterans incarcerated for over 60 days if they        |
| aw 104-275 | > receive clothing at no cost from the penal            |
|            | > institution.                                          |
|            | >                                                       |
|            | > ***Note***: In the absence of evidence to the         |
|            | > contrary, presume that incarcerated veterans receive  |
|            | > clothing at no cost from the penal institution.       |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### b.   | > General Counsel has held that the restriction on the  |
| Payment Du | > payment of clothing allowance does *not* apply for    |
| ring the I | > the initial 60 days of any separate period of         |
| nitial Per | > incarceration.                                        |
| iod of Inc | >                                                       |
| arceration | > Therefore, the annual clothing allowance amount must  |
|            | > be reduced by 1/365^th^ for each day of incarceration |
|            | > after the initial 60 days of incarceration during the |
|            | > 12-month period preceding the August 1^st^            |
|            | > determination of clothing allowance eligibility.      |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### c.   | > If the veteran is incarcerated for the entire         |
|  Payment W | > clothing allowance year (August 1^st^ through July    |
| hen the Ve | > 31^st^), do *not* pay the veteran for that year,      |
| teran is I | > assuming the veteran's incarceration commenced more   |
| ncarcerate | > than 60 days prior to August 1^st^.                   |
| d for the  |                                                         |
| Entire Clo |                                                         |
| thing Allo |                                                         |
| wance Year |                                                         |
+------------+---------------------------------------------------------+

Continued on next page

3\. Payment of the Annual Clothing Allowance for Incarcerated Veterans,
Continued

+------------+---------------------------------------------------------+
| #          | > If the veteran is initially incarcerated or is        |
| #### d. Pa | > released from incarceration during the clothing       |
| yment on R | > allowance year, pay the veteran a partial clothing    |
| elease fro | > allowance.                                            |
| m Incarcer | >                                                       |
| ation Duri | > ***Note***: Partial clothing allowance payments for   |
| ng the Clo | > years during which the veteran is incarcerated are    |
| thing Allo | > *not* subject to rounding to even dollars. Therefore, |
| wance Year | > partial year payments are made in dollars and cents.  |
|            | >                                                       |
|            | > ***Reference***: For information on calculating the   |
|            | > partial year payment, see [M21-1MR, Part              |
|            | > IX.i.7.3.b](../pt09_sp01_ch07.xml#IX.i.7.3.b).        |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### e.   | > Since [*PL                                            |
| Reduction  | > 104-275                                               |
| of the 199 | *](http://www.access.gpo.gov/nara/publaw/104publ.html), |
| 7 Clothing | > Section 502, was effective October 9, 1996, a veteran |
|  Allowance | > incarcerated after October 8, 1996, and before,       |
|            | > August 1, 1997, is subject to a reduction of the 1997 |
|            | > clothing allowance for the number of days the         |
|            | > claimant was incarcerated during this period.         |
|            | >                                                       |
|            | > ***Notes***:                                          |
|            |                                                         |
|            | -   Reduction for the 1998 clothing allowance is        |
|            |     determined by the number of days incarcerated       |
|            |     during the period of August 1, 1997 through July    |
|            |     31, 1998.                                           |
|            |                                                         |
|            | -   Do not reduce the clothing allowance for the        |
|            |     initial 60 days for any period of incarceration.    |
+------------+---------------------------------------------------------+

#### 4. Computer Processing of the Annual Clothing Allowance Payment (ACAP)

+------------+---------------------------------------------------------+
| ##### In   | > This topic contains information on computer           |
| troduction | > processing of the annual clothing allowance payment   |
|            | > (ACAP), including information on                      |
|            |                                                         |
|            | -   payment of clothing allowance                       |
|            |                                                         |
|            | -   entitlement effective after August 1st              |
|            |                                                         |
|            | -   master record codes                                 |
|            |                                                         |
|            | -   making annual re-determinations of eligibility, and |
|            |                                                         |
|            | -   payments to veterans not in receipt of              |
|            |     compensation.                                       |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### C    | > January 21, 2005                                      |
| hange Date |                                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### a.   | > Computer payment on an award of initial entitlement   |
|  Payment o | > or a re-determination of entitlement to the ACAP      |
| f Clothing | > based on previously entered master record data is     |
|  Allowance | > made September 1^st^ of that year.                    |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### b    | > If a veteran's entitlement is effective *after*       |
| . Entitlem | > August 1^st^ of a specific year, he/she is not        |
| ent Effect | > entitled to that year's ACAP.                         |
| ive After  | >                                                       |
| August 1st | > In such cases, establish eligibility for initial      |
|            | > payment for the next ACAP                             |
|            |                                                         |
|            | -   under the criteria of entitlement determinations,   |
|            |     or                                                  |
|            |                                                         |
|            | -   based on a medical determination.                   |
|            |                                                         |
|            | > ***Reference***: For more information on entitlement  |
|            | > determinations, see [M21-1MR, Part                    |
|            | > IX.i.7.1.e](../pt09_sp01_ch07.xml#IX.i.7.1.e).        |
+------------+---------------------------------------------------------+

Continued on next page

4\. Computer Processing of the Annual Clothing Allowance Payment (ACAP),
Continued

+------------+---------------------------------------------------------+
| ##### c.   | > When processing payment for the ACAP, CORR the        |
|  Master Re | > appropriate master record code to provide for         |
| cord Codes |                                                         |
|            | -   subsequent payments on a recurring basis, or        |
|            |                                                         |
|            | -   issuing a computer-generated letter for             |
|            |     re-determination, as appropriate.                   |
|            |                                                         |
|            | > The following table explains the master record codes  |
|            | > and the subsequent action they generate.              |
+------------+---------------------------------------------------------+

  ------------------------- ---------------------------------------------
  Master Record Code        Action Generated

  RECUR                     Payment Only

  NEXT ONLY                 Payment and Computer-Generated Letter

  REVUE                     Payment and Computer-Generated Letter
  ------------------------- ---------------------------------------------

+-----------------------------------------------------------------------+
| > ***Reference***: For more information on clothing allowance master  |
| > record codes, see [M21-1, Part V, Chapter                           |
| > 11](http://www.warms.vba.va.gov/admin21/m21_1/part5/ch11.doc).      |
+-----------------------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### d    | > An annual re-determination of eligibility is required |
| . Annual R | > for claimants who have not established entitlement to |
| e-Determin | > ACAP on a recurring basis. The master record code     |
| ation of E | > entered during initial processing will issue a        |
| ligibility | > computer-generated letter/application for completion  |
|            | > by the veteran.                                       |
|            | >                                                       |
|            | > Payment of the current year clothing allowance is     |
|            | > dependent on                                          |
|            |                                                         |
|            | -   receipt of an application by August 1^st^ of the    |
|            |     next year, and                                      |
|            |                                                         |
|            | -   favorable determination of eligibility by August    |
|            |     1^st^ of the same year.                             |
|            |                                                         |
|            | > ***Note***: Do not maintain control for receipt of    |
|            | > the completed application.                            |
+------------+---------------------------------------------------------+

Continued on next page

4\. Computer Processing of the Annual Clothing Allowance Payment (ACAP),
Continued

+------------+---------------------------------------------------------+
| ##### e. P | > Authorization of the ACAP, to veterans who are not    |
| ayments to | > receiving compensation because no type A master       |
|  Veterans  | > record exists or for some other reason, can be made   |
| Not in Rec | > only for the current annual payment. Master record    |
| eipt of Co | > codes cannot be used to establish payment on a        |
| mpensation | > recurring basis.                                      |
|            | >                                                       |
|            | > ***Notes***:                                          |
|            |                                                         |
|            | -   If continuing eligibility is established upon a     |
|            |     factual basis, payment of the next and succeeding   |
|            |     ACAPs may be made upon ascertaining the veteran's   |
|            |     current address.                                    |
|            |                                                         |
|            | -   Maintain local control for appropriate action as of |
|            |     August 1^st^ of the next year.                      |
+------------+---------------------------------------------------------+

#### 5. Computer Processing of the ACAP for Incarcerated Veterans

+------------+---------------------------------------------------------+
| ##### In   | > This topic contains information on computer           |
| troduction | > processing of the ACAP for incarcerated veterans,     |
|            | > including information on                              |
|            |                                                         |
|            | -   accessing the M18 screen on the Benefits Delivery   |
|            |     Network (BDN) system                                |
|            |                                                         |
|            | -   entering information for previously incarcerated    |
|            |     veterans                                            |
|            |                                                         |
|            | -   entering information for currently incarcerated     |
|            |     veterans                                            |
|            |                                                         |
|            | -   system calculations of the ACAP                     |
|            |                                                         |
|            | -   updating the M15 screen, and                        |
|            |                                                         |
|            | -   special processing during 1997.                     |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### C    | > April 19, 2005                                        |
| hange Date |                                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ###        | > Payments of the clothing allowance for incarcerated   |
| ## a. Acce | > veterans are made through the M18 CLOTHING            |
| ssing the  | > ALLOWANCE-REDUCTION FOR INCARCERATION screen. Before  |
| M18 Screen | > processing payment, review the claims folder to       |
|            | > determine the veteran's dates of incarceration. To    |
|            | > authorize payment, enter the following on the READY   |
|            | > screen:                                               |
|            |                                                         |
|            | -   CORR                                                |
|            |                                                         |
|            | -   password                                            |
|            |                                                         |
|            | -   M18, and                                            |
|            |                                                         |
|            | -   file number.                                        |
|            |                                                         |
|            | > Entry of M18 on the ready screen is not required.     |
|            | > Under the CORR command, you may access the M18 screen |
|            | > by entering M18 in the NEXT SCREEN field from the     |
|            | > M00, MENU screen or from any C&P Master Record screen |
|            | > (M11- M16).                                           |
|            | >                                                       |
|            | > ***Note***: The M18 screen                            |
|            |                                                         |
|            | -   allows you to enter up to four sets of beginning    |
|            |     and ending dates, and                               |
|            |                                                         |
|            | -   only allows dates that fall within the current      |
|            |     clothing allowance year (August 1^st^ -- July       |
|            |     31^st^).                                            |
+------------+---------------------------------------------------------+

Continued on next page

5\. Computer Processing of the ACAP for Incarcerated Veterans, Continued

+------------+---------------------------------------------------------+
| #####      | > If the veteran has been released from incarceration,  |
| b. Enterin | > enter the date of release in the ENDING DATE OF       |
| g Informat | > INCARCERATION field.                                  |
| ion for Pr | >                                                       |
| eviously I | > ***Result***: This releases payment for the period    |
| ncarcerate | > from the release date through July 31^st^ of the      |
| d Veterans | > current year.                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| #####      | > Enter the date of the 61^st^ day of incarceration in  |
|  c. Enteri | > the BEGINNING DATE OF INCARCERATION field. If the     |
| ng Informa | > veteran is still incarcerated on July 31^st^, this is |
| tion for C | > the only entry required.                              |
| urrently I | >                                                       |
| ncarcerate | > ***Result***: This releases payment for the period    |
| d Veterans | > from August 1^st^ to the date entered.                |
|            | >                                                       |
|            | > ***Notes***:                                          |
|            |                                                         |
|            | -   When the 61^st^ day of incarceration is earlier     |
|            |     than October 9, 1996, enter 10-08-96 in the         |
|            |     BEGINNING DATE OF INCARCERATION field.              |
|            |                                                         |
|            | -   If the 61^st^ day of incarceration and the release  |
|            |     date fall in the same clothing allowance year,      |
|            |     enter both the beginning and ending dates.          |
|            |     ***Result***: This releases payment for the period  |
|            |     from August 1^st^ to the beginning date and for the |
|            |     period from the ending date through July 31^st^.    |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### d.   | > ***System action***:                                  |
|  System Ca | >                                                       |
| lculations | > Upon entry of the M18 screen, the system              |
|            |                                                         |
|            | -   calculates the number of days payable for the       |
|            |     clothing allowance year, and                        |
|            |                                                         |
|            | -   redisplays the M18 screen with this information.    |
|            |                                                         |
|            | > ***Operator action***:                                |
|            | >                                                       |
|            | > If the number displayed is                            |
|            |                                                         |
|            | -   correct, press ENTER to continue.                   |
|            |                                                         |
|            | -   not correct                                         |
|            |                                                         |
|            | ```{=html}                                              |
|            | <!-- -->                                                |
|            | ```                                                     |
|            | -   make the corrections in the BEGINNING DATE and      |
|            |     ENDING DATE fields, and                             |
|            |                                                         |
|            | -   press ENTER again.                                  |
|            |                                                         |
|            | > ***Results***:                                        |
|            | >                                                       |
|            | > When the screen is completed with no changes to the   |
|            | > calculated number of days, an award is generated.     |
+------------+---------------------------------------------------------+

Continued on next page

5\. Computer Processing of the ACAP for Incarcerated Veterans, Continued

+------------+---------------------------------------------------------+
| #          | > The M15 INCARCERATION IND field *must* be updated to  |
| #### e. Up | > indicate status each time award action is taken to    |
| dating the | > adjust for entry into incarceration or release from   |
|  M15 Field | > incarceration.                                        |
|            | >                                                       |
|            | > ***Note***: The M15 INCARCERATION IND field           |
|            | > indicators allow for generation of writeouts as well  |
|            | > as statistical reports.                               |
|            | >                                                       |
|            | > ***References***: For more information on             |
|            |                                                         |
|            | -   making awards for incarcerated veterans, see        |
|            |     M21-1MR, Part III.vi.8 (TBD) or [M21-1, Part IV,    |
|            |     Chapter                                             |
|            |     25](htt                                             |
|            | p://www.warms.vba.va.gov/admin21/m21_1/part4/ch25.doc), |
|            |     and                                                 |
|            |                                                         |
|            | -   using the CORR command, see [M21-1, Part V, Chapter |
|            |     18](ht                                              |
|            | tp://www.warms.vba.va.gov/admin21/m21_1/part5/ch18.doc) |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### f. S | > In July of 1997, writeouts were generated for all     |
| pecial Pro | > veterans whose records indicated clothing allowance   |
| cessing Pr | > entitlement and current or previous incarceration.    |
| ocedures D | >                                                       |
| uring 1997 | > ***Operator Action***:                                |
|            | >                                                       |
|            | > If the claimant was released from incarceration prior |
|            | > to August 1, 1996                                     |
|            |                                                         |
|            | -   access the M18 screen, and                          |
|            |                                                         |
|            | -   enter the date of release in the ENDING DATE field. |
|            |                                                         |
|            | > ***Result***: This releases a payment for the full    |
|            | > year and resets the incarceration indicator so the    |
|            | > case will not be selected again in future years.      |
+------------+---------------------------------------------------------+

#### 6. Processing ACAP Notices of Disagreement (NODs) or Substantive Appeals

+------------+---------------------------------------------------------+
| ##### In   | > This topic contains information on processing a       |
| troduction | > notice of disagreement (NOD) or substantive appeal    |
|            | > regarding ACAP, including information on              |
|            |                                                         |
|            | -   the responsibility for furnishing statements of the |
|            |     case (SOC) and certifying appeals, and              |
|            |                                                         |
|            | -   handling NODs and substantive appeals.              |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| ##### C    | > January 21, 2005                                      |
| hange Date |                                                         |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| #####      | > The VA Medical Center (VAMC) or Outpatient Clinic     |
| a. Respons | > (OPC) is responsible for furnishing statements of the |
| ibility fo | > case (SOC) and certifying appeals arising from        |
| r Furnishi | > decisions denying or terminating eligibility          |
| ng SOCs an |                                                         |
| d Certifyi | -   on the basis that no service-connected conditions   |
| ng Appeals |     exist                                               |
|            |                                                         |
|            | -   on the basis that the device does not wear out or   |
|            |     tear clothing, or                                   |
|            |                                                         |
|            | -   in cases involving an issue of effective date of    |
|            |     entitlement.                                        |
|            |                                                         |
|            | > ***Exception***: The Veterans Service Center          |
|            | > maintains responsibility for furnishing SOCs and      |
|            | > certifying appeals arising from RO decisions          |
|            | > promulgated prior to the transitioning of the         |
|            | > processing of ACAP to VHA in August 2003.             |
+------------+---------------------------------------------------------+

+------------+---------------------------------------------------------+
| #####      | > If a NOD is filed, the VAMC or OPC of jurisdiction    |
| b. Handlin | > will be responsible for preparing and furnishing the  |
| g NODs and | > SOC.                                                  |
|  Substanti | >                                                       |
| ve Appeals | > If a substantive appeal is filed, the VAMC or OPC of  |
|            | > jurisdiction will be responsible for                  |
|            |                                                         |
|            | -   processing the substantive appeal                   |
|            |                                                         |
|            | -   certifying the appeal                               |
|            |                                                         |
|            | -   completing *VA Form 1-8, Certification of Appeal*,  |
|            |     and                                                 |
|            |                                                         |
|            | -   forwarding the appeal to the Board of Veterans'     |
|            |     Appeals.                                            |
|            |                                                         |
|            | > Reference: For more information on the provisions of  |
|            | > NODs or substantive appeals, see [38 U.S.C.           |
|            | > 7105](http://assembler.law.cornell.edu/               |
|            | uscode/html/uscode38/usc_sec_38_00007105----000-.html). |
+------------+---------------------------------------------------------+