Citation Nr: 21028404 Decision Date: 05/11/21 Archive Date: 05/11/21 DOCKET NO. 19-17 050 DATE: May 11, 2021 REMANDED Whether the reduction in VA disability compensation benefits due to concurrent receipt of military service drill pay for Fiscal Year (FY) 2014 was proper is remanded. REASONS FOR REMAND The Veteran served on active duty from October 2004 to January 2009 with additional service in the National Guard until September 2014. This case is before the Board of Veterans' Appeals (Board) on appeal from November 2015 notification of a reduction in the Veteran's benefits because he received Military Drill Pay in FY 2014. In July 2020, the Veteran testified at a virtual hearing before the undersigned Veterans Law Judge. A transcript of his testimony is associated with the claims file. The Veteran contends that the improper amount of benefits was withheld for drill pay he received in FY 2014 due in part to VA's delay in processing his claim. The Veteran contends that during his service in the National Guard he was paid at the rate for his 50 percent disability rating, and accordingly benefits should have been withheld at the 50 percent rate for that time period. He states, however, that benefits were withheld at the 80 percent rate for 62 days of drill pay in FY 2014. The record shows that monthly benefits in the amount of $1,525.55 were withheld effective December 1, 2015 until February 3, 2016. During the July 2020 hearing, the Veteran reported that he separated from service in the National Guard on September 23, 2014, but that his last drill was August 8, 2014 until August 10, 2014. The Veteran filed a claim for benefits on August 22, 2014, and as a result his disability rating was increased from 50 percent ($836.13 monthly) to 80 percent ($1,556.13 monthly). The Veteran received retroactive benefits at the 80 percent rate as of August 22, 2014, the date of the claim. In a June 2017 notification letter, the Veteran was advised that the withholding rate for FY 2014 is determined by the rate VA was paying the Veteran on the last day of the fiscal year in which the Veteran received drill pay. The letter advises that his monthly withholding rate during FY 2014 was $1,525.55, based on the amount he was receiving monthly on September 30, 2014. In February 2016 and July 2017 statements, the Veteran requested an audit of his VA benefits for FYs 2009 through 2014, and during the July 2020 Board hearing, he asserted again that despite requests for an audit, such had not been completed. Review of the record reveals that a clear accounting of the benefits withheld for FY 2014 or any remaining debt is not of record. Thus, in order to afford due process to the Veteran, remand is required to complete an audit of his account and to provide a clear, thorough explanation of such to the Veteran. The matter is REMANDED for the following action: 1. Perform a detailed paid and due audit of the Veteran's Military Drill Pay and VA compensation payments during FY 2014, specifically addressing the rate at which the Veteran was receiving benefits. The audit must address FYs 2009 through FY 2014, during his service in the National Guard. The audit should include and explain any amounts due, paid, and withheld as well as address the Veteran's contention that the discrepancy is due to VA's failure to timely process his appeal. A copy of the audit must be provided to the Veteran and his representative and associated with the claims file. 2. After completing the above action, to include any other development that may become necessary as a consequence of the action taken, adjudicate the issue of whether the reduction in VA disability compensation benefits due to concurrent receipt of military service drill pay for FY 2014 was proper. JOHN Z. JONES Veterans Law Judge Board of Veterans' Appeals Attorney for the Board A. Labi, Associate Counsel The Board's decision in this case is binding only with respect to the instant matter decided. This decision is not precedential and does not establish VA policies or interpretations of general applicability. 38 C.F.R. § 20.1303.