Citation Nr: 22015077
Decision Date: 03/16/22	Archive Date: 03/16/22

DOCKET NO. 16-58 691
DATE: March 16, 2022

REMANDED

The appeal regarding whether retroactive payment was properly transmitted is remanded.

REASONS FOR REMAND

The Veteran served on active duty from March 2001 to March 2005.  

This matter comes before the Board of Veterans' Appeals (Board) from a September 2014 administrative decision issued by a Regional Office of the Department of Veterans Affairs (VA) that added dependents to the Veteran's award and triggered a retroactive payment for additional dependency compensation pursuant to 38 U.S.C. § 1115.

The Veteran submitted a notice of disagreement ot that decision challenging the specific backpay action, and in his November 2016 substantive appeal, he explained that he never actually received the retroactive payment in the account he expected.  He further stated that neither he nor his bank representatives could find evidence of the payment.

The Board observes that the most recent internal award print document regarding the Veteran's financial account information prior to the September 2014 decision that adjusted the Veteran's dependents indicates his financial institution of record in April 2012 was the Bank of America.  The September 2014 award print document reflecting the attempted retroactive payment indicates that payment was directed to a checking account with Huntington National Bank.  No change of direct deposit form is of record in the interim that explains this change.  However, the Board notes that this more recent account continues to be the account of record in multiple subsequent award actions.

Due to the discrepancy in the Veteran's accounts, the Board remanded this matter in October 2019 and directed the Agency of Original Jurisdiction to conduct an audit of the appropriate VA payment records to ensure that the retroactive payment in September 2014 was appropriately and successfully deposited in an account owned by the Veteran.  Unfortunately, it does not appear that there has been substantial compliance with this directive.  VA did conduct a December 2019 audit of the specific amounts owed and paid that were the result of the change in dependents in 2014.  Nowhere in this audit is any indication that VA attempted to verify the specific financial accounts to which those payments were directed, as directed by the Board in its October 2019 remand.  An additional remand is required for corrective action.

Upon remand, the Board also emphasizes that the Veteran could substantially assist in substantiating his claim by submitting bank statements for the checking accounts he had in those two institutions from the period around September 2014 that could further document the absence of any receipt of any funds in that period.

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The matter is REMANDED for the following action:

Conduct an audit of the direct deposit recipient of the Veteran's retroactive payment in the September 2014 period as a result of the modification of the Veteran's dependents.  Rather than evaluating the accuracy of the amount, the audit should identify the specific financial institution and checking or savings accounts to which those payments were made, to include any documentation that the specific payments were successfully transmitted to the recipient account.

 

 

M. Tenner

Veterans Law Judge

Board of Veterans' Appeals

Attorney for the Board	B. Whitelaw, 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.