BVA9503485 
DOCKET NO.  93-10 674     )       DATE
          )
          )

On appeal from the decision of the
Department of Veterans Affairs Regional Office in Chicago,
Illinois

THE ISSUE

Whether an overpayment of disability compensation, in the amount
of $2,501, was properly created.

REPRESENTATION

Appellant represented by: Disabled American Veterans

WITNESS AT HEARING ON APPEAL

Appellant

ATTORNEY FOR THE BOARD

Hilary L. Goodman, Counsel
INTRODUCTION

The veteran had active service from December 1956 through August
1969.

This appeal arises from a July 1992 determination by the
Department of Veterans Affairs (VA) Regional Office (RO),
Chicago, Illinois, terminating the veteran's payment for a
dependent spouse, effective December 31, 1982.

The veteran, in a statement received in February 1992 and at his
February 1993 hearing on appeal, requested waiver of recovery of
the overpayment of disability compensation benefits.  This issue
is referred to the originating agency for appropriate action.

REMAND

The veteran has related that he is not disputing the creation of
the overpayment but the amount of the overpayment.  He contends
that, while the initial overpayment, after terminating his
spousal allowance for Ellen, effective January 1, 1983, was
$2,501, the amount of the overpayment remained the same after his
spousal allowance for Christina was added, effective August 1,
1987.  He asserts that, although the VA has stated that the
duplication of VA benefits and retired pay occurred as of January
1, 1983, when he received a check in August 1992, in the amount
of $1,756, from the Air Force Accounting and Finance Center, it
was indicated that this was money due him, due to VA adjustment,
for the period from December 1, 1985, through September 30, 1991.

At the hearing on appeal, the hearing officer indicated that the
amount of the overpayment, $2,501, was not correct.  The current
record does not show that an audit of the veteran's account was
conducted or that a change in the amount of the overpayment has
been made.  It is herein noted that, in an October 1992 statement
from the Department of Defense, Retired Pay Entitlements
Division, it was reported that the veteran's account had been
adjusted in August 1992. The amount of the adjustment was not
recorded.

In the judgment of the Board, further development to clarify
these matters, further award computations and audits and further
action by the originating agency are required before this matter
is ripe for appellate review.  Accordingly, the claim is REMANDED
to the originating agency for the following action:

1.  The originating agency should request
from the Department of Defense, Retired Pay
Entitlements Division, the amount of
retroactive payments made to veteran as the
result of the veteran's reduction in VA
disability compensation, effective January
1, 1983.  The information obtained should
be associated with the claims file.

2.  After the information is obtained, the
RO should conduct a paid and due audit of
the veteran's benefit payment account,
calculating the veteran's VA compensation
entitlement from January 1, 1983, through
August 31, 1992.  A copy of the audit
should be provided to the veteran.

3.  After making the needed adjustments to
the amount of the overpayment, the RO
should make a determination as to whether
any remaining overpayment, including the
amount, was properly created.  If the
decision remains adverse to the veteran,
both he and his representative should be
provided with a supplemental statement of
the case which includes a summary of the
reasons for the decision as well any
additional appropriate laws and
regulations.

After the veteran and his representative have been given the
appropriate period of time in which to respond, the appeal should
be returned to the Board for further appellate consideration, if
otherwise in order.  The purpose of this REMAND is to secure
clarifying information and ensure due process.  No action is
required by the veteran unless he receives further notice.

          WAYNE M. BRAEUER
          Member, Board of Veterans' Appeals

The Board of Veterans' Appeals Administrative Procedures
Improvement Act, Pub. L. No. 103-271, § 6, 108 Stat. 740, ___
(1994), permits a proceeding instituted before the Board to be
assigned to an individual member of the Board for a
determination.  This proceeding has been assigned to an
individual member of the Board.

Under 38 U.S.C.A. § 7252 (West 1991), only a decision of the
Board of Veterans' Appeals is appealable to the United States
Court of Veterans Appeals.  This remand is in the nature of a
preliminary order and does not constitute a decision of the Board
on the merits of your appeal.  38 C.F.R. § 20.1100(b) (1994).