M21-1 Manual  /  Part VI, Subpart i, Chapter 2, Section A

Requests for Financial Audits

M21-1, Part VI, Subpart i, Chapter 2, Section A

Overview

In This Section

This section contains the topic “Requests for Financial Audits.”


1. Requests for Financial Audits

Introduction

This topic contains information on requests for financial audits, including
  • identifying a request for a financial audit
  • actions to take in response to an audit request
  • finance activity responsibilities with regard to audit requests, and
  • handling a beneficiary’s withdrawal of a request for a financial audit.

Change Date

March 16, 2026

VI.i.2.A.1.a. Identifying a Request for a Financial Audit

A request for a financial audit is initiated to verify that the payments received by a beneficiary are consistent with the benefits payable.The submission may consist of, but is not limited to, a request to review and verify the
  • accuracy of a payment(s)
  • authenticity of a debt, or
  • current balance of a debt.
Correspondence suggesting disagreement with a Department of Veterans Affairs (VA) decision or requesting entitlement to additional benefits will be treated as a request for application, and processed as directed in M21-1, Part II, Subpart iii, 2.G.1.a.

VI.i.2.A.1.b. Actions to Take in Response to an Audit Request

Follow the steps in the table below to process a request for an audit of financial payments and/or accounting from a beneficiary or a retired pay center (RPC).
StepAction
1
  • Establish an end product (EP) 290, using the
    • date of the request’s receipt by VA as the date of claim, and
    • more appropriate of the following claim labels:
      • Audit Request (for compensation claims), or
      • PMC – Audit Request (for pension claims), and
  • enter Audit request as an associated contention.
2Review the substance of the audit request and use the table below to determine the next action.
If the audit request raises ...Then ...
questions concerning authorization-related matters that the authorization activity can easily answer or resolve without involving the finance activityExamples: Questions concerning
  • withholdings
  • recoupments
  • payment rates, and/or
  • effective dates.
  • review the beneficiary’s award history and payment record to determine whether the payments issued total the benefits due
  • provide the beneficiary and/or RPC with a corresponding informational notice using either
    • the Financial Audit Letter within the Veterans Benefits Management System, or
    • a locally-generated letter
  • clear the pending EP 290, and
  • disregard the remaining steps in this table.
Notes:
  • If an award adjustment is necessary to correct an error,
    • change the EP 290 to an EP 930 to make the award adjustment, and
    • send a decision notice to the beneficiary.
  • The date of claim for the EP 930 must match the date of claim for the underlying EP if prematurely cleared or incorrectly processed.
Reference: For more information on EPs, see M21-4, Appendix B, 2.
more complex financial payment questions that exceed the authorization activity’s ability to resolvego to Step 3.
3
  • Send an encrypted e-mail requesting performance of an audit to the finance activity closest to the zip code of the geographical area where the Veteran currently resides
  • upload a copy of the e-mail to the beneficiary’s electronic claims folder (eFolder), and
  • add the appropriate tracked item, as identified in M21-4, Appendix D, with a 30-day suspense.
Reference: For more information on the finance activity’s responsibilities with regard to audit requests, see M21-1, Part VI, Subpart i, 2.A.1.c.
4Did the finance activity determine an award adjustment is necessary to resolve discrepancies in the beneficiary’s payments?
  • If yes,
    • make the award adjustment under the pending EP 290, and
    • provide the beneficiary and/or RPC with a corresponding decision notice.
  • If no, clear the pending EP 290.
Notes:
  • There is no standard form requirement for a request for financial audit.
  • Do not include review rights when notifying a beneficiary of the outcome of a request for a financial audit unless the request resulted in an adjustment to the beneficiary’s award.

VI.i.2.A.1.c. Finance Activity Responsibilities With Regard to Audit Requests

Following receipt of an audit request referral from a regional office (RO), the finance activity closest to the zip code of the geographical area where the Veteran currently resides will
  • conduct the audit by reviewing the beneficiary’s payment activity, and
  • take additional actions as outlined in the table below.
If the audit reveals ...Then the finance activity will ...
that benefit payments have been processed appropriately
  • notify the beneficiary of the audit’s outcome
  • upload associated and supporting documentation to the eFolder, and
  • direct the RO to clear the pending EP 290.
discrepancies in the beneficiary’s payment activity
  • process any necessary actions that cannot be completed through award adjustment by the RO
  • upload associated and supporting documentation to the eFolder, and/or
  • notify the RO of any award adjustments deemed necessary to reconcile the noted payment discrepancies.

VI.i.2.A.1.d. Handling a Beneficiary’s Withdrawal of a Request for a Financial Audit

Treat a beneficiary’s withdrawal of a request for a financial audit like a request to withdraw a claim.

Source: VA M21-1 Adjudication Procedures Manual, M21-1, Part VI, Subpart i, Chapter 2, Section A (U.S. government work, reproduced for reference). Browse all sections →