Section 13.110 - Supervised direct payment(a)Authority. The Hub Manager may authorize the payment of VA benefits directly to an adult beneficiary in the fiduciary program who has reached the age of majority if the Hub Manager determines, based upon a field examination, that the beneficiary can manage his or her VA benefits with limited and temporary VA supervision. In making this determination, the Hub Manager will consider:(1) Whether the beneficiary is aware of his or her monthly income;(2) Whether the beneficiary is aware of his or her fixed monthly expenses such as rent, mortgage, utilities, clothing, food, and medical bills;(3) The beneficiary's ability to:(i) Allocate appropriate funds to fixed monthly expenses and discretionary items;(ii) Pay monthly bills in a timely manner; and(iii) Conserve excess funds; and(4) Any other information that demonstrates the beneficiary's actual ability to manage his or her VA benefits with limited VA supervision.(b)Supervision. The limited and temporary supervision of beneficiaries receiving direct payment under paragraph (a) of this section will consist of: (1) Assistance in the development of a budget regarding the beneficiary's income and expenses,(2) Assistance with creating a fund usage report to aid the beneficiary in tracking his or her income and expenses, and(3) Periodic reviews of the beneficiary's fund usage report, as required by the Hub Manager.(c)Reassessment. The Hub Manager will reassess the beneficiary's ability to manage his or her VA benefits at or before the end of the first 12-month period of supervision. Based upon a field examination, an evaluation of the factors listed in paragraph (a) of this section, and the results of the supervision prescribed in paragraph (b) of this section, the Hub Manager will determine whether the beneficiary can manage his or her benefits without VA supervision.(1) If the beneficiary demonstrates the ability to manage his or her VA benefits without supervision, the Hub Manager will prepare a report that summarizes the findings and refer the matter with a recommendation and supporting evidence to the rating authority for application of § 3.353(b)(3) of this chapter regarding reevaluation of ability to manage VA benefits and § 3.353(d) of this chapter regarding the presumption of ability to manage VA benefits without restriction.(2) If the beneficiary does not demonstrate the ability to manage his or her VA benefits without VA supervision, the Hub Manager will:(i) Appoint a fiduciary, or(ii) Continue supervised direct payment for not longer than one additional 12-month period based upon evidence that additional supervision might assist the beneficiary in developing the ability to manage his or her own VA benefits. At the conclusion of the additional period of supervised direct payment, the Hub Manager will conduct the reassessment prescribed by paragraph (c) of this section and either recommend reevaluation under paragraph (c)(1) of this section or appoint a fiduciary under paragraph (c)(2)(i) of this section. Authority: 38 U.S.C. 501 , 5502