[Request for Decision Concerning Appropriation Chargeable for Backpay Awards]

The Veterans Administration (VA) requested a decision regarding what appropriation it should charge for certain backpay awards. GAO held that: (1) VA should charge the appropriation for the fiscal year covered by the backpay award and prorate claims covering more than 1 fiscal year; (2) interest and backpay from an administrative settlement were not chargeable to the permanent judgment fund; (3) interest on backpay was chargeable in the same manner as the backpay; and (4) 1987 amendments to the Backpay Act made certain interest payable from the permanent judgment fund under limited circumstances. Accordingly, VA should charge the fiscal year covered by the backpay award.