Letter templates to be used for awards must have a Data source of Awards. Use the built-in letter template "Awards" as the basis for designing your own: it has all of the right values in place to work. You can then customize that with your own text, graphics and other content.
To send letters for awards from the Awards manager:
Bring up, on-screen, the list of awards to be used for letters.
Select (check) the awards records for the letters you want to send.
Right-click on the list of awards, choose Selected awards, Send a letter, then the appropriate letter template. VSys will merge that letter template with the selected awards.
Save the letters for later printing or sending via e-mail, or print them here.