VETERANS BENEFITS ADMINISTRATION March 2015 Compliance Surveys for OJT / Apprenticeship

VETERANS BENEFITS ADMINISTRATION March 2015

Compliance Surveys forOJT / Apprenticeship

VETERANS BENEFITS ADMINISTRATION

Jorge L. Carrasquillo, KY ELR

- Compliance Surveys

Charles Humble, ATL ELR

- Basic Duties of Certifying Officials /

- Basic Forms Completion / Certification Issues

Tracy Clay, KY SAA - SAA Approvals

Tom Morrison, TN SAA

- SAA Approvals2

Presenters


- Objectives- SCO turnover rate- VA enrollment statistics- Purpose and Authority- Access to Institutional Records- Jurisdiction of Regional Processing Offices- St Louis RPO survey data- VA Fiscal Year Schedules/Types of compliance

surveys- VA Education Benefit Chapters - Surveys- PL111-377 (SAA & VA conduct surveys)- Who conducts surveys- Preparation, Scheduling, Conducting, & Post Survey

Training Overview


Compliance surveys have five principal objectives:

(1)To verify the propriety of payments of educational benefits to eligible individuals under the provisions of the laws administered by VA;

(2) To provide a reasonable basis for cooperating with SAAs;

(3) To assist school or training officials and eligible individuals in better understanding their responsibilities and the procedural requirements of VA;

(4) To determine, on the basis of facts disclosed from document reviews and personal visits, whether there are deviations from the responsibilities and requirements by eligible individuals, schools or training establishments; and

(5) To assure that proper action is promptly taken through appropriate channels for the correction of existing discrepancies, or for the discontinuance of benefits in the event correction is not accomplished.

In general, the purpose is to help insure the integrity of the GI Bill.

Objectives of Compliance Surveys


- Generally the turnover rate of designated VA School Certifying Officials is approximately 30% annually.

- New SCO training is a continuing requirement

- VA compliance surveys can be of assistance to a new SCO however compliance surveys are conducted by ELR, ECSS, and SAA Consultants

Training Overview


Enrollment Certification

• VA Form 22-1999, Enrollment Certification states the SCO/Institution is certifying:

• Exercised reasonable diligence in meeting all applicable requirements for the following seven (7) criteria:



- The institution has exercised diligence in meeting all applicable requirements of Title 38 USC and any failure by the institution to meet any requirements of the law will be reported promptly to VA

- The institution agrees to report promptly to VA any enrollment change and any change due to unsatisfactory progress, conduct or attendance. Promptly means within 30 days of the enrollment change. Except for students receiving benefits under Chapter 33, the institution need not report an enrollment change for a student who was in full-time attendance before the change and in fulltime after the enrollment change.



- The 85/15% enrollment ratio requirement has been satisfied- Student certified is not an owner or officer of the school nor is the

student certified as an official authorized to sign enrollment certifications

- The institution holds no power of attorney agreement authorizing the institution to negotiate VA educational assistance allowance checks

- No course certified is a repetition of any course previously satisfactorily completed except as permitted by VA regulations

- The course or courses certified (added: excluding DEEMED approved institution degree programs) are approved by the State Approving Agency and are generally acceptable to meet requirements for the student’s objective


VA education benefit chapters reviewed on compliance surveys are:

Chapter 30 – Montgomery GI Bill©Chapter 32 – VEAPChapter 33 – Post-9/11 GI Bill©Chapter 35 – Dependent Education AssistanceChapter 1606 – Selected ReservesChapter 1607 – REAPFry Amendment administered under CH33CH33TOE

Excluded: Chapter 31 Vocational Rehabilitation Benefit

Benefit Chapters


Compliance surveys are conducted in order to ensure that schools and training establishments, and their approved courses, are in compliance with all applicable provisions of the laws administered by VA.

Authority:Title 38 38 CFRM22-4

Purpose and Authority


Access to Records

• CFR 21.4209 – Title 38 provides VA & SAA access to any institutional records as condition of approval

• VA and SAA exempt from FERPA concerning privacy of student records

• Access to VA and non VA student academic and financial records

• Access to review Institutional Advertising Materials• Principles of Excellence• Student Interviews


Access to Records

• The Buckley amendment (Public Law 93-380) requires that institutions receiving Federal funds administered by the Department of Education must obtain the student's consent to release information from school records.

• It has been determined that school records relating to VA benefits fall into the "financial aid" category and are therefore exempt from the provisions of the Buckley amendment.

• Therefore, the VA (and SAA) shall have access to the records of VA beneficiaries as well as non-VA students without the written consent of the student in order to monitor the school's compliance with the law.


Access to Records

Title 38 United States Code, Section 3690(c)Title 38 United States Code, Section 3690(c)Notwithstanding any other provision of law, the records and accounts of educational institutions pertaining to eligible veterans or eligible persons….as well as the records of other students which the Secretary determines necessary to ascertain institutional compliance with the requirements of such chapters, shall be available for examination by duly authorized representatives of the Government.


VA Regional Processing Offices and Jurisdictions


VA Regional Processing Offices and Jurisdictions


Types of Surveys

• VA compliance surveys are conducted at the following types of active facilities as of October 1, 2013 (FY14)

– Institutions with 300 plus VA certified VA beneficiaries – Institutions of Higher Learning – (less than 300) – as required– Non College Degree Institutions – Vocational Flight Training Schools – Training Establishments

• Apprenticeship (APPR)• On-the-Job training (OJT)• Federal and Nationally approved OJT and APPR facilities

– Director, Education Service, may act for the Secretary and may waive compliance surveys at institutions with a demonstrated record of compliance. The CELO can request ELR staff to review and submit waiver requests for schools that had met demonstrated record of compliance – meaning no compliance survey at these institutions in FY15.


Effective October 1, 2011 per Public Law 111-377 both VA (Education Liaison Representative (ELR) and Education Compliance Surveys Specialist (ECSS), and State Approving Agency (SAA) staff conduct compliance surveys.

Who Conducts Compliance Surveys


Each survey conducted by VA consists of a random sample of VA student records for those who have been certified and awarded benefits at that institution.Sample size is based on total VA student awarded enrollment total. NOTE: We review minimum of 10 VA student records unless there are fewer than 10 students enrolled (excluding Chapter 31)Purpose of the sample size is to validate and confirm institutional certifications and practices – to ensure accurate and timely reporting to VA by the designated SCO.

Surveys


- Areas of Review- Verification of Enrollment Data- Credit for Previous Education and Training- Records and Reports of Enrollment- Changes in Enrollments- Termination and interruptions- Wages Paid- Records and Reports of Progress, Conduct, or

Attendance- Related Training- Training Agreement- Family Relationship

The Compliance Survey


Requirements:

For on-job and apprenticeship training, the beginning date to be certified is the first date of employment in the training position. The ending date of training must be certified in accordance with the credit granted for prior training. The beginning and ending dates of training and the credit allowed as reported on the enrollment certification must agree with the information shown on the on-job or apprenticeship training agreement.

Verification of Enrollment Data


Review Procedures:

Review employer records including timecards, progress or other records as necessary to verify that the beginning date certified was the actual first date of training. If the beginning date certified was not the first date of training, record the correct date on the compliance survey worksheet. Also record the hours worked commencing with the verified first date of training. Confirm first date of employment and first date of training during trainee interviews.

Verification of Enrollment Data


Requirements:

For training establishments, apprenticeship standards require the granting of advanced standing or credit for previously acquired experience, training or skills with commensurate wages for any progression step granted.

The veteran or eligible person may not be already qualified by reason of training and experience for the job.

Credit for Prior Education and Training


Review Procedures:In preparation for the survey, review the trainee's application for benefits and, if a veteran, the discharge certificate, to determine if the trainee has had previous education, training or experience in the job objective being pursued. Review the enrollment certification and training agreement to determine if any credit was granted for previous experience or training. Note the amount of credit granted on the compliance survey worksheet. If a substantial amount of training or experience is shown on the application or discharge certificate, determine if proper development was undertaken to ensure that the trainee was not already qualified for the objective.

Credit for Various Education and Training


Requirements:The trainee and the employer must certify the hours worked each month on VA Form 22-6553d, Monthly Certification of On-the-Job and Apprenticeship Training. Full payment is based on 120 hours in 1 full month. In months in which less than 120 hours are worked, benefits are proportionately reduced.

The hours certified may include related training during working hours, but may not include related training received or pursued after working hours. The hours certified may not include leave or vacation time or hours not worked due to strikes or layoffs, nor overtime hours.

RECORDS AND REPORTS OF ENROLLMENT, CHANGES IN ENROLLMENT, AND TERMINATION OR INTERRUPTION


Review Procedures:Verify the hours certified for each month of the review period through review of official payroll or time and leave records. Ensure that the hours certified represent only actual hours on the job and do not include vacations, leave for medical purposes, strikes, layoff time, related training after working hours, etc.

During interviews with trainees, confirm that leave periods and hours of related training, if required, have been properly reported.

RECORDS AND REPORTS OF ENROLLMENT, CHANGES IN ENROLLMENT, AND TERMINATION OR INTERRUPTION


WAGES PAID

Requirements:For OJT programs, the beginning wage must be at least 50 percent of the journeyman wage. The wages must be increased in regular periodic increments until, not later than the last full month of the training period, they will be 85 percent of the journeyman wage. Wages for on-the-job programs must be fixed and certain. Wages for a journeyman or for a trainee may not be based in whole or in part on commissions, fees or other variables. Exceptions are made for OJT programs offered through government agencies, whether federal, state, or local.


WAGES PAID

Requirements:For apprenticeship programs, the wage scale must meet the requirements of the apprenticeship standards (29 CFR 29.5). There must be a progressively increasing schedule of wages to be paid the apprentice consistent with the skill acquired. The entry wage may not be less than the minimum wage under the Fair Labor Standards Act. If a higher wage is required under other Federal or State law or regulations, or by a collective bargaining agreement, the entry wage may not be less than that higher wage. Payment of commissions is not precluded for apprenticeship programs.


WAGES PAID

Requirements:The approved wage scale is shown on the training or apprenticeship agreement furnished to the trainee. Changes in the wage rate are to be reported on VA Form 22-6553d. Attainment of the journeyman rate indicates the trainee has acquired the skills of a fully trained employee and benefits must be discontinued even though the approved length of the program may not have been completed. However, cost-of-living or other wage increases which affect VA and non-VA trainees alike may be considered revisions to the wage scale and may be approved if the applicable requirements of the law and regulations are met.


WAGES PAID

Review Procedures:Review the establishment's official payroll records to verify the wages which have been paid during the training program. If differences exist between the approved wage scale and the wages which have been paid, record the amounts paid and the effective dates of change. If the trainee has reached the journeyman wage, note the effective date that the increase was granted.When the wages paid do not agree with the approved wage scale, determine the cause through interviews with establishment officials.During trainee interviews, confirm with the trainee the amounts actually paid and the dates of increases.


RECORDS AND REPORTS OF PROGRESS, CONDUCT AND ATTENDANCE

Requirements:Training establishments must keep accurate, current and complete records to show progress toward the student's objective, and must establish and enforce standards related to progress, conduct, and in certain cases, attendance. Schools and training establishments must report accurately and promptly when, in accordance with the school's official standards, a student fails to maintain satisfactory progress, conduct, or attendance. Generally, a report must be made within 30 days of the date progress, conduct or attendance became unsatisfactory in order to be considered prompt.


RECORDS AND REPORTS OF PROGRESS, CONDUCT AND ATTENDANCE

Review Procedures:Review training establishment records to determine whether they are adequate to identify when progress, conduct or attendance are satisfactory. If an individual trainee's progress, conduct or attendance have been unsatisfactory, determine the date the employer's standard was not met. Determine if reports were made accurately and promptly.


RELATED TRAINING

Requirements:For apprenticeship programs, supplemental related instruction is required. A minimum of 144 hours of such instruction for each year of apprenticeship is recommended (29 CFR 29.5). Such instruction may be given in trade, industrial or correspondence courses or other forms of approved self-study. The establishment must periodically review and evaluate the trainee's progress in related instruction.

For on-job programs, related instruction may be required as part of the training program for the veteran or eligible person who may need it.


RELATED TRAINING

Review Procedures:If related instruction is required, verify through interviews with establishment officials and with trainees that such instruction is being provided and that progress is being evaluated. Review any available records of related training maintained by the establishment or trainee. Ensure that related instruction furnished or received after working hours was not certified as hours worked.


TRAINING AGREEMENT

Requirements:The training establishment must provide a signed copy of the training or apprenticeship agreement to the veteran or eligible person and VA. An on-job training agreement must include the training program (schedule of work processes in which training will be provided and approximate amount of time to be spent in each process) and the approved wage scale.

For apprenticeship programs, the apprenticeship agreement must include either explicitly or by reference the training program, approved wage scale and information regarding the number of hours to be spent in related instruction. Registered apprenticeship programs receive an indenture agreement from the Bureau of Apprenticeship which is used in lieu of the VA training agreement form, VA Form 22-8864.

The on-job training agreement may also include the amount of credit allowed for previous education or training, if any, and the beginning and ending dates of training. The information shown on the training agreement should agree with the information certified on the VA Form 22-1999.


TRAINING AGREEMENT

Review Procedures:During the trainee interview, verify that the trainee did receive a signed copy of the training or apprenticeship agreement; that the training provided agrees with the approved training program; and that the wages paid are in accordance with the approved wage scale.


FAMILY RELATIONSHIP

Although no prohibition exists against family relationships present between trainer and trainee, such relationships often occur in on-job training programs and must be evaluated carefully. Care should be taken to ensure that a bona fide training program exists and especially to ensure that the trainee is not already qualified for the position because of previous experience or training.


-Majority of compliance surveys we conduct involve travel, meaning a number of institutions may be scheduled for a given week (Monday – Friday). We strive to not schedule at institution peak workload periods however this may not always occur based on travel plans.-VA and SAA will call the primary SCO to schedule a date(s) and time for conducting the survey in addition to providing institution with names of students in the sample size to be reviewed. -A letter or email will be furnished the SCO of the student names and the institutional records to copy for our review.-The institutional records copied will be retained by VA and SAA to include in our compliance survey records – PII data is safeguarded and necessary as internal quality reviews by VA are conducted to ensure all aspects of the compliance survey were accurately reviewed and completed. (procedures changed for FY14)PII data can be shredded following a reasonable period from date of closed survey (normally within 90 days)

Surveys - Scheduling


The onsite compliance survey may involve 1 or more individuals based on the size of the sample VA student records to review.

We will schedule an entrance briefing with the primary SCO and other institutional staff to describe and explain purpose of our visit and to confirm the requested records were provided for our review.

The second step is to review the student records and compare to VA Form 22-1999 and VA Form 22-1999b submissions to validate accurate and timely reporting to VA.

Questions and confirmation of additional data will be made to the SCO during the on site compliance survey to validate last date of attendance, withdraw dates, or any other action requiring justification or clarification.

The last step on the on site survey will be the exit briefing. The purpose of the exit briefing is to provide institution with survey results based on the findings with emphasis to identify the root cause of the exceptions.

Conducting Survey


VA and SAA will prepare narrative reports for the survey findings. Findings of reporting discrepancies will involve referrals to the RPO for

award actionsFindings of no reporting discrepancies however late reporting is noted and

evaluated Findings of approval criteria is referred to the SAA at all institution is for

appropriate review, investigation, and necessary corrective action

Our internal reports capture primary causes or root causes for non compliance discrepancies found.

Training of SCO’s is often required due to an estimate of a 30% annual turnover of designated certifying officials.

A letter is sent to the institution to acknowledge the compliance survey that conveys the results of our visit. (Normally discrepancy issues are noted during our exit briefing)

Post Survey Actions


Evidence of non compliance may involve overpayments to both institutions and students noted on compliance surveys.

Again summary on types of reporting discrepancies but not all inclusive are provided on the next slide.

Overall the results of our compliance surveys have been good.

Noted is additional action can be taken by expanding the number of student records to review based on a finding of 30% or greater reporting discrepancies. Also a total reporting error of 50% or greater may develop into a 100% review of VA student records.

Post Survey Actions


Compliance Survey Findings

• Overall the findings have been very good. Common errors involve:– Not reporting changes or terminations– Late reporting of enrollment and enrollment changes to VA– Failure to monitor prior credit evaluations– Incorrectly reporting LDA – last day of attendance on

withdrawing – Certifying incorrect program name or type of training– Not reporting unsatisfactory progress or probation– Lack of institutional records to support certifications to VA– Certifying programs not approved by VA or SAA


VA does maintain a tracking system on a fiscal year basis for all compliance surveys conducted as well as:

- Name of institution and type- Date of compliance survey- Individual who conducted the survey- number of VA student records reviewed- number of VA students records with discrepancies

This information is reported to VA Central Office, Washington, DC on a periodic basis to confirm institutional compliance.

Summary


COMPLIANCE SURVEY

Documents

VETERANS BENEFITS ADMINISTRATION March 2015 Compliance Surveys for OJT / Apprenticeship