**CONTENTS**

**CHAPTER 1. GENERAL**

**SUBCHAPTER I. ROLE OF THE EDUCATION LIAISON REPRESENTATIVE**

PARAGRAPH PAGE

1.01 Designations and Responsibilities of the Education Liaison
Representative 1-1

1.02 Jurisdiction Over Program Approvals 1-2

1.03 Liaison With State Approving Agencies 1-3

1.04 Liaison With Schools and Job Training Establishments 1-3

1.05 Liaison With Regional Processing Office Personnel 1-4

1.06 Liaison With Regional Office Personnel 1-4

1.07 Liaison With Other State and Federal Agencies and Organizations 1-4

**SUBCHAPTER II. STATE APPROVING AGENCIES**

PARAGRAPH PAGE

1.08 General 1-5

1.09 Inspections and Approvals 1-5

1.10 Reimbursement Contracts With State Approving Agencies 1-6

1.11 Reviews of Contract Proposals by Education Liaison Representatives
1-6

1.12 Invoice Processing 1-8

1.13 Quarterly Report of Activities 1-10

1.14 State Approving Agency Performance Evaluation Process 1-10

FIGURE PAGE

1.01 State Approving Agency Contract Number: First Two Digits --- Fiscal
Year 1-7

1.02 State Approving Agency Contract Number: Second Two Digits --- State
Approving Agency

Numeric Designation 1-7

1.03 Administrative Cost Formula 1-9

1.04 Completed Standard Form 1034, Public Voucher for Purchases and
Services Other Than Personal 1-11

**CONTENTS -- CONTINUED**

TABLE PAGE

1.01 SAA Administrative Allowance 1-A-1

**CHAPTER 1. GENERAL**

**SUBCHAPTER I. ROLE OF THE EDUCATION LIAISON REPRESENTATIVE**

**1.01 DESIGNATIONS AND RESPONSIBILITIES OF THE EDUCATION LIAISON
REPRESENTATIVE**

**a. Designations.** The ESUs (Education Services Units) at RO's
(Regional Offices) are under the jurisdiction of the CELO (Chief
Education Liaison Officer) at the RPO (Regional Processing Office) of
jurisdiction. They are responsible for education liaison activities. The
subsequent chapters in this part provide detailed descriptions of these
activities.

\(1\) CELOs must designate ELRs (Education Liaison Representatives) to
administer the responsibilities of the ESUs.

\(2\) CELOs must report changes of ELRs to the Education Service, CO
Operations (223B) , at 202-273-7156. Even if CELOs informally report
changes to CO Operations, they must formally notify the Director,
Education Service (22) either by mail or by E-Mail.

**b. References.** The primary duties of ELRs involve program approval
activities. These activities are a principal factor in processing awards
of educational assistance benefits to veteran students. The proper
administration of these responsibilities and duties constitute a
critical aspect of overall education program effectiveness and
productivity. For successful performance of these assignments, ELRs must
be familiar with the requirements of the following references:

\(1\) The provisions of 38 U.S.C. chapters 30, 32, 35, and 36, 10 U.S.C.
chapter 1606, and sections 901 and 903 of Public Law 96-354.

\(2\) The duties and responsibilities of the SAA (State Approving
Agency) as provided in the annual contract.

\(3\) Approval criteria for all types of training.

\(4\) The Service Members Occupational Conversion and Training Act of
1992. (See M22-5 for additional information.)

\(5\) Applicable federal and state standards for apprenticeship
training.

\(6\) Federal Aviation Regulations for flight training.

\(7\) VA procedures relating to program approvals.

\(8\) VA regulations pertaining to 38 U.S.C. chapters 30, 32, 35, and
36, 10 U.S.C. chapter 1606, and sections 901 and 903 of Public Law
96-354.

\(9\) Applicable equal opportunity legislation, executive orders, and
implementing regulations, to include:

\(a\) Title VI of the Civil Rights Act of 1964 as amended (42 U.S.C.
2000d-2000d-6); title IX of the Education Amendments of 1972 as amended
(20 U.S.C. 1681-1686); section 504 of the Rehabilitation Act of 1973 as
amended (29 U.S.C. 794); the Age Discrimination Act of 1975, as amended
(42 U.S.C. 6101, et. seq.); and the Americans with Disabilities Act of
1990.

\(b\) Executive Orders 11764 and 11914.

\(c\) Title 28, CFR, parts 42F and 50.3; title 45 CFR, part 90.

\(d\) M27-1, part III, chapters 13 through 15.

\(10\) VA regulations on equal opportunity.

**c. Responsibilities.** ELRs have a wide range of responsibilities in
support of education benefits programs cited in paragraph 1.01b(8).
These responsibilities include, but are not limited to:

\(1\) Receiving, reviewing, and taking appropriate actions on all
approval notices submitted by SAAs.

\(2\) Maintaining close working relationships with SAAs to oversee
proper completion of the reimbursement contract provisions.

\(3\) Maintaining close working relationships with officials at schools
and job training establishments and promptly informing them of changes
in VA policies and procedures.

\(4\) Disseminating approval information to all concerned elements
within ROs and RPOs.

\(5\) Approving education and job training programs in those instances
where SAAs are unable to approve programs or have declined jurisdiction
of these programs.

\(6\) Scheduling and monitoring the completion of required compliance
surveys.

\(7\) Scheduling and conducting liaison visits with schools and job
training establishments or other government offices either regularly or
on an \"as needed\" basis.

\(8\) Maintaining appropriate working relationships with state agencies
involved in any way with the education or training of veterans. This may
include the state departments of labor, employment security, veterans
affairs, etc.

\(9\) Maintaining close working relationships with veteran service
organizations on education related matters and ensure that they are
promptly notified of changes in VA policies and procedures.

**1.02 JURISDICTION OVER PROGRAM APPROVALS**

**a. SAA Approvals.** SAAs are responsible for approving programs
offered by schools and job training establishments located within the
boundaries of their state. The Commonwealth of Puerto Rico and the
District of Columbia are \"states\" for approval purposes. SAAs are also
responsible for approving college level programs offered in foreign
countries by schools located within their jurisdictions.

**b. RO Approvals.** ROs serve as the approving agency for states under
one of three conditions:

\(1\) The state fails or declines to create or designate an SAA.

\(2\) The Education Service determines that the SAA cannot adequately
fulfill the requirements for program approvals.

\(3\) When required or authorized by law.

**c. Education Service Approvals.** The Director, Education Service,
acting on behalf of the Secretary, is responsible for reviewing and
approving programs of education or training under the following
conditions:

\(1\) Programs offered by schools located in any foreign country except
the Republic of the Philippines.

\(2\) Programs offered by branches or extensions of domestic schools or
by any other schools located in the Federated States of Micronesia, the
Republic of Palau, and all U.S. territorial possessions where there are
no functioning SAAs.

\(3\) Programs offered by federal agencies or departments. This includes
flight training given by military flying clubs, i.e. aero clubs.

\(4\) National apprenticeship programs operating in more than one state
and training establishments that are carriers directly engaged in
interstate commerce.

**d. Manila RO Approvals.** The Manila RO is responsible for the
approval of programs offered by schools in the Philippines.

**e. San Juan RO Approvals.** The San Juan RO is responsible for the
approval of programs offered by schools and job training establishments
in the U.S. Virgin Islands.

**1.03 LIAISON WITH STATE APPROVING AGENCIES**

**a. Relationship between VA and SAAs.** Cooperation between ELRs and
SAAs is essential for the effective and efficient administration of VA
education benefits. A free flowing exchange of information between ELRs
and SAAs helps to ensure proper enforcement of approval standards,
enrollment restrictions, and the prompt payment of benefits.

**b. States With More Than One RO.** The following ROs are the primary
liaison offices for their respective states:

[STATE]{.underline} [PRIMARY LIAISON OFFICE]{.underline}

California San Diego

New York Buffalo

Pennsylvania Philadelphia

Texas Waco

\(1\) The primary ROs:

\(a\) Will distribute copies of regulations, circulars, and any other
pertinent information regarding issues involving approval criteria and
reporting requirements to the SAA(s).

\(b\) Are responsible for liaison activities with other state agencies
and dissemination of information regarding state agencies to other ROs
in the state.

\(c\) Are responsible for dissemination of information to schools within
their area of jurisdiction in the state.

\(2\) The secondary ROs are responsible for dissemination of information
to schools within their area of jurisdiction in the state.

*NOTE: In California, the San Diego RO is responsible for the
dissemination of information to all schools and job training
establishments in the state.*

**1.04 LIAISON WITH SCHOOLS AND JOB TRAINING ESTABLISHMENTS**

**a. General.** ELRs must maintain close contact with officials of
schools and job training establishments approved for VA benefits. ELRs
should pay careful attention to facilities with large numbers of
students or trainees. ELRs must provide officials of all approved
schools and job training establishments with their name, address,
telephone number, fax number, and E-Mail address, and encourage them to
contact the ELRs with any questions regarding VA requirements and
procedures.

**b. Communications.** ELRs must maintain open lines of communication.
Telephone contacts, bulletins, letters, group meetings, or individual
liaison visits are all excellent means of accomplishing this. ELRs must
ensure the timely issuance of accurate enrollment certifications,
notices of reduction and termination, periodic certifications, and other
required reports.

**1.05 LIAISON WITH REGIONAL PROCESSING OFFICE PERSONNEL**

**a. General.** The CELO at each RPO is the contact point for ELRs at
ROs within the RPO\'s jurisdiction when dealing with the RPO\'s
Adjudication Division or Finance activity. When RO ELRs need to refer
issues to the RPO\'s Adjudication Division or Finance activity, ELRs
should call or send an E-Mail message to the CELO at the RPO. The CELO
at the RPO should review the information received from ELR's and ensure
that it is referred to the proper activity for the necessary action.

**b. Returning Calls or E-Mail Messages.** ELRs at ROs should return
calls or E-Mails directly to RPO employees who called or sent the
E-Mail. Since most of these calls or E-Mails deal with specific claims
for education benefits, it is faster for ELRs at ROs to reply directly
to the caller or sender and avoid involving the CELO.

**1.06 LIAISON WITH REGIONAL OFFICE PERSONNEL**

**a. General.** ELRs at ROs should assist other RO personnel in dealing
with education issues.

**b. Vocational Rehabilitation and Counseling.** ELRs must assist VR&C
employees with maintaining approval information on facilities approved
for chapter 31 only. ELRs should use OLAF (On-Line Approval File) to
maintain approval information on chapter 31 only facilities and to
establish the records in the Hines BDC (Benefits Deliver Center)
facility file. See paragraph 5.06 for information on chapter 31
approvals and chapters 6 and 8 on maintaining approvals in OLAF and
adding records to the Hines facility file.

**1.07 LIAISON WITH OTHER STATE AND FEDERAL AGENCIES AND ORGANIZATIONS**

**a. Other Agencies.** ELRs must maintain liaison with agencies and
organizations at the state and local levels that affect the education
benefit programs. ELRs must identify areas where such agencies can
provide information useful to the administration of VA benefits. In this
regard, ELRs should become familiar with the state licensing and degree
granting requirements. Pertinent agencies may include:

\(1\) The state departments of education and any other state agencies
responsible for the licensing of schools and job training
establishments.

\(2\) The state boards of cosmetology and barbering.

\(3\) Associations of schools located within the state.

\(4\) The state labor departments or other organization responsible for
job training.

\(5\) The closest Federal Bureau of Apprenticeship and Training.

\(6\) The local Flight Standards District Office and the Flight
Standards Division, Operating Branch, at the Federal Aviation
Administration Regional Offices.

**b. Other Agency Regulations.** ELRs must be familiar with the rules
and regulations of federal and state agencies that affect the payment of
VA education benefits. ELRs should establish procedures with appropriate
personnel within these agencies to ensure prompt notification of any
changes that affect payment of VA education benefits.

**SUBCHAPTER II. STATE APPROVING AGENCIES**

**1.08 GENERAL**

**a. Background.** Receipt of VA education benefits is dependent upon
participation or enrollment in approved educational, vocational, or job
training programs. The approval of these various programs is the
responsibility of the SAAs in the state in which the schools or job
training establishments are located. There are limited exceptions that
are described in paragraph 1.02b and c. Statutory authority for the
establishment and designations of SAAs is in 38 U.S.C. chapter 36. State
Governors may designate one or more state office(s) to act as SAAs. For
example, a state could have one agency for approval of IHLs
(Institutions of Higher Learning), another agency for NCD (Noncollege
Degree) programs, and a third agency for OJT (On-The-Job) training and
apprenticeship programs.

**b. Responsibilities.** SAAs are responsible for the following:

\(1\) Determining the qualifications of schools and job training
establishments to offer instruction under 38 U.S.C., chapters 30, 32,
35, 36, and 10 U.S.C. chapter 1606.

\(2\) Approving programs of education and training for veterans,
servicepersons, and other eligible persons.

\(3\) Supervising approved schools and job training establishments.

\(4\) Furnishing other services as requested by VA to ensure compliance
with the requirements of title 38, U.S.C.

\(5\) Withdrawing the approvals of programs that fail to maintain the
standards and conditions upon which approval was granted.

**1.09 INSPECTIONS AND APPROVALS**

**a. Program Approvals.** SAAs must inspect schools and job training
establishments to determine whether or not their programs meet the
requirements of title 38 U.S.C. chapter 36. The approval jurisdictions
of SAAs extend only to those programs cited in paragraph 1.08b(1). SAAs
are not responsible for the approval of programs under chapter 31,
Vocational Rehabilitation and section 901 (Education Assistance Test
Program) of Public Law 96-342.

**b. SAA Jurisdiction.** SAAs have jurisdiction over the schools and job
training establishments operating within the borders of their respective
states. SAAs in states where extensions, branches, or additional
facilities of out-of-state schools are operating may approve the
programs at these extensions, branches, or additional facilities. The
SAAs of the home states of the parent schools are responsible for the
approval of overseas branches and extensions.

**c. Approval Documentation.** SAAs will require any schools or job
training establishments desiring to seek approval of programs to be
pursued by veterans and eligible persons to submit applications for
approval. SAAs are responsible for developing their applications. After
determining whether or not a program meets the requirements for
approval, SAAs must notify both the school or job training establishment
and the RO of the results of their findings. In addition, SAAs must
provide ROs with written notification of each amendment, modification,
or withdrawal of any approval. SAAs must send notices of withdrawal of
approval sent to schools or job training establishments by registered or
certified letters with return receipt requested. The only exception is
when SAAs determine that the schools or job training establishments are
no longer in business and all mail is being returned as undeliverable.
All approval notices must contain the following items:

\(1\) The date of the letter and effective date of approval of the
program(s).

\(2\) The proper name and address of the school or job training
establishment.

\(3\) The authority for the approval and conditions of approval
referring specifically to the approved catalog or bulletin published by
the school.

\(4\) The name(s) of the program(s) approved and the type(s) of
instruction offered.

\(5\) The signature of the responsible SAA official.

\(6\) Copies of supervisory visit reports.

\(7\) Copies of reports made at the request of the RO.

\(8\) Such other fair and reasonable provisions as are considered
necessary by the SAA.

**d. Specific Requirements.** In addition, SAAs will provide the
specific information necessary to approve accredited and nonaccredited
programs, programs leading to standard college degrees, business,
technical, and vocational programs leading to certificates or diplomas,
correspondence courses, flight training programs, and apprenticeship and
other on-the-job training programs. Chapter 2 contains the specific
requirements for accredited and nonaccredited programs. Chapter 3
contains the specific requirements for programs leading to standard
college degrees and business, technical, and vocational programs leading
to certificates or diplomas. Chapter 4 contains the specific
requirements for correspondence courses, flight training programs, and
apprenticeship and other on-the-job training programs.

**1.10 REIMBURSEMENT CONTRACTS WITH STATE APPROVING AGENCIES**

**a. Contract Negotiation.** The NASAA\'s (National Association of State
Approving Agencies) Contract Committee and the Director, Education
Service will negotiate the reimbursement contract each year. NASAA meets
with the Education Service before the beginning of each fiscal year to
negotiate the contracts for the next fiscal year.

**b. Document Transmission.** The Education Service will send each SAA a
transmittal letter and three copies of the contract. In the letter, the
Education Service will specify the maximum dollar amount authorized for
the contract and provide specific instructions for completing the
contract. SAAs must send the completed contract proposals to the RO of
jurisdiction for review.

**1.11 REVIEWS OF CONTRACT PROPOSALS BY EDUCATION LIAISON
REPRESENTATIVES**

**a. Document Review.** ELRs must review SAA contract proposals for
completeness.

\(1\) The packages must include:

\(a\) Three copies of the contract.

\(b\) Current state wage schedules with the wages of the positions
listed in Article IX of the contract. SAAs must highlight or underline
the salaries of contract personnel.

\(c\) Current fringe benefit schedules with the amount of Social
Security, Health Insurance, Workman\'s Compensation, and the percentage
pertinent to each per position covered by the contract.

\(d\) Copy of current state travel regulations, if not previously
submitted to the Education Service.

\(e\) The SAA\'s Plan of Operations. See paragraph 1.14e.

\(2\) ELRs must ensure that:

\(a\) The contract number is correct. The current contract numbering
system started in FY (Fiscal Year) 1990 and consists of a four digit
number.

[1]{.underline} The first two digits designate the current FY. The first
number used was 30. The number increases by one for each subsequent FY.
Figure 1.01 shows the two digit combinations for each FY for a 20 year
period beginning with FY 1998. This systemic progression will continue
indefinitely.

  ----------- --------- ----------- --------- ----------- --------- ----------- ---------
  **Fiscal    **No.**   **Fiscal    **No.**   **Fiscal    **No.**   **Fiscal    **No.**
  Year**                Year**                Year**                Year**      

  1998        38        2002        42        2006        46        2010        50

  1999        39        2003        43        2007        47        2011        51

  2000        40        2004        44        2008        48        2012        52

  2001        41        2005        45        2009        49        2013        53
  ----------- --------- ----------- --------- ----------- --------- ----------- ---------

**Figure 1.01. State Approving Agency Contract Number: First Two Digits
-- Fiscal Year**

[2]{.underline} The second two digits identify the SAA according to the
designation illustrated in figure 1.02.

  ------------- --------- --------------- --------- -------------- --------- ------------- ---------
  **SAA**       **No.**   **SAA**         **No.**   **SAA**        **No.**   **SAA**       **No.**

  Alabama SDE   00        Indiana CPPE    73        Nebraska DE    36        Rhode Island  53
                                                                             OHE           

  Alaska CPE    01        Indiana DVA     17        Nevada CPE     76        South         54
                                                                             Carolina CHE  

  Arizona VSC   83        Iowa SDE        18        New Hampshire  86        South Dakota  81
                                                    PE                       DMVA          

  Arkansas De   05        Kansas CVA      19        New Jersey     39        Tennessee HEC 56
                                                    DMAVA                                  

  California    06        Kentucky SBE    20        New Mexico OMA 40        Texas HEC     57
  CPPVE                                                                                    

  California    07        Louisiana DE    21        New York SED   41        Utah BR       59
  DIR                                                                                      

  Colorado      08        Louisiana DOL   22        North Carolina 44        Vermont SDE   60
  SBCC/DE                                           DOL                                    

  Connecticut   09        Maine DECS      23        North Carolina 43        Virginia DE   62
  DHE                                               SAA                                    

  DC ELC        80        Maryland HEC    24        North Dakota   45        Washington    69
                                                    SAA                      HEC           

  Delaware SBE  74        Massachusetts   25        Ohio DE        46        Washington    63
                          BRHE                                               WTECB         

  Florida DVA   11        Michigan DE     27        Oklahoma SAA   48        West Virginia 65
                                                                             HECO          

  Georgia SDVS  13        Minnesota BE    28        Oregon BLI     50        Wisconsin     67
                                                                             DILHR         

  Hawaii DLIR   14        Minnesota DLI   29        Oregon DE      49        Wisconsin EAB 66

  Hawaii SPEC   79        Mississippi     31        Pennsylvania   51        Wyoming DE    68
                          SVAB                      DE                                     

  Idaho DE      15        Missouri SBE    32        Puerto Rico    52                      

  Illinois DVA  16        Montana OPI     33                                               
  ------------- --------- --------------- --------- -------------- --------- ------------- ---------

**Figure 1.02. State Approving Agency Contract Number: Second Two
Digits**

**-- State Approving Agency Numeric Designation**

[3]{.underline} As an example, the number for the Alabama SDE (State
Department of Education) contract for FY 1996 is 3600, i.e. \"36\"
designating FY 1996 and \"00\" designating Alabama SDE.

\(b\) The math in Article IX of the contract is correct.

\(c\) The address in Article IX is correct.

\(d\) All contract certifications are complete.

\(e\) Article XIV of the contract contains the name of the State,
signature, and title of the contract signatory.

*NOTE: Governors appoint contract signatories authorized to commit the
agencies or departments to legally binding contracts. SAAs submit the
names of these persons to the ROs who then send them to the Education
Service (223B). ELRs must promptly send changes in the contract
signatories to the Education Service (223B) and not wait until they
receive the contracts.*

\(f\) Each form contains an original signature of the contract
signatory.

**b. Document Submission.** After review, ELRs must submit the
reimbursement contracts and the plans of operations to the Education
Service (223B) along with letters of recommendation for acceptance or
required changes.

**c. Document Completion.** The Education Service will return two copies
of the executed contract to ROs. ELRs will keep one copy and send the
other to the SAA.

**1.12 INVOICE PROCESSING**

**a. Payment Transactions.** Beginning in FY 1997, Finance personnel
began to change from using the BDN (Benefits Delivery Network) to FMS
(Financial Management System) to enter the transactions necessary to
disburse reimbursement payments to SAAs.

**b. Reimbursement Invoice.** SAAs will request reimbursement on a
monthly or quarterly basis by preparing an invoice and sending it with
supporting documentation to ELRs. SAAs will submit the invoice to ROs as
soon as possible after the month or quarter that the invoice covers.

**c. Invoice Standards.** There is no prescribed format for either the
invoice or for any supporting documents. Invoices and their supporting
documents must conform with the requirements contained in Article VIII
of the SAA\'s reimbursement contract.

\(1\) SAAs must submit the invoice under the contract number and must
show only the total amount of expenses claimed under the contract.
Invoices must claim reimbursement for expenditures that have not been
properly claimed under this or any other contract.

\(2\) SAAs should submit invoices and supporting documentation as soon
as possible following the period for which they are requesting
reimbursement. A delay in payment may result if invoices are not
received in a timely manner. Such a delay could, in turn, delay the
processing of subsequent claims, or claims for supplemental contract
amounts, which could be subject to the availability of funds.

\(3\) Invoices must be accompanied by detailed supporting documentation.
This will include for each individual:

\(a\) Name.

\(b\) Position or title.

\(c\) Salary rate.

\(d\) Amount paid for travel.

\(e\) The period(s) covered for these expenditures.

\(4\) Travel expenses must be documented as required by 38 CFR 21.4153.
SAAs must include copies of state travel vouchers showing travel for VA
contract purposes and indicating the cost, destination, and purpose of
travel for all travel claimed. Travel claimed for visits to schools and
job training establishments must be supported by copies of the visit
reports.

\(5\) Where travel is conducted by employees performing both VA related
functions and other job related functions, claims for reimbursement must
include a statement of hourly time distribution for each set of
functions.

**d. ELR Actions.** Upon receipt and date stamping of the invoice, ELRs
must review the invoices. ELRs must complete their reviews within 7 days
of receipt. ELRs must confirm that the amount of the reimbursement
claimed by the SAA is appropriate. ELRs must certify that:

\(1\) Invoices are mathematically correct.

\(2\) SAAs used the appropriate salary and travel rates.

\(3\) Statements of time distribution are provided for employees who are
performing work other than that specified in the contract. The SAA
reimbursement contract does not specify a form for this. Rather, it
requires that reimbursement of both time and travel for state employees
who provide services to VA under the contract and to the state for other
purposes must be supported by appropriate documentation. The method used
to allocate time and travel in these cases should produce an equitable
distribution of time, effort, and travel. Reimbursement must not exceed
the *pro rata* part of the employee\'s salary and travel expenditures as
supported by these time distribution records.

\(4\) Reports for each inspection or supervisory visits are included. If
travel is indicated and is not for inspection or supervisory purposes, a
statement is required which explains the reason for the travel.

\(5\) Travel costs are substantiated by either a travel itinerary, a
State travel voucher, or both. These must clearly indicate the cost,
destination, and purpose of the travel.

\(6\) The amount claimed from the beginning of the fiscal year through
the end of the month or quarter for salaries, fringe benefits, and
travel does not exceed the amounts in article IX of the reimbursement
contract.

\(7\) The travel is consistent with the Plan of Operation.

\(8\) An appropriate state official has signed and dated the invoice.

**e. Administrative Expense Allowance.** After validating the
correctness of invoices, ELRs must determine the administrative expense
allowance due the SAA. The formula in 38 CFR 21.4153(a)(3)(i) is the
basis for the calculation of the administrative allowance. Figure 1.03
contains the formula. Only salary and fringe benefits are applied in
this formula. Travel expenses are **[not]{.smallcaps}** a factor.

Appendix A contains the precise administrative allowance based on a more
closely defined range of salary and fringe benefit amounts.

**f. SAA Invoice-No Exceptions.** If there are no exceptions, ELRs must
certify the SAAs invoice and prepare an original and two copies of
Standard Form 1034, Public Voucher for Purchase and Service Other Than
Personal. (See figure 1.04 for an example of a completed SF 1034.) ELRs
must submit the original SF 1034 to the RO\'s Finance activity for
processing. The Finance activities must, in turn, complete BDN or FMS
processing and provide copies of the payment transaction screens to
ELRs. ELRs must send one copy of the voucher package, with a copy of the
BDN or FMS payment transaction screen attached, to the Education Service
(223B.) ELRs must retain the other copy of the voucher package also with
a copy of the BDN or FMS payment transaction screen in an SAA voucher
file.

**Figure 1.03. Administrative Cost Formula**

**g. SAA Invoice-Exceptions Noted.** If there are exceptions to the
SAA\'s invoice, ELRs must contact the SAA by telephone for
clarification. If ELRs and SAAs cannot reach agreement on the exception
within 7 days of receipt of the invoice, ELRs must notify SAAs of the
exceptions taken and follow up in writing (48 CFR 52.232-25). Letters
should clearly explain the reasons for the exceptions and include a
statement informing the SAA that they may obtain a final decision on the
issue by writing to the Director, Education Service (223B). ELRs must
prepare vouchers for payment as described in the subparagraph f above,
minus the amount in dispute.

**h. Unsettled Dispute.** When disputes cannot be settled by agreement
and a final decision under the disputes clause of the SAA\'s
Reimbursement Contract is necessary, the Director, Education Service
will make a final decision in the matter and inform the SAA (48 CFR
52.233-1 and 833.211 Disputes and Appeals).

\(1\) Decisions must be in writing, identified as final decisions, and
include a statement of the facts in sufficient detail to enable the SAA
to fully understand the decision and the basis on which it was made.
Decisions must also notify the SAA of its right to file an appeal with
the Board of Contract Appeals upon receipt of the final decision. The
address of the Board is: Board of Contract Appeals (09), 810 Vermont
Avenue, NW, Washington, DC 20420.

\(2\) Policy or personal disagreements between ELRs and SAA personnel
should not enter into the reimbursement process. If reimbursement issues
arise beyond the scope of the ELR\'s responsibilities as outlined in
paragraph 1.12d, the ELR must refer the issues to the Director,
Education Service (223B) for resolution.

**i. Performance Evaluation.** The SAA voucher file will assist ELRs in
evaluating the SAA\'s fiscal year operating plan. This information can
be used during the annual SAA PEP (Performance Evaluation Process.)
Paragraph 1.14h contains additional information on the annual
evaluation.

**j. Record Disposition.** ELRs must destroy records in accordance with
RCS VB-1, part I, item no. 7-661.020.

## 1.13 QUARTERLY REPORT OF ACTIVITIES

**a. SAA Actions.** SAAs must submit the original and one copy of VA
Form 22-7398, Quarterly Report of State Approving Agency Activities,
showing the number of inspection, approval, and supervisory visits. ELRs
must ensure receipt of these reports.

**b. ELR Actions.** ELRs must review reports for accuracy, ask SAAs to
make any necessary corrections, and forward copies of the reports to the
Director, Education Service (223B) within 10 work days of receipt.

## 1.14 STATE APPROVING AGENCY PERFORMANCE EVALUATION PROCESS

**a. General.** Congress enacted Public Law 100-323 on May 19, 1988. The
law added title 38 U.S.C. section 3674A that requires annual evaluations
of each SAA's performance, qualifications, and performance of agency
personnel. SAAs began applying employee qualification and performance
standards effective November 19, 1989. The qualifications and
performance standards are based on prototype standards prescribed
jointly by VA and the NASAA.

**b. National Training Curriculum.** The Education Service and the NASAA
developed the NTC (National Training Curriculum) for the training of SAA
employees. ELRs received a copy of the entire package and should use it
for reference purposes.

**c. Prototype Employee Qualification Standards.** The NASAA and the
Education Service have approved prototype employee qualification
standards. Paragraph 1.14f and Article VI of the reimbursement contract
list the employee qualification standards. The SAA\'s qualification
standards must describe a level of qualification that equals or exceeds
the standards in Article VI of the SAA Reimbursement Contract. SAAs do
not have to apply these employee qualification standards to any person
employed by the SAA on May 20, 1988 (the date of enactment of the law),
if that person remains in the position in which he or she was employed
on that date.

Example of a completed Standard Form 1034 will be included in the
printed version of this new part.

**Figure 1.04. Completed Standard Form 1034, Public Voucher for
Purchases and Services Other Than Personal**

**d. Prototype Performance Standards.** The prototype performance
standards listed in paragraph 1.14g are statements of the expected level
of performance of an SAA. These were jointly approved by the NASAA and
the Education Service. These prototype performance standards were
established as a generic pattern for use by individual SAAs. Each SAA
must adapt the basic framework for its own performance standards.

**e. Plans of Operation.** SAAs must send plans of operation with the
reimbursement contracts to ROs before October 1st. The plan of operation
is the SAA\'s statement of anticipated accomplishments during the
contract year. SAAs must include the number of approvals, the number of
supervisory visits, plans for staff development, and other activities.

**f. Employee Qualification Standards.** The prescribed minimum
qualification standards for SAA personnel are based on job function.

\(1\) SAA personnel approving and supervising schools:

\(a\) Bachelor\'s Degree with five years of related experience.

\(b\) Master\'s Degree with three years of related experience, or

\(c\) Doctorate Degree with one year of related experience.

\(2\) SAA personnel approving and supervising job training
establishments are as follows:

\(a\) Bachelor\'s Degree with two years of related experience, or

\(b\) Equivalent in either education or related work experience or both
totaling six years.

*NOTE: Veteran preference will be given according to state provisions.*

**g. Performance Standards.** Minimum performance standards against
which each SAA is measured were developed jointly by the Education
Service and the NASAA. Each SAA may adapt this basic framework to create
its own set of performance standards. Minimum standards are:

\(1\) [Program approvals]{.underline}

\(a\) Annotate dates of receipt of inquiries from the educational
institutions or the training establishments.

\(b\) Respond to appropriate officials within 14 days of receipt of the
inquiries.

\(c\) Conduct planned visits within 30 days of the response. (Visits are
optional for revised approvals.)

\(d\) Upon receipt of the complete approval packages, review and process
the documents within 30 days.

\(2\) [Supervisory Visits]{.underline}

\(a\) Establish an annual supervisory visit schedule.

\(b\) Perform visits in accordance with the schedule.

\(c\) Forward reports to ROs within 40 days of completed visits.

\(d\) Initiate necessary corrective action within 10 days of completed
visits.

\(e\) Perform follow ups within time frame established with the SAA.

\(3\) [Visits at VA Request]{.underline}

\(a\) Visit and send reports to VA within 30 days of receipt of requests
from VA. Request 30-day extensions, if needed.

\(b\) Initiate corrective action(s) within 10 days of the findings.

\(c\) Perform follow ups as needed.

\(4\) [Technical Assistance]{.underline}

\(a\) Provide technical assistance to all interested parties, including
inactive institutions requesting assistance.

\(b\) Provide technical assistance as an integral part of supervisory
visits.

\(5\) [Staff Development]{.underline}

\(a\) Implement staff development plans.

\(b\) Employees participate in the staff development activities of the
NASAA and the Education Service.

*NOTE: All days are calendar days.*

**h. Performance Evaluation Process.** The Education Service must
conduct, in conjunction with the NASAA, an annual evaluation of each
SAA. They will use the performance standards and the plan of operation.
The contracting officer will send a request out after October 1, asking
that the SAA's self-evaluation and the ELR's assessment be submitted by
a deadline to be determined. The PEP has five segments:

\(1\) SAA\'s Plan of Operation.

\(2\) SAA\'s Performance Standards.

\(3\) SAA Self-Evaluation.

\(4\) RO Assessment.

\(5\) Assignment of Rating.

**i. Definitions and Assignments of Responsibility**

\(1\) [Appellate Officers]{.underline}. Director, Education Service and
the President of the NASAA.

\(2\) [Concurring Officer]{.underline}. Chief, CO Operations, Education
Service.

\(3\) [Contracting Officer]{.underline}. The Assistant Director for
Operations, Education Service, or the Chief, CO Operations, Education
Service.

\(4\) [FFY (Federal Fiscal Year)]{.underline}. The FFY begins on October
1 and ends on September 30 of the following year.

\(5\) [Contract Period]{.underline}. Begins on October 1 and ends on
September 30 of the following year.

\(6\) [JPRG (Joint Peer Review Group)]{.underline}. The JPRG will
consist of two Education Service staff members and two representatives
of the NASAA. The President of the NASAA will appoint the NASAA
representatives with the concurrence of the contracting officer.

\(7\) [Reporting Period]{.underline}. Normally, the same dates as the
contract period.

\(8\) [Supervisory Visit]{.underline}. An SAA visit to an active school
or job training establishment to determine if programs continue to meet
approval criteria. A school or job training establishment is active if a
student receives VA benefits.

\(9\) [Training Team]{.underline}. VA employees and appointees of the
President of the NASAA, with the concurrence of the contracting officer.
The goals and objectives of the training determine the membership of the
training team.

**j. Self-Evaluation**

\(1\) SAAs will perform a self-evaluation at the end of the reporting
period. SAAs will determine if each performance standard was always met,
usually met, sometimes met, or never met. These ratings will have a
quantifiable measure assigned to each one. The Education Service will
encourage SAAs to make a list of their performance standards and record
the rating beside each standard, to include:

\(a\) A statement of the quality of educational opportunities available
in its state upon which the SAA had an impact.

\(b\) An evaluation of the quality of the service provided by the SAA.

\(c\) A description of its performance of additional or exceptional
activities.

\(d\) Reasons why the SAA is not in full compliance with the performance
standards or plan of operation, e.g., unexpected inclement weather,
position vacancies, extended illness of personnel, etc.

\(2\) SAAs will complete their self-evaluations and forward them
directly to the Education Service (223B) by the dead- line. SAAs may
share their self-assessments with ROs. SAAs must provide enough
information to allow the JPRG to assign a rating. The Education Service
must consider the rating when negotiating the contract. While the
contract only requires an annual evaluation, the Education Service
suggests that SAAs establish interim evaluation schedules to monitor
their progress throughout the year. SAAs can monitor progress monthly,
quarterly, or semiannually. SAAs should be able to identify and correct
problems before the end of the reporting period. SAAs may request
assistance from the NASAA or the Education Service.

**k. ELR Reporting Instructions.** In addition to each SAA\'s
self-evaluation, the Education Service must receive annual assessments
of the SAA\'s activities from the ELR. The assessments are due in the
Education Service (223B) by the deadline. However, the Education Service
suggests that ELRs establish interim evaluation schedules to monitor the
SAA\'s progress throughout the year. ELRs must monitor progress monthly,
quarterly, or semiannually-annually. ELRs must be able to identify and
help correct problems before the end of the reporting period. RCS
20-0823 is the identification symbol for this report. ELRs must provide
the following information for each SAA within its jurisdiction.

\(1\) The number of approvals received.

\(2\) The number of approvals accepted.

\(3\) The number of approvals returned, the type of each returned
approval, the reason the approval was returned, and a summary of the
final resolution.

\(4\) The number of visitation reports.

\(5\) A statement specifying that the SAA\'s performance is
satisfactory, minimally satisfactory, or unsatisfactory. If the
assessment is less than satisfactory, or if it contains recommendations
for improvement, include examples.

**l. Assignment of Ratings.** The JPRG will meet at a time and place
agreed upon by the President of the NASAA and the contracting officer.
Each member of the JPRG will review each self-evaluation and ELR
assessment. The JPRG will assign a rating of satisfactory, minimally
satisfactory, or unsatisfactory, based on the self-evaluation and the
ELR assessment. The contracting officer\'s concurrence will complete the
rating process. The JPRG will not assign an unsatisfactory rating unless
the SAA previously received a minimally satisfactory rating and did not
substantially improve its performance. Each member of the JPRG and the
contracting officer must sign and date the evaluation. The contracting
officer must provide the SAA and the ELR with a copy of the rating.

**m. Less Than Satisfactory Ratings.** When the JPRG assigns a minimally
satisfactory or unsatisfactory rating, it must identify goals and
objectives for SAAs to improve their ratings. SAAs must be in a
probationary status until their performance improves. If their
performance does not improve, VA may decline future contracts with that
agency. The JPRG must offer SAAs assistance from training teams and must
schedule visits within 30 days of the rating. Training teams must
conduct visits within 60 days. If SAAs appeal the rating, training teams
must schedule visits within 30 days of an affirmation of the rating.
Training teams must help SAAs meet their plan of operations and
performance standards.

**n. SAA Review and Appeals.** SAAs may make comments, or appeal the
rating to the Education Service, but must do so within 30 days of the
date of the rating. The Education Service must refer requests for
appeals to the appellate officers. If SAAs wish personal hearings in
conjunction with their appeals, they must submit written requests to the
appellate officers at least 30 days before the date requested for the
hearings. SAAs may submit additional evidence up to 30 days after the
appellate officers receives their appeal. The appellate officers must
affirm or revise the rating.

**APPENDIX A**

**SAA ADMINISTRATIVE ALLOWANCE**

**(\$.01 TO \$400,000.00)**

**Table 1. SAA Administrative Allowance**

**APPENDIX A**

**SAA ADMINISTRATIVE ALLOWANCE**

**(\$400,000.01 TO \$800,000.00)**

**Table 1. SAA Administrative Allowance**

**APPENDIX A**

**SAA ADMINISTRATIVE ALLOWANCE**

**(\$800,000.01 TO \$1,100,000.00)**

**Table 1. SAA Administrative Allowance**