**CONTENTS**

**CHAPTER 3. PROCEDURES APPLICABLE TO ALL FACILITIES**

PARAGRAPH PAGE

3.01 Preparation for Survey 3-1

3.02 Class Checks and Student Interviews 3-4

3.03 Briefing School Officials 3-4

3.04 General Areas of Review 3-7

FIGURE

3.1 Checklist for Class Checks 3-4

3.2 Checklist for Student Interviews 3-5

3.3 Checklist for Individual Case Reviews 3-8

**CHAPTER 3. PROCEDURES APPLICABLE TO ALL FACILITIES**

**3.01 PREPARATION FOR SURVEY**

The quality of compliance surveys depends on the adequacy of
preparation. During preparation for the survey, review the approval
file, the compliance survey file (if a survey has been previously
conducted), the education or DEA (Dependents Educational Assistance)
folders for those students in the review sample, and BDN (Benefits
Delivery Network) records. Make notes of beneficiary information (e.g.,
prior education, attendance at branch location, verification of award
data) on the individual worksheets. Make notes on separate working
papers for each general area of review affecting all cases (e.g.,
progress standards in effect during the review period, approved tuition
and fees, 85 percent enrollment restriction certifications, etc.).

**a. Time Period of Review.** The time period for the compliance survey
review will cover the preceding 3-year period or less. In exceptional
cases, the period of review may be more than 3 years if the school or
training establishment has retained student records. The minimum
retention period is 3 years after the termination of a veteran\'s or
eligible person\'s enrollment. When a beneficiary\'s program of
education or training consists of several separate terms or unit
courses, the time limit will be applied separately to each such term or
course. (See par. 1.01d.(2).)

\(1\) Apply the review criteria (i.e., applicable laws and regulations)
in accordance with the proper effective dates during the period of
review. The provisions of laws and regulations cannot be applied for any
period before their effective date.

\(2\) The compliance survey review period will begin effective the
ending period of the prior survey review period and end effective the
last period which has been certified by the school or training
establishment and completed by the students in the review sample (e.g.,
last term completed, last month of training certified, etc.) It may be
necessary to review previous enrollment periods (if records are
available) in order to determine if school regulations regarding
unsatisfactory progress were enforced, if courses have been repeated or
if other discrepancies are suspected in a specific case.

\(a\) The time period covered by a compliance survey will vary depending
on the type of facility and the date of the last compliance survey. For
IHL (institutions of higher learning) and NCD (non-college degree)
schools operating on a term basis, the period covered will normally be
from the beginning of a term through the end of the last completed term.
For NCD schools not operating on a term basis, flight schools, and job
training establishments, the period will normally be from the end of the
last survey through the end of the last period certified by the school.
These dates should be shown on VA Form 22-1934, Compliance Survey of
Schools and Establishments Furnishing Education and Training.

\(b\) The dates on individual case worksheets do not have to agree with
those on the covering VA Form 22-1934 and may be different for each case
in the sample. The beginning date will be the first day the student
entered the facility, provided that the record was not reviewed on a
prior survey. In that case, the beginning date would be at least 1 day
after the ending date on the prior worksheet. The ending date on the
worksheet may be before or after the ending date on VA Form 22-1934. If
the student terminated before the ending date on VA Form 22-1934, the
ending date on the worksheet will be the student\'s last date of
attendance. If the student is enrolled during the survey, the ending
date on the individual case worksheet will be the last day that the
records were actually posted and reviewed.

EXAMPLE 1: An IHL survey is conducted on November 17, 1996. The prior
survey was conducted on April 13, 1994, with an ending date on the VA
Form 22-1934 of December 31, 1993. The Period Covered by Survey block on
the VA Form 22-1934 will show January 15, 1994 (beginning date of spring
term), through August 5, 1996 (last day of summer session). For a
student whose record was reviewed on the prior survey, the beginning
date on the individual worksheet will be January 15, 1994. For a student
who initially enrolled on September 5, 1993, and whose record was not
reviewed on the prior survey, the beginning date will be September 5,
1993. For students presently enrolled, the ending date will be November
16 if records were current through that date.

EXAMPLE 2: An NCD survey is conducted on November 20, 1996. The prior
survey was on October 5, 1993, with an ending date of September 30,
1993. The Period Covered by Survey block on the VA Form 22-1934 will
show October 1, 1993 through October 31, 1996. The dates on the
worksheet for a student enrolled from November 12, 1993 through March
31, 1996 will be November 12, 1993 through March 31, 1996.

b\. **Approval File.** Obtain the following information from material in
the approval file:

\(1\) The names and titles of school officials including certifying
officials, officers or other administrative staff who may be interviewed
during the site visit.

\(2\) The dates of school registration, vacation periods and the hours
of office operation. Compliance surveys should not be conducted during
peak enrollment periods such as registration, or during vacation periods
if class checks and student interviews are planned;

\(3\) A list of approved programs and courses, or copies of VA Forms in
the 22-1998 series (VA Form 22-8669, Notice of Acceptance for
Publication Correspondence Course, for correspondence courses);

\(4\) The school policy as published in the catalog or other official
publication for determining unsatisfactory progress based upon grades,
GPA (grade point average), attendance or other criteria as approved by
the SAA;

\(5\) The procedure in effect for determining and reporting
unsatisfactory progress;

\(6\) The approved charges for tuition, fees, books, and supplies (does
not apply to apprenticeship and other on-job programs);

\(7\) For resident courses not leading to a standard college degree, the
beginning and ending times of classes and break periods;

\(8\) Any enrollment limitations established by the SAA (State approving
agency) or required for nonaccredited courses (38 U.S.C. 3676(c)(11); 38
CFR 21.4254(c)(11));

\(9\) Certifications and waivers relating to the 85 percent enrollment
restriction, power of attorney, normal completion time for
correspondence courses, etc.;

\(10\) The problem areas, if any, as noted in SAA supervisory visit
reports received after the previous survey;

\(11\) Any correspondence or other communication of record which may
have a bearing on the survey such as complaint letters, reports of
contact between the facility and VA, memorandums from the Authorization
activity or Finance activity, etc.

c\. **Compliance Survey File.** Obtain the following information from
material in the compliance survey file:

\(1\) The nature and extent of the discrepancies, if any, found during
prior compliance surveys;

\(2\) The system used by the school for keeping records and the location
of school records;

\(3\) The types of forms the school utilizes (applications, enrollment
agreement, etc.).

d\. **Individual Case Information.** If the remote review option is
exercised, preliminary review of individual case information is combined
with the actual comparison of VA and school records. See paragraph 3.03
and chapter 4 below If complete education or DEA folders are not
available, request extract information from the RPO (regional processing
office) or RO (regional office). This should include copies of
applications, VA Forms 22-1999, Enrollment Certification and VA Forms
22-1999b, Notice of Change in Student Status, and other documents
covering the time period for the

review (see subpar.(1)(b) above). Do not routinely request from schools
copies of documents (e.g., VA Form 22-1999) which have been submitted to
VA. When such documents are needed, they should be requested from the
RPO or RO having the beneficiary\'s folder. Request them from the school
only if they are not available from the folder. Make requests for
extract information early enough to ensure timely receipt of the
documents. Limit requests for extract information during periods of peak
authorization activity such as fall enrollment. Review the education
master record to supplement review of extract information from education
and DEA folders. Obtain the following information from material in the
education or DEA folders and BDN records for all cases in the initial
sample:

\(1\) Prior education and training as shown on the veteran\'s or
eligible person\'s application and on the veteran\'s discharge
certificate;

\(2\) Credit granted by the facility for prior education and training as
shown on the enrollment certification;

\(3\) Attendance at a branch location as shown on the enrollment
certification;

\(4\) Recent award changes which may not be reflected on the compliance
survey worksheet;

\(5\) Students who are recipients of tutorial assistance and education
loans;

\(6\) Students who are enrolled in practical training or cooperative
programs;

\(7\) Students whose checks are mailed to an address other than their
home or residence address;

\(8\) Any other information of record which may be useful during student
interviews (e.g., pending issues for which the claimant may need
additional information or assistance in order to complete the claim).

e\. **Computer-Generated Listings.** Review the computer-generated
listings, COIN EDU 175, Enrollment Limitation Exceeded, to determine if
potential violations of enrollment limitations may exist (IHL, NCD and
flight facilities only).

f\. **Worksheet Preparation**. A worksheet is needed for each case in
the sample. VA Forms 22-1936 and PC worksheets for chapter 30
apprenticeship/OJT and correspondence are preprinted with the necessary
information, and do not need to be prepared. VA Form 22-1936a is the
blank version of the preprinted VA Form 22-1936. This form may be used
for all education programs. For each case selected, use BDN master
record inquiry, the copy of the out-of-system award, or the folder, to
obtain the information needed to complete the applicable portions of
this form. Appropriate information may be copied onto the form, or
prints of the appropriate BDN master record screens may be attached to
the form. The beginning and ending dates of the period of survey (see
subparagraph a. above) do not need to be entered on the worksheet if a
copy of the student\'s transcript is attached to the form. Modifications
of these worksheets to include overprints or alternate local forms may
be used with the approval of the ELR (Education Liaison Representative).
To ensure that relatively current information is used, worksheets should
be prepared as close to the date of the survey as possible. VA Forms
22-1936, chapter 30 PC program worksheets, or other worksheets prepared
for cases not initially selected for review should be retained until
completion of the survey in the event that the survey sample must be
expanded.

g\. **Notification of Upcoming Surveys**

\(1\) Provide SAAs with a copy of the compliance survey schedule. It is
not necessary to provide them with the three year tentative schedule;
however, the SAA must be advised of the schedule in time to plan
appropriate visits during the year.

\(2\) Give schools advance telephonic notice of an anticipated
compliance survey, unless circumstances dictate otherwise, e.g.,
allegations of fraud. For a survey conducted entirely on site, do not
routinely give advance more than 72 hours before the scheduled survey
visit, unless necessary to ensure contact with appropriate officials.
For a remote review, give advance notice immediately before the written
request for submission of documents.

**3.02** **CLASS CHECKS AND STUDENT INTERVIEWS**

a\. **Class Checks.** The survey specialist will determine whether class
checks should be conducted. Base the decision on indications of possible
problems, e.g., that classes are not actually held as scheduled, or that
the school\'s attendance policy is not being enforced. Document the
decision in the survey narrative. Depending on the reason for conducting
the class checks, selection of classes may be made before the site visit
or on site. The results of the class check will be included in the
narrative portion of the survey report. VA Form 22-8440, Compliance
Survey Class Check Worksheet, has been discontinued. Existing stocks may
continue to be used. The checklist in Figure 3.1 should be used as a
guide to conducting class checks. It is not necessary to follow the
checklist exactly. Questions may be added or deleted to suit individual
circumstances.

  -----------------------------------------------------------------------
  **CHECKLIST FOR OPTIONAL CLASS CHECKS**

  Identify the class by course name, instructor\'s name, date and time.

  Did the class start and end at the scheduled times?

  Were hours of instruction and class breaks in accord with approval
  requirements?

  Was attendance properly and accurately recorded?

  If there was an enrollment limitation, was it exceeded?

  Is there a high absentee rate?

  What type of attendance records are used?

  Are attendance records adequate for reporting under the school\'s
  approved attendance policy?

  How is the school\'s attendance policy enforced?

  Do records for prior dates show similar attendance patterns?

  Are the space and equipment adequate for the number of students
  assigned?

  Were any other problems encountered?
  -----------------------------------------------------------------------

**Figure 3.1.** **Checklist for Class Checks**

b\. **Student Interviews.** The survey specialist will determine whether
student interviews should be conducted. Base the decision on indications
of possible problems, e.g., school records are inaccurate, or school
refund policies are not being carried out as approved. Document the
decision in the survey narrative. Depending on the reason for conducting
the interviews, both VA and non-VA students may be interviewed.
Participation by any student must be voluntary. Selection of students
for interviews should generally be made on site. Student interviews also
provide an opportunity to answer any questions the VA beneficiary may
have regarding his or her VA benefits. Document student interviews on VA
Form 119. Do not use VA Form 22-8662, Trainee Interview Sheet. Use of
this form is no longer authorized. Dispose of existing stocks properly.
Before an interview, inform the student of the purpose of the interview,
the uses of the requested information, and his or her protection under
the Privacy Act of 1974. Use the checklist in Figure 3.2 as a guide to
conducting student interviews. It is not necessary to follow the
checklist exactly. Questions may be added or deleted to suit individual
circumstances. Whether or not structured interviews are conducted for
compliance purposes, if time permits, make yourself available to
veterans, service members, reservists, and dependents. As a
representative of VA, be prepared to listen to their concerns and take
action as appropriate. Since these contacts are not part of the survey
itself, documentation in detail is not necessary. (See par. 7.03d and
7.04c.)

**3.03** **BRIEFING SCHOOL OFFICIALS**

a\. **Entrance Briefing**

\(1\) Upon arrival at the school or training establishment, contact the
appropriate official and advise him or her of the purpose of the visit.

  --------------------------------------------------------------- -----------
  **CHECKLIST FOR OPTIONAL STUDENT INTERVIEWS**                   

  ***PRIVACY ACT INFORMATION FOR INTERVIEWEES***                  

  *The information requested in this interview in connection with 
  your training is requested under authority of Title 38 United   
  States Code, Section 527. While you are not required to         
  respond, your cooperation is needed to determine that payments  
  made by VA to eligible students are in keeping with the law, to 
  ensure that the programs eligible students are pursuing meet    
  the requirements of the law and regulations, and to assist      
  school officials in the preparation of required certifications  
  by the school. The information you provide may be disclosed     
  outside VA only if the disclosure is authorized under the       
  Privacy Act, including the routine uses identified in VA system 
  of records 58VA21/22, Compensation, Pension, Education and      
  Rehabilitation Records---VA, published in the Federal Register. 
  Your disclosure of the information is voluntary. Failure to     
  furnish this information will have no adverse effects on your   
  participation in the course or receipt of VA benefits to which  
  eligible students may be entitled.*                             

  **ALL FACILITIES**                                              ***FOR
                                                                  NON-VA***

  What course are you taking?                                     **X**

  Have you had previous training in this course? If so, describe  **X**
  the training.                                                   

  To what address is your check mailed?                           

  Is your check mailed to the school? If so, why?                 

  If mailed to the school, is it delivered to you unopened? Do    
  you endorse it yourself?                                        

  Is your check in the correct amount?                            

  Do you receive your check on time?                              

  Are you having any trouble with VA benefits? If so, explain.    

  Do you have any complaint about the school/training             **X**
  establishment? If so, explain.                                  

  Have you had any extended period of absence or had a vacation   
  since enrollment? If so, explain.                               

  What is your schedule of attendance/training? (Days per week,   **X**
  hours per day.)                                                 

  **NCD ONLY**                                                    

  How are break periods arranged?                                 **X**

  What tuition and fees do you pay?                               **X**

  Are you aware of the school\'s refund policy for tuition and    **X**
  fees? If not, explain.                                          

  Have you been given a copy of the school catalog or bulletin?   

  Are there any rules not in the catalog or bulletin?             

  When and how is attendance taken in class?                      **X**

  What is the school\'s attendance policy?                        **X**

  How is it enforced?                                             

  Do you believe you are receiving good instruction?              **X**

  Do you expect to be employed in the field for which you are     **X**
  being trained?                                                  

  **OJT/APPRENTICESHIP ONLY**                                     

  What date did you begin your employment at this establishment?  

  What date did you begin your training in this program?          

  What are some job operations you have been taught?              

  Have you been given a copy of your training agreement,          
  including the training program and wage schedule approved by    
  the State approving agency?                                     

  Do you receive related instruction? If so, when do you attend   
  classes?                                                        

  What are the wages paid to you by your employer/trainer?        
  --------------------------------------------------------------- -----------

**Figure 3.2.** **Checklist for Student Interviews**

\(2\) The two primary purposes of compliance survey visits are:

• To assist school or training establishment officials and veterans or
eligible persons in understanding the provisions and requirements of the
law; and

• To verify and assure the propriety of VA educational benefit payments
to veterans and other eligible persons.

\(3\) If the administrative official initially contacted is other than
the president, owner or other principal facility official, request that
the principal official be informed of the visit. It is preferable to
meet briefly with the principal official to inform him or her of the
survey. If a personal meeting is not possible, request that the
principal official at least be informed of the visit and of the survey
specialist\'s availability to meet with the him or her at any time
during the site visit. In any event, ensure that the principal official
is informed of the visit during or as soon as possible after the
entrance briefing.

\(4\) In the event that school or training establishment officials
object to the review of school records, tactfully remind them that,
notwithstanding any other provision of law, student records must be made
available for review. (38 U.S.C. 3690(c)) Refusal to make records
available for review could lead to withdrawal of approval. (38 CFR
21.4209) If school officials still refuse to make records available,
conclude the site visit.

\(5\) During the entrance briefing, arrange for a working area so that
the activities of the school or training establishment will be
interrupted as little as possible during review of school records.
Explain the need to interview students and visit classes, if
appropriate, so that arrangements for these activities may be made.
Also, during the entrance briefing, explain the need for an exit
briefing upon conclusion of the site visit.

\(6\) If the remote review option is exercised, the entrance briefing is
conducted by telephone, before sending the request for documents. The
same general information must be conveyed to school officials as in the
entrance briefing for a site visit. However, the requirement to make
records available for review does not apply to submission of documents,
only to on-site review. The school may lawfully refuse to participate in
a remote review.

b\. **Exit Briefing**

\(1\) Upon completion of the site visit, conduct an exit briefing with
facility officials at the same level at which the entrance briefing was
conducted. The purpose of the exit briefing is to inform the appropriate
school official of the survey findings, except those which may involve
fraud.

\(2\) During the exit briefing, discuss and try to reach agreements on
the appropriate corrective action by the facility for discrepancies not
involving approval criteria. Advise facility officials that the
discrepancies found not involving approval criteria will be confirmed in
writing. In addition, if additional corrective action needs to be taken
by the facility, the written confirmation will request the facility to
furnish a report of the corrective action taken within 60 days. (See ch.
6, Referrals.)

\(3\) If discrepancies are found which require restrictions on further
veteran enrollments such as violation of the 85 percent limitation,
advise facility officials that VA may not approve the enrollment of any
veterans who may enroll in the course in the future until the
requirements are again met. Suspension of further enrollments must also
be confirmed in writing. (See par. 7.05b)

\(4\) If discrepancies are found which involve approval criteria, fully
develop the facts for reporting to the SAA. Do not make recommendations
for the elimination or correction of approval criteria discrepancies,
except in those instances where VA is acting as the SAA. Inform school
officials that the discrepancies found will be confirmed in writing and
referred to the SAA for corrective action. Also advise school officials
if educational assistance payments may be affected pending correction of
an approval criteria violation by the SAA.

\(5\) School officials may not agree with the findings of the survey and
may offer rebuttal. Make the rebuttal a part of the record, but request
appropriate corrective action (including suspension of further payments
of benefits to individuals where indicated) based on the facts found. If
additional records exist which were not available during the remote
review or site visit, allow a reasonable period of time (not to exceed
30 days) for school officials to locate records which would support the
data certified. If additional records exist, either the school must
submit photocopies or the survey specialist must make a follow-up visit
in order to complete the survey.

\(6\) If the remote review option is exercised and a site visit is not
necessary, the exit briefing is conducted by telephone at the completion
of the review. The same general information must be conveyed to school
officials as in the exit briefing for a site visit. However, a survey
which is completed without a site visit will involve no more than minor
discrepancies, and will generally be brief.

**3.04** **GENERAL AREAS OF REVIEW**

The completion of the checklist on the reverse side of VA Forms 22-1936,
Compliance Survey Worksheet for Eligible Students Pursuing Training
Under Chapter 34 or 35, and 22-1936a, Compliance Survey Worksheet for
Students Pursuing Training Under Chapter 32, 34, or 35, is not required.
Figure 3.3 contains a checklist which may be used as a guide by the
survey specialist during individual case reviews. The order of items on
this checklist generally follows the arrangement of areas of review in
chapters 3 and 4, and indicates the corresponding line number on VA Form
22-1934.

a\. **Verification of Enrollment Data.**

\(1\) **Requirements.** The student must have commenced on the date
certified, and must be pursuing the same program as that certified by
the school on VA Form 22-1999. (38 CFR 21.4131(b), 21.4203(b),
21.5810(b), 21.5831, 21.7131, 21.7152, 21.7631, and 21.7652(a))

\(2\) **Review Procedures.** During preparation for the survey, compare
the beginning date as certified by the school with the effective date of
the award as shown on the survey worksheet. Review the school\'s records
to determine if that actually was the date that enrollment commenced.
For specific types of training, see chapter 4. During the preparation,
note the student\'s program as certified by the school. Determine
through review of basic school enrollment records if this is the same
program in which the student is actually enrolled. If necessary, correct
the course code shown on the compliance survey worksheet.

b\. **Pursuit of Approved Program or Course (38 U.S.C. 3470, 3491, 3521,
3675, and 3676)**

\(1\) **Requirements.** Veterans and eligible persons must pursue an
approved program leading to an educational, vocational or professional
goal. (38 CFR 21.3130(b), 21.5131, 21.7130, and 21.7630) Deviations from
the approved program in areas such as variations from the schedule of
courses required for a specific degree, excessive electives and pursuit
of non approved unit subjects within a program are generally not
permitted. Exceptions may be permitted when school officials allow
individual substitute courses or when the school has applied for
approval of a new program and it is concluded that the program and the
courses will be approved. Before discrepancies are cited, care should be
taken to ensure that courses which may appear to be excessive electives
or non approved unit subjects are in fact outside the student\'s stated
program requirements. If all or part of the program is being furnished
by another school under contract, that school must have obtained
approval from the SAA having jurisdiction over its location. (38 CFR
21.4233(e))

*NOTE: The requirement for enrollment in approved courses and programs
does not apply to beneficiaries under Section 901. Benefits are payable
only for enrollment in accredited courses in accredited schools, but no
SAA approval is required. (38 CFR 21.5820)*

\(2\) **Review Procedures.** During review of transcripts and grade
reports, determine if students have taken courses or subjects
appropriate for their program. Compare the courses completed with the
recommended curriculum as listed in the catalog or other training plan
or provided to the student from other sources, e.g., academic counselor,
head of department, etc. Note any cases in which excessive elective
courses or unnecessary unit subjects may have been taken. If contracted-

+---------------------------------------------------------------+------+
| **COMPLIANCE SURVEY INDIVIDUAL CASE REVIEW CHECKLIST**        |      |
+---------------------------------------------------------------+------+
| **AREAS OF REVIEW**                                           | **2  |
|                                                               | 2-19 |
|                                                               | 34** |
+---------------------------------------------------------------+------+
| **GENERAL**                                                   | **   |
|                                                               | Line |
|                                                               | N    |
|                                                               | o**. |
+---------------------------------------------------------------+------+
| DID BENEFICIARY COMMENCE ON DATE CERTIFIED?                   | 2    |
+---------------------------------------------------------------+------+
| IS BENEFICIARY ENROLLED IN AND PURSUING THE APPROVED PROGRAM? | 3    |
+---------------------------------------------------------------+------+
| IS A RECORD OF PREVIOUS EDUCATION AND TRAINING MAINTAINED AND | 4    |
| WAS BENEFICIARY GRANTED APPROPRIATE CREDIT?                   |      |
+---------------------------------------------------------------+------+
| ARE ACCURATE, CURRENT AND COMPLETE RECORDS OF ENROLLMENT,     | 5    |
| CORRESPONDENCE LESSONS SERVICED, FLIGHT TRAINING HOURS OR     |      |
| APP/OJT HOURS MAINTAINED FOR BENEFICIARY?                     |      |
+---------------------------------------------------------------+------+
| WERE ENROLLMENT CHANGES, LESSONS SERVICED, FLIGHT TRAINING    | 6    |
| HOURS OR APP/OJT HOURS ACCURATELY AND PROMPTLY REPORTED?      |      |
+---------------------------------------------------------------+------+
| WAS VA PROMPTLY NOTIFIED WHEN BENEFICIARY TERMINATED OR       | 7    |
| INTERRUPTED TRAINING?                                         |      |
+---------------------------------------------------------------+------+
| ARE ACCURATE, CURRENT AND COMPLETE RECORDS OF PROGRESS OR     | 8    |
| GRADES (AND ATTENDANCE, IF REQUIRED) MAINTAINED FOR           |      |
| BENEFICIARY?                                                  |      |
+---------------------------------------------------------------+------+
| WAS VA PROMPTLY NOTIFIED WHEN BENEFICIARY DID NOT PROGRESS    | 9    |
| SATISFACTORILY ACCORDING TO                                   |      |
|                                                               |      |
| THE STANDARDS AND PRACTICES OF THE SCHOOL OR TRAINING         |      |
| ESTABLISHMENT?                                                |      |
+---------------------------------------------------------------+------+
| **ALL EXCEPT TRAINING ESTABLISHMENTS**                        |      |
+---------------------------------------------------------------+------+
| WERE CHARGES TO THIS BENEFICIARY FOR TUITION AND FEES THE     | 10   |
| SAME AS CHARGES TO OTHER                                      |      |
|                                                               |      |
| STUDENTS SIMILARLY CIRCUMSTANCED?                             |      |
+---------------------------------------------------------------+------+
| WAS THE 85 PERCENT ENROLLMENT LIMITATION MET AT THE TIME OF   | 11   |
| THIS BENEFICIARY\'S ENROLLMENT?                               |      |
+---------------------------------------------------------------+------+
| **ALL EXCEPT FLIGHT SCHOOLS AND TRAINING ESTABLISHMENTS**     |      |
+---------------------------------------------------------------+------+
| WAS VA PROMPTLY NOTIFIED OF ANY CHANGES IN CREDIT OR CLOCK    | 12   |
| HOURS THAT WOULD AFFECT THE AMOUNT OF PAYMENT TO THE STUDENT? |      |
+---------------------------------------------------------------+------+
| **NONACCREDITED COURSES ONLY (UNLESS PART OF THE APPROVAL     |      |
| CRITERIA FOR AN ACCREDITED COURSE)**                          |      |
+---------------------------------------------------------------+------+
| WAS THE BENEFICIARY FURNISHED A COPY OF THE COURSE OUTLINE,   | 13   |
| SCHEDULE OF TUITION, FEES AND                                 |      |
|                                                               |      |
| OTHER CHARGES, AND REGULATIONS PERTAINING TO ATTENDANCE,      |      |
| GRADING POLICY, CONDUCT AND                                   |      |
|                                                               |      |
| RULES OF OPERATION?                                           |      |
+---------------------------------------------------------------+------+
| WAS THE BENEFICIARY\'S ENROLLMENT WITHIN THE LIMITATION       | 14   |
| ESTABLISHED BY THE STATE APPROVING AGENCY?                    |      |
+---------------------------------------------------------------+------+
| IF INTERRUPTED, DID THE BENEFICIARY RECEIVE A REFUND THAT     | 15   |
| MEETS THE REQUIREMENTS OF VA REGULATIONS?                     |      |
+---------------------------------------------------------------+------+
| **CORRESPONDENCE SCHOOLS ONLY**                               |      |
+---------------------------------------------------------------+------+
| DID BENEFICIARY AFFIRM THE ENROLLMENT AGREEMENT AFTER THE     | 16   |
| EXPIRATION OF 10 FULL DAYS AFTER                              |      |
|                                                               |      |
| THE DAY ON WHICH THE AGREEMENT WAS SIGNED?                    |      |
+---------------------------------------------------------------+------+
| WERE SUPPLIES, IF PART OF APPROVED COURSE, FURNISHED TO       | 17   |
| BENEFICIARY?                                                  |      |
+---------------------------------------------------------------+------+
| DID BENEFICIARY PAY 100 PERCENT OF THE ESTABLISHED CHARGES?   | 18   |
+---------------------------------------------------------------+------+
| IS THE NORMAL COMPLETION TIME FOR THE APPROVED COURSES AT     | 19   |
| LEAST SIX MONTHS?                                             |      |
+---------------------------------------------------------------+------+
| **FLIGHT SCHOOLS ONLY**                                       |      |
+---------------------------------------------------------------+------+
| DID BENEFICIARY HOLD A PRIVATE PILOT\'S LICENSE OR HIGHER     | 20   |
| RATING BEFORE ENROLLMENT?                                     |      |
+---------------------------------------------------------------+------+
| DID BENEFICIARY HOLD A CURRENT MEDICAL CERTIFICATE OF THE     | 21   |
| APPROPRIATE CLASS BEFORE AND                                  |      |
|                                                               |      |
| DURING ENROLLMENT?                                            |      |
+---------------------------------------------------------------+------+
| DID BENEFICIARY PAY 100 PERCENT OF THE ESTABLISHED CHARGES?   | 22   |
+---------------------------------------------------------------+------+
| **TRAINING ESTABLISHMENTS ONLY**                              |      |
+---------------------------------------------------------------+------+
| WAS BENEFICIARY FURNISHED A COPY OF THE TRAINING AGREEMENT?   | 23   |
+---------------------------------------------------------------+------+
| IS BENEFICIARY RECEIVING TRAINING IN ACCORDANCE WITH THE      | 24   |
| APPROVED TRAINING PROGRAM?                                    |      |
+---------------------------------------------------------------+------+
| IS BENEFICIARY RECEIVING WAGES AT THE APPROPRIATE RATE AS     | 25   |
| SHOWN IN THE APPROVED TRAINING PROGRAM?                       |      |
+---------------------------------------------------------------+------+
| **ALL OTHER**                                                 |      |
+---------------------------------------------------------------+------+
| IN THIS BENEFICIARY\'S CASE HAVE REQUIREMENTS OF VA           | 27   |
| REGULATIONS BEEN MET CONCERNING:                              | A-L  |
|                                                               |      |
| ADVERTISING AND SALES PRACTICES, POWER OF ATTORNEY,           |      |
| INDEPENDENT STUDY, PRACTICAL TRAINING, COOPERATIVE AND FARM   |      |
| COOPERATIVE COURSES, BRANCHES, TUTORIAL ASSISTANCE,           |      |
| OWNER/OFFICER RESTRICTION, CONTRACTUAL ARRANGEMENTS, ADVANCE  |      |
| PAY, NONDUPLICATION, AND OTHER AREAS?                         |      |
+---------------------------------------------------------------+------+

**Figure 3.3. Checklist for Individual Case Reviews**

out training is involved, determine whether the school providing the
training has obtained approval from the appropriate SAA. For specific
types of training, see chapter 4.

*NOTE: For beneficiaries under Section 901, the school and all courses
taken must be accredited.*

c\. **Credit for Previous Education and Training (38 U.S.C. 3675(b) and
3676(c)(4))**

\(1\) **Requirements.** Schools and training establishments must
maintain a record of previous education and training of veterans and
eligible persons, grant appropriate credit, shorten the course
proportionately and so notify the student and

VA. This requirement is necessary because benefits may not be paid for
pursuit of an objective for which a veteran or

eligible person is already qualified. (10 U.S.C. 16136(b); 38 U.S.C.
3471) However, benefits may be paid for the pursuit of refresher
training. (10 U.S.C. 16131(b) and (c); 38 U.S.C. 3034(a), 3241(a) and
3482(d)(1)) For additional information about refresher training and
about when a claimant is considered already qualified, see part III,
chapter 7, subchapters II and IV. For specific types of training, see
chapter 4.

\(2\) **Review Procedures.** Review education/DEA folders and school
records to determine if previous education or training was considered
and if appropriate credit was granted. Verify that the student is not
already qualified for the objective being pursued (unless the program
has been approved as refresher training). Determine if credit granted
was correctly reported on the enrollment certification, e.g., \"none,\"
\"30 semester hours,\" etc. For specific types of training, see chapter
4.

d\. **Records and Reports of Enrollment, Changes in Enrollment, and
Termination or Interruption. (38 U.S.C. 3680 and 3684(a))** See part I,
paragraph 7.15.

\(1\) **Requirements.** Schools and training establishments must keep
accurate, current and complete records of clock or credit hours of
classes, correspondence lessons serviced, flight training hours
completed, and apprenticeship/on-the-job hours worked. Periodic
verification of the student\'s pursuit of the course may be required in
some cases. In all cases, schools and training establishments must
report accurately and promptly any enrollment or reenrollment, any
increase or decreases in the rate of pursuit, and any termination or
interruption. Generally, a report must be made within 30 days of the
date of any change, termination, or interruption in order to be
considered prompt. (38 CF 21.4203) For specific types of training, see
chapter 4.

\(2\) **Review Procedures.** Review school or training establishment
records to determine if they are adequate to identify enrollment, rate
of pursuit, and termination or interruption. Determine if reports were
made accurately and promptly. For specific types of training, see
chapter 4.

e\. **Records and Reports of Progress, Conduct, or Attendance (38 U.S.C.
3674, 3675(b) and 3676(c))**

\(1\) **Requirements.** Schools and 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. (38
CFR 21.4203(h)) For specific types of training, see chapter 4.

\(2\) **Review Procedures.** Review school and training establishment
records to determine whether they are adequate to identify when
progress, conduct or attendance are satisfactory. If an individual
student\'s progress, conduct or attendance have been unsatisfactory,
determine the date the school\'s standard was not met. Determine if
reports were made accurately and promptly. For specific types of
training, see chapter 4.

f\. **Questionable Advertising, Sales, or Enrollment Practices**

\(1\) **Advertising Containing Avocational or Recreational Themes.**
Approval of courses which are avocational or recreational in character
is generally precluded. (38 U.S.C. 3473(a)(3) and 38 U.S.C. 3523(a)(3))
However, even though a course or its advertising may contain significant
avocational or recreational themes, the course may remain approved if
each veteran and eligible person enrolled submits justification showing
that the course will be of bona fide use in the pursuit of his or her
contemplated business or occupation. (38 CFR 21.4252(b)(4)).

\(a\) Survey specialists should be alert for advertising which contains
significant avocational or recreational themes. The intent is to monitor
those courses which, though leading to a predetermined and identified
educational, vocational or professional goal, are advertised as though
their purpose is recreational or avocational.

EXAMPLES:

• Advertising for a course leading to the vocation of TV repairman also
suggests that enrollment will enable the student to obtain a color
television set, principally paid for by VA benefits, to assemble in his
or her leisure time.

• Advertising notes that the student can acquire skills with which to
repair his or her personal appliances or stereo sound system, or which
will present an \"opportunity\" for \"part-time\" (i.e., avocational)
income.

• Advertising emphasizes the monetary benefits to be directly gained
from receiving VA benefits over the cost of the course, rather than the
declared goal of the course (i.e., the educational, professional, or
vocational objective).

\(b\) Review advertising used on school premises as well as in local and
national media for such themes. The school may use radio or TV
announcements; advertisements in newspapers, weekly or monthly
periodicals; \"yellow pages\" telephone listings; and so on. If such
themes are found, review student records for justification showing that
the course will be of bona fide use in the pursuit of the contemplated
business or occupation.

\(2\) **Erroneous, Deceptive or Misleading Advertising, Sales or
Enrollment Practices (38 CFR 21.4252(h))**

\(a\) The prohibition of deceptive advertising is part of the approval
criteria for nonaccredited courses (38 U.S.C. 3676(c)(10)). In addition,
38 U.S.C. 3696 provides that no enrollment will be approved at schools
or training establishments utilizing advertising, sales or enrollment
practices of any type which are erroneous, deceptive or misleading
either by actual statement, omission or intimation.

\(b\) All approved schools and training establishments must maintain,
for a period of 12 months, complete records and copies of all
advertising, sales and enrollment materials used by them or on their
behalf. These materials must be available for inspection by the SAA
during supervisory visits and by VA during compliance surveys. These
materials include, but are not limited to:

• Any direct mail pieces,

• Brochures,

• Printed literature used by sales people,

• Films, video cassettes and audio tapes disseminated through broadcast
media,

• Material disseminated through print media,

• Tear sheets,

• Leaflets,

• Handbills,

• Fliers, and

• Any sales or recruitment manuals used to instruct sales personnel,
agents, or representatives of the school or training establishment.

\(c\) Any school or training establishment which uses advertising, sales
or enrollment practices of any type which are erroneous, deceptive or
misleading will be barred from further enrollments and no certificates
of eligibility will be issued for any courses at the school or training
establishment. The phrase \"advertising, sales, or enrollment
practices\" encompasses any method used or action taken by a school or
training establishment, its personnel, agents, or representatives to
solicit or encourage enrollment in its course(s) of study, whether or
not enrollment actually occurs as a result of those practices. It is not
possible to catalog all violations that could occur under 38 CFR
21.4252(h), or even all the deceptive practices that have occurred in
the past. The guidelines in the following paragraphs are offered as
points of emphasis in reviewing school and training establishment
practices, and should by no means be considered all-inclusive.

\(d\) Advertising must not leave a false, misleading, or exaggerated
impression concerning the school or training establishment; its
personnel, course(s) and services; or the occupational opportunities for
its graduates. Advertising claims that might be construed as literally
true, must be literally true. Words that might mislead, confuse, be
subject to easy misunderstanding, or have a double meaning should not be
used. Advertising should be written to its anticipated readership,
average persons unsophisticated in the traditional language used in
education.

EXAMPLES:

• The school guarantees employment placement service after graduation,
but in reality, simply provides the student with a list of employers to
contact.

• Advertising implies extensive employment connections with nationwide
firms when such connections do not exist.

• Testimonials from graduates convey the impression that typical
students obtain jobs or high earnings, but the testimonials are
fictitious or represent only a small percentage of students.

\(e\) Sales or enrollment practices can be more subtly deceptive or
misleading, mainly because statements may not be documented, and cannot
be as easily reviewed as advertisements. Problems involve
misrepresentation of the size or experience of the school, its
affiliation with well-known companies or training programs, quality of
the training or instructional materials, qualifications of the
instructors, or of the availability of expert instructors.

EXAMPLES:

• Advertising indicates that VA has approved the training, rather than
the SAA.

• The salesperson misrepresents himself or herself as a VA employee or
an \"educational consultant.\"

• The enrollment agreement or contract was not fully explained to the
student before he or she signed it.

\(f\) Advertisements, sales or enrollment practices can be erroneous,
deceptive or misleading by *omission* as well as by actual statement or
intimation. Such omissions include the failure to disclose any material
fact concerning the school or its instruction which may reasonably
affect the student\'s decision to enroll. Catalogs and other materials
published by the school should clearly disclose, in advance of
enrollment, any ordinary limitations and restrictions on admissions and
employment, such as medical, age, education, and experience
requirements, or the need for examinations, licensing, internship,
apprenticeship, or union membership.

EXAMPLES:

• The school indicates that its courses are creditable toward a degree,
when, in fact, the transfer of credit is severely limited.

• A salesperson states that there are \"thousands of jobs open\" in a
particular field, without mentioning that the jobs require relocation to
an isolated part of the country, or that the school\'s graduates do not
qualify for such jobs.

\(g\) The following sales and enrollment practices are hereby held to be
deceptive and misleading in all cases:

• Obtaining any form or document signed in blank by the student.

• Any statement or action which tends to defeat the purpose of the
affirmation period for correspondence courses.

\(h\) Many other advertising, sales or enrollment practices are
questionable. Review the school\'s advertising in local and national
media: When interviewing students, ask them about the school\'s
enrollment practices and sales techniques. If a school\'s advertising,
sales, or enrollment practices appear to violate the provisions of the
law, fully document the facts to the extent practicable during the
survey, and include them in the compliance survey report.

g\. **Power of Attorney/Nonassignability of Benefits (38 U.S.C. 5301(a);
38 CFR 21.4146)**

\(1\) **Requirements.**

\(a\) All VA educational assistance payments must be negotiated by the
veteran or eligible person. Schools and training establishments may not
negotiate VA educational assistance checks. A power of attorney giving
the school or training establishment authority to negotiate benefit
checks is prohibited. Schools and training establishments may not obtain
indirect access to the proceeds of educational assistance checks or of
electronic funds transfers.

\(b\) If checks (including advance pay and loan checks) are mailed to a
school address, they must be mailed to the school location which the
student is attending. Checks may not be mailed to one school location
for further distribution to other locations of the school.

\(c\) The school must have the capability to properly safeguard checks
and deliver them to students. Advance pay and loan checks which cannot
be delivered to the student within 30 days after classes begin must be
returned in the unopened envelope to the Treasury return address.
Monthly benefit checks mailed to a school address must be returned in
the unopened envelope to Treasury within 30 days if the student fails to
call for the check.

\(2\) **Review Procedures**. If the school has agreed to receive advance
pay or loan checks for delivery to students, review the school\'s
procedures for safekeeping of the checks and delivery to students. If
monthly benefit checks for any student in the survey sample are mailed
to a school or training establishment address, determine through
interviews with the school or training establishment officials and
optional student interviews that the school does not have a power of
attorney or any form of direct or indirect access to the proceeds of
such checks.

\(a\) Although the student may endorse the check and return it to the
school or training establishment to satisfy a debt, this action must be
entirely voluntary. Any practice which has the effect of controlling the
student\'s disposition of the check, such as removing the check from the
envelope and stamping it \"for deposit only\" to a school account, is
prohibited.

\(b\) The practice of mailing checks or sending electronic funds
transfers to a bank account held jointly by the student and the school
is prohibited.

\(c\) During the review of addresses for the purpose of enforcing the
prohibition against assignment, be alert for patterns of beneficiary
addresses which may indicate the possibility of fraud.

EXAMPLES:

• The same address is used for many students.

• Many addresses are beyond the normal commuting distance.