**§21.4153 Reimbursement of expenses.**

For the purposes of this section, other than paragraph (d)(4) of this
section, "educational institution" includes an organization or entity
offering licensing or certification tests.

\(a\) *Expenses will be reimbursed under contract*:

\(1\) *Scope* of *contracts.*

\(i\) If a State or local agency requests payment for service
contemplated by law, and submits information prescribed in paragraph (e)
of this section, VA will negotiate a contract or agreement with the
State or local agency to pay (subject to available funds and acceptable
annual evaluations) reasonable and necessary expenses incurred by the
State or local agency in:

\(A\) Determining the qualifications of educational institutions and
training establishments to furnish programs of education to veterans and
eligible persons,

> \(B\) Supervising educational institutions and training
> establishments, and
>
> \(C\) Furnishing any other services VA may request in connection with
> the law governing VA education benefits.

\(ii\) VA will take into account the results of annual evaluations
carried out under §21.4155 of this part when negotiating the terms and
conditions of the contract or agreement.

\(2\) *Reimbursable supervision.* Supervision will consist of the
services required:

\(i\) To determine that the programs are furnished in accordance with
the law and with any other reasonable criteria as may be imposed by the
State, and

\(ii\) To disapprove any programs which fail to meet the law and the
established criteria. (Authority: 38 U.S.C. 3674, 3689)

\(b\) *Reimbursement.* The Under Secretary for Benefits and the
Director, Education Service, are authorized to enter into agreements
necessary to fulfill the purpose of paragraph (a) of this section. See
§21.4001(b). (Authority: 38 U.S.C. 512(a))

\(c\) *Reimbursable expenses.* Reimbursement may be made from the funds
provided in the existing contract with the State approving agency under
the provisions of this section. No reimbursement may be authorized for
expenses incurred by any individual who is not an employee of the State
approving agency.

\(1\) *Salaries.* Salaries for which reimbursement may be authorized
under a contract:

\(i\) Will not be in excess of the established rate of pay for other
employees of the State with comparable or equivalent duties and
responsibilities,

\(ii\) Will be limited to the actual salary expense incurred by the
State, and

\(iii\) Will include the basic salary rate plus fringe benefits, such as
social security, retirement, and health, accident, or life insurance,
that are payable to all similarly circumstanced State employees.

\(2\) *Travel.*

\(i\) Reimbursement will be made under the terms of the contract for
travel of personnel engaged in activities in connection with the
inspection, approval or supervision of educational institutions,
including:

\(A\) Travel of personnel attending training sessions sponsored by VA
and the State approving agencies.

> \(B\) Expenses of attending out-of-State meetings and conferences only
> if the Director, Education Service, authorizes the travel. (Authority:
> 38 U.S.C. 3674; Pub. L. 100-323)

\(ii\) Travel expenses for which reimbursement may be authorized under a
contract will be limited to:

\(A\) Expenses allowable under applicable State laws or travel
regulations of the State or agency;

> \(B\) Expenses for travel actually performed by employees specified
> under the terms of the contract and;
>
> \(C\) Either actual expenses for transportation, meals, lodging and
> local telephone calls, or the regular State or agency per diem
> allowance.

\(iii\) All claims for travel expenses payable under the terms of a
contract must be supported by factual vouchers and all transportation
allowances must be supported by detailed claims which can be checked
against work assignments in the office of the State approving agency.
(Authority: 38 U.S.C. 3674)

\(3\) *Administrative expenses*. In determining the allowance for
administrative expenses for which payment may be authorized, VA will
apply the provisions of 38 U.S.C. 3674(b). In making that application,
VA will determine reimbursable salary cost pursuant to paragraph (c)(1)
of this section.

\(4\) *Subcontracts.* The State approving agency may also be reimbursed
for work performed by a subcontractor provided:

\(i\) The work has a direct relationship to the requirements of Chapter
1606 of Title 10 United States Code or Chapter 30, 32 34, 35 or 36 of
Title 38, United States Code, and (Authority: 10 U.S.C. 16136, 38 U.S.C.
3034, 3674)

\(ii\) The Contracting Officer has approved the subcontract in advance.
(Authority: 38 U.S.C. 3674; Pub. L. 94-502, Pub. 95-902)

\(d\) *Nonreimbursable expenses.* The Department of Veterans Affairs
will not provide reimbursement under reimbursement contracts for:

\(1\) Expenditures other than salaries and travel of personnel required
to perform the services specified in the contract and Department of
Veterans Affairs regulations.

\(2\) Supplies, equipment, printing, postage, telephone services,
rentals, and other miscellaneous items or a service furnished directly
or indirectly.

\(3\) Except as provided in paragraph (c)(2) of this section, the
salaries and travel of personnel while attending training sessions, or
when they are engaged in activities other than those in connection with
the inspection, approval, or supervision of educational institutions.

\(4\) The supervision of educational institutions which do not have
veterans or eligible persons enrolled.

\(5\) Expenses incurred in the administration of an educational program
which are costs properly chargeable as tuition costs, such as the
development of course material or individual educational programs,
teacher training or teacher improvement activities, expenses of
coordinators, or administrative costs, such as those involving selection
and employment of teachers. (This does not preclude reimbursement for
expenses of the State agency incurred in the development of standards
and criteria for the approval of courses under the law.)

\(6\) Expenses of a State approving agency for inspecting, approving or
supervising courses when the agency is responsible for establishing,
conducting or supervising those courses.

\(7\) Any expense for supervision or other services to be covered by
contract which are already being reimbursed or paid from tuition funds
under this law.

\(e\) *Agency operating plan.* A request by a State approving agency for
reimbursement under the law will be subject to the requirements of 41
CFR 87.5101-8 as to "Equal Opportunity." The request will be accompanied
by the proposed plan of operation and the specific duties and
responsibilities of all personnel for which reimbursement of salaries
and travel expense is required.

\(1\) The Department of Veterans Affairs will determine personnel
requirements for which the Department of Veterans Affairs provides
reimbursement on the basis of estimated workloads agreed upon between
the Department of Veterans Affairs and the State agency. Agreements are
subject to review and adjustment.

\(2\) Workloads will be determined upon three factors:

\(i\) Inspection and approval visits,

\(ii\) Supervisory visits, and

\(iii\) Special visits at the request of the Department of Veterans
Affairs.

\(f\) *Contract compliance.* Reimbursement under each contract or
agreement is conditioned upon compliance with the standards and
provisions of the contract and the law. If the Contracting Officer
determines that the State has failed to comply with the standards or
provisions of the law or with terms of the reimbursement contract, he or
she will withhold reimbursement for claimed expenses under the contract.
If the State disagrees, the State may request the Contracting Officer to
reconsider his or her decision or may initiate action under the Disputes
clause of the contract. See 48 CFR 801.602. (Authority: 38 U.S.C. 3674)

\(g\) *Contract disputes.* The State approving agency reimbursement
contract is subject to the Contract Disputes Act of 1978. Disputes
arising under, or relating to, the contract will be resolved in
accordance with the disputes article of the contract and with
appropriate procurement regulations. (Authority: 41 U.S.C. 602)

\[31 FR 6774, May 6, 1966, as amended at 40 FR 42880, Sept. 17, 1975; 43
FR 35296, Aug. 9, 1978; 44 FR 62498, Oct. 31, 1979; 48 FR 37983, Aug.
22, 1983; 51 FR 16316, May 2, 1986; 54 FR 49757, Dec. 1, 1989; 61 FR
20728, May 8, 1996; 61 FR 26114, May 24, 1996; 72 FR 16969, Apr. 5,
2007\]

**Supplement *Highlights* references**: 27(1), 73(1).