OMB22QtrlyReport-SAADatabase(2900-0051)(9-7-07)

SUPPORTING STATEMENT FOR

STATE APPROVING AGENCY REPORTS AND NOTICES;

38 CFR 21.4154, 21.4250(b), 21.4258, 21.4259

(2900-0051)

A. Justification.

1. Statute (38 USC 3671) requests that each State create or designate a State department or agency as the “State approving agency” (SAA) for the purposes of chapters 34, 35, and 36 of title 38 USC. Chapter 36 of 38 USC contains rules for the administration of educational assistance benefits. Sections 3675 and 3676 provide the criteria for both accredited and non-accredited course approval. The designated SAA also approves on-the-job training programs (section 3677) and tests for licensure or certification (section 3689).

In connection with the above approval activities, section 3678 provides that upon determination that an educational institution, training establishment, or organization or entity offering tests for licensure or certification meets the applicable approval criteria in 38 USC 3670 et seq., the SAA must notify the educational institution, training establishment or organization or entity offering tests for licensure or certification, and provide VA with a copy of such notice. The SAA must also send those institutions, establishments, organizations, entities, and VA any subsequent approval notice amendments. Section 3679 provides that the SAA will similarly provide notification of disapproved courses.

In addition, section 3674(c) provides that the SAAs will submit reports to VA on their activities at least annually, or as determined by the Secretary. Section 3674(a)(4) shows the maximum amount VA has available for each fiscal year for the purposes of reimbursing the SAAs.

Section 3673 instructs the Secretary of VA and the SAAs to cooperate and establish an exchange of information pertaining to educational institutions to assure the programs administered by VA are effectively and efficiently administered.

(Note: 38 USC 3689 states that sections 3673, 3674, 3678 and 3679 are applicable for the purposes of approving licensure and certification tests.)

VA’s regulations implementing the statutory authority above are as follows:

38 CFR 21 .4154, 21 .4250(b), 21 .4258, 21.4259:

• 38 CFR 21.4154 which addresses reporting SAA activities (38 USC 3674(c))

• 38 CFR 21.4250(b) which addresses notices of approvals, suspension of approvals, and disapprovals (38 USC 3678, 3679)

• 38 CFR 21.4258 which addresses notices of approvals

• 38 CFR 21.4259 which addresses notices of suspension or disapproval

2. How information is collected, by whom, and for what purpose.

a. Information collected under 38 CFR 21 .4154 — The SAA reports its activities to VA quarterly. The SIM does so electronically by completing a web-based screen. VA uses the information in the reports to support the reimbursement of activities of the SAA. This reporting is approved under 0MB control number 2900-0051.

b. Information collected under 38 CFR 21.4250(b), 21.4258, and 21.4259

— The SAA prepares notices of approval to inform educational institutions, training establishments, and organizations or entities offering tests for licensure or certification that their courses, training, or tests are approved for individuals entitled to educational assistance under the programs VA administers. Similarly, the SAA sends notices to them if the courses, training, or tests are not approved or the approval of previously approved courses, training, or tests is suspended. The SAA must also send VA a copy of each of these notices. There are 59 SAAs, each with its own jurisdiction for approval of courses, training, or tests. Some States have more than one SAA because they have a separate SAA for approval of on-the-job training and/or apprenticeship training.

The SAA makes a determination to approve, disapprove, or suspend approval based on the criteria in 38 USC chapter 36. Some of the criteria include site visits; review of the educational institution, training establishment, organization, or entity; and review of course materials, instructors’ credentials, or training programs, or review of tests for licensure and certification. The SAA notifications are not submitted electronically.

VA uses the notice information to determine if payment of educational assistance is appropriate. Under 38 USC 3680, VA may not provide educational assistance to any eligible veteran or eligible person if his or her educational program or training program does not meet the requirements of 38 USC 3670 et seq. Without the approval notices, VA would not know which programs the SAA determined met the criteria in 38 USC chapter 36. Without disapproval notices, or notices of suspended approvals, VA would inappropriately make payments.

38 CFR 21.4258(a) requires that the SAM list the courses approved in the notice. This requirement is due to the fact that not all courses/programs an educational institution provides are approvable under 38 USC chapter 36. For example, some community colleges offer courses that are recreational in nature. Payment for recreational courses is prohibited under 38 USC 3680A. Listing approved courses in the notice ensures VA pays educational assistance for only those courses/programs approved.

3. VA does not require the SAAs to submit notices electronically. The majority of the burden is the analysis determining whether or not the course, training program, or test meets the requirements in 38 USC chapter 36. That analysis generally requires an on-site visit of the institution seeking approval and review of its records and training materials. The approval/disapproval/suspension notices serve as the documents that show the SAA’s findings. VA has no plans to develop an electronic notification tool as each State individually prepares notices in accordance with their individual State operating policies.

As shown above in the response to question A2, VA does have an electronic means for the SAAs to report their approval activities.

4. The information covered in this collection is not available from other sources. The reporting done in connection with 38 CFR 21 .41 54 is specific to the approval activities the SAAs perform approving courses under 38 USC chapter 36. The other collections in 38 CFR 21.4250(b), 21.4258, and 21.4259 are specific notices showing approval information that applies only to veterans and other eligible persons eligible for VA educational assistance programs and is based on the findings of the SAA.

5. The collections do not impact small business or other small entities. The

SAAs are State departments or State agencies, designated by each individual

State, that enter into a contract with VA.

6. The approval/disapproval and suspension notices required in 38 CFR

21.4250(b), 21.4258, and 21.4259 are necessary so that VA does not pay educational assistance to individuals pursuing a program that does not meet the approval criteria specified in 38 USC chapter 36. Without the notices, VA would not be able to determine which courses/training programs/tests the SAAs approved in accordance with the criteria 38 USC chapter 36, nor would VA be able to determine which courses/training programs/tests did not meet the criteria. The notices are collected as the institution/training establishment, or organization or entity offering licensure or certification tests, requests approval of its offerings. The SAAs submit notices when they reach their decisions on whether or not the offerings may be approved. If the SAAs waited to do so quarterly, instead of as the decision is reached, unnecessary delays in proper payment of educational assistance would occur. VA cannot award educational assistance without knowledge that the program is approved in accordance with 38 USC chapter 36. In addition, waiting for quarterly or annual notification of disapproval of a course previously approved would cause VA to pay educational assistance to individuals in error.

Quarterly reporting required under 38 CFR 21.4154 assists VA in budgeting the money appropriated for SAA activities and to determine workload increases or decreases that may impact future budget or the allocation of the funds used to reimburse the SAAs.

7. The information collection in 38 CFR 21 .4154 is collected quarterly. Seethe response to item 6 above discussing the impact of collecting it less frequently.

The information collections in 38 CFR 21 .4250(b), 21 .4258, and 21.4259 are collected more than quarterly. See the response to item 6 above for justification for collecting the information more frequently.

8. The public was informed of the right to submit comments on this information collection. The notice is contained on page 17626 of the Federal Register dated April 9, 2007 and page 37576 of the Federal Register dated July 10, 2007. Consultations outside VA have been held with the SAAs since the last submission for approval. The SAAs and public have a continuing opportunity to provide comments on this information collection. There were no comments received on this information collection.

9. VA does not provide any payment or gift in connection with these collections.

However, the SAAs are reimbursed for their expenses under contract. Authority:

38 USC 3674.

10.  VA reviews the electronic information contained in the SAAs database.  That SAA database is located at www.saavetrain.org/MemberArea/quarterlyReport/index .  Security issues restrict access to this site.  Access to this Internet site is restricted to VA and SAA only.  Access is available by means of a unique password.  VA accesses this data base as needed.  VA does not maintain any printed information.  Our assurance of confidentiality is covered by our System of Records, Compensation, Pension and Education and Rehabilitation Records – VA (58VA21/22) which are contained in the Privacy Act Issuances, 1999 Compilation.

11. There are no questions of a sensitive nature.

12. & 14. Combined. Hour burden estimate and Annual cost to the Federal government:

38 CFR 21.4154 = 236 hours. There are 59 SAAs that provide quarterly reports that VA estimates takes an average of 1 hour. The hour includes the time to gather the data and complete the online reporting tool. The annual responses equal 236 (59 x 4). The average hourly salary for a SAA employee is $26.50. The respondents are reimbursed for all the activities they perform for VA, so there is no burden cost to the respondent associated to this request. The respondents’ costs are reimbursed as part of the annual contracted payment awarded each SM. The cost to the government annually is $6254.00. (59 x 4 hrs x $26.50).

38 CFR 21.4250(b), 21.4258, and 21.4259 = 37,411 hours. VA estimates the 59 SAAs will report 3401 approval (includes disapproval/suspension) actions during FY 2005. Each action averages 10 hours of preparation work and 1 hour for compiling the notices, for a total of 11 hours per approval action and an annual burden of 37,411 hours. The respondents are reimbursed for all the activities they perform for VA. This cost is part of the annual contracted payment awarded each SAM. The cost to the government annually is $991,391.50. (3401 x 11 x $26.50)

The total annual response for all collections is 3637 (236 + 3401) of which 6% (236 of the 3636 =6.4% rounded down to 6%) are collected electronically.

The total annual hours requested are 37,647 (236 ÷ 37,411)

VA estimates it takes a VA employee an average of 1.5 hours to process (reviewing and entering the data in the notices into VA’s approval database) each of the 3,401 approval, disapproval, and suspension notices submitted annually by the SAAs under 38 CFR 21.4250(b), 21.4258 and 21.4259. The average hourly salary of the VA employees who review and enter the data is $24.57 (GS 11/5). The cost to the Federal government is $125,343.86 (1.5 hrs x 3,401 x

$24.57). In addition, VA estimates it takes approximately 236 hours annually (an hour for each of the 59 reports per quarter) reviewing and analyzing the information submitted under 38 CFR 21.4154. The average hourly salary of the VA employees reviewing and analyzing the data is $35.01 (GS 13/5). The cost to the Federal government is $8,262.36 (236 x $35.01).

The total cost to the Federal government for all collections covered under this request is $1,131,251.72. This amount includes the $997,645.50 VA reimbursed the SAAs during FY2005 and $133,606.22 for the efforts of VA employees ($125,343.86 + $8,262.36).

13. Recordkeeping burden estimate. There are no costs associated to any recordkeeping as the result of the collections. This is because VA reimburses the respondents for the work they perform for VA and the expenses incurred. During FY 2005, VA awarded $18,000,000 among the 59 SAM activities.

15. There is no change in the burden.

16. VA does not publish this information or make it available for publication.

17. NASAA has its own instructions for completing the elements of this data base.  VA simply accesses this NASAA data base to obtain information.  VA has no jurisdiction either over the data elements or the instructions for completing those elements.  This is the equivalent of SAAs only submitting this data electronically.

 

VA considers the issue of an expiration date inappropriate for this information collection.  VA is discontinuing this form.  VA has no jurisdiction either over the data elements or the instructions for completing those elements.  VA has no authority to require NASAA to have an expiration date in its data base and requests not to have to ask NASAA to add it.  VA seeks a continued exemption on this expiration date issue for the above reasons.

18.  This information collection complies with all requirements except for fully informing respondents of the information under 5 CFR 1320.8(b)(3).  This regulation requires that VA inform respondents of the following six items:  (1) Why the information is being collected; (2) what the information will be used for; (3) the burden estimate; (4) the nature of the response; (5) the nature and extent of confidentiality; and (6) the need to display a valid OMB control number.

 

VA previously had information on VA Form 22-7398 informing respondents of the following:

 

Item (3) addressing the burden estimate,

Item (4) addressing the nature of the response,

Item (5) addressing the nature and extent of confidentiality, and

Item (6) the need to display a valid OMB control number.

 

VA will request NASAA to add this same information (Items 3, 4, 5, and 6) to its data base.

 

VA previously requested an exemption from informing respondents of the following:

Item (1) addressing why the information is being collected, and

Item (2) addressing what the information will be used for.

This information is already included in the contract with each SAA.

 

VA requests an exception from requesting NASAA from the same information (Items 1 and 2) to its data base:  Information as to these two items is already included in the contract with each SAA, VA fully informs the States that the information is to be reported, and each State agrees to these conditions by signing the contract.  Adding this information to the data base would constitute duplication of this information.

B. Collection of Information Employing Statistical Methods.

This collection of information by the Veterans Benefits Administration does not employ statistical methods.

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