W. Va. Code R. § 112-19-11

Current through Register Vol. XLI, No. 50, December 13, 2024

Section 112-19-11 - Procedures Following Suspicion of a Violation

11.1. Upon reasonable suspicion of an account violation or a provider violation, Staff shall follow the procedures set forth in this section.

11.2.Account violation. -

11.2.1. Upon reasonable suspicion of an account violation, Staff shall immediately direct the program manager to place a temporary hold or freeze on the Hope Scholarship account or accounts involved in the suspected violation if determined necessary to prevent further violations or loss of funds. Staff shall provide written notice of the hold or freeze to the account holder according to the requirements of W. Va. C.S.R. §112-18-10.3.1.

11.2.2. Following reasonable suspicion of an account violation, Staff shall conduct a written or verbal inquiry with the individual or individuals suspected of a violation, designed to ascertain whether a violation has occurred. Any written inquiry will clearly state the date by which the individual must submit a written response and produce requested records.

11.2.3. Staff shall review the information and records produced pursuant to any written or verbal inquiry, along with any other relevant information available to the Board. Following said review, Staff may:

11.2.3.a. Lift the hold or freeze on an account if Staff determine that there is no evidence of an account violation in the information and records produced or other relevant information available to the Board;

11.2.3.b. Present the information discovered in the inquiry and any subsequent audit to the Board along with any Staff recommendation to terminate an individual's participation in the program for a period of time, declare an individual or provider permanently ineligible to participate in the Hope Scholarship Program, or both, pursuant to W. Va. CSR §112-18-10.3.3; or

11.2.3.c. Commence a more extensive account audit by an outside auditor retained by the Board, an internal auditor provided to the Board by the West Virginia State Treasurer's Office, or the West Virginia State Auditor if additional information is needed to determine whether one or more account violations has occurred: Provided, That the Board may take any of the actions set forth in subsection 11.5 of this rule prior to the conclusion of an audit if one or more account violations are clearly demonstrated in the information or records initially available to the Board, but further audit is needed to investigate evidence of additional violations.

11.3.Provider violation. -

11.3.1. Upon reasonable suspicion of a provider violation, Staff shall immediately direct the program manager to place a temporary hold or freeze on the account and approved educational service provider status of the individual and/or entity involved in the suspected violation if determined necessary to prevent further violations or loss of funds.

11.3.2. Following reasonable suspicion of an account violation, Staff shall conduct a written or verbal inquiry with the provider suspected of a violation, designed to ascertain whether a violation has occurred. Any written inquiry will clearly state the date by which the provider must submit a written response and produce requested records.

11.3.3. Staff shall review the information and records produced pursuant to any written or verbal inquiry, along with any other relevant information available to the Board. Following said review, Staff may:

11.3.3.a. Lift the hold or freeze on a provider's account, approved status, or both if Staff determine that there is no evidence of a provider violation in the information and records produced or other relevant information available to the Board;

11.3.3.b. Present the information discovered in the inquiry and any subsequent audit to the Board along with any Staff recommendation to terminate the provider's approved status, declare a provider permanently ineligible to participate in the Hope Scholarship Program, or both pursuant to W. Va. CSR §112-18-10.3.3;

11.3.3.c. Commence a more extensive provider audit by an outside auditor retained by the Board, an internal auditor provided to the Board by the West Virginia State Treasurer's Office, or the West Virginia State Auditor if additional information is needed to determine whether one or more provider violations has occurred: Provided, That the Board may take any of the actions set forth in subsection 11.5 of this rule prior to the conclusion of an audit if one or more provider violations are clearly demonstrated in the information or records initially available to the Board, but further audit is needed to investigate evidence of additional violations.

11.4.Unlawful sharing of Hope funds. -

11.4.1. Upon reasonable suspicion that unlawful sharing of Hope funds has occurred, Staff shall immediately commence a written or verbal inquiry into any and all potential account violations and provider violations involved in the suspected sharing, according to the procedures outlined in subsections 2 and 3 of this section. The following factual circumstances per se establish reasonable suspicion of unlawful sharing when reflected in the records and information available to the Board, in the absence of documentation demonstrating that a provider has measures in place to prevent sharing:

11.4.1.a. An account holder has used or attempted to use Hope Scholarship funds to pay for educational goods or services from an educational service provider; and:

11.4.1.a.1. A parent, the student, or a household member of the parent or student is the educational service provider;

11.4.1.a.2. A parent, the student, or a household member of the parent or student is a control employee of the educational service provider;

11.4.1.a.3. A parent, the student, or a household member of the parent or student has the ability to withdraw funds from the educational service provider's bank account into which Hope Scholarship funds are deposited or transferred; or

11.4.1.a.4. The email address of the student or the student's parent is the same as the email address for the educational service provider or the business or mailing address of the educational service provider is the same as the residential or personal mailing address of the student or the student's parent.

11.4.1.b. A student's account is invoiced for an educational good or service provided to the student by the parent or the student's immediate family member in violation of W. Va. Code § 18-31-7(a)(3).

11.4.2. Staff may require the control employee parent and provider to complete a form designed to ascertain whether sharing has occurred and whether the provider has measures in place to effectively prevent sharing. For example, a nonpublic school may have internal controls to ensure that an administrator with access to the school's bank accounts cannot make unauthorized withdrawals to unlawfully share in his or her Hope Scholarship student's funds.

11.5.Board determination following investigation and/or audit. - At the conclusion of an investigation or audit undertaken pursuant to this section, Board staff shall present any evidence that an account or provider violation has occurred to the Board in an executive session, as permitted by W. Va. Code § 6-9A-4(6) and (7).

11.5.1. If the Board determines that an account violation has occurred, the Board may, on motion and by majority vote take any of the following actions or combination thereof:

11.5.1.a. Terminate the violating individual or provider's participation in the program for a specified period of time;

11.5.1.b. Permanently disqualify the violating individual or provider from participating in the program; or

11.5.1.c. Take another action as determined appropriate by the Board, including but not limited to referring the matter to law enforcement.

11.6. If at any time the Board or the Secretary suspects fraudulent or criminal misuse of Hope Scholarship funds, the Chair may direct the STO General Counsel to refer the suspected case to the State Auditor or appropriate law enforcement authorities for criminal investigation. Pending the outcome of an investigation commenced by the State Auditor or law enforcement, the Board may suspend the procedures required by this section.

W. Va. Code R. § 112-19-11