1. (1) The institutional review will enable the Commission to express an opinion of the administrative controls and of the compliance aspects of the Alabama Law Enforcement Officers’ Family Scholarship at the participating institution.

2. (2) The primary objectives identified for the reviewer performing institutional reviews are:

   1. (a) To determine whether the participating institution's reports present information accurately and in conformity with the Alabama Law Enforcement Officers’ Family Scholarship policies and procedures, and whether all reports are prepared on a consistent basis from one period to the next;
   2. (b) To determine whether the participating institution has implemented and is utilizing reasonable procedures and internal controls for effectively discharging management responsibilities and for adequately protecting the state's interest;
   3. (c) To review institutional records and report on areas of noncompliance; and
   4. (d) Based upon the review, to provide constructive recommendations to the participating institution.
3. (3) The participating institution shall make all records and information relative to the Alabama Law Enforcement Officers’ Family Scholarship available to the Commission.

4. (4) A written report shall be provided by the Commission to the participating institution and shall include:

   1. (a) Any findings of inaccuracies in institutional reports;
   2. (b) Any inconsistencies in institutional reports;
   3. (c) Conclusions regarding the adequacy of administrative controls;
   4. (d) Any areas of noncompliance; and
   5. (e) Recommendations for improvement.
5. (5) If the participating institution does not concur with all items in the written review report, a written appeal should be submitted to the Executive Director of the Commission.

6. (6) When an institutional review reveals sufficient problems pertaining to the Alabama Law Enforcement Officers’ Family Scholarship at a participating institution, the Executive Director of the Commission may:

   1. (a) Impose a temporary suspension of scholarship payments to the participating institution;
   2. (b) Suspend the institution from participation in the scholarship for an indefinite period of time;
   3. (c) Demand payment of any Alabama Law Enforcement Officers’ Family Scholarship funds to a student or repayment of funds to the State of Alabama to remedy a violation of applicable laws, regulations, agreements, or operating procedures; or
   4. (d) Refer any problems to the Attorney General of the State of Alabama for appropriate legal action.
7. (7) A suspended institution may request a hearing by the Commission. The institution shall be notified in writing of the time and place of such Commission hearing.

8. (8) After such hearing, the Commission shall determine (at an official meeting of the Commission) whether to:

   1. (a) Continue the suspension pending the receipt of any additional information that the Commission may require;
   2. (b) Continue the Executive Director's suspension subject to limitations or exceptions;
   3. (c) Revoke or lift the suspension and restore the institution to full participation as authorized under the regulations;
   4. (d) Terminate the institution's eligibility for an indefinite period of time;
   5. (e) Demand payment of any Alabama Law Enforcement Officers’ Family Scholarship funds to a student or repayment of funds to the State of Alabama to remedy a violation of applicable laws, regulations, agreements, or operating procedures; or
   6. (f) Take any other appropriate action the Commission deems necessary, including referral to the Attorney General of the State of Alabama for appropriate legal action.

Author: Takena V. Jones, Stephanie C. Dolan

Statutory Authority: Code of Alabama 1975, §§16-5-1, et seq.

History: New Rule: Published September 30, 2025; effective November 14, 2025.