| DCLPublicationDate: 6/1/98 DCLID: CB-98-7 AwardYear: Summary: Release of Campus-Based Funds and Request for Supplemental Federal Work-Study (FWS) Funds.. May 1998 CB-98-7 (LD) SUBJECT: Release of Campus-Based Funds and Request for Supplemental Federal Work-Study (FWS) Funds. REFERENCE: This letter supplements information found in Chapters 5-8, Federal Student Financial Aid Handbook. Dear Financial Aid Administrator: The enclosed Campus-Based Reallocation Form (E-40-4P) is used in the Federal Supplemental Educational Opportunity Grant, FWS, and Federal Perkins Loan programs (the campus-based programs) for the following purposes: To release 1997-98 award year (July 1, 1997, through June 30, 1998) unexpended campus-based allocations. To inform the Department of Education of your institution's need for supplemental FWS funds for the 1998-99 award year (July 1, 1998, through June 30, 1999). If your institution expended at least 10 percent of its total 1997-98 FWS federal funds to pay students employed in community service jobs, and your institution has a fair share shortfall in its 1998-99 final funding worksheet, your institution may qualify for a supplemental 1998-99 FWS allocation this fall. Release of Unexpended Funds - - Section A We plan to reallocate unexpended funds from the 1997-98 award year as supplemental allocations for the 1998-99 award year under the campus-based programs. Supplemental allocations will be issued this fall in accordance with reallocation procedures contained in the Higher Education Act of 1965, as amended (HEA), and the current regulations for the campus-based programs. The Department of Education has authority to reallocate 1997-98 award year funds to institutions only until September 30, 1998. Rather than waiting to provide this information on your institution's 1997-98 fiscal operations report, which is not due until October 1, 1998, we ask that you provide us with advance notice of the amount of your unexpended allocation for each of the campus-based programs. It is important that you provide us with this information because many institutions are in need of supplemental 1998-99 funds. Any unexpended 1997-98 funds which you do not release at this time, cannot be reallocated and will revert to the U.S. Treasury. Therefore, it is imperative that you advise us of any unexpended campus-based funds now, by completing Section A of the enclosed Campus-Based Reallocation Form. Request for Supplemental 1998-99 FWS Funds--Section B Complete Section B of the enclosed Campus-Based Reallocation Form only if your institution is requesting supplemental 1998-99 FWS funds. Under Section 442 of the HEA, the Department of Education reallocates FWS funds to institutions that have a fair share shortfall and expend at least 10 percent of their total FWS allocation to pay students employed in community service jobs. In requesting supplemental 1998-99 FWS funds, an institution should note that under the HEA, the reallocated FWS funds must be used only to pay students in community service jobs. The supplemental FWS funds cannot be used for any other purpose. Deadline for Submission of Campus-Based Reallocation Form The deadline for submitting the enclosed Campus-Based Reallocation Form is a postmark date of no later than July 17, 1998. Please return the form containing an original signature to the address shown on the form only if you are releasing campus-based funds or are requesting supplemental 1998-99 FWS funds. Keep a photo copy of the completed form for your records. Instructions for completion of the Campus-Based Reallocation Form are enclosed. Please coordinate the preparation of this report with your institution's Chief Fiscal Officer. Questions regarding the preparation of this report should be referred to the Campus-Based Programs Financial Management Specialist who serves your State (listing enclosed). Sincerely, Michele L. Selvage, Director Institutional Financial Management Division Accounting and Financial Management Service Attachment A Attachment B Attachment C |