Posted Date:March 29, 2012
|Author:||William Leith, Service Director, Program Management, Federal Student Aid|
Subject: Transfers of Campus-Based Program Funds and G5 Award Adjustments
As published in the Federal Student Aid Handbook, Volume 6, Managing Campus-Based Programs, there are provisions for transferring Campus-Based funds between Campus-Based Programs and carrying funds forward or back between award years. These provisions do not allow for moving funds between programs and between years within the G5 payment system. As explained below, transferring of Campus-Based funds is reported on the Fiscal Operations Report and Application to Participate (FISAP) only.
All transfers of Campus-Based Program funds are reported on the FISAP; adjustments are not made in the G5 payment system. All funds must remain in G5 in the original program award identifier (P033AxxXXXX for FWS and P007AxxXXXX for FSEOG) and in the year received.
Transfer of Campus-Based Funds Between Programs
As provided in 34 CFR 675.18(e), a school may transfer up to 25 percent of the school's Federal Work Study (FWS) allocation to its Perkins Loan Program allocation or Federal Supplemental Educational Opportunity Grant (FSEOG) Program allocation, or up to 25 percent of the school's FSEOG allocation to the school's FWS allocation. Any Campus-Based funds transferred to another program must be reported on the FISAP and must be entered in G5 as a drawdown against the original program award, not the program to which the funds were transferred.
Because a school maintains a revolving Perkins Loan fund, it does not need to receive a Perkins Loan Federal Capital Contribution allocation for an award year to be able to transfer an allowable percentage of its FWS allotment for that award year to the Federal Perkins Loan Program. However, the school must have a Perkins Loan Level of Expenditure (LOE) from the Department of Education (the Department) for that award year. The LOE is the authority from the Department for the school to participate and spend monies from the Perkins Loan Fund for that award year, including making new loans to students. The official FWS allocation and the Perkins Loan LOE are the school's authority to exercise the FWS to Perkins Loan transfer option.
The Department's permission is not required for the transfer of funds, but the transfers must be reported on the annual FISAP report.
We provide a visual representation of the guidance provided above in an attachment to this announcement entitled "Guidelines for Transferring Campus-Based Program Funds".
Transfer of Campus-Based Funds Between Years
The authority to carry forward or carry back Campus-Based funds is provided in 34 CFR 675.18(b) and 34 CFR 675.18(c), respectively.
Carry ForwardA school may spend up to 10 percent of its current year's FWS or FSEOG allocation (initial and supplemental) in the following year (carry forward). Before the school may spend its current year's allocation, it must spend any funds carried forward from the previous year.
A school is also permitted to spend up to 10 percent of its current year's FWS or FSEOG allocation (initial and supplemental) for expenses incurred in the previous award year (carry back).
The school must match FWS or FSEOG funds carried forward or carried back in the award year that they were spent. A school's future FWS or FSEOG program allocation is not affected by carrying forward or carrying back funds between award years.
A school may carry back FWS funds for summer employment; that is, a school may use any portion of its initial or supplemental FWS allocations for the current award year to pay student wages earned on or after May 1 of the previous award year but prior to the beginning of the current award year (July 1). This summer carry-back authority is in addition to the authority to carry back 10 percent of the current year's FWS allocation for use during the previous award year.
Also, a school may spend any portion of its current award year's initial or supplemental FSEOG allocations to make FSEOG awards to students for payment periods that begin on or after May 1 of the prior award year but end prior to the start of the current award year (carry back for summer). This carry-back authority for summer FSEOG awards is in addition to the authority to carry back 10 percent of the current award year's FSEOG allocation for use during the previous award year.
On the FISAP, a school must report FWS or FSEOG funds that it carries back and carries forward. For example, if a school carried forward 10 percent of its FWS 2011-2012 allocation to be spent in 2012-2013, the school must report this amount on the FISAP in Part V of the FISAP for both the 2011-2012 (due October 1, 2012) and 2012-2013 years (due October 1, 2013).
We provide a visual representation of the guidance provided above in an attachment to this announcement entitled "Guidelines for Transferring Campus-Based Program Funds"
If you have questions regarding Campus-Based Program fund adjustments, transferring funds between Campus-Based programs, or the carry forward and carry back authority for Campus-Based funds, contact the Campus-Based Call Center at 877/801-7168. Customer service representatives are available Monday through Friday from 8:00 A.M. until 8:00 P.M. (ET). You may also e-mail CBFOB@ed.gov.