Maintained for Historical Purposes

This resource is being maintained for historical purposes only and is not currently applicable.

PublicationDate: 7/1/95
ChapterNumber:
ChapterTitle: Index
SectionNumber:
SectionTitle: Index
PageNumbers: I1-I16


A
A-128 audit, 256, 257
A-133 audit, 256, 257
Ability-to-benefit, C-4
ACA see Administrative cost allowance
Academic year, 14, A-1
Accepted with assumptions, Pell Grant PPV or EPPV, A-1
Accepted without change or assumptions, Pell Grant PPV or EPPV, 209, A-1
Accepted, Pell Grant PPV or EPPV, 209
see Accepted without change or assumptions
Account number, 147-148
Account numbering system, 147-156
Account payable, 158, F-3
Account receivable, 149, 157, 165, F-3
sample student account, 146
see funds receivable
Accounting, 141-146
basics, F-1 to F-5
chart of accounts, 147-192, F-1 to F-3
fund accounting, 147, F-4
generally accepted accounting principles, 141
generally accepted auditing standards, 142
institutional requirements, 141-142
ledger accounts, 147-192
normal rules for debiting and crediting, F-4
to F-5
recommended procedures, 141-146
record maintenance for the financial aid office, 143-144
restricted funds, A-1, F-4
sample journal entries, F-6 to F-15
Accounting Information System (AIS), F-1
Accounting period, A-1
Accounts see Ledger accounts
Accounts Receivable Management Group (ARMG), 115, 116, 265
Accounts, self-balancing, 148
Accounts, types of
asset, 148-152, 155
asset reduction, 148
capital, 148-151, 153, 155-156
capital reduction, 148
cash control, 156
ED/PMS, 156, 157
expense, 148, 149, 150, 151, 155, 156
income, 148, 149, 150, 151, 154, 155, 156
liability, 148, 149, 150, 153, 155, 156
National Finance Center (NFC), 157
receivable, 157, 165
revenue, 148
Accrual basis, A-1
Accrued salaries, A-1
Accrued wages payable, FWS, 166
ACH/EFT see Automated Clearing House/Electronic Funds Transfer
Acid-test ratio, 25, A-2
Acronyms, listing, Appendix B
Active award, 249
Addresses and telephone numbers, ED offices, D-1 to D-11
see Technical Assistance Directory
Addresses for mailing audit reports, 258
Adjusting entry, A-2
Adjusting reported expenditures see ED/PMS
Adjustments, Pell Grant see Corrections
Administrative capability, institutional, 27-28, A-2
Administrative cost allowance (ACA), 76-77, A-2
FISAP, 232, 235, 245-246, 279
FSEOG, 163, 239, F-8, F-9
FWS, 171-172, F-12
ledger accounts, 150, 151, 152, 154, 159, 163, 171, 182, 183
Pell Grant, 159-160, F-8
Perkins Loan, 182-183, 245, F-14
Administrative offset, A-2
Admission records, 53
Advance payment, 87-88, 89
AFMS see Financial Services
Agency funds, A-2
AICPA see American Institute of Certified Public Accountants
AIS see Accounting Information System
Allocation, 70-71, 79-82
Allocation formulas, 70
Allocation order see Refunds
Allowable charges, 106
Amending reports
closed awards, 253-254
open awards, 252-253
American Institute of Certified Public Accountants (AICPA), 141
Annual fund activity report, Perkins Loan, 234-236
Appeals of audit and program review determinations, 259, 263, D-11
Application to participate in campus-based programs see FISAP
Appropriation, A-3
ARB see Audit Resolution Branch
ARMG see Accounts Receivable Management Group
As-of-date see Reconciliation period, Direct Loan
Asset account, 148
Assets, A-3
Assignment, A-3
Attestation Engagements, 256
Audit, 23, 24, 25, 26, 254-265, A-3
Audit exceptions, A-4
Audit findings see Audit exceptions and Compliance audit
Audit Guide, A-4, C-7
Audit report transmittal form, 267
Audit reports see Audit exceptions
see also Compliance audit, A-128 audit, and
A-133 audit
Audit Resolution Branch (ARB), 257, D-10, D-11
Audit trail, 65, 197, A-4
Authorization, institutional
disbursing by EFT, 107, 111
legislative, A-4
Pell Grant, 204-205, 209
program level, 71, 79-82
Authorization, student/parent
allowable period, 111-112
holding excess funds, 110-111
paying other charges, 106-107, 111
spending, A-4
written authorization from student or parent, 106, 107, 111-112
written notice to student or parent, 106
Authorizations for future periods see ED/PMS 272F
Authorizing payments to students, 105-109
Automated Clearing House/Electronic Funds Transfer (ACH/EFT), 87-88, 94-95, 97-98, A-4
calling in requests, 95
processing requests, 95
verifying payment, 95
Automated FEDWIRE System, 5, 96-97, A-4
Automated reporting
Direct Loan, 212-216
FISAP, 70, 220-222
MEERS, 250-252
NSLDS, 216-220
Pell Grant, 205-211
Automated suspension of funds, 250, A-4
Automated Voice Response (AVR), A-5
AVR see Automated Voice Response
Award, A-5
Award adjustment or revision, A-5
Award authorizations see ED/PMS
Award packaging see Packaging
Award year, 15-16, 19-20, A-5


B
Bank accounts, 99-102
designating federal funds, 101
interest-bearing, 99-100
naming, 101-102
non-interest-bearing, 100
other Title IV funds, 100
Perkins Loan funds, 99-100
separate Title IV account, 100-101
UCC-1 statement, 101-102
Bank errors, identifying and correcting, 194-195
Bank statement in the reconciliation of cash,
194-195
Batch, A-5
Pell Grant, 208-210
Billing service, A-5
Blue Book
contents, 2-4
effective date, 5
format, 4
overview, 6
purpose, 1-2

Bookkeeping, 142-146, A-5
Business office, 34-36, A-5
activities, flowchart, 145
records, 34, 35, 142-143
responsibilities, 34-36, 143
Byrd, Robert C., Honors Scholarship, 13, 226, A-5


C
Calculating refunds see Refunds
Campus Security provisions, 40, C-2
Campus-based programs, 9, 69-84, 91-92, C-5 to C-6, D-4 to D-6, E-2 to E-4, F-8 to F-15
administrative cost allowance, 76-77
allocation of funds, 70-71
applying for funds, FISAP, 69, 70
applying to participate, 22, 70
definition, 69, A-5 to A-6
delivery system, 8-9, E-2 to E-4
deobligation of funds, 71, 117-118, A-9
disbursing funds, 105-110, E-2 to E-4
federal share of funds, 71-75, 91
FISAP, 69-70
funding process, 69-71
funds available for awards, 77-84
nonfederal share of funds, 71-73, 75
Official Notice of Funding, 71
projecting cash needs, 89-92
recordkeeping, 142-146
reporting, FISAP, 220-246
requesting funds, ED/PMS, 87-89, 94-97
transferring funds between programs, 77-78
Cancellation of a loan, A-6
Capital account, 148, 153, F-3
Capital reduction account, 148, F-5
Capitalizing interest, A-6
Carry forward/carry back, FWS, 78, A-6
Cash
cash management, 86, 99
excess, 112-114, 119-120, 214
ledger accounts, 149, 150, 151, 152, 155, 156-162, 163, 172, 189, 191
reconciling, 194-197
Cash advance, A-6
see Advance payment
Cash control, ledger accounts, 149, 156
Cash management
December 1, 1994 regulations, 86, 123-140, 149

Cash needs see Projecting cash needs
Cash on hand, 90, 115, 229
Cash pooling, A-6
Cash requests see ED/PMS, requesting funds and requesting payment
Central Processing System (CPS), 18, A-6, E-1, E-2, E-3, E-4, E-5, E-7, E-10, E-12
Certification
FISAP, 221, 222
of FFEL Program loans, E-5, E-7, E-9
to participate in Title IV programs, 22-23
Certified Public Accountant (CPA) see Independent public accountant
CFR see Code of Federal Regulations
Changes see Corrections
Charges
allowable, definition, 106
institutional, 51
noninstitutional, 51
unpaid, 51
Chart of accounts, 147-156, A-6, F-1 to F-5
Checks see Issuing checks
Checks and balances, 192-197
clear audit trail, 197
input controls, 196-197
reconciliation of cash and federal funds, 194-195
subsidiary records reconciliation, 197
trial balance, 193-194, 197
Chief Executive Officer (CEO), 30-32
Circular A-128, C-8
Circular A-133, C-8
Clear audit trail, 65, 197
checks and balances, 192-197
in-house control documents, 65, A-18
Clock hour, 15
Closed award, 240, 253-254
Closing, A-6 to A-7
COA see Cost of attendance
Code of Federal Regulations (CFR), 8, A-7, C-1
Cohort default rate, A-7
FFEL Program, 28, 260
FISAP, 237-238
institutional eligibility, 28
Perkins Loan, 228, 237-238
Collection agency, A-7
Collection costs, A-7
ledger accounts, 154, 183, 232
Commercial billing service, Perkins Loan, 236
Community service, 9-10, 74-75
Community Service Job Location and Development (CS/JLD) Program, 74-75, 152, 171, 242-244, A-19
Compliance audit, 255-260, D-10
A-128 audit, 256, 257, C-8
A-133 audit, 256, 257, C-8
annual requirement, 255
appeal process, 259
availability of records, 257
corrective action plan (CAP), 258
definition, 255-256
final determination notice, 259
findings, 258
independent auditor, 256-257
liabilities repayment, 259
new regulations, 255
report, definition, A-4
school cooperation, 257
single audit, 255, 256, 257
submitting audit report, 257-258
transmittal form, 267
Compliance with laws and regulations, 27, 33
Confidentiality of records see Family EducationRights and Privacy Act
Consolidation loan, A-7
see Federal Consolidation Loan and
Federal Direct Consolidation Loan
Consumer information requirements, 38-40
Continuing resolution, A-7
Contra account, 156-174, 176-192, A-7
Control account, A-8
Control documents, in-house, 65
Cooperation
among school offices, 30, 34, 142
with auditors and program reviewers, 257, 261
Coordination of information among school offices, 33, 34, 36-38
Corrections and adjustments
Direct Loan reconciliation, 215
ED/PMS 272 Report, 252, 253
Pell Grant PPVs or EPPVs, 210
Pell Grant, prior year, 254
Corrective action, 259, A-8
Corrective action plan (CAP), 258, A-8
Correspondence courses, 50
Cost of attendance (COA), 8, 11, 12, 39, A-8
CPA (Certified Public Accountant) see Independent public accountant
CPS see Central Processing System
Credit, 156-174, 176-192, 227
accounting entry, F-3, F-4
Credit balances, 108-109
determining amount, 109
payment to student, 108-109
permission to hold excess funds, 110-112
time frames for paying student, 108-109
Credit hour, 14, 15
Crediting a student’s account, 106-107, 146
allowable charges, 106-107
notifying FFEL and Direct Loan borrowers, 106
Crediting/debiting rules, F-4 to F-5
CS/JLD see Community Service Job Location and Development Program
Cumulative fiscal report, Perkins Loan, 228-234, 272
Cumulative repayment information, Perkins Loan, 236-237, 274
Current value of funds rate, 114
Current-year adjustments see Open award


D
Dear Colleague letters, C-2 to C-6
Debit, 156-174, 176-192, 227
accounting entry, F-3, F-4
Debiting/crediting rules, F-4 to F-5
Default, A-8
cohort default rate, 28, 228, 237-238
Defaulted loan principal, Perkins Loan
FISAP, 174, 179, 188, 229, 234, 272
ledger accounts, 152, 174
Deferment of loan, A-8
Delayed disbursement, 110
Delivery, A-9
of FFEL funds, 103
Delivery system, 8
Deobligation of campus-based funds, 71, 117-118, A-9
Department of Education General Administrative Regulations (EDGAR), 251
Department of Education Payment Management System (ED/PMS), A-9
see ED/PMS
Direct Consolidation Loan, 11-12, A-13
Direct deposit, 87, 97-99
Direct Deposit Sign-Up Form (SF-1199A), 94
Direct Loan see Federal Direct Loan Program
Direct Loan Servicing Center, 92, 98-99, 120-122,
212-216
Direct PLUS Loan, 11, A-13, E-14
Direct Stafford/Ford Loan, subsidized, 11, A-13,
E-10 to E-11
Direct Subsidized Loan see Direct Stafford/Ford Loan, subsidized
Direct Unsubsidized Loan, 11, A-13 to A-14,
E-12 to E-13
Disbursement, 105-106, A-9
Disbursing funds, 105-106
allowable methods, 105
credit balances, 108-109
crediting an account, 106-107
definition of disburse, 105
delayed disbursement, 110
early payment, 109-110
electronic funds transfer (EFT), 107, 111
excess funds, 108-109
issuing checks, 107-108
notifying student or parent, 106, 108
paying students or parents directly, 107
Discharge of a loan see Cancellation of a loan
Disclosing student information see Family Education Rights and Privacy Act
Distribution formula, A-9
Documentation
clear audit trail, 65, 197
in-house control documents, 65, A-18
internal control, 192-193
Double-entry bookkeeping, A-9
Douglas Scholarship Program, 14, 226
Drawing down funds see ED/PMS, requesting funds
Duplicate, Pell Grant PPV or EPPV, A-9 to A-10


E
Early payment, 109-110
ED/PMS, 93-98, 246-250
accounts, 94, 116, 149, 150, 151, 154, 155, 156-157, 159, 161, 164, 167, 177, 189-190
ACH/EFT, 87-88, 94-95, 97-98, 247
adjusting reported expenditures, 252-254
advance payment, 87-88, 94, 247
authorizations for future periods, 249
award authorization, 148, 246
campus-based programs, 246
Federal Direct Loan Program, Level 1 Schools, 246
Federal Pell Grant Program, 204, 246
Federal Perkins Loan Program, 246
Federal Work-Study Program, 246
FEDWIRE see FEDWIRE
funds receivable, 229
see accounts receivable
journal entries, 141, 145, 148, F-6, F-7, F-8, F-9,
F-10, F-12, F-13
ledger accounts see Ledger accounts
payment processing, 93-98
payment request record, 98
quarterly report, A-24
Recipient’s Guide, 5, 86, 88, 89, 95, 97, 115, 116, 120, 247, 249, C-7
reimbursement payment, 88-89, 97, 247
reporting, 248-251
reporting expenditures, 248
requesting funds, 87-89, 92, 94-97
requesting payment, 98, 247-248
sample, 281-285
ED/PMS 272 Report, Federal Cash Transactions Report: Status of Federal Cash, 248-250, A-13
adjustments, 252
sample, 281-285
transmittal letter, 248
ED/PMS 272A, Federal Cash Transaction Report, 95, 97, 249
ED/PMS 272B, Statement of Cash Accountability, 249
ED/PMS 272F, Authorizations for Future Periods, 249
ED/PMS 272G, Inactive Documents Report, 250
EDE see Electronic Data Exchange
EDExpress, 206, 212
EDGAR see Department of Education General Administrative Regulations
Educational qualifications see Admission records
EFC see Expected Family Contribution
Effective date of this edition of The Blue Book, 5
EFT see Electronic Funds Transfer
85/15 Rule, 23
EIN see Entity Identification Number
Electronic Data Exchange (EDE), 206, A-10, D-2
Electronic FISAP, 220-222, A-10
Electronic Funds Transfer (EFT), 87-88, 90, 94-95, 97-98
borrower authorization, 111
FFEL funds, 103-104
payment of Title IV funds to students, 107
time frames for requesting funds, 105
Electronic Payment Voucher (EPV), 207-211, A-10
Electronic Processed Payment Voucher (EPPV), 209-211, A-10
Electronic reporting see Automated reporting
Electronic Statement of Account (ESOA), 205
Electronic Student Aid Report (ESAR), A-10
see Institutional Student Information Record
Eligible institution, 22-23, A-10
Eligible student, A-10
ELO see Expanded Lending Option
Emergency action, 259, 263, A-10
Employer’s payroll taxes payable, FWS, 166-167
Encyclopedia of Student Financial Aid, C-7
Enrolled, 109
Enrollment period, 104, 105, 108, 109, 110, 111, 118, 119, A-11
Enrollment status, 215, 218, A-11
Entrance counseling, 33, 36, 262, A-12
Entrance interview see Entrance counseling
Entrance interview (for a compliance audit), A-12
Entity Identification Number (EIN), 269, 281-285
EPPV see Electronic Processed Payment Voucher
EPV see Electronic Payment Voucher
ESAR see Electronic Student Aid Report
ESOA see Electronic Statement of Account
Evaluation of financial aid program management, 42-45
Excess cash, institution, 86, 89
definition, 112, 119
Direct Loan, 119-120, 212
holding, 113, 115
liabilities, 114, 263
National Finance Center billing, 115
returning, 115
tolerances, 113
Excess funds, institution see Excess cash, institution
Excess funds, student
authorization to hold, 110-111
credit balances, 108-109
school requirements for holding funds, 111
Executive Summary, 4
Exit counseling, 33, 36, 216, 218-219, 262, A-12
Exit interview see Exit counseling
Exit interview (for a compliance audit), A-12
Expanded Lending Option (ELO), 75, E-4
Expected Family Contribution (EFC), 8, 11, 12, 226, 244, A-12, E-1 to E-5, E-10
Expense account, 148
Expired award, 250


F
FAA see Financial aid administrator
FAFSA, 8, 9, 10, A-12, E-1 to E-5, E-7, E-10, E-12
see Free Application for Federal Student Aid
Fair and equitable refund policy, 45
Family Education Rights and Privacy Act (FERPA), 52, 63-64
FARM see Financial Accounting and Reporting Manual for Higher Education
FASB see Financial Accounting Standards Board
FAT see Financial aid transcript
FCC see Federal capital contribution
FDDE see Floppy Disk Data Exchange
Federal application processing system, 8, 18
Federal audit, 43, 255, A-13
Federal capital contribution (FCC), 75, A-13
FISAP, 223, 227, 232, 234, 235
ledger accounts, 172, 176-178
Federal cash drawdowns see ED/PMS, requesting funds
Federal Cash Transactions Report: Status of Federal Cash, A-13
see ED/PMS 272 Report
Federal Cash Transaction Report
see ED/PMS 272A
Federal (FFEL) Consolidation Loan, 12, 102, A-7
Federal Direct Consolidation Loan, 11-12, A-13
Federal Direct Loan Program, 11-12, 97-99, 212-216, A-13, D-1, E-10 to E-14
Alternative Origination (Level 3), 98-99, C-5
ledger accounts, 155, 189-191
payment for origination services (POS), 190-191
projecting cash needs, 92-93
reconciliation, 195-196, 212-215
recordkeeping, 57, 62
requesting funds, 92-93, 97-99
returning funds, 119-122
School Origination Level 1, 97-98
School Origination Level 2, 98-99
Servicing Center, 92, 98-99, 120-122, 212-216
Federal Direct PLUS Loan, 11, 212, A-13, E-10, E-14
Federal Direct Stafford/Ford Loan, subsidized, 11, A-13, E-10 to E-11
Federal Direct Unsubsidized Stafford/Ford Loan, 11, A-13 to A-14, E-10, E-12 to E-13
Federal Family Education Loan (FFEL) Program, 12-13, 102-105, 217-220, A-14, C-4, E-5 to E-9
co-payable checks, 104-105
delivering funds to borrowers, 103, 104
disbursing funds, 103
electronic funds transfer (EFT), 103-104
Federal Consolidation Loan, 12-13, 102, A-7
Federal PLUS Loan, 102-103, 217, A-14, E-9
Federal Stafford Loan, subsidized, 12, 58,
102-103, 105, A-15, E-5 to E-6
Federal Stafford Loan, unsubsidized, 12,
102-103, E-7 to E-8
individual checks, 104-105
ledger accounts, 155-156, 191-192
master check, 103-104
obtaining funds, 102-105
recordkeeping, 58-59, 62
requesting funds, 87
returning funds, 118-119
Federal fiscal year, 16
Federal law
key resources, C-1 to C-8
Federal master calendar, 16-17
Federal Pell Grant Payment and Disbursement Schedules, A-14
Federal Pell Grant Program, 10-11, 204-211, A-14,
C-5, D-2 to D-4, E-1
administrative cost allowance, 150, 159-160
authorization, 91, 204-205
automated reporting methods, 206, 207
ED/PMS, 204, 246
Electronic Payment Voucher, 207-211, A-10
Electronic Processed Payment Voucher, 209-211, A-10
FISAP, 225, 271
Institutional Payment Summary (IPS), 91,
208-209
IPS Batch Report, 209-211
journal entries, 145, F-7 to F-8
ledger accounts, 150, 158-160
Payment and Disbursement Schedules, A-14
payment processing, 266
Payment Vouchers, 205, 207-211
projecting cash needs, 91
recordkeeping, 54-56, 62
reporting, 204-211
requesting funds, 91
Student Payment Summary (SPS), 211
Federal Perkins Loan Program, 10, 75, A-14, E-4,
F-13 to F-15
administrative cost allowance (ACA), 76, 182-183, 245-246, F-14
bank account, 99-100
commercial billing service, 236
ED/PMS, 246
Expanded Lending Option (ELO), 75, E-4
federal capital contribution (FCC) see Federal capital contribution
federal share see Federal capital contribution
FISAP, 223, 226-238, 272-274, 279
fund, 75,
funds available for awards, 77
institutional capital contribution (ICC), 75,
A-18 to A-19
interest earned on fund, 102
journal entries, F-13 to F-15
ledger accounts, 152-155, 172-189
Level of Expenditure (LOE), 75, 223, A-20
loan interest, 179-180, 183-188
nonfederal share, 75
projecting cash needs, 92
recordkeeping, 55, 59-60, 62
reporting, 226-238, 246
transferring funds to FSEOG, 77, 83
transferring funds to FWS, 77, 83
Federal PLUS Loan, 102-103, 217, A-14, E-9
Federal refund calculation, 45,47, 68
Federal Register, 8, A-14
Federal Reserve Bank (FRB), 87, 95, 96, 98, 247
Federal share, 71
FISAP, 234, 238, 239, 241, 242
FSEOG, 71-72, 239
FWS, 73-75, 242, 243
Perkins Loan see Federal capital contribution
Federal Stafford Loan, subsidized, 12, 58, 102-103, A-15, E-5 to E-6
Federal Stafford Loan, unsubsidized, 12, 102-103, E-7 to E-8
Federal Student Aid Information Center, C-1, D-8
Federal Student Financial Aid Handbook, 5, A-15
Federal Supplemental Educational Opportunity Grant (FSEOG) Program, 9, A-15, E-2
administrative cost allowance (ACA), 163, 239
federal share, 71-72, 239
FISAP, 223, 238-240
funds available for awards, 238
funds transferred from FWS or Perkins Loan,
77-78, 83, 238-239
journal entries, F-8, F-9
ledger accounts, 150-151, 160-163
nonfederal share, 72-73
projecting cash needs, 91
recordkeeping, 54, 61, 62
Federal Work-Study (FWS) Program, 9-10, 73-75,
A-15, E-3
administrative cost allowance (ACA), 76-77,
171-172, 246
carry forward/carry back, 78
carry forward/carry back, flowchart, 84
Community Service Job Location and
Development (CS/JLD) Program, 74-75, 152, 171, 242-243, A-19, F-11
community-service employment, 9-10, 37, 74
ED/PMS, 93
estimating cash needs, 92
federal share, 37, 73-75, 91, 242, 243
FISAP, 223, 240-244
funds available for awards, 241
funds carried forward/carried back, 241
journal entries, F-9 to F-12
ledger accounts, 151-152, 163-172
nonfederal share, 73, 91, 242
recordkeeping requirements, 60
summer employment, 78, 241
transferring funds to FSEOG, 77, 83, 241
FEDWIRE, 90, 95-97, 120, 247-248, 265, A-4, A-15
Automated FEDWIRE System, 5, 96, A-4
calling in requests, 96
Fees for origination see Payment for origination services (POS)
FERPA see Family Education Rights and Privacy Act
FFEL see Federal Family Education Loan Program
Final adjusted authorization
FSEOG, 238
FWS, 241
Perkins Loan, 234
Final regulations, A-16
Financial Accounting and Reporting Manual (FARM) for Higher Education, F-1
Financial Accounting Standards Board (FASB), 141, F-4
Financial aid administrator (FAA), 8, 9, 32, 42, 44, 193, 222, 236, 257, A-2, A-23, C-5, C-6, C-7
Financial aid application and award records, 54-55
Financial aid award year see Award year
Financial aid calendar see Master calendar, Fiscal activity calendar, and Sample calendars
Financial aid office, 29, 32-33, 36, 143, 204, 212
activities, flowchart, 143
records, 143-144
responsibilities, 32-33
Financial aid transcript (FAT), 144, 220, 262, A-16
Financial management systems, 141-142
Financial need, 8-13, 54, 240, 243, A-16
Financial Payments Group (FPG), 87, 88, 94-97, 115, 116
Financial responsibility, institutional, 23-27, A-16
Financial Services (FS), 93-95, 246, 265
Financial statement, 23, 26, 27, 28, 147, 258, A-16,
D-10, F-4
FISAP, 69, 70, 144, 145, 220-246
administrative cost allowance (ACA), 245-246, 279
application to participate, 22, 70, 222-226,
270-271
assessments and expenditures, 225-226, 271
certifications, 221-222, 269
eligible aid applicants, 226, 271
enrollment information, 224, 271
family income, 226, 244-245, 271, 278
federal share of campus-based funds, 234-235, 238, 241, 273, 275, 276
filing deadline, 70, 220
final adjusted authorization, 234, 238, 241, 273, 275, 276
FSEOG, 223, 238-240, 270, 275
funds transferred between campus-based programs, 234, 238, 241, 273, 275, 276
FWS, 223, 240-244, 276-277
FWS funds carried forward/carried back, 78, 84, 241, 276
institutional capital contribution, 232, 235, 272, 273
Job Location and Development Program, 223, 242, 276-277
nonfederal share of campus-based funds, 223, 235, 239, 242, 272-273, 275, 276
open and closed award recoveries, 240
Part I, 221-222, 269
Part II, 222-226, 270-271
Part III, 226-238, 272-274
Part IV, 238-240, 275
Part V, 240-244, 277
Part VI, 244-246, 278-279
Perkins Loan, 223, 226-238, 272-274
Perkins Loan annual fund activity, 234-236, 273
Perkins Loan cohort default rate, 237-238, 274
Perkins Loan cumulative fiscal report, 228-234, 272
Perkins Loan cumulative repayment information, 236-237, 274
prior-year recoveries, 240, 243, 249
program summary, 244-246, 278-279
request for campus-based funds, 223, 270
sample form, 269-280
state grant and scholarship awards, 225-226, 271
Fiscal activity calendar, 14
Fiscal operations, A-16
overview, 21-22
Fiscal Operations Report and Application to Participate (FISAP), A-10
see FISAP
Fiscal year, 16
Floppy Disk Data Exchange (FDDE), 207, 208, A-16, D-2
For-profit institution, 25, 256
For-profit organization, 73, 242
Forbearance (on a loan), A-16 to A-17
Ford, William D., Federal Direct Loan Program see Federal Direct Loan Program
Form PMS 270, A-23
Form SF-270, 97
Former program names, Federal Perkins Loan Program, 226-227
FPG see Financial Payments Group
Fraud/criminal conduct, 28, 31
FRB see Federal Reserve Bank
Free Application for Federal Student Aid (FAFSA), 8-10, 143, 205, A-12 to A-13
FS see Financial Services
FSEOG see Federal Supplemental Educational Opportunity Grant Program
Fund, A-17,F-4
Fund accounting, 147, F-4
Funds advanced to borrowers, Direct Loan
ledger accounts, 190
Funds advanced to students, Perkins Loan
FISAP, 229, 272
ledger accounts, 173-174
Funds receivable, 229, 272
from ED/PMS, 149, 157, F-6
ledger accounts, F-3
see Accounts receivable
Funds, restricted, 147, A-1, F-1, F-4
FWS see Federal Work-Study Program


G
GAAP see Generally accepted accounting principles
GAO see General Accounting Office
GAS see Government Auditing Standards
GASB see Governmental Accounting Standards Board
General Accounting Office (GAO), 256-257
General Electronic Support (GES), 206, 220, A-17, C-6, D-1, D-3
General fiscal records, 53-54
General institutional records, 53
General ledger, 54, 146, F-3
General provisions regulations, 38, 52, C-2 to C-4
General student records, 52-53
Generally accepted accounting principles, (GAAP), 5, 86, 141, 255-256
GES see General Electronic Support
Gift aid, 9, A-17
Glossary, Appendix A
Government Auditing Standards (GAS), 256
Governmental Accounting Standards Board (GASB), 141, F-4
Grace period, 11, 12, 217, 237, 238, A-17, E-6, E-11, E-13
Grant programs, A-17
Grants paid to students
FISAP, 239, 275, 278
ledger accounts, 150, 151, 159-163
Guaranty agency, 12, 264, A-17, E-5, E-7, E-9
Guaranty agency reviews, 264



H
HEA see Higher Education Act of 1965, as amended
Higher Education Act (HEA) of 1965, as amended, 7, 8, 22, A-17 to A-18
Higher Education Amendments of 1992, 22, 63, 74, A-18
Higher Education Technical Amendments of 1993, A-18


I
ICC see Institutional capital contribution
Immediate need, 90, 112, A-18
Inactive Documents Report see ED/PMS 272G
Incarcerated student, A-18
Income account, 148-151, 154-156
see Revenue Account
Independent audit, A-18, D-10
Independent auditor, 256-257
Independent public accountant, A-18
see Independent auditor
Information mapping (margin notes), 4
In-house control documents, A-18
Input controls, 196-197
Institution’s cash contribution
ledger accounts, 161-162, 167-168
Institution’s non-cash contribution
ledger accounts, 162, 163, 168
Institutional capital contribution (ICC), 75,
A-18 to A-19
FISAP, 232, 235
ledger accounts, 172, 177, 181-182
Institutional eligibility, 22-23, C-2
Institutional Guide for Financial Aid
Self-Evaluation,
44, C-8
Institutional liability, A-19
Institutional matching requirements see Nonfederal share
Institutional Participation Division (IPD), A-19
Institutional Payment Summary (IPS), 91, 208-209
Institutional Quality Assurance Program (IQAP), 45, A-19
Institutional records
see Records
Institutional refund see Refunds
Institutional responsibilities, 29
business office, 34-36
financial aid office, 32-33
general, 29
network, 36-38
president/CEO, 30-32
Institutional share see Nonfederal share
Institutional Student Information Record (ISIR), 56, 90, 144, 205, A-19, E-1 to E-5, E-7, E-10, E-12, E-14
Interest benefits, A-19
Interest earnings, 102
retaining interest earnings, 102
returning interest to ED, 102
Internal control, 27, 192-197
checks and balances, 192-193
clear audit trail, 197
documentation, 193
input controls, 196-197
reconciliation of cash, 194-195, A-25
reconciliation of federal funds, 193, 195, A-25
separation of functions, 192, 193
subsidiary records reconciliation, 197, A-29
trial balance, 192-194, A-30
Internal control system, 27, 35
IPD see Institutional Participation Division
IPS see Institutional Payment Summary
IPS Batch Report, 208-211
IQAP see Institutional Quality Assurance Program
ISIR see Institutional Student Information Record
Issuing checks, 107-108
checks drawn on school account, 108
FFEL checks, 107-108
FFEL master checks, 103-104, E-6, E-8, E-9
proper issuance, 108


J
JLD see Job Location and Development Program
Job Location and Development (JLD) Program,
74-75, 171, 223 , 242, 243, A-19
Job placement claims, 39
Journal, 146, A-19, F-2
Journal entries, 145-146, F-2 to F-3, F-5 to F-15
sample, ED/PMS, F-6
sample, FSEOG, F-8 to F-9
sample, FWS, F-9 to F-12
sample, NFC, F-6 to F-7
sample, Pell Grant, F-7 to F-8
sample, Perkins Loan, F-13 to F-15
Journal entry, memo account, 148, 151, 152, 162, 163, 168, 170, F-10


K
Key Resources, Appendix C

L
Leave of absence (LOA), 50
Ledger, A-20, F-3
Ledger accounts, 144-192
account numbering method, 147-148
accounts receivable, F-3, F-6
chart of accounts, 147-156, A-6, F-1 to F-5
Direct Loan, 155, 189-191
ED/PMS, 149, 156-157, 159, 161, 167, 177
FFEL funds, 155-156, 191-192
FSEOG, 150-151, 160-163
funds advanced to borrowers, Direct Loan,
190
funds advanced to borrowers, Perkins Loan, 173-174
FWS, 151-152, 163-172
grants paid to students, 150, 151, 159-160,
162-163
institution’s cash contributions, 151, 161-162, 167-168
institution’s non-cash contribution, 151, 162, 163, 168
institutional capital contribution, 153, 172,
177-178
litigation expenses, 154, 182
National Finance Center (NFC), 149-150, 157-158
Off-campus employer contributions, 151, 165,
168-169
Peace Corps or VISTA, 153, 181, 186
Pell Grant, 150, 158-160
Perkins Loan, 152-155, 172-188
Subsidiary, F-3
Level of Expenditure (LOE), 75, 223, A-20
Liabilities
see Compliance audit and Program review
excess cash, 114
Liability account, 148-151, 153, 155, 156, 158
Limitation, suspension, or termination (LS&T),
25, 43, 259, 263, A-20
Litigation expenses, Perkins Loan
ledger accounts, 154, 172, 173, 182
Loan, A-21
Loan collection see Commercial billing service and Litigation expenses
Loan consolidation see Federal Consolidation Loan and Federal Direct Consolidation Loan
Loan disclosure statement, 41, A-21
Loan principal, Perkins Loan
FISAP, 228-237
ledger accounts, 174-176, F-15
Loan records, 33, 55, 57-60
LOA see Leave of absence
LOE see Level of Expenditure
LS&T see Limitation, suspension, or termination


M
Maintaining funds, 99-102
bank accounts, 99-102
interest earnings, 102
Management Information System (MIS), F-1
Manual system, Pell Grant reporting, 204-205,
207-211
Master calendar, 16-17, A-21
Master check, 103-104, E-6, E-8, E-9
borrower authorization, 104
FFEL funds, 103-104, E-6, E-8, E-9
time frames for requesting checks, 104
Matching share see Nonfederal share
MEERS see Monthly Electronic Expenditure Reporting System
Memo journal entry, 148, 151, 152, 162, 163, 168, 170, F-10
MIS see Management Information System
Monthly Electronic Expenditure Reporting System (MEERS), 66, 250-252, A-21, C-7, D-6, D-7, D-11


N
NACUBO see National Association of College and University Business Officers
Naming bank accounts, 101-102
NASFAA see National Association of Student Financial Aid Administrators
National Association of College and University Business Officers (NACUBO), C-7, F-1
National Association of Student Financial Aid Administrators (NASFAA), C-7, C-8
National Defense/Direct Student Loan Program see Federal Perkins Loan Program
National Finance Center (NFC), 115, 116, F-6 to F-7
ledger accounts, 149-150, 157-158
National Institutes of Health (NIH), 96
National Student Loan Data System (NSLDS),
216, 217, 218, 219-220, A-21, C-3, C-5, D-11
Nationally recognized accrediting agency or association, 46, A-21 to A-22
Need analysis, 54, 66, 193, A-22
Need analysis report see Institutional Student Information Record and Student Aid Report
Network of responsibilities, 36-38
NFC see National Finance Center
NIH see National Institutes of Health
Nonterm institutions, 15
Nonfederal audit see Compliance audit
Nonfederal share, 71-75, A-22
FSEOG, 71-73, 239
FWS, 73-75, 242, 243, 244
Perkins Loan see Institutional capital contribution (ICC)
Nonprofit institution, 26
Notice of Proposed Rulemaking (NPRM), A-22
NPRM see Notice of Proposed Rulemaking
NSLDS see National Student Loan Data System


O
Off-campus employer contribution, 73
ledger accounts, 151, 165, 168-169
Office of Inspector General (OIG), 116, 255, 258,
C-7, D-10
Office of Management and Budget (OMB), 86, 251
Official Notice of Funding, 71, A-22
sample, initial allocation, 79-80
sample, supplemental allocation, 81-82
OIG see Office of Inspector General
OMB see Office of Management and Budget
Open award, 240, 252-253
Operator-assisted mode, A-22
Overaward report, Pell Grant, 211
Overpayment, 48, 56, 252, 254, A-22


P
Packaging, A-22
Paper reports, phasing out, 205, 206
PAS see Presidential Access Scholarship
Payee Identification Number (PIN), 281-285
Payment and processing cycles in an award year, 15-16
Payment for Origination Services (POS), 155,
190-191
Payment period, 108, 109, 252, A-22 to A-23
Payment processing, 15-16, 206
ED/PMS, 93-99
Pell Grant, 204-211, 266
Payment Reimbursement Method, 88-89, 97, 157, A-23
Payment request record, ED/PMS, 98
Payment Voucher, Pell Grant, 205, 207, 208
PDL see Program determination letter
Peace Corps or VISTA cancellation, Perkins Loan
FISAP, 230
ledger accounts, 153, 181, 186
Peak enrollment period, 113
Peer evaluation, 44, A-23
Pell Grant see Federal Pell Grant Program
Pell Grant Recipient and Financial Management System (PGRFMS), 204, 207-211
Period of enrollment see Enrollment period
Perkins Loan see Federal Perkins Loan Program
PGRFMS see Pell Grant Recipient and Financial Management System
Phasing out paper reports, 205, 206
PIN see Payee Identification Number
PLUS Loan, see Direct PLUS Loan and Federal PLUS Loan
Policies and procedures manual, 40-42, A-23
Posting, 106, A-23, F-3
PPA see Program Participation Agreement
PPV see Processed Payment Voucher
Presidential Access Scholarship (PAS), 13
Principal and interest, A-23
Prior year adjustment see Closed award
Prior year drawdowns, 113
Prior year recoveries, 240, 243, A-23
Private employers, FWS, 73
Pro rata refund, 46-47, 68
Processed Payment Voucher (PPV), 209-211
Program balance, 148, 157
Program determination letter (PDL), 264-265, A-24
Program of study, 52
Program Participation Agreement (PPA), 22, 94,
A-24
Program review, 260-265, A-24, D-8
appeal process, 263
area of focus, 261-263
ED actions, 263
exceptions, A-24
findings, 262
purposes, 260
reasons for findings, 262
reasons for liabilities, 262-263
repayment of liabilities, 264-265
school cooperation, 261
school-selection criteria, 260
unannounced reviews, 261
Program review exceptions, A-24
Program Summary, FISAP, 244-245, 278
Program-specific records, 56-61
Projecting cash needs, 89-93
Direct Loan, 92-93
formula, 90
FSEOG, 91
FWS, 92
Pell Grant, 90-91
Perkins Loan, 92
Promissory note, 36, 59, 62, 93, 98, 212, 237, 238,
A-24
Public institution, 26
Publications see Key Resources
PV see Payment Voucher


Q
Quality control, 43, 45
Quarterly report, A-24 see ED/PMS 272 Report


R
RDE see Recipient Data Exchange
Reauthorization, 7-8, 22-23, A-24 to A-25
Recipient’s Guide, ED/PMS, 5, 86, 88, 89, 95, 97, 115, 116, 120, 247
Recipient Data Exchange (RDE), 207, 208, A-25, D-2
Reconciliation
bank statements, 194
cash, 194-195, A-25
Direct Loan, 144, 145, 195-196, 212-215
federal funds, 192, 195, A-25
Pell Grant, 211
subsidiary records, 197
worksheets, 200-201
Reconciliation acknowledgment file, Direct Loan, 214-215
Reconciliation file, Direct Loan, 213-214
Reconciliation period, Direct Loan, 213
Recordkeeping (accounting) activities, 142-146
business office, 34-36, 145-146
financial aid office, 32-33
Recordkeeping systems, 144
Records
audit and program review, 62
automated systems, 62, 66
Family Education Rights and Privacy Act (FERPA), 52, 63-64
general student records, 52-53
institutional law enforcement unit, 63
maintenance requirements, 51-52
management procedures, 64-67
microfilm and microfiche, 62
retention requirements, 62
student master records, 66
Recoveries, prior-year, 240, 243
Reference manuals see Key Resources
Refund policy, 46, A-25
see Refunds
Refunds, 24, 31, 32, 33, 34, 35, 39, 40, 45-51, 53, 54, 55, 57, 58, 65, 66, 118-120, 121-122, 252, 262,
A-25, C-3
allocation order, A-2 to A-3
fair and equitable refund policy, 45, A-25
federal refund calculation, 47
general principles and definitions, 46-48
leaves of absence (LOAs), 50
overpayments, 45, 48
pro rata refund, 46, 47
process, flowchart, 68
repayments, 45, 48
timely processing, A-29
withdrawal date, 49-50
Regional Inspector General for Audit (RIGA), 258, D-10
Reimbursement payment, 88-89, 97, 157
Rejected (Pell payment data), 210, A-25
Renewal FAFSA, A-26
Repayment, A-26
see Refunds
Repayment of liabilities from audit or program review, 117, 264-265
Repayment policy, A-26
Repayment schedule, A-26
Repayments to federal government, 177, 232
Reporting, 22, 55-56, 117-118, 211
campus-based programs, 220-246
campus security, 40
Direct Loan, 212-216
ED/PMS, 248-250
exemptions, 45
exit counseling, 216, 218-219
FFEL, 217-219
FISAP, 220-246
institutional responsibility, 28
MEERS, 66, 250-252, A-21, D-6, D-7, D-11
NSLDS, 219-220
Pell Grant, 204-211, D-2 to D-3
PGRFMS flowchart, 266
student enrollment status, Pell, 207
Student Status Confirmation Reports (SSCRs), 215-216, 217-218, 220, A-28 to A-29
Reporting expenditures see ED/PMS
Reporting periods

Direct Loan reconciliation, 212-215
Pell Grant, 208-209
Request for Advance or Reimbursement
(Form SF-270)
see Reimbursement payment
Requesting funds, 21, 87, 222, 223, 247-248, D-2,
D-4 to D-5, D-6
ACH/EFT, 87, 94-95
advance payment, 87-88
campus-based programs, 87, 91-92, 94-97
Direct Loan, 92-93, 97-99
ED/PMS, 87-89, 93-97
FEDWIRE, 87, 94, 95-97
FFEL Program, 87
immediate need, 90
Pell Grant, 90-91, 266
reimbursement payment, 88-89
time frames, 104
Requesting payment see ED/PMS and Requesting funds
Responsibilities see Institutional responsibilities
Restricted funds, 147
Returning funds to ED, 112, 114-122
audit or program review liabilities, 117, 264-266
closed awards, 115-116
deobligation of campus-based funds, 117-118,
A-9
Direct Loan funds, 119-122
excess cash, 112, 115, 120
FFEL funds, 118-119
interest earned, 112, 117
National Finance Center (NFC) billing, 115, 116
unused funds, 116
Revenue account, 145, 148, 150
see Income account
RIGA see Regional Inspector General for Audit
Robert C. Byrd Honors Scholarship see Byrd,
Robert C., Honors Scholarship
Rule, 85/15, 23, C-4


S
Sample financial aid calendars, 17, 19, 20
Sample ED/PMS 272 Report, 281-285
Sample, FISAP, 269-280
Sample journal entries see Journal entries
Sample student account receivable card, 146
SAP see Satisfactory academic progress
SAR see Student Aid Report
Satisfactory academic progress (SAP), 27, 31, 33, 39, 40, 118, 262, A-26
Self-balancing accounts, 148
Self-evaluation, 44, A-26
Self-help aid, 9, A-26
Separation of functions, 29, 32, 34, 193,
A-26 to A-27
Service bureau, ED/PMS, 95
Servicing Center see Direct Loan Servicing Center
SFAP see Student Financial Assistance Programs
Single Audit (Act), 256
Single entry bookkeeping, A-27
Site visit, A-27
Skip tracing, A-27
SOA see Statement of Account
Special allowance, A-27
SPRE see State Postsecondary Review Entity
SPRP see State Postsecondary Review Program
SPS see Student Payment Summary
SSCR see Student Status Confirmation Report
SSIG see State Student Incentive Grant Program
Stafford Loan see Federal Stafford Loan
State grant and scholarship awards, FISAP,
225-226, 271
State Postsecondary Review Entity (SPRE),
263-264, A-27 to A-28
State Postsecondary Review Program (SPRP), A-28
State Student Incentive Grant (SSIG) Program, 13, 226, A-28
Statement of Account (SOA), 91, 204-205, 253, A-27, D-3
Statement of Cash Accountability,see ED/PMS 272B
Student account records
sample, 146
Student Aid Master Record, A-28
see Student master record
Student Aid Report (SAR), 56, 90, 144, 205, A-28,
E-1
Student Assistance General Provisions, C-2 to C-4 see General provisions regulations
Student consumer information, 38-40
Student financial aid programs, 7-14, Appendix E
Student Financial Assistance Programs (SFAP), B-4
Student master record, 66
Student Payment Summary (SPS), 211, A-28, D-3
Student records, 52-53
Student Right-To-Know provisions, 39-40, C-2
Student Status Confirmation Report (SSCR), 55, 215-216, 217-218, 220, A-28 to A-29
Student wages, FWS, 9-10, 169-171
Subsidiary accounts, 146, 157, 165, 227, A-29
Subsidiary ledgers, 148, 197, F-3, F-6
Subsidiary records reconciliation, 197, A-29
Supplemental allocation, 71
Supplemental appropriation, A-29
see Supplemental allocation
Supplement Educational Opportunity Grant (SEOG) see Federal Supplemental Educational Opportunity Grant (FSEOG)


T
T-accounts, A-29, F-3
Tape exchange see Recipient Data Exchange
Technical Assistance Directory, Appendix D
Telephone numbers, ED offices see Technical Assistance Directory
Term-based institutions, 14-15
TFM see Treasury Financial Manual
Third-party servicers, 36, 227, 255, C-3
Timely processing of refunds and repayments,
A-29
Title IV of the Higher Education Act, 7-8, A-29
Title IV programs, 7, Appendix E
Title IV Student Financial Aid, 7-14, 69,
A-29 to A-30, Appendix C, Appendix E
Transferring funds between campus-based programs, 77-78
flowchart, 83
FSEOG, 77
FWS, 77
Perkins Loan, 77
spending transferred funds, 77
Treasury Financial Manual (TFM), 114
Trial balance, 193-194, A-30, F-3
worksheet, 198-199


U
UCC-1 statement, 101-102
Unexpended funds see Deobligation of
campus-based funds and Returning funds to ED
Unreconciled records, Direct Loan, 215
Unsubsidized Federal Stafford Loan, 12, A-30, E-5, E-7 to E-8
User’s guides, A-30
Direct Loan software, C-6, D-1
ED/PMS, 249, C-7
EDE, 206, C-6
Electronic FISAP, 221, C-7
Floppy Disk Data Exchange, 206
GES, 206, C-6, D-3
MEERS, 251, C-7
Recipient Data Exchange, 206


V
Verification, 40, 45, 53, 55, 144, 207, 262, A-30, C-3, C-6, E-1

W
Week of instructional time, 15
William D. Ford Federal Direct Loan Program see Federal Direct Loan Program
Withdrawal date, 49-50
Withholding, FWS, 151, 165, 167, F-11
Work-College Program, 69, 74
Work-Study Program see Federal Work-Study (FWS) Program
Worksheets, 198-201
cash reconciliation, 200
federal funds reconciliation, 201
trial balance, 198-199
Workshops

NACUBO, F-1, F-5

Last Modified: 06/30/1995