| PublicationDate: 7/1/95 ChapterNumber: ChapterTitle: Introduction SectionNumber: SectionTitle: Introduction PageNumbers: 1-6 ((Executive Summary)) The purpose of this section is to acquaint readers with The Blue Book--its purpose, content, and format--so that they can make the best possible use of The Blue Book as a resource tool. ((Key Terms)) The Blue Book executive summary The Federal Student Financial Aid Handbook information mapping key term margin note Recipient's Guide Purpose of The Blue Book The primary purpose of The Blue Book is to provide guidance to school business office personnel who handle fiscal recordkeeping, accounting, and reporting functions for Title IV financial aid programs. However, it also provides general information about Title IV programs, policies, and procedures that will be useful to other institutional personnel involved in administering and managing Title IV programs. ((School responsibility)) When an institution signs a Title IV Program Participation Agreement (PPA), it accepts responsibility for various accounting, recordkeeping, and reporting responsibilities related to Title IV programs. Some procedures discussed in The Blue Book are recommended ones that will help an institution meet these fiscal responsibilities, while other procedures are required by federal laws and regulations. ((Manual and automated systems)) The procedures outlined in The Blue Book can be used by small or large institutions and by institutions that use manual and/or automated systems to manage fiscal operations. However, given that many postsecondary institutions, as well as the U.S. Department of Education (ED), have moved into the "information age," this edition of The Blue Book gives special emphasis to electronic management of Title IV programs. ED now requires that schools use automated methods to meet certain Title IV reporting requirements, such as for the Fiscal Operations Report and Application to Participate (FISAP). Other required reports, such as Federal Pell Grant payment reports, will soon be fully automated as well. ((ED training programs)) ED encourages schools that have not yet automated their fiscal and financial aid operations to do so in the near future. ED offers training for many of the electronic systems and programs it administers, such as the Electronic Data Exchange (EDE) and the software that supports the William D. Ford Federal Direct Loan Program; schools should take advantage of these training opportunities as they arise. Notices of ED-provided classroom training programs and videoconferences are sent to school financial aid offices and fiscal offices on a regular basis. The goals of any information-management system, be it manual or automated, are to maintain accurate, well-organized records; submit required reports in an accurate and timely manner; comply with federal laws and regulations; and provide quality service to students. The Blue Book is designed to help schools achieve these goals. Contents of The Blue Book The Blue Book may be used by both novice and experienced fiscal officers. It is recognized that the level of expertise of school personnel using the book will vary with their knowledge of accounting and Title IV programs. For this reason, The Blue Book provides a basic overview of Title IV programs, institutional responsibilities, and general fiscal procedures, as well as detailed information on accounting functions, cash management, and reporting requirements. The flowchart on page 6 summarizes the contents of The Blue Book. ((Chapter summaries)) CHAPTER 1 provides an overview of Title IV programs. It begins with a discussion of Title IV of the Higher Education Act of 1965, as amended (HEA) and related issues, then summarizes each Title IV program. Chapter 1 also addresses the fiscal calendar and defines related terms such as "academic year" and "award year." CHAPTER 2 discusses general institutional responsibilities related to managing Title IV programs. It includes topics such as financial responsibility, administrative capability, responsibilities of school offices, information disclosure requirements, refunds and repayments, and record maintenance and retention. CHAPTER 3 addresses fiscal procedures unique to managing Title IV campus-based programs. It explains how schools apply for and receive campus-based funds, how they may use these funds, and how they must manage them. CHAPTER 4 provides a comprehensive discussion of obtaining, managing, and returning Title IV funds. It deals with much of the day-to-day work of the fiscal office. Its topics include projecting cash needs, drawing down funds, and disbursing funds to students. In addition, this chapter covers much of the information contained in the comprehensive cash management regulations issued in December 1994 that became effective July 1995. CHAPTER 5 describes specific accounting procedures used to manage Title IV program funds. The chapter uses a fund accounting approach to explain how schools should establish, maintain, and reconcile Title IV program accounts. CHAPTER 6 addresses Title IV reporting requirements. It begins with a discussion of specific reports required by non-campus-based Title IV programs, then gives an overview of the FISAP (the report schools use to apply for and report on Title IV campus-based funds). The Department of Education Payment Management System (ED/PMS) is also covered, and the chapter closes with a discussion of audits and program reviews. ((Appendices)) The appendices are designed to supplement the information presented in the main chapters of The Blue Book: - Appendix A is a comprehensive glossary of terms related to Title IV accounting, recordkeeping, and reporting requirements. - Appendix B provides a list of commonly used acronyms. - Appendix C lists published information sources that supplement and support the information provided in The Blue Book. - Appendix D tells fiscal officers who to contact for technical assistance. - Appendix E provides detailed descriptions of each Title IV program--how students apply for funds, how awards are determined, and how funds are disbursed. - Appendix F is an "accounting primer" for non-Title-IV specialists, designed to help novice fiscal officers understand how basic accounting principles apply in managing Title IV program funds. Format of The Blue Book The format of this edition of The Blue Book was conceived with a single goal in mind--to make The Blue Book a user-friendly publication. The book is designed so that section headings stand out, and information mapping (margin notes) helps readers locate topics of interest. Each chapter begins with an Executive Summary that gives an overview of the chapter. It is followed by a list of Key Terms covered in the chapter. Readers can use these devices to help determine if a particular chapter contains the reference information they need. In addition, margin notes help lead readers directly to needed information. Ample white space is provided in the outer margins of pages so readers can make notes or record questions. All forms, charts, tables, and other samples are located at the ends of the chapters where they are discussed. This organization simplifies finding a form or chart needed only for reference. The Blue Book has been designed as a loose-leaf publication so that users can add their own related information, such as institutional policies and forms. Using The Blue Book at Your School The Blue Book can perform a number of different functions for a school. For example, it can: - be used as a training guide for new employees, - serve as a reference manual, and - form the basis for a school's fiscal policies and procedures manual. Regardless of the way(s) in which schools use The Blue Book, they must remember that it is only a guide and does not replace federal laws, regulations, or generally accepted accounting principles (GAAP). School personnel are still responsible for familiarizing themselves with all relevant primary source documents. Other Resources ((The Federal Student Financial Aid Handbook)) The Blue Book's companion publication is The Federal Student Financial Aid Handbook (the Handbook); it is referenced frequently throughout The Blue Book. The Handbook is published by ED each year, and the new edition is mailed to school financial aid offices each June or July. Fiscal office personnel should know where to locate their school's copy of the Handbook, and they might want to copy pertinent sections for their own use. ((Recipient's Guide)) Another ED publication that is vital to the work of a fiscal officer is the Department of Education Payment Management System (ED/PMS) Recipient's Guide (the most recent edition was published October 1993), which provides information on systems operations and procedures for federal funds paid to schools through ED/PMS.*1* The Recipient's Guide helps schools understand their responsibilities in expediting payments, completing forms and reports, and controlling federal cash received through ED/PMS. These and other publications and printed materials of interest to fiscal officers, and information on how to order them, are listed in Appendix C, "Key Resources," of this book. Effective Date This edition of The Blue Book is written on the basis of laws, regulations, policies, and procedures enacted, issued, or published by December 1, 1994 and effective for the 1995-96 award year. Schools should be aware, however, that laws, regulations, policies, and procedures are subject to change. It is a school's responsibility to keep abreast of such changes so that it remains in compliance with current rules. [[The graphic, entitled "Overview of The Blue Book," on page 6 is not currently available for viewing. Please reference your paper copy for additional information.]] *1* Please note that after the October 1993 edition of the Recipient's Guide was published, ED issued replacement pages for Chapter 3 and a new appendix on the Automated FEDWIRE System (Appendix H3). |