PublicationDate: 7/1/95 ChapterNumber: 3 ChapterTitle: Key Fiscal Procedures in Title IV Campus-Based Programs SectionNumber: 1 SectionTitle: Funding Process PageNumbers: 69-71 ((Executive Summary)) This chapter gives an overview of fiscal matters that pertain solely to Title IV campus-based programs (Federal Supplemental Educational Opportunity Grant, Federal Work-Study, and Federal Perkins Loan). Topics discussed include the funding process, federal and nonfederal shares of funding, administrative cost allowance, and transferring funds between programs. ((Key Terms)) administrative cost allowance (ACA) allocation carry forward/carry back community service Expanded Lending Option (ELO) Federal Capital Contribution (FCC) Fiscal Operations Report and Application to Participate (FISAP) Institutional Capital Contribution (ICC) Job Location and Development (JLD) Program Level of Expenditure (LOE) Work-College Program 3.1 Funding Process ((Definition of campus-based)) Title IV campus-based funds are allocated by the U.S. Department of Education (ED) to institutions that then, in turn, administer the funds on behalf of ED and in accordance with applicable laws and regulations. These programs are referred to as "campus-based" because they are managed directly by schools rather than by ED. ((FISAP)) To receive Title IV campus-based funds, eligible institutions must apply for the funds annually. Schools must also report on their use of Title IV campus-based funds on an annual basis. The report used to satisfy both these requirements is the Fiscal Operations Report and Application to Participate (FISAP). The FISAP is covered in detail in Chapter 6 of this book. What follows here is a discussion of the fiscal principles that underlie and affect an institution's application for, and use of, campus-based funds. ((Application Process)) To receive campus-based funds for one or more campus-based programs, schools must submit a FISAP to ED for each award year that they wish to receive funds. The deadline for filing the FISAP is October 1*13* of the calendar year that precedes the award year. For example, for 1996-97 award-year funding, institutions must file a FISAP by October 1, 1995. ((Electronic FISAP)) All schools are required to apply using the Electronic FISAP; the paper version has been discontinued. The Electronic FISAP is a software package provided by ED that allows schools to submit FISAP data by mailing a diskette or magnetic tape OR by transmitting data by modem. Electronic FISAP packages and instruction booklets are distributed to eligible institutions no later than August 1 each year. ((Application section of FISAP)) The section of the FISAP used to apply for funds collects information about: - the amount of funds the institution is requesting for making awards to students and covering administrative costs, - the students enrolled at the institution, including eligible aid applicants, - assessments of the institution's tuition and fees, and - the institution's expenditures of Federal Pell Grant funds and state grant and scholarship funds. ED then uses these data to determine the amount of federal funds the school will receive from one or more of the campus-based programs. This amount is called an "allocation." 3.1.2 Allocation Process ((Allocation formulas)) ED determines a school's allocation of campus-based funds using allocation formulas prescribed in federal law as well as funding levels appropriated by Congress. However, an institution will not receive an allocation that exceeds the amount of funds it requested on the FISAP, even if it is eligible for additional funds. ((Official Notice of Funding)) In March each year, ED sends schools an "Official Notice of Funding" to notify them of their final allocations for each campus- based program. This notice is a school's authorization to spend up to the amount of federal funds listed for each campus-based program in which it participates and for which it has requested funds. Sample copies of an "Official Notice of Funding" for initial and supplemental allocations can be found on pages 79 and 81 of this chapter. Schools might not use their total allocations of campus-based funds during an award year. If they do not, they are required to return unexpended allocations of federal funds to ED so that the money can be reallocated to schools that need additional campus-based funds as supplemental allocations. This release of unexpended allocated funds is called "deobligation." ((Deobligation of campus-based funds)) In June each year, ED sends schools a letter requesting that they deobligate funds not spent by June 30 of that year and report the amount of funds they expect to have used by that date. If a school deobligates 10 percent or more of its initial (final) allocation (plus any supplemental allocation of funds from any campus-based program), the allocation for that program for the next award year will be reduced by that same amount, UNLESS the school can show just cause for underutilizing the funds in a waiver request that is submitted to and approved by ED. The funding reduction may be waived by ED if it finds that enforcing the funding reduction would be counter to the interests of the affected campus-based aid program. *13* The actual submission deadline for the FISAP is set each year by ED. Refer to the front page of the "FISAP Instruction Booklet" for the deadline date of the applicable year. |