ChapterTitle: Key Fiscal Procedures in Title IV Campus-Based Programs
SectionTitle: Funds Available for Award
3.4 Funds Available for Awards
Schools may increase the amount of funds available for awards from
a given campus-based program by transferring funds from another
program. Schools may also carry FWS funds back to the prior year
or forward to the next year.
There are specific rules that schools must follow to access funds in
3.4.1 Transferring Funds Between Campus-Based Programs
As of July 1, 1993, schools may no longer transfer FSEOG funds to
any other campus-based program. Formerly, such transfers were
((Transferring FWS to FSEOG))
A school may transfer up to 25 percent of its annual FWS federal
allocation to FSEOG. This 25 percent maximum is based on a
school's current award year allocation and includes both original and
supplemental FWS allocations. FWS funds transferred to FSEOG
must be counted as federal funds when determining the nonfederal
share required for FSEOG. FWS funds carried forward to the next
year or carried back to the prior year do not change the basis for the
25 percent maximum transfer. (See section 3.4.2.)
((Transferring Perkins Loan funds))
A school may transfer up to 25 percent of its annual Federal Perkins
Loan allocation to FSEOG and/or FWS. The total transfer cannot
exceed 25 percent of the Federal Perkins Loan allocation, whether it
is made only to one program or divided between the two programs.
((Spending transferred funds))
Transferred funds must be spent in accordance with the requirements
of the program to which they have been transferred. Any transferred
funds that are not spent by the end of the award year in which the
transfer was made must be returned to the original program.
A flowchart illustrating the transfer of funds between campus-based
programs can be found on page 83.
3.4.2 Federal Work-Study Carry Forward and Carry Back
If a school does not use all federal funds allocated for FWS in a
given award year, the school may carry forward FWS funds to the
next award year. Similarly, if a school needs additional funds to pay
FWS wages in the current award year, the school may carry back
FWS funds from the next award year's allocation.
Schools are allowed to:
- carry forward up to 10 percent of the preceding year's FWS
allocation to cover expenditures in the current award year,
- carry forward up to 10 percent of the current year's FWS
allocation to cover expenditures in the next award year,
- carry back up to 10 percent of the current year's FWS allocation to
cover expenditures incurred at any time in the preceding award
- carry back up to 10 percent of the next year's FWS allocation to
cover expenditures incurred at any time in the current award year.
A flowchart illustrating how FWS funds may be carried forward and
carried back can be found on page 84.
((Carrying back funds for summer employment))
Schools may also carry back and expend in the previous award year
any portion of their FWS allocations for the current award year to
pay student wages earned from May 15 through June 30 of the
previous award year (that is, for summer employment).
Details on reporting funds carried forward and carried back can be
found in Chapter 6.
[[Pages 71-82, sample copies of "Official Notices of Funding," page
83, a chart entitled "Transferring Funds Between Campus-Based
Programs," and page 84, a chart entitled "Federal Work-Study Carry
Forward/Carry Back," are currently unavailable for viewing.
Please reference your paper document for additional information.]]