| PublicationDate: 7/1/95 ChapterNumber: 3 ChapterTitle: Key Fiscal Procedures in Title IV Campus-Based Programs SectionNumber: 4 SectionTitle: Funds Available for Award PageNumbers: 77-84 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 these ways. 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 permitted. ((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 year, and - 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.]] |