| PublicationDate: 7/1/95 ChapterNumber: 3 ChapterTitle: Key Fiscal Procedures in Title IV Campus-Based Programs SectionNumber: 3 SectionTitle: Administrative Cost Allowance PageNumbers: 76-77 3.3 Administrative Cost Allowance Schools are allowed to claim an annual administrative cost allowance (ACA) from campus-based program funds from which they have made awards to students during a given award year. The ACA is considered part of the institution's total program expenditures, not an additional amount of money given the school. ((Allowable uses of ACA)) Schools may claim an ACA to help them defray costs associated with administering Title IV campus-based programs, such as salaries, supplies, and equipment. ACA may also be used for service fees charged by banks for maintaining campus-based program accounts, including the Federal Perkins Loan fund, and for expenses related to student consumer-information requirements. ((Claiming ACA from campus-based expenditures)) The amount of ACA a school may claim is determined by its expenditures for the Title IV campus-based programs in which it participates. In this sense, "expenditures" means: - FSEOG award disbursements (grants made) to students, including both the 75 percent federal and 25 percent nonfederal shares, - FWS gross compensation (wages paid) to students, including both the 75 percent federal and 25 percent nonfederal shares, and - Federal Perkins Loan advances (loans made) to students. ((Calculating amount of ACA)) ACA is calculated as a percentage of a school's campus-based program expenditures, as follows: - 5 percent of the first $2,750,000 of expenditures, PLUS - 4 percent of expenditures greater than $2,750,000 but less than $5,500,000, PLUS - 3 percent of expenditures greater than $5,500,000. A school takes ACA out of its annual FSEOG and FWS allocations and from available cash on hand in the Federal Perkins Loan fund. A school may draw its ACA from any combination of campus-based programs or it may take the total ACA from only one program, provided there are sufficient funds in that program. However, a school may not draw any part of its ACA from a campus-based program UNLESS it disbursed funds to students from that program during the award year. |