Maintained for Historical Purposes

This resource is being maintained for historical purposes only and is not currently applicable.

Table of Contents

PublicationDate: 7/1/95
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ChapterTitle: Table of Contents
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SectionTitle: Table of Contents
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Introduction...1
Purpose of The Blue Book...1
Contents of The Blue Book...2
Format of The Blue Book...4
Using The Blue Book at Your School...4
Other Resources...5
Effective Date...5

CHAPTER 1: STUDENT FINANCIAL AID PROGRAMS...7
1.1 Title IV of the Higher Education Act of 1965...7
1.2 The Financial Aid Application and Delivery Systems...8
1.3 The Campus-Based Programs...9
1.3.1 Federal Supplemental Educational Opportunity Grant Program (FSEOG)...9
1.3.2 Federal Work-Study (FWS) Program...9
1.3.3 Federal Perkins Loan Program... 10
1.4 Other Title IV Programs...10
1.4.1 Federal Pell Grant Program...10
1.4.2 William D. Ford Federal Direct Loan Program...11
1.4.3 Federal Family Education Loan (FFEL) Program...12
1.4.4 State Student Incentive Grant (SSIG) Program...13
1.4.5 Robert C. Byrd Honors Scholarship Program...13
1.4.6 Presidential Access Scholarship (PAS) Program...13
1.5 Another Federal Program...13
1.5.1 Paul Douglas Teacher Scholarship Program...14
1.6 The Fiscal Activity Calendar...14
1.6.1 The Academic Year...14
1.6.1.1 Term-Based Institutions...14
1.6.1.2 Nonterm Institutions...15
1.6.2 The Award Year...15
1.6.3 The Fiscal Year...16
1.6.4 The Federal Master Calendar...16
1.6.5 Sample Calendars...17


Chapter 2: General Institutional Responsibilities...21
2.1 Overview of Fiscal Operations...21
2.1.1 Institutional Eligibility...22
2.1.2 Financial Responsibility...23
2.1.3 Administrative Capability...27
2.1.4 Separation of Functions...29
2.2 Responsibilities of Institutional Offices...29
2.2.1 The President/Chancellor/Chief Executive Officer...30
2.2.2 The Financial Aid Office...32
2.2.3 The Business Office...34
2.3 The Network of Responsibilities...36
2.4 Student Consumer Information...38
2.5 Institutional Policies and Procedures Manual...40
2.6 Evaluating Your Management of Student Financial Aid Programs...42
2.6.1 Self-Evaluation...44
2.6.2 Peer Evaluation...44
2.6.3 Institutional Quality Assurance Program...45
2.7 Refunds, Repayments, and Overpayments...45
2.7.1 General Principles and Definitions...46
2.7.2 Factors Affecting Refunds and Repayments...48
2.7.2.1 Applying and Disbursing Aid...49
2.7.2.2 Withdrawal Date...49
2.7.2.3 Institutional and Non-Institutional Charges...51
2.7.2.4 Unpaid Charges...51
2.8 Record Maintenance and Retention Requirements...51
2.8.1 General Student Records...52
2.8.2 General Institutional Records...53
2.8.3 General Fiscal Records...53
2.8.4 Financial Aid Application and Award Records...54
2.8.5 Reporting Records...55
2.8.6 Program-Specific Records...56
2.8.7 Record Retention Requirements...62
2.8.8 Disclosing Student Information...63
2.8.9 Record Management Procedures...64


Chapter 3: Key fiscal procedures in Title IV campus-based programs...69
3.1 Funding Process...69
3.1.1 Application Process...70
3.1.2 Allocation Process...70
3.2 Federal and Nonfederal Shares of Funding...71
3.2.1 Federal Supplemental Educational Opportunity Grant (FSEOG) Program...71
3.2.2 Federal Work-Study (FWS) Program...73
3.2.3 Federal Perkins Loan Program...75
3.3 Administrative Cost Allowance...76
3.4 Funds Available for Awards...77
3.4.1 Transferring Funds Between Campus-Based Programs...77
3.4.2 Federal Work-Study Carry Forward and Carry Back...78


Chapter 4: Obtaining, Managing, and Returning Title IV Funds...85
4.1 Overview of Cash Management...86
4.2 Requesting Funds...87
4.2.1 Advance Payment Method...87
4.2.2 Reimbursement Payment Method...88
4.3 Projecting Cash Needs...89
4.3.1 Immediate Need...90
4.3.2 Special Program Considerations...90
4.3.2.1 Federal Pell Grant Program...90
4.3.2.2 Campus-Based Programs...91
4.3.2.3 William D. Ford Federal Direct Loan Program...92
4.4 Drawing Down Federal Cash...93
4.4.1 Overview of ED/PMS...93
4.4.2 Automated Clearinghouse/Electronic Funds Transfer (ACH/EFT)...94
4.4.3 FEDWIRE...95
4.4.4 Reimbursement Payment Requests...97
4.4.5 William D. Ford Federal Direct Loan Program...97
4.4.5.1 Schools Participating Under School Origination (Level 1)...97
4.4.5.2 Schools Participating Under Alternative Origination (Level 3) and
School Origination (Level 2)...98
4.5 Maintaining Funds...99
4.5.1 Bank Accounts...99
4.5.2 Interest Earnings...102
4.6 Obtaining Federal Family Education Loan (FFEL) Program Funds...102
4.6.1 Electronic Funds Transfer (EFT) and Master Checks...103
4.6.2 Individual Checks...104
4.7 Disbursing Title IV Program Funds...105
4.7.1 Crediting a Student’s Account...106
4.7.2 Paying Students or Parents Directly...107
4.7.2.1 Electronic Funds Transfer (EFT)...107
4.7.2.2 Issuing Checks...107
4.7.2.3 Credit Balances...108
4.7.3 Early Payments...109
4.7.4 Delayed Disbursement...110
4.7.5 Holding Excess Funds...110
4.7.6 Student/Parent Authorizations...111
4.8 Returning Funds...112
4.8.1 Excess Cash...112
4.8.1.1 Tolerances...113
4.8.1.2 Liabilities...114
4.8.2 Methods for Returning Funds...114
4.8.2.1 Returning Excess Funds...115
4.8.2.2 Returning Funds on a Closed Award...115
4.8.2.3 Returning Unused Funds...116
4.8.2.4 Returning Funds From an Audit or Program Review...117
4.8.2.5 Returning Interest Earned...117
4.8.3 Deobligating Campus-Based Funds...117
4.8.4 Returning Federal Family Education Loan (FFEL) Program Funds...118
4.8.5 Returning Direct Loan Funds...119
4.8.5.1 Excess Cash...119
4.8.5.2 Refunds...121


Chapter 5: Accounting Procedures for Title IV Programs...141
5.1 Institutional Financial Management Systems...141
5.2 Bookkeeping and Recordkeeping Activities...142
5.3 Accounting ...146
5.3.1 Fund Accounting...147
5.3.1.1 Chart of Accounts...147
5.3.1.2 ED/PMS Title IV Account...156
5.3.1.3 National Finance Center (NFC) Account...157
5.3.1.4 Federal Pell Grant Account...158
5.3.1.5 Federal Supplemental Educational Opportunity Grant (FSEOG)
Account...160
5.3.1.6 Federal Work-Study (FWS) Account...163
5.3.1.7 Federal Perkins Loan Account...172
5.3.1.8 William D. Ford Federal Direct Loan Account ...189
5.3.2 Accounting Practices for EFT: Federal Family Education Loan (FFEL) Program... 191
5.4 Internal Control: Checks and Balances...192
5.4.1 Trial Balance...193
5.4.2 Reconciliation of Cash...194
5.4.3 Reconciliation of Federal Funds...195
5.4.3.1 Monthly Direct Loan Reconciliation...195
5.4.4 Other Checks and Balances...196


Chapter 6: Title IV Reporting Requirements...203
6.1 Non-Campus-Based Program Reporting...204
6.1.1 Federal Pell Grant Program Reporting...204
6.1.1.1 Reporting Methods...206
6.1.1.1.1 Electronic Data Exchange (EDE)...206
6.1.1.1.2 Recipient Data Exchange (RDE)...207
6.1.1.1.3 Floppy Disk Data Exchange (FDDE)...207
6.1.1.2 Student Payment Information Records...207
6.1.1.3 Institutional Payment Summary (IPS)...208
6.1.1.4 Processed Payment Information/IPS Batch Report...209
6.1.1.5 Student Payment Summary (SPS)...211
6.1.2 William D. Ford Federal Direct Loan Program Reporting...212
6.1.2.1 Monthly Reconciliation...212
6.1.2.2 Student Status Confirmation Report (SSCR)...215
6.1.2.3 Exit Counseling Reporting...216
6.1.3 Federal Family Education Loan (FFEL) Program Reporting...217
6.1.3.1 Student Status Confirmation Report (SSCR) ...217
6.1.3.2 Exit Counseling Reporting...218
6.1.4 National Student Loan Data System (NSLDS)...219
6.2 The Fiscal Operations Report and Application to Participate (FISAP)...220
6.2.1 Part I: Identifying Information, Certifications, and Warning...221
6.2.2 Part II: Application to Participate...222
6.2.2.1 Section A: Request for Funds...223
6.2.2.2 Section B: Institutional Share Waiver Request...224
6.2.2.3 Section C: Information on Enrollment....224
6.2.2.4 Section D: Assessments and Expenditures...225
6.2.2.5 Section E: Information on Eligible Aid Applicants...226
6.2.3 Part III: Federal Perkins Loan Program...226
6.2.3.1 Section A: Cumulative Fiscal Report...228
6.2.3.2 Section B: Annual Fund Activity...234
6.2.3.3 Section C: Cumulative Repayment Information...236
6.2.3.4 Section D: Cohort Default Rate...237
6.2.4 Part IV: Federal Supplemental Educational Opportunity Grant (FSEOG)
Program...238
6.2.5 Part V: Federal Work-Study (FWS) Program...240
6.2.6 Part VI: Program Summary...244
6.2.6.1 Section A: Distribution of Program Recipients and Expenditures
by Type of Student...244
6.2.6.2 Section B: Calculating Administrative Cost Allowance...245
6.3 Department of Education Payment Management System (ED/PMS)...246
6.3.1 Requesting Payments...247
6.3.2 Reporting Expenditures...248
6.3.2.1 Transmittal Letter...248
6.3.2.2 ED/PMS 272: Federal Cash Transactions Report: Status of Federal Cash Report...248
6.3.2.3 ED/PMS 272A: Federal Cash Transaction Report...249
6.3.2.4 ED/PMS 272B: Statement of Cash Accountability...249
6.3.2.5 ED/PMS 272F: Authorizations for Future Periods...249
6.3.2.6 ED/PMS 272G: Inactive Documents Report...250
6.4 Monthly Electronic Expenditure Reporting System (MEERS)...250
6.5 Adjusting Expenditures Reported to ED/PMS...252
6.5.1 Open Awards (Current Year Adjustments)...252
6.5.2 Closed Awards (Prior Year Adjustments)...253
6.6 Audits and Program Reviews...254
6.6.1 Federal Audits...255
6.6.2 Compliance Audits...255
6.6.3 Program Reviews...260
6.6.3.1 Focus of Program Reviews...261
6.6.4 State Postsecondary Review Entities (SPREs)...263
6.6.5 Guaranty Agency Reviews...264
6.6.6 Repayment of Liabilities from an Audit or Program Review...264


APPENDICES/INDEX
Appendix A: Glossary...A-1
Appendix B: Acronyms...B-1
Appendix C: Key Resources...C-1
Appendix D: Technical Assistance Directory...D-1
Appendix E: Guide to U.S. Department of Education Programs...E-1
Appendix F: Basic Accounting for Non-Title-IV Specialists...F-1

Index...I-1

Last Modified: 06/30/1995