Maintained for Historical Purposes

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

Title IV Reporting Requirements

PublicationDate: 7/1/95
ChapterNumber: 6
ChapterTitle: Title IV Reporting Requirements
SectionNumber: 2
SectionTitle: The Fiscal Operations Report and Application to Participate (FISAP)
PageNumbers: 220-246


((Purposes of FISAP))
The Fiscal Operations Report and Application to Participate (FISAP)
serves two purposes for schools. The FISAP is:

- an application to receive funds from one or more Title IV campus-
based programs for the upcoming award year and

- an annual report of financial and enrollment activity for the
previous award year.

Schools applying for campus-based funds for the first time will not,
of course, have Title IV program expenditures to report for the
previous award year. However, these schools must still complete
and file Part I, including the certifications, and Part II of the FISAP
to request funds for the upcoming award year.

((Filing deadline))
Schools must file a FISAP no later than October 1 of each calendar
year. Each annual FISAP reports information for the award year that
ended on June 30 of the current calendar year and requests funds for
the award year that begins on July 1 of the following calendar year.
For example, when a school filed a FISAP on October 1, 1995, it
reported for the period July 1, 1994 through June 30, 1995 (the
previous award year) and applied for the period July 1, 1996 through
June 30, 1997 (the upcoming award year).

All schools are required to file the FISAP electronically--by mailing
diskettes, transmitting data by modem, or mailing magnetic tapes.
Electronic FISAP packages and instruction booklets are distributed
to schools no later than August 1 each year by Dear Colleague
Letter.

((Required certifications))
In addition to data submitted electronically, schools must mail
signed, original copies of the FISAP signature page and certification
forms to ED. The certification forms, which are included in the
FISAP package, cover debarment and drug-free workplace
requirements, as well as disclosure of lobbying activities. (More
detailed information about these certifications can be found in
Chapter 3 of The 1995-96 Federal Student Financial Aid Handbook).

Completing the FISAP requires accurate, detailed accounting
information. The process can be greatly simplified if a school
designs its chart of accounts with the FISAP in mind. (See Chapter 5
of this book.) In addition, accurate, well-maintained student records
are necessary to complete the FISAP properly. (See Chapter 2 of
this book.)

The FISAP instruction booklet and Electronic FISAP User Guide
give detailed information on how to complete each line of the
FISAP. The following discussion provides an overview of each
section of the FISAP, focusing on issues of particular interest to
school fiscal officers. A copy of a computer-generated FISAP form
can be found on pages 269-280. This is a sample; it is for reference
only and may not be used to submit FISAP data.

6.2.1 Part I: Identifying Information, Certifications, and Warning

All institutions must complete Part I.

((Section A ))
Section A of Part I gathers information about a school that ED uses
to update its records. Section A includes the following information
about the school:

((School information))
- name,

- official address,

- mailing address (if different from official address),

- serial number,

- OPEID number,

- entity number,

- type of institution, and

- length and type of program.

((Section B))
Section B of Part I certifies that the information submitted on the
FISAP is true and accurate to the best knowledge of school officials
signing the certification.
((Certification))
It also warns certifying officials that the institution's FISAP is subject
to audit and program review by ED and that providing false or
misleading information on the FISAP may result in criminal
penalties.

((Signature requirements))
Section B of Part I also collects signatures, addresses, telephone
numbers, and fax numbers of a school's chief executive officer
(CEO), financial aid administrator (FAA), and chief fiscal officer
(CFO). If a school uses a private financial aid consulting firm, and if
individuals from that firm have signed the FISAP as the school's
FAA or CFO, the firm's name and address must also be provided.

Because Part I must contain original signatures, it must be returned
to ED in paper form. Schools that mail FISAP data on diskettes or
magnetic tapes may enclose the paper signature page with the
diskette or tape. Schools that transmit FISAP data by modem must
mail the paper signature page separately. Specific instructions for
returning the signature page are given in the Electronic FISAP User
Guide.

6.2.2 Part II: Application to Participate

Schools that want to request Title IV campus-based funds for an
upcoming award year must complete Part II. In addition to
requesting funds for one or more campus-based program, schools use
this part to report institutional information on enrollment,
assessments and expenditures, and eligible aid applicants. The
amount of funds an institution receives is determined by formulas
contained in federal law and regulations. (See section 3.1.2.)

6.2.2.1 Section A: Request for Funds

In Section A, a school lists the amount of funds it wants to receive
for each campus-based program in which it participates. If the
school enters "0" for a program, it will not receive an allocation for
that program, even if it is eligible to do so. Actual allocations are
computed by ED and may differ from the amounts the school
requests.

A school should not request more federal funds for a program than it
expects to use. Unexpended funds from a previous award year
indicate that a school overestimated its needs and may result in a
reduced program allocation for the upcoming award year. (See
section 3.1.2.)

((Federal Perkins Loan request))
Section A requires schools to enter two types of funding requests for
the Federal Perkins Loan Program. Level of Expenditure (LOE) is
the total amount a school expects to use to make loans to students
and to pay administrative and collection costs in the upcoming award
year. Federal capital contribution (FCC) is the amount of new
federal funds requested to be contributed to a school's existing
Federal Perkins Loan fund. (See section 3.2.3.)

((FSEOG request))
A school's Federal Supplemental Educational Opportunity Grant
(FSEOG) request is the amount of federal funds it needs to make
awards to students and to pay administrative costs in the upcoming
award year.

((FWS request))
A school's Federal Work-Study (FWS) request is the amount of
federal funds it needs to make awards to students to pay their earned
compensation, cover allowable Job Location and Development
Program expenditures, and pay administrative costs. At least 5
percent of the institution's federal funds must be spent in community-
service activities.

Total funds expended from each campus-based program must
contain both a federal and nonfederal share. Part II, Section A, of
the FISAP concerns the federal share only. However, schools must
consider their nonfederal shares when determining expected campus-
based expenditures and their need for federal funds. (Federal and
nonfederal shares of funding are discussed in detail in section 3.2 of
this book.)

6.2.2.2 Section B: Institutional Share Waiver Request

Section B of Part II should be completed only by institutions that
desire and qualify for a waiver of the institutional (nonfederal) share
requirement for the FWS and FSEOG Programs.

An institutional share waiver allows a school to use 100 percent
federal funds to pay earned compensation to FWS recipients and to
make FSEOG awards to students. Section 675.26(d) of the FWS
regulations and Section 676.21(b) of the FSEOG regulations specify
the circumstances under which a waiver may be granted.

6.2.2.3 Section C: Information on Enrollment

Section C collects enrollment information that ED uses to compute a
school's campus-based program allocations. A school reports its
enrollment information on the basis of whether it uses a traditional or
non-traditional calendar.

((Traditional calendar))
A school that uses a traditional calendar:

- has an academic year that is composed of terms (semesters,
trimesters, or quarters) AND

- admits students only once each term.

It includes any student enrolled in one or more undergraduate or
graduate/professional classes, except students who were exclusively
auditing classes.

((Non-traditional calendar))
A school that uses a non-traditional calendar:

- has an academic year that is not term-based and admits students
monthly or more frequently OR

- has an academic year that is term-based and admits students
monthly or more frequently.

6.2.2.4 Section D: Assessments and Expenditures

The information reported in Section D is also used to compute a
school's need for campus-based program funds.

((Assessments))
Schools must disclose tuition and fee revenues assessed for all
students reported as enrolled in Section C of Part II. Assessed tuition
and fee revenues include:

- amounts charged and collected,

- amounts charged but not collected, and

- remissions or waivers of costs.

If a school charges a total, inclusive fee for tuition, room, and board,
it may not count the room and board portion of the fee in assessed
revenues. It must allot a reasonable amount of the total fee to tuition
only.

If a school assesses and collects fees on behalf of a non-institutional
agency, it may not count these fees in assessed revenues. (For
example, student medical-insurance premiums collected by a school
and passed on to an insurance company are not considered school-
assessed revenues.)

((Pell Grant expenditures))
Section D also requires schools to report total Federal Pell Grant
expenditures for the previous award year. This amount should agree
with the final cumulative amount entered on the school's Federal
Cash Transaction Report (ED/PMS 272 Report).

((State award expenditures))
Finally, Section D collects information on state scholarships and
grant expenditures for the previous award year. These expenditures
include:

- state grants,

- state scholarships,

- tuition equalization awards,

- competitive awards,

- instructional grant awards, and

- State Student Incentive Grant (SSIG) awards.

SSIG award amounts include the total of both federal and nonfederal
shares, regardless of the source of the nonfederal share.

State awards include those from the state in which a school is located
and those from other states. State awards should not be included if a
school makes the final decisions about which students get the funds,
unless such funds are used as a source of the nonfederal share for the
SSIG Program.

Robert C. Byrd Honors Scholarships and Paul Douglas Teacher
Scholarships are excluded from state awards; they must not be
reported in Section D.

6.2.2.5 Section E: Information on Eligible Aid Applicants

In Section E, a school reports information for eligible aid applicants
that is broken down on the basis of a student's dependency status
(dependent or independent), program classification (undergraduate
or graduate), and total family income (the total of a student's and
parents' or a student's and spouse's taxable and nontaxable income
used to calculate the student's Expected Family Contribution [EFC]).
Students with an automatic zero EFC are also broken out. Backup
documentation for Section E must be maintained at the institution.

Information is reported for students who enrolled at the institution
for the previous award year and applied for financial aid for that
year. Any student who meets the definition of an "eligible aid
applicant"--as described in the FISAP instruction booklet--must be
included, even if the student received no financial aid funds.

6.2.3 Part III: Federal Perkins Loan Program

((Former program names))
NOTE: The Federal Perkins Loan Program was formerly referred to
as the National Direct Student Loan Program and the National
Defense Student Loan Program. Some schools report information on
the FISAP that concerns borrowers whose loans were received under
one of these former program names. For the sake of simplicity, this
discussion uses the name Federal Perkins Loan Program to refer to
loans made under any of the three program names.

((Schools that must complete Part III))
Part III must be completed if:

- a school is a continuing participant in the Federal Perkins Loan
Program;

- a school is liquidating its Perkins Loan fund;

- a school did not receive a federal capital contribution (FCC) for
the previous award year but did make loans from its Perkins Loan
fund; or

- a school received Perkins Loan funds for the first time in the
previous award year.

A school will need its Federal Perkins Loan Program account ledgers
to complete Part III. If the school has set up its Perkins Loan
accounts as recommended in Chapter 5 of this book, the information
needed to complete this part should be readily available. Although
schools may use different account-numbering systems, the Perkins
Loan fund account should contain subsidiary accounts that
correspond to appropriate line items in Part III.

((Third-party servicers))
If a school contracts with a third-party servicer to collect and manage
Federal Perkins Loan funds, the school is still responsible for the
accuracy of the information reported to it by that servicer. Any fiscal
reports provided by a servicer should be proved against the school's
Perkins Loan fund accounts and student records before being used to
complete Part III of the FISAP.

((Summary of information reported in Part III sections))
Section A of Part III is a cumulative balance sheet for a school's
Federal Perkins Loan fund. Schools must report cumulative debit
and credit data, such that total debits equal total credits. Schools
must also report the cumulative number of borrowers in the
categories of funds advanced, loan principal collected, defaulted
loans assigned to and accepted by ED, and loan principal cancelled.
Section A also includes a new line: cash on hand and in depository as
of 10/31/95. This line is to be completed only during the FISAP edit
and correction process in November. It will provide ED with more
current information on cash on hand for monitoring potential excess
cash in an institution's Perkins Loan fund.

Section B is a report of a school's annual Federal Perkins Loan fund
activity and summarizes the school's use of funds in the previous
award year.

Section C requests cumulative repayment information for a school's
Federal Perkins Loan fund, including number of borrowers and
dollar amounts for each repayment category.

Section D is used to calculate a school's cohort default rate, which is
defined as the percentage of the school's Perkins Loan borrowers
who entered repayment in a given award year and who defaulted
before the end of the following award year. For any award year in
which fewer than 30 borrowers entered repayment, the cohort default
rate is calculated on the basis of borrowers who entered repayment in
any of the three most recent award years and who defaulted before
the end of the award year immediately following the year they
entered repayment.

6.2.3.1 Section A: Cumulative Fiscal Report

This section is a historical report of a school's Federal Perkins Loan
fund activity from the inception of the program at the school through
June 30 of the most recently ended award year. This report is the
balance sheet for the school's Perkins Loan fund, and IT MUST
BALANCE. Institutions that close the amounts in each of the
income and expense accounts to the fund balance each fiscal year
will need to maintain a separate record of the CUMULATIVE
income and expenses since the inception of the program in order to
prepare this section. (For such institutions, the income and expense
accounts in Chapter 5 will reflect only the current fiscal year's
activity.)

((Line numbers))
The line numbers in the left margin of Part III, Section A do not
correspond to the Federal Perkins Loan ledger account numbers used
in Chapter 5 of this book. (Please note that the account numbers
used in this edition of The Blue Book have been revised from those
used in the previous edition.) Because the line numbers in this
section of the FISAP often change from one year to the next year,
this discussion refers to items on the FISAP balance sheet and the
account number and title of the corresponding school ledger account.

((Reporting numbers of borrowers ))
Several line items in this section ask for a number of borrowers.
This is an unduplicated, cumulative count of borrowers in the
category represented by the line item. For example, under the line
item, "Loan Principal Collected," the number of borrowers would be
the unduplicated, cumulative count of the number of borrowers who
made payments on their loans. In other words, if a borrower is
making payments on two loans, that borrower is counted only once.

((Line items of balance sheet and corresponding accounts))
Additional information about the items in this section can be found
in the current version of the FISAP instruction booklet.

CASH ON HAND AND IN DEPOSITORY: Account # 1-1, Cash,
Federal Perkins Loans

FUNDS RECEIVABLE FROM FEDERAL GOVERNMENT

FUNDS RECEIVABLE FROM INSTITUTION: Account # 6-2,
Funds Transferred from Institution - Perkins - ICC

FUNDS ADVANCED TO STUDENTS: Account # 1-2, Funds
Advanced to Students

LOAN PRINCIPAL COLLECTED: Account # 2-1, Loan Principal
Collected

DEFAULTED LOAN PRINCIPAL ASSIGNED TO AND
ACCEPTED BY THE UNITED STATES: Account # 2-2, Defaulted
Loan Principal - Assigned to Federal Government

TOTAL LOAN PRINCIPAL CANCELLED ON LOANS MADE
PRIOR TO 7/1/72 FOR TEACHING/MILITARY SERVICE: The
sum of accounts #

- 2-3 Loan Principal Cancelled - Teaching Service (10% Rate),
Loans Made Prior to 7/1/72

- 2-4 Loan Principal Cancelled - Teaching Service (15% Rate),
Loans Made Prior to 7/1/72

- 2-5 Loan Principal Cancelled - Military Service (12.5% Rate),
Loans Made Prior to 7/1/72

LOAN PRINCIPAL CANCELLED FOR CERTAIN SUBJECT
MATTER TEACHING SERVICE (MATH, SCIENCE, FOREIGN
LANGUAGES, BILINGUAL EDUCATION) ON LOANS MADE
AFTER 7/23/92: The sum of accounts #

- 2-9 Loan Principal Cancelled - Teaching Service (Field of
Expertise: Math, Science, Foreign Language, Bilingual Education)
(15% Rate), Loans Made 7/23/92 and After

- 2-10 Loan Principal Cancelled - Teaching Service (Field of
Expertise: Math, Science, Foreign Language, Bilingual Education)
(20% Rate), Loans Made 7/23/92 and After

- 2-11 Loan Principal Cancelled - Teaching Service (Field of
Expertise: Math, Science, Foreign Language, Bilingual Education)
(30% Rate), Loans Made 7/23/92 and After

LOAN PRINCIPAL CANCELLED FOR ALL OTHER
AUTHORIZED TEACHING SERVICE ON LOANS MADE 7/1/72
AND AFTER: The sum of accounts #

- 2-6 Loan Principal Cancelled - Teaching Service (15% Rate),
Loans Made 7/1/72 and After

- 2-7 Loan Principal Cancelled - Teaching Service (20% Rate),
Loans Made 7/1/72 and After

- 2-8 Loan Principal Cancelled - Teaching Service (30% Rate),
Loans Made 7/1/72 and After

- 2-18 Loan Principal Cancelled - Head Start (15% Rate)

LOAN PRINCIPAL CANCELLED FOR MILITARY SERVICE ON
LOANS MADE 7/1/72 AND AFTER: Account #2-12, Loan
Principal Cancelled - Military Service (12.5% rate), Loans Made
7/1/72 and After

LOAN PRINCIPAL CANCELLED FOR VOLUNTEER SERVICE:
The sum of accounts #

- 2-16 Loan Principal Cancelled - Peace Corps or VISTA
(15% Rate)

- 2-17 Loan Principal Cancelled - Peace Corps or VISTA
(20% Rate)

- 2-19 Loan Principal Cancelled - Volunteer Service (15% Rate)

- 2-20 Loan Principal Cancelled - Volunteer Service (20% Rate)

LOAN PRINCIPAL CANCELLED FOR LAW ENFORCEMENT
AND CORRECTIONS OFFICER SERVICE: The sum of
accounts #

- 2-21 Loan Principal Cancelled - Law Enforcement and
Corrections Officer Service (15% Rate)

- 2-22 Loan Principal Cancelled - Law Enforcement and
Corrections Officer Service (20% Rate)

LOAN PRINCIPAL CANCELLED FOR CHILD/FAMILY/EARLY
INTERVENTION SERVICE ON LOANS MADE 7/23/92 AND
AFTER: The sum of accounts #

- 2-26 Loan Principal Cancelled - Child/Family and Early
Intervention Service (15% Rate)

- 2-27 Loan Principal Cancelled - Child/Family and Early
Intervention Service (20% Rate)

- 2-28 Loan Principal Cancelled - Child/Family and Early
Intervention Service (30% Rate)

LOAN PRINCIPAL CANCELLED FOR NURSE/MEDICAL
TECHNICIAN SERVICE ON LOANS MADE 7/23/92 AND
AFTER: The sum of accounts #

- 2-23 Loan Principal Cancelled - Nurse/Medical Technician
(15% Rate)

- 2-24 Loan Principal Cancelled - Nurse/Medical Technician
(20% Rate)

- 2-25 Loan Principal Cancelled - Nurse/Medical Technician
(30% Rate)

LOAN PRINCIPAL CANCELLED, DEATH/DISABILITY: The
sum of accounts #

- 2-13 Loan Principal Cancelled - Death

- 2-14 Loan Principal Cancelled - Disability

LOAN PRINCIPAL CANCELLED, BANKRUPTCY:
Account # 2-15, Loan Principal Cancelled - Bankruptcy

LOAN PRINCIPAL ADJUSTMENTS, OTHER: Account # 2-29,
Loan Principal Adjustments - Other

FEDERAL CAPITAL CONTRIBUTIONS: Account # 4-1, Federal
Fund Balance

REPAYMENTS OF FUND CAPITAL TO FEDERAL
GOVERNMENT: Account # 6-7, Repayments to Federal
Government

INSTITUTIONAL CAPITAL CONTRIBUTIONS: Account # 4-2,
Institutional Fund Balance

REPAYMENTS OF FUND CAPITAL TO INSTITUTION:
Account # 6-8, Repayments to Institution

INTEREST INCOME ON LOANS: Account # 6-3, Interest Earned
on Loans

OTHER INCOME: The sum of accounts #

- 6-4 Other Earnings - Late Charges on Loans Made 7/1/87 and
After

- 6-5 Other Earnings - Miscellaneous

REIMBURSEMENTS TO THE FUND OF AMOUNTS
CANCELLED ON LOANS MADE 7/1/72 AND AFTER: Account
# 6-6, Reimbursement of Amounts Cancelled on Loans Made 7/1/72
and After

ADMINISTRATIVE COST ALLOWANCE: Account # 7-2,
Administrative Cost Allowance (ACA) Paid to Institution

COLLECTION COSTS: Account # 7-3, Other Collection Expenses

ADMINISTRATIVE COST ALLOWANCE AND COLLECTION
COSTS (CONTROL): The sum of accounts # 7-2 and 7-3

COST OF LOAN PRINCIPAL AND INTEREST CANCELLED
FOR TEACHING/MILITARY SERVICE ON LOANS MADE
PRIOR TO 7/1/72: The sum of accounts #

- 7-4 Cost of Loan Principal and Interest Cancelled - Teaching
Service, Loans Made Prior to 7/1/72

- 7-6 Cost of Loan Principal and Interest Cancelled - Military
Service, Loans Made Prior to 7/1/72

COST OF LOAN PRINCIPAL AND INTEREST CANCELLED
FOR CERTAIN SUBJECT MATTER TEACHING SERVICE
(MATH, SCIENCE, FOREIGN LANGUAGES, BILINGUAL
EDUCATION) ON LOANS MADE 7/23/92 AND AFTER:
Account # 7-7, Cost of Loan Principal and Interest Cancelled -
Teaching Service (Field of Expertise: Math, Science, Foreign
Language, Bilingual Education), Loans Made 7/23/92 and After

COST OF LOAN PRINCIPAL AND INTEREST CANCELLED
FOR ALL OTHER AUTHORIZED TEACHING SERVICE ON
LOANS MADE 7/1/72 AND AFTER: The sum of accounts #

- 7-5 Cost of Loan Principal and Interest Cancelled - Teaching
Service, Loans Made 7/1/72 and After

- 7-13 Cost of Loan Principal and Interest Cancelled - Head Start

COST OF LOAN PRINCIPAL AND INTEREST CANCELLED
FOR MILITARY SERVICE ON LOANS MADE 7/1/72 AND
AFTER: Account # 7-8, Cost of Loan Principal and Interest
Cancelled - Military Service, Loans Made 7/1/72 and After

COST OF LOAN PRINCIPAL AND INTEREST CANCELLED
FOR VOLUNTEER SERVICE IN THE PEACE CORPS OR
UNDER THE DOMESTIC VOLUNTEER SERVICE ACT OF
1973: The sum of accounts #

- 7-12 Cost of Loan Principal and Interest Cancelled - Peace Corps
or VISTA

- 7-14 Cost of Loan Principal and Interest Cancelled - Volunteer
Service

COST OF LOAN PRINCIPAL AND INTEREST CANCELLED
FOR LAW ENFORCEMENT AND CORRECTIONS OFFICER
SERVICE: Account # 7-15, Cost of Loan Principal and Interest
Cancelled - Law Enforcement and Corrections Officer Service

COST OF LOAN PRINCIPAL AND INTEREST CANCELLED
FOR CHILD/FAMILY AND EARLY INTERVENTION SERVICE
ON LOANS MADE 7/23/92 AND AFTER: Account # 7-17, Cost of
Loan Principal and Interest Cancelled - Child/Family and Early
Intervention Service

COST OF LOAN PRINCIPAL AND INTEREST CANCELLED
FOR NURSE/MEDICAL TECHNICIAN SERVICE ON LOANS
MADE 7/23/92 AND AFTER: Account # 7-16, Cost of Loan
Principal and Interest Cancelled - Nurse/Medical Technician

COST OF PRINCIPAL AND INTEREST CANCELLED BECAUSE
OF DEATH/DISABILITY: The sum of accounts #

- 7-9 Cost of Loan Principal and Interest Cancelled - Death

- 7-10 Cost of Loan Principal and Interest Cancelled - Disability

COST OF PRINCIPAL AND INTEREST CANCELLED BECAUSE
OF BANKRUPTCY: Account # 7-11, Cost of Loan Principal and
Interest Cancelled - Bankruptcy

COST OF DEFAULTED LOAN PRINCIPAL AND INTEREST
ASSIGNED TO AND ACCEPTED BY THE UNITED STATES:
Account # 7-18, Cost of Defaulted Loan Principal and Interest
Assigned to Federal Government

OTHER COSTS OR LOSSES: Account # 7-19, Other Costs or
Losses

6.2.3.2 Section B: Annual Fund Activity

((Final adjusted authorization))
The final adjusted federal capital contribution (FCC) authorization
reported in Section B should equal the FCC amount authorized in the
school's original allocation letter for the previous award year, PLUS
any supplemental allocation amounts for the year, MINUS any
allocation amounts deobligated for the year. (See section 3.1.2.)

((Funds transferred to FSEOG and FWS))
FCC transferred to and spent in Federal Supplemental Educational
Opportunity Grant (FSEOG) and Federal Work-Study (FWS) must
be reported in Section B. (See section 3.4.1.) The sum of amounts
transferred to and spent in both programs may not exceed 25 percent
of a school's total FCC allocation. Any FCC transferred to FSEOG
or FWS must be entered on the school's ED/PMS 272 Report as an
expenditure against the school's Federal Perkins Loan authorization,
NOT against its authorization for FSEOG or FWS.

((Amount of FCC not drawn down))
Schools must report the amount of final adjusted FCC for the
previous award year that was not requested (drawn down) from
ED/PMS by the end of the year. (Schools may not request FCC after
June 30 of a given award year.) Authorized FCC amounts that are
not requested will be deducted from funds available in a school's
ED/PMS grantee account.

((ICC amount))
The amount of institutional capital contribution (ICC) deposited into
a school's Federal Perkins Loan fund for the previous award year
must be reported in Section B. (See section 3.2.3.)

((Amount of loans advanced))
The amount of loans advanced to students is the net amount of loans
made to borrowers from a school's Federal Perkins Loan fund during
the previous award year. The amount of loans advanced should
equal the total amount of loans paid to borrowers during the year
MINUS any refunds or repayments of loans made during the year.
Refunds or repayments of prior year loans are not included.

((ACA claimed from Perkins Loan funds))
Administrative cost allowance (ACA) is the amount withdrawn from
a school's Federal Perkins Loan fund to cover the cost of
administering one or more Title IV campus-based programs. (See
section 3.3.)

((Amount of principal and interest repaid))
Schools must report the total amount of principal and interest repaid
by borrowers from all sources during the previous award year, as
well as an unduplicated count of borrowers who made payments (in
other words, a borrower with two loans is counted only once). The
total dollar amount repaid includes:

- all amounts received as payments against borrowers' loans,
regardless of the source of the payment,

- any portion of a payment kept by a collection agency, and

- penalty charges or late fees collected and deposited into the
school's Federal Perkins Loan fund.

The total dollar amount repaid does NOT include:

- collection firm charges due as collection costs that are over and
above the amount of principal and interest collected OR

- interest received from any investments.

((Commercial billing agency information))
Finally, Section B requires a school to report the name and address
of any commercial billing agency that provides routine billing,
collection, and reporting services for the school's Federal Perkins
Loan fund. A school must also report the name, title, and telephone
number of the school loan officer responsible for Perkins Loan
collections if this is a person other than the financial aid
administrator or fiscal officer who signs the FISAP.

6.2.3.3 Section C: Cumulative Repayment Information

((Counting numbers of borrowers))
This section analyzes the repayment status of all of a school's past
and present Federal Perkins Loan borrowers as of the end of the
previous award year. It collects information on the number of
borrowers in various repayment categories and the dollar amounts of
their loans. When counting numbers of borrowers, schools should
count the number of borrowers, not the number of loans made.
Some borrowers may have received more than one Perkins Loan.

((Borrowers with more than one loan))
If a borrower has more than one loan and the loans fall into more
than one repayment category, dollar figures for each loan should be
reported on the line that describes the status of that loan. For
example, a borrower might have one Perkins Loan that is paid in full
and another Perkins Loan that is still in repayment. The amount of
the first loan would be reported under "borrowers whose loans are
fully retired," while the amount of the second loan would be reported
under "borrowers on schedule in repayment." In any case, a
borrower should be counted only once and reported in the "number
of borrowers" column and the category where his or her principal
amount outstanding is the greatest. In the example above, that
category would be "borrowers on schedule in repayment."

((Fully retired loans))
Borrowers whose loans are fully retired are those borrowers whose
loans have been completely repaid or cancelled. This category
includes loans that were retired after the remaining outstanding
principal was written off.

((Loans assigned to ED))
Borrowers whose defaulted notes were assigned and accepted are
those borrowers whose defaulted loans were assigned by a school
and officially accepted by ED as of the end of the previous award
year. Total principal amount outstanding for these loans is the
amount that was outstanding when the loans were assigned to and
accepted by ED. The amount may not include any penalty charges
or late fees assigned to ED for collection or any payments a school
might have received from borrowers after ED accepted their loans.
Payments received by a school after a loan is assigned (to ED) must
be sent directly to ED.

((Borrowers not in repayment))
Borrowers not in repayment are those borrowers attending an eligible
postsecondary school at least half time and those borrowers whose
loans are in a grace period or in deferment. This includes borrowers
attending the school that made the loans, borrowers attending other
schools under an authorized in-school deferment, borrowers who
have obtained any other type of authorized deferment, and borrowers
whose loans are in an initial or post-deferment grace period.
(Detailed information about Perkins Loans deferments can be found
in Chapter 6 of The 1995-96 Federal Student Financial Aid
Handbook.)

((Borrowers in default))
A Perkins Loan borrower in default is one who has failed to make a
scheduled payment on time or has otherwise failed to comply with
the terms of the signed promissory note. In Section C, a school
reports information on borrowers whose loan payments are due:

- in monthly installments and who have been in default for less than
240 days AND less frequently than monthly and have been in
default for less than 270 days, and

- in monthly installments and who have been in default 240 days or
more AND less frequently than monthly and have been in default
270 days or more.

6.2.3.4 Section D: Cohort Default Rate

((Definitions of terms used in Section D))
Several terms must be defined for a school to accurately calculate its
Federal Perkins Loan cohort default rate.

A borrower ENTERS REPAYMENT the day after an initial grace
period ends or the day the borrower waives the initial grace period.
The start-date of the repayment period does not change if a
deferment or cancellation is granted after the borrower enters
repayment.

A loan is IN DEFAULT if a borrower fails to make a scheduled
installment payment on time or fails to comply with other terms of
the signed promissory note. For the purpose of calculating a cohort
default rate, default is in effect when payment is not made for 240
days for loans repaid in monthly installments and 270 days for other
loans. A loan is still considered to be in default if, in order to avoid
the default, a borrower's payment is made by an institution, its
owner, an agency, a contractor, an employee, or any other entity or
individual affiliated with the institution.

A loan is NOT IN DEFAULT if a borrower has made satisfactory
arrangements to resume paying the loan.

6.2.4 Part IV: Federal Supplemental Educational Opportunity Grant
(FSEOG) Program

A school must complete Part IV if it received Federal Supplemental
Educational Opportunity Grant (FSEOG) funds for the previous
award year. This part summarizes the school's use of FSEOG funds
during that year.

((Section A ))
((Final adjusted authorization))
The final adjusted FSEOG authorization reported in Section A of
Part IV should equal the amount authorized in a school's original
allocation for the previous award year, PLUS any supplemental
allocation amounts received for the year, MINUS any allocation
amounts deobligated for the year. (See section 3.1.2.)

((Section B))
Section B of Part IV is used to calculate the amount of federal funds
available for a school's FSEOG expenditures in the previous award
year.
((Federal funds available))
The total amount of federal funds available is equal to the final
adjusted FSEOG authorization, PLUS Federal Work-Study (FWS)
funds transferred to and spent in FSEOG, PLUS Federal Perkins
Loan federal capital contribution (FCC) funds transferred to and
spent in FSEOG. (See section 3.4.1.)

((FWS funds transferred to FSEOG))
In Section B, a school must enter the amount of FWS funds
transferred to FSEOG. This amount must have been spent in
FSEOG. Any unspent amount must be returned to FWS. The
maximum amount that may be transferred from FWS to FSEOG is
25 percent of the school's original and supplemental FWS allocations
for the award year being reported.

((Perkins funds transferred to FSEOG))
A school must also report in Section B the amount of Federal Perkins
Loan FCC transferred to FSEOG. This amount must have been spent
in FSEOG. Any unspent amount must be returned to the Perkins
Loan fund. The maximum amount that may be transferred from
Perkins Loan FCC to FSEOG is 25 percent of the school's original
and supplemental FCC allocations for the award year being reported.

((Section C))
((FSEOG funds paid))
Section C asks for the total amount of FSEOG funds paid to
recipients. This amount must consist of the required 75 percent
federal and 25 percent nonfederal shares. (See section 3.2.1.) The
nonfederal share reported in this section may not exceed the required
25 percent.

((Section D))
Section D shows how a school spent the federal portion of its
FSEOG funds. The total amount of federal FSEOG funds spent is
equal to the federal share of FSEOG funds paid to students PLUS the
administrative cost allowance (ACA) claimed from federal FSEOG
funds.

((Federal share paid to students))
The 75 percent federal share of FSEOG funds paid to students
includes any FWS funds or Federal Perkins Loan FCC transferred to
FSEOG and used to make awards to students.

((ACA taken from FSEOG))
The administrative cost allowance (ACA) reported in Section D is
the amount taken from a school's FSEOG allocation to cover the cost
of administering one or more Title IV campus-based program. (See
section 3.3.)

((Section E))
Section E of Part IV shows how much of a school's total federal
FSEOG allocation was used and enables the school to calculate the
amount of unexpended federal FSEOG funds.

((Expended FSEOG allocation))
A school's expended FSEOG allocation is equal to the total amount
of federal FSEOG funds spent (from Section D), MINUS the amount
of FWS funds transferred to and spent in FSEOG (from Section B),
MINUS the amount of Federal Perkins Loan FCC transferred to and
spent in FSEOG (from Section B). This amount must agree with the
final FSEOG expenditure amount reported on a school's Federal
Cash Transaction Report (ED/PMS 272 Report).

((Unexpended FSEOG allocation))
A school's unexpended FSEOG allocation is equal to its final
adjusted FSEOG authorization amount (from Section A) MINUS its
total expended FSEOG allocation (from Section D). If this amount is
a positive dollar figure, the amount of unexpended FSEOG funds
will be deducted from the school's ED/PMS grantee account. If this
amount is a negative dollar figure, it must not be reported on the
FISAP; this is an excess FSEOG expenditure and must be charged to
institutional funds.

((Section F))
Section F of Part IV concerns prior year recoveries.
((Prior year recoveries))
Prior year recoveries are the federal share of either any FSEOG
monies students have returned to a school during the reported award
year from awards disbursed prior to that award year or any
recoveries of FSEOG funds a school failed to report on a previous
FISAP. For example, if a student received an FSEOG award during
the 1993-94 award year and returned all or part of the award to the
school during the 1994-95 award year, the federal share of the
amount returned would be considered a prior year recovery. Prior
year recoveries generally occur as a result of an incorrect analysis of
a student's financial need, an error in disbursing funds, or a
refund/repayment calculation. Any payments resulting from audit or
program review liabilities should not be reported as prior year
recoveries.

((Open and closed award recoveries))
A prior year recovery may be classified as an open award recovery
or as a closed or purged award recovery. An open award is any
award that still appears on a school's quarterly or monthly ED/PMS
272 Report. A closed or purged award is any award that no longer
appears on the ED/PMS 272 Report. (For information on how to
report prior year recoveries, refer to section 6.5 of this book, the
ED/PMS Recipient's Guide, and Part IV of the FISAP instruction
booklet.)

6.2.5 Part V: Federal Work-Study (FWS) Program

A school must complete Part V if it received Federal Work-Study
(FWS) funds for the previous award year. This part summarizes the
school's use of FWS funds during that year.

((Section A))
((Final adjusted authorization))
The final adjusted FWS authorization reported in Section A of Part V
should equal the amount authorized in a school's original allocation
for the previous award year, PLUS any supplemental allocation
amounts for the year, MINUS any allocation amounts deobligated
for the year. (See section 3.1.2.)

((Section B))
Section B of Part V is used to calculate the amount of federal funds
available for a school's FWS expenditures in the previous award
year.
((Funds available for expenditures))
The total amount of federal funds available is calculated on the basis
of the school's final adjusted FWS authorization, the amount of funds
transferred between campus-based programs, and the amount of
FWS funds carried forward and carried back between award years.

((Perkins funds transferred to FWS))
In Section B, a school must report the amount of Federal Perkins
Loan FCC transferred to FWS. This amount must have been spent in
FWS OR any unspent amount must have been returned to the Perkins
Loan fund. The maximum amount that may be transferred from
Perkins Loan FCC to FWS is 25 percent of the school's original and
supplemental FCC allocations for the previous award year. (See
section 3.4.1.)

((FWS funds transferred to FSEOG))
Also in Section B, a school must enter the amount of FWS funds
transferred to FSEOG. This amount must have been spent in FSEOG
OR any unspent amount must have been returned to FWS. The
maximum amount that may be transferred from FWS to FSEOG is
25 percent of the school's original and supplemental FWS allocations
for the previous award year. (See section 3.4.1.)

((FWS funds carried forward or carried back))
Section B also requires schools to report the amount of FWS funds
carried forward and carried back between award years. (See section
3.4.2.) A school may carry up to 10 percent of its FWS funds
forward to be spent in the next award year. Similarly, if a school
needs additional FWS funds during an award year, it may carry back
("use") up to 10 percent of its next award year's FWS allocation.
Unused FWS funds may be carried back and spent as payments to
students for wages earned during summer employment between May
15 and June 30 of the previous award year. In Section B of Part V, a
school must report any such activity that affected expenditures
during the award year for which it is filing the FISAP report.

((Section C))
((Total earned compensation))
In Section C, a school reports the total amount of earned FWS
compensation paid to students during the previous award year. This
is the gross amount of wages paid and includes taxes and other
withholdings. The amount must, at a minimum, consist of 25
percent nonfederal funds, which is also reported in Section C. The
nonfederal (institutional) share includes amounts contributed by the
school as well as amounts contributed by any off-campus employer.
If the off-campus employer is a private, for-profit organization, the
nonfederal share must consist of at least 50 percent of the earned
wages. If the nonfederal share of compensation was paid in kind (for
example, as a tuition waiver), the in-kind compensation value must
be converted to a cash amount for this reporting. (See section 3.2.2.)

((Section D))
Section D shows how a school spent the federal share of its FWS
funds. The total amount of federal FWS funds spent is equal to the
federal share of FWS funds paid to students as earned compensation,
PLUS the administrative cost allowance claimed from federal FWS
funds, PLUS the federal share of Job Location and Development
Program expenditures.

((Federal share of earned compensation))
The total federal share of FWS earned compensation is the maximum
75 percent federal share of FWS funds paid to students. The
maximum 75 percent federal share applies to on-campus
employment and to off-campus employment at public or private non-
profit agencies. The federal share amount may exceed 75 percent
only if a school has an approved waiver of its institutional share.
Wages paid for for-profit, off-campus employment may contain a
maximum 50 percent federal share; an institutional share waiver may
not apply to these wages.

((ACA taken from FWS))
The administrative cost allowance (ACA) reported in Section D is
the amount a school takes from its FWS allocation to cover the cost
of administering one or more Title IV campus-based program. (See
section 3.3.)

((Federal share of JLD expenses))
The federal share of Job Location and Development (JLD) Program
expenditures must be whichever is less of $50,000 OR 10 percent of
a school's original and supplemental FWS allocations.

((Section E))
Section E of Part IV shows how much of a school's total federal
FWS allocation was used and enables the school to calculate the
amount of unexpended federal FWS funds.

((Expended FWS allocation))
A school's expended federal FWS allocation must agree with the
final FWS expenditure amount reported on a school's Federal Cash
Transaction Report (ED/PMS 272 Report). This amount may not
exceed a school's final adjusted FWS authorization, as reported in
Section A of Part V.

((Unexpended FWS allocation))
A school's unexpended FWS allocation is equal to its final adjusted
FWS authorization amount (from Section A) MINUS its total
expended FWS allocation (from Section E). If this amount is a
positive dollar figure, the amount of unexpended FWS funds will be
deducted from the school's ED/PMS grantee account. If this amount
is a negative dollar figure, it cannot be reported on the FISAP. The
negative dollar figure represents an excess FWS expenditure and
must be charged to the institutional share of earned compensation.

((Section F))
((Prior year recoveries))
Section F of Part V concerns prior year recoveries. Prior year
recoveries are the federal share of any FWS monies students have
returned to a school during the previous award year from wages paid
before the previous award year OR any recoveries of FWS funds a
school failed to report on a previous FISAP. For example, if a
student received FWS wages during the 1993-94 award year and
returned all or part of the wages to the school during the 1994-95
award year, the federal share of the amount returned would be
considered a prior year recovery. Prior year recoveries generally
occur as a result of incorrect analysis of a student's financial need or
an error in disbursing funds. Payments resulting from audit or
program review liabilities should not be reported as prior year
recoveries.

If a school had prior year recoveries, it must adjust its award
expenditures for the year the award was made. (For information on
how to report prior year recoveries to ED, refer to section 6.5 of this
book, the ED/PMS Recipient's Guide, and Part IV of the FISAP
instruction booklet.)

((Section G))
Schools that participate in the Job Location and Development (JLD)
Program must use Section G to report JLD expenditures.
((JLD expenditures))
If a school used any federal funds to operate a JLD Program, its
institutional expenditures for JLD must be at least 20 percent of its
total JLD expenditures.

NOTE: For 1994-95, information on community-service activities
will be collected on the E40-4P Form (the Campus-Based
Reallocation Form). The data collected are the number of students in
community-service employment, federal share of community service
earned compensation, and non-federal share of community service
earned compensation. The data were not collected on the FISAP
filed October 1, 1995 for the 1994-95 award year. However, the
FISAPs for following years will collect this information about
community-service activities.

6.2.6 Part VI: Program Summary

Part VI contains two sections. In Section A, a school identifies its
campus-based aid recipients by type of student and by income. The
school enters the amount spent and the number of recipients in each
category. Backup documentation must be kept on file at the school.

Section B is used to calculate a school's administrative cost
allowance (ACA).

6.2.6.1 Section A: Distribution of Program Recipients and
Expenditures by Type of Student

If a school participated in one or more Title IV campus-based
program during the previous award year, it must complete Section A.
The school will need data from Parts III, IV, and V of the FISAP, as
well as its own institutional records, to complete this section.

((Types of students))
In Section A, a school reports the distribution of its campus-based
aid recipients by type of student (undergraduate dependent,
undergraduate independent, and graduate/professional). Within each
"type," recipients are further broken down and reported on the basis
of income level.

((Family income))
In this section, income is determined in the same manner as in Part
II, Section E. This is the total of a student's and parent's or student's
and spouse's taxable and nontaxable income used to calculate the
student's Expected Family Contribution (EFC).

Students reported in Section A are both full-time and part-time
students. There is no longer a separate category for less-than-full-
time students.

If a student falls into more than one category "type" (undergraduate,
graduate, dependent, independent), the student should be reported in
the category that represents the greater enrollment period. For
example, if a student received campus-based aid as an undergraduate
student for the period July 1, 1994 to December 31, 1994 (six
months) and as a graduate student for the period January 1, 1995 to
May 31, 1995 (five months), the student would be reported as an
undergraduate student.

The "summary recipients" column is an unduplicated count of
students in each income category.

For each campus-based program, the amount of funds reported is the
total amount awarded and spent under the program and consists of
both the federal and nonfederal shares.

6.2.6.2 Section B: Calculating Administrative Cost Allowance

If a school claims an administrative cost allowance (ACA) for the
previous award year, it must complete this section. The ACA
worksheet is provided for calculation purposes only; it should be
retained in the school's files for audit and program review purposes
and should not be returned to ED.

The amount of ACA a school may claim is calculated on the basis of
the school's total campus-based program expenditures, as reported in
Parts III, IV, and V of the FISAP. Schools may claim varying
percentages of their expenditures as ACA according to the total
amount of their program expenditures. (See section 3.3.)

ACA may be charged against:

((Sources of ACA))
- cash on hand in a school's Federal Perkins Loan fund, if the school
made Perkins Loans to students during the award year;

- a school's FSEOG allocation, if the school disbursed FSEOG
awards to students during the award year; and/or

- a school's FWS allocation, if the school paid FWS wages to
students during the award year.

((Charging ACA against program funds))
The total of all ACA for all programs may be charged to one
program or any combination of programs the school chooses.
However, for the Federal Perkins Loan Program or FWS Program, a
school may not charge ACA against program funds if the school's
only expenditure from that program was a transfer of funds to
another campus-based program.

Last Modified: 06/30/1995