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. |