Preparing the FISAP

FISAP and the Campus-Based Programs

Matt DullAssistant Vice Chancellor for Finance and Operations

Resources● Presentation File● Templates● 2016-17 FISAP● Documents you share!

Link to Google Drive Folder

FISAP: What does it stand for?

FISAPFIScal Operations Report

and

APplication to Participate

What is it?● Financial report for expenditures in Federal Student Aid (FSA) Campus-

Based Programs○ A look back at the previous fiscal year

● Application to Participate in FSA Campus-Based Programs○ A request for authority to issue Perkins Loans○ A request for funding for the campus-based programs for the next fiscal year

FISAP: Timing

FY 2015-16 FY 2016-17 FY 2017-18

Fiscal Operations Report

FISAP DueOctober 1st

Application to Participate

TimelineAugust 1—ED releases FISAP software

October 1— final deadline for submitting the FISAP to ED; if it falls on a weekend, the deadline is the previous business day

December 15— corrections to FISAP data and resolution of edits must be submitted to ED, and update of the Federal Perkins cash on hand

February 1—ED sends tentative award notifications to all schools

April 1—ED sends final award notifications to all eligible schools

Why is the FISAP Important?You must complete the FISAP for your school by October 1st of each year to:

● be allocated campus-based funds for the next award year,

● report cumulative activity in the Federal Perkins Loan Program, and

● report expenditures of any campus-based program funds in the completed award year.

NO FISAPNO MONEY

Why complete the FISAP?

Financial Aid Policy and ProceduresYour campus Financial Aid office should have a policy and procedure manual with an entry on FISAP, that includes:

● Step-by-step procedures on how to complete the FISAP that assigns responsibility to the offices and personnel responsible for each step

● Internal schedule for submission of components of FISAP

● Supporting documentation retention guidelines

● Quality control process for ensuring accurate data

● Responsibility for submission in eCampus-Based Programs

Initiating the FISAPThe FISAP and its instructions will be finalized no later than August 1st; your campus may want to consider the following as a “kick-off” for completing your FISAP:

● Issue a memo outlining:○ Who is responsible for each part of the FISAP○ Who is coordinating the data entry and validation○ Documentation requirements

● An Orientation Meeting○ Provide an overview of the FISAP○ Make sure all parties know their role○ Help give people an understanding of how all of the parts fit together

FSA Campus-Based Programs1. Federal Perkins Loan

2. Federal Supplemental Educational Opportunity Grant (FSEOG)

3. Federal Work Study (FWS)

● Low-interest revolving long-term loan fund for undergraduate and graduate students with exceptional need

● Loans from the Perkins program are made by an institution’s financial aid office

● Funding Sources○ Federal Capital Contributions (FCC) - No additional FCC will be made to program○ Institutional Capital Contributions (ICC)○ Repayment of loan principal○ Interest on loans○ Penalty/Late charges○ Payments for cancellations○ Net interest earnings on funds deposited in interest-bearing accounts

Federal Perkins Loan

Cash on Hand

● Original Submission (Due October 1)○ Dollar amount in Cash account for Perkins on June 30th of award year

● Correction Submission (Due December 15)○ Dollar amount in Cash account for Perkins on October 31st after award year

● Cash on Hand Calculation Worksheet○ Financial Aid uses the Perkins Estimated Cash on Hand Worksheet to estimate Perkins

Cash on Hand on June 30th

Federal Perkins Loan

Federal Perkins LoanSection A - Cumulative Fiscal Report

● Cumulative account balances from July 1, 1972 to present● Best practice:

○ Account for each loan principal cancellation type○ Account for each cost of loan principal and interest cancellation type○ Perkins Cumulative Calculation Worksheet○ No balancing adjustments (requires explanation and inclusion on all future reports)

Federal Perkins LoanSection B - Annual Fund Activity Report

● Fund activity for award year only

Section C

● Cumulative Information on the status of all of your borrowers

Section D-E

● Two-year cohort default rate calculation for Perkins

● Grant for exceptionally needy undergraduate students (lowest EFCs)● Priority must be given to Pell Grant recipients● 75% of funds from ED● 25% of funds from institution

○ Institutional scholarships and grants○ NCSEAA and other state grants○ Funds from foundations or other charitable organizations

FSEOG 34 CFR 676.4

● Part-time employment for undergraduate and graduate students to meet education costs

○ On-campus placement○ Off-campus placement○ Community Service placement○ Reading/mathematics tutors placement

Federal Work Study

FWS: Matching Funds● Most positions require a 25% match● Most UNC institutions receive a state appropriation to use in state

appropriated areas to cover the match requirement (Per state budget memo from 1967 and UNC-GA memo from 1997)

○ Must utilize at least 93% of appropriation○ Must be used only in the academic areas of the institution (non-auxiliary)

● Community Services placements require the community agency to pay the 25% match (in some cases, a smaller amount)

● Mathematics and reading tutor placements are paid 100% by ED

FWS: Tracking Wages● Different position suffix for each classification

○ On-campus placement; eligible for state match○ On-campus placement; not-eligible for state match○ Off-campus placement; reading tutor and community service○ Off-campus placement; community service

● Pull reports by classification○ Allows us to reconcile matching to ensure regulatory compliance by classification○ Allows us to accurately perform correcting journal entries

■ J/E’s - 100% match for reading and mathematics tutors

Job Location and Development (JLD) 34 CFR 675.31, et seq.

● Purpose: Develop off-campus job opportunities for students who want jobs, regardless of financial need and to encourage students to participate in community services activities

● Federal allocation is up to the lesser of 10% of FWS authorizations or $75,000

● Federal share of program cannot be greater than 80% of total program costs

● ASU Example: Our Student Employment office is partially funded by the program for their placement of students in community businesses

JLD: Allowable CostsAllowable costs of carrying out the JLD Program include:

● staff salaries and fringe benefits● travel expenses related to JLD activities● Printing and mailing costs for brochures about the JLD Program● JLD telephone charges● JLD costs for supplies, equipment, and furniture● newspaper or other types of advertising that inform potential

employers of the services JLD offers● JLD workshops for students and employers.

34 CFR 675.33(a)

Funding Allocation● Underuse Penalty - If return more than 10 percent of allocated campus-

based funds○ Reduces the amount of next award year’s allocation dollar-for-dollar by the amount

returned to ED

HEA 413D(d)(2); HEA 442(d)(2)

Administrative Cost Allowance● Used to offset administrative costs of the Campus-Based Programs AND

the Federal Pell Grant Program○ Salaries○ Furniture○ Travel/Professional Development○ Supplies○ Equipment○ Service Fees to Banks

Administrative Cost Allowance● Calculating ACA 34 CFR 673.7

○ Calculate the total expenditures for an award year in all three Campus-Based Programs

5% of the first $2,750,000 expenditures PLUS4% of the expenditures between 2,750,000 and $5,500,00 PLUS3% of the expenditures over $5,500,000

● Not a separate allowance sent to the institution

● Quality Assurance Activity

Administrative Cost Allowance● Campus-based programs ACA accounting entry must be posted no later

than June 30 of the award year for which expenditures for those costs were made 34 CFR 673.7(g); 34 CFR 673.4(g)

● Allowance may be drawn from any combination of Campus-Based programs, or taken from only one program, provided there are sufficient funds (does not have to be proportional to expenses)

● May not draw any part of the allowance from a Campus-Based program unless institution disburses funds to students from that program during the award year

Transferring Between Funds

34 CFR 674.18(b); 34 CFR 675.18(e); 34 CFR 676.18(b)

Transferring Between Award Years● Federal Work Study 34 CFR 675.18

○ 10% of a year’s allocation can be carried back to the previous FY or forward to the next FY

● FSEOG 34 CFR 676.18

○ 10% of a year’s allocation can be carried back to the previous FY or forward to the next FY

Record Retention Requirements 34 CFR 668.24

● Schools participating in the Campus-Based programs must keep the FISAP and any records used to support the data for three years from the end of the award year in which the FISAP is submitted

○ e.g., The FISAP records for the 2015-16 award year must be kept until at least June 30, 2019, three years from the last day of the award year

● Records of all FSA program transactions● Records of student accounts where any FSA funds were applied● GL and subsidiary ledgers that identify each FSA program transaction● FWS payroll records● Cash requests and at least quarterly reports from the G5 ● GSA program reconciliation reports● Records used to prepare the aggregate student information on the FISAP

Documentation● Acceptable Formats

○ Hardcopy○ Computer file○ CD-ROM Disc

○ Other media formats

● Electronic File○ Shared drive folder

■ FISAP folder for each year○ Create a naming and file convention○ Example of one part

Resources● NASFAA Student Aid Index (requires NASFAA member login)

● eCampus-Based System● FISAP Desk Reference● FSA eTraining● IFAP● FSA Assessment Module on Fiscal Management● Presentation GoogleDrive Folder

Questions? Matt Dull(828) 262-2060dullmc@appstate.edu

Please remember to share any documents, templates or helpful hints!