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Reconciliation Instructions
The amounts listed for the financial aid office should be the monthly
totals reported as disbursed to and adjusted from students by the
financial aid office. The business office totals should be the monthly
totals disbursed to and refunded from student accounts. The GAPS
amounts should be the monthly totals advanced from and refunded to
the institution from GAPS.
The amount received from the Treasury should be listed on the date
received in the institution’s bank account. The disbursement date is
the date on which funds were disbursed to student accounts (which
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may be before or after the date funds are received by the Treasury).
The cash position reflects the amount (which can be negative) of
federal cash on hand. If the balance is positive for more than three
days, it is possible that the institution has excess cash on hand. You
should track excess cash for each program – simply copy a blank
Excess Cash worksheet for each Title IV program in which you
participate. This will be particularly important to do if you have
separate depository accounts for Federal funds (for example, one for
Pell and one for FDL).
Additional Worksheets:
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Financial Aid Office Columns: Calculate the totals for the amounts
disbursed for each program (according to Financial Aid Office
records.
COD: Record the amounts for Federal Pell Grant and Direct Loans
as reported in COD. The COD website provides a number of
reconciliation tools, including several reports such as the Pell
Electronic Statement of Account (ESOA) and Pell Year To-
Date (YTD). For Direct Loan Schools, the School Account
Statement (SAS) is also available. Use these reports and record the
totals in the columns indicated. Please refer to the COD Website
to request these reports (and a variety of other reports to assist
with the reconciliation process).
If any amounts do not match for any program, the school should take
appropriate action to resolve the discrepancy to ensure all accounts
are in balance and complete a Management Enhancement
Worksheet if necessary.
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GAPS
Federal Pell FSEOG FWS Federal Perkins Direct Loan
Grant
TOTAL $ $ $ $ $
COD
Federal Pell Direct Loan
Grant
Pell Year-To-Date (YTD) or Electronic $ $
Statement of Account (ESOA)
School Account Statement (SAS) $ $
Other COD Report used $ $
FISAP TOTALS
FISAP Year Federal Pell FSEOG FWS Federal Perkins
Grant
Application Year ________ $ $ $ $
Reporting Year _________
* For FFEL it is highly recommended that your school complete the monthly
worksheets. There is no FFEL column for Financial Aid since the amount of
FFEL funds awarded in Financial Aid will not match with funds disbursed in
the Business Office (since fees vary by lender and are often not deducted
from Financial Aid records).
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Activity: Use the worksheet on the following page to ensure that your
school complies with federal regulations mandating that federal funds
be disbursed to students within three days of receipt by the institution
(for advance pay schools).
The amount received from the Treasury should be listed on the date
received in the institution’s bank account. The disbursement date is
the date on which funds were disbursed to student accounts (which
may be before or after the date funds are received by the Treasury).
The cash position reflects the amount (which can be negative) of
federal cash on hand. If the balance is positive for more than three
days, it is possible that the institution has excess cash on hand. You
should track excess cash for each program – simply copy a blank
Excess Cash worksheet (below) for each Title IV program in which you
participate. This will be particularly important to do if you have
separate depository accounts for Federal funds (for example, one for
Pell and one for FDL).
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For all areas that the school found problems, please complete a Management
Enhancement Worksheet to explain and track the school’s plan for
corrective action.
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These instructions should help your school understand how to use the
Federal Pell Reconciliation Worksheet.
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TOTALS:
GAPS COD
Disburse Adjuste Net Disburse Adjuste Net
d d Expende d d Expende
d d
TOTALS:
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These instructions should help your school understand how to use the
FWS Monthly Reconciliation Worksheet.
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TOTALS:
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To
Amount
FWS Matching **
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These instructions should help your school understand how to use the
Federal Perkins Monthly Reconciliation Worksheet.
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TOTALS:
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Perkins Matching *
To
Amount
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These instructions should help your school understand how to use the
Federal Perkins Monthly Reconciliation Worksheet.
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Month of: __________________________________________
TOTALS:
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From
Amoun
t
To
Amoun
t
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These instructions should help your school understand how to use the
Year-end worksheets.
COD: Record the amounts for Direct Loans as reported in COD. The
COD website provides a number of reconciliation tools, including
several reports such as the School Account Statement (SAS). Use
this report and record the totals in the columns indicated. Please
refer to the COD Website to request this report (and a variety of
other reports to assist with the reconciliation process).
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TOTALS:
GAPS COD
Disburse Adjuste Net Disburse Adjusted Net
d d Expende d Expende
d d
TOTALS:
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These instructions should help your school understand how to use the
monthly worksheet. Use the rows of each worksheet to account for
each Master Check or EFT that comes in during the month.
If any amounts do not match, the school should take appropriate action
to resolve the discrepancy to ensure all accounts are in balance and
complete a Management Enhancement Worksheet if necessary.
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These instructions should help your school understand how to use the
monthly worksheet. Use the rows of each worksheet to account for
each individual check that comes in for a student during a particular
month.
If any amounts do not match, the school should take appropriate action
to resolve the discrepancy to ensure all accounts are in balance and
complete a Management Enhancement Worksheet if necessary.
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Final Reconciliation
Total FFEL Total Amount Credited to Total Amount Returned To
funds received Student Lender
via check for
month
From Column 3
on Individual
Check Log*
Total Total from Total amounts Total
Credited original written from amount of
Through FFEL checks school’s bank original
Student given account** checks
Accounts** directly to returned to
student lender
$ $ $ $ $
NOTE: The amount in the first column should match with the
total amount from the other four columns.
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Listed below are school responsibilities related to administering the Title IV programs.
Identify the office or the coordinator that is usually responsible for each function at
your campus 668.24
Program Records: An institution shall establish and maintain, on a current basis, any application for title
IV, HEA program funds and program records that document the requirements listed below. Complete the
following to demonstrate where the following required documentation is located and/or who is responsible
to coordinate the requirement.
Coordinator(s) of Disbursement of
funds:
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each Title IV, HEA program transactions from all other institutional
transaction and separate those financial activity?
transactions from all other
institutional financial activity.
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Activity: Use the worksheet on the following page to ensure that your
school complies with federal regulations mandating that federal funds
be disbursed to students within three days of receipt by the institution
(for advance pay schools).
The amount received from the Treasury should be listed on the date
received in the institution’s bank account. The disbursement date is
the date on which funds were disbursed to student accounts (which
may be before or after the date funds are received by the Treasury).
The cash position reflects the amount (which can be negative) of
federal cash on hand. If the balance is positive for more than three
days, it is possible that the institution has excess cash on hand. You
should track excess cash for each program – simply copy a blank
Excess Cash worksheet (below) for each Title IV program in which you
participate. This will be particularly important to do if you have
separate depository accounts for Federal funds (for example, one for
Pell and one for FDL).
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Directions:
Student Name: SS N :
Award year reviewed:
Overaward? Y N
General Disbursement Requirements
Required Student Authorizations on file 668.165
If selected, verification completed for this student prior to releasing funds 668.58 and 668.60
Student/parent was notified of amount of FSA funds expected to receive and when the funds will
be disbursed
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Fe d e r a l P e l l G r a n t Ye s No
A C G / N a t i o n a l SM A RT G r a n t p ay m e n t s f o r t h i s s t u d e n t a c c e p t a b l e u nd e r
program regulations? Y N
FSEOG Ye s No
FSEOG Disbursements for the Award Year Reviewed:
$___________ 1st Payment Period $___________ 2nd Payment Period
$___________ 3rd Payment Period $___________ 4th Payment Period
Pell eligible student
Portion of FSEOG disbursed during each payment period 676.16
Followed rules for single disbursements, if applicable 676.16
Followed rules for uneven costs/unequal disbursements, if applicable 676.16
FSEOG disbursements for this student acceptable under program regulations? Y N
FWS Ye s No
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Fe d e r a l P e r k i n s L o a n D i s b u r s e m e n t s
Federal Perkins disbursements for this student acceptable under program regulations?
Y N
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682.604(f); 685.304
Certified/Originated Correctly
30 day delay requirement met for first-time, first-year borrowers 682.604; 685.303(b)(4)
Prorated Correctly
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Part One: The Worksheet below can be used to assist your school
with the calculation of a composite score 668.172:
Proprietary School:
Ratio Fo r m u l a Result
Primary Reserve
Ratio Adjusted Equity ________________________
Total Expenses
Equity Ratio
Modified Equity ________________________
Modified Assets
STEP TWO: C A L C U L AT E T H E S T R E N G T H FA C T O R
SCORE
P r i m a r y Re s e r v e S t re n g t h Fa c t o r S c o re = Re s u l t :
2 0 X * P r i m a r y Re s e r v e Ra t i o
E q u i t y S t re n g t h Fa c t o r S c o re = 6 X E q u i t y Re s u l t :
Ra t i o
N e t I n c o m e S t re n g t h Fa c t o r S c o re = 1 + Re s u l t :
( 3 3 . 3 X N e t I n c o m e Ra t i o )
N o t e : I f t h e s t re n g t h f a c t o r s c o re f o r a n y r a t i o i s g re a t e r
t h a n o r e q u a l t o 3 , t h e s t re n g t h f a c t o r s c o re f o r t h a t
r a t i o i s 3 . I f t h e s t re n g t h f a c t o r s c o re f o r a n y r a t i o i s
l e s s t h a n o r e q u a l t o – 1 , t h e s t re n g t h f a c t o r s c o re f o r
that ratio is –1
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P r i m a r y Re s e r v e We i g h t e d S c o re = 3 0 % X Re s u l t :
P r i m a r y Re s e r v e S t re n g t h Fa c t o r S c o re
E q u i t y We i g h t e d S c o re = 4 0 % X E q u i t y S t re n g t h Re s u l t :
Fa c t o r S c o re
N e t I n c o m e We i g h t e d S c o re = 3 0 % X N e t I n c o m e Re s u l t :
S t re n g t h Fa c t o r S c o re
_______________________________________
Round the composite score 0 one digit after the decimal point
to determine the final score.
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Ratio Fo r m u l a Result
Primary Reserve
Ratio Expendable Net ________________________
Assets
Total Expenses
Equity Ratio
Modified Net Assets ________________________
Modified Assets
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STEP TWO: C A L C U L AT E T H E S T R E N G T H FA C T O R
SCORE
P r i m a r y Re s e r v e S t re n g t h Fa c t o r S c o re = Result:
1 0 X * P r i m a r y Re s e r v e Ra t i o Re s u l t
E q u i t y S t re n g t h Fa c t o r S c o re = 6 X E q u i t y Result:
Ra t i o Re s u l t
N e t I n c o m e S t re n g t h Fa c t o r S c o re = ( I F Result:
N E T I N C O M E RAT I O I N S T E P O N E I S
POSITIVE), use this formula: 1 + (50 X Net
I n c o m e Ra t i o Re s u l t )
(IF THE NET INCOME RATIO IN STEP ONE IS 0) then
the Strength Factor Score =1
(IF THE NET INCOME RATIO IS STEP ONE IS
NEGATIVE), use this formula: 1 + (25 X Net Income
Ratio Result)
N o t e : I f t h e s t re n g t h f a c t o r s c o re f o r a n y r a t i o i s g re a t e r
t h a n o r e q u a l t o 3 , t h e s t re n g t h f a c t o r s c o re f o r t h a t
r a t i o i s 3 . I f t h e s t re n g t h f a c t o r s c o re f o r a n y r a t i o i s
l e s s t h a n o r e q u a l t o – 1 , t h e s t re n g t h f a c t o r s c o re f o r
that ratio is –1
P r i m a r y Re s e r v e We i g h t e d S c o re = 4 0 % X Result:
P r i m a r y Re s e r v e S t re n g t h Fa c t o r S c o re
E q u i t y We i g h t e d S c o re = 4 0 % X E q u i t y S t re n g t h Result:
Fa c t o r S c o re
N e t I n c o m e We i g h t e d S c o re = 2 0 % X N e t I n c o m e Result:
S t re n g t h Fa c t o r S c o re
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Round the composite score 0 one digit after the decimal point
to determine the final score
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To begin with this activity, locate a copy of the schools most recent
FISAP to check the Administrative Cost Allowance (ACA) figures.
Review the schools procedures for calculating the Administrative Cost
Allowance to ensure that the calculations were done correctly.
Note: A school may take the administrative cost allowance out of the
annual authorizations the school receives for the FSEOG and FWS
programs and from the available cash on hand in its Perkins Loan
funds. A school may draw the allowance from any combination of
campus-based programs, or it may take the total allowance from only
one program provided there are sufficient funds in that program. A
school may not draw any part of its allowance from a campus-
based program unless the school has disbursed funds to
students from that program during the award year.
Use the following calculation to determine the amount of ACA for all
Campus-based programs. Remember, a school can take the entire
amount of ACA from one program or a combination of all Campus-
based programs:
Column 1 Column 2
Award Year Total Expenditures to students in FWS, FSEOG and Federal Perkins
Loans
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Final Result:
________________________________________________________
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