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Professionals U.S. Department of Education

Citations: (R)675.19 AsOfDate: 12/31/95

Fiscal procedures and records. (a) Fiscal procedures. (1) In administering its FWS program, an institution shall establish and maintain an internal control system of checks and balances that insures that no office can both authorize payments and disburse funds to students. (2) If an institution uses a fiscal agent, that agent may perform only ministerial acts. (3) An institution shall maintain funds received under this part in accordance with the requirements in Sec. 668.164. (b) Records and reporting. (1) An institution shall establish and maintain on a current basis financial records that reflect all program transactions. The institution shall establish and maintain general ledger control accounts and related subsidiary accounts that identify each program transaction and separate those transactions from all other institutional financial activity. (2) The institution shall also establish and maintain program and fiscal records that-(i) Include a certification that each student has worked and earned the amount being paid. The student's supervisor, an official of the institution or off-campus agency, shall sign the certification. The certification shall include or be supported by, for students paid on an hourly basis, a time record showing the hours each student worked in clock time sequence, or the total hours worked per day; (ii) Include a payroll voucher containing sufficient information to support all payroll disbursements; (iii) Include a noncash contribution record to document any payment of the institution's share of the student's earnings in the form of services and equipment (see Sec. 675.25(a)); (iv) Are reconciled at least monthly; (v) Identify each student's account and status; (vi) Show the eligibility of each student aided under the program; and (vii) Show how the need was met for each student. (3) Each year an institution shall submit a Fiscal Operations Report plus other information the Secretary requires. The institution shall insure that the information reported is accurate and shall submit it on the form and at the time specified by the Secretary. (4) The institution must maintain on file all FWS employment applications for those students it reports on the Fiscal Operations Report and Application to Participate in the Federal Perkins Loan, FSEOG, and FWS Programs (FISAP). (5) The institution shall maintain all records supporting its application for funds under this part.

(c) Retention of records. (1) Records. Each institution shall keep intact and accessible records of the application, the receipt, and the expenditure of Federal funds, including all accounting records and original and supporting documents necessary to document how the funds are spent. *(2) Period of retention. Except for audit questions, an institution shall keep records for an award year for five years after it submits its FISAP for that year. *(3) An institution may keep the records required in this section on microforms, optical disk, other comparable imaging technology, or in computer format. If an institution keeps its records in computer format, it shall maintain, in either hard copy, microforms, optical disk, or other comparable imaging technology, the source documents supporting the computer input. *(4) Audit questions. An institution shall keep records on any claim or expenditure questioned by Federal audit or program review until any audit questions are resolved. (Authority: 42 U.S.C. 2753 and 20 U.S.C. 1094 and 1232f) (Approved by OMB under control number 1840-0535)