Presentation on theme: "Cash Management and Business Officers Hal Deuser Assistant Bursar Webster University."— Presentation transcript:
Cash Management and Business Officers Hal Deuser Assistant Bursar Webster University
Cash Management – The Definition Cash management regulations govern a school’s management of Federal Student Financial Aid program funds. These regulations establish the rules and procedures that a school must follow in requesting, maintaining, disbursing, and otherwise managing FSA funds under the Pell Grant, FSEOG, Perkins Loan, FWS, Direct Loan, and the FFEL Programs.
The Purpose of SFA Cash Management Regulations Promote sound cash management of FSA program funds by schools. Minimize the costs to the government of making FSA program funds available to students and schools. Minimize the costs to students who receive FSA loans. Guarantee that FSA program funds received by a school are intended and used solely for the use of eligible students.
Cash Management Responsibilities Common to Business Offices Coordinate and cooperate with the Financial Aid Office in: – Projecting Cash needs for FSA disbursement – Processing FSA cancellations of student and school refunds – Obtaining authorizations to pay FSA funds – Being aware and in compliance of FSA laws and regulations – Submitting accurate and timely informational and fiscal reports – FSA disbursement and adjustments are properly and consistently recorded and reported
Maintain a system of internal controls that ensures adequate FSA checks and balances Ensure that the functions of authorizing and disbursing FSA funds remain separate Maintain FSA records that are consistent with GAAP and government auditing standards Accurate and auditable draw down and return of FSA funds Disburse and adjust FSA funds to eligible students Maintain a system of student accounts that records charges, credits, and amounts due
Collect Federal Perkins Loans and ensure that all related laws and regulations are followed Establish and implement the school’s refund policy (may be done by the FAO) Process return of TIV funds per FSA laws and regulations Report FSA expenditures and reconcile cash between school records, bank statements, and federally reported balances Maintain and provide general stewardship of federal funds and a cash management system that meets FSA disbursement requirements, laws, and regulations Establish and monitor Federal Work-Study (FWS) payroll and time sheets (responsible office varies per school) and monitors the school’s nonfederal share of FWS matching funds Prepare for and participate in FSA program reviews and audits
FSA Policies and Procedures’ Manual Topics Organizational structure of the FAO and Business offices and how the school determines the number of qualified staff to administer TIV Programs Defined checks and balances in the school’s financial management system(s) Who is in charge of what and kept informed of students’ aid eligibility Annual calendar of Financial Aid related activities A list of all Student Account charges Defined payment periods and loan periods
Defined FSA procedures for the disbursement - crediting of funds to student accounts Procedures for requesting and drawing down FSA funds Defined fiscal recordkeeping and fiscal reporting policies and procedures Defined policies and procedures for handling FSA credit balances Defined polices and procedures for evaluating and improving the school’s operations of the Business and Financial Aid Offices
Business Office Common TIV Requirements Notify borrower of right to cancel and/or adjust prior to federal loan disbursement and the defined related procedures No later than the 7 th day of each payment period, school must provide a way for federal Pell eligible students to obtain books/supplies for a payment period If a standard credit-hour program, no FSA disbursements before 10 calendar days before the first day of each payment period Maximum of $200 of current TIV award year funds may be used for prior AY unpaid balances TIV Credit balances must be refunded no later than 14 days after credit balance occurs (varies if disburse 10 days before payment period, then on first day of payment period). NOTE: School determines which funds created the credit balance Parent PLUS credit balances refunded to parent unless parent authorizes payment to student in writing
Any credit balance TIV funds authorized to remain on student account must be refunded by the end of the loan period for Direct Loan funds If Credit balance TIV funds authorized to remain on student account must be held in designated subsidiary ledger account and maintained at all times, cash in a school’s bank account must have an amount at least equal to amount of these FSA funds being held on account Prior to Disbursement of Direct Loans notify borrower of right to cancel and/or adjust By 7 th day of each payment period, school must provide way for Federal Pell eligible students to obtain books/supplies assuming the student would have a credit balance If standard credit-hour program, no disbursements before10 calendar days before the first day of each payment period Maximum of $200 of current TIV award year funds may be used for prior AY unpaid balance TIV Credit balances must refund no later than 14 days after credit balance occurs (varies if disburse 10 days before payment period, then on first day of payment period). NOTE: School determines which funds created the credit balance.
Parent PLUS credit balances to parent unless parent authorizes payment to student in writing Credit balance TIV funds authorized to remain on student account must be refunded by the end of loan period for Direct Loan funds If credit balance TIV funds authorized to remain on student account must be held in designated subsidiary ledger account and maintained at all times, cash in a school’s bank account must have an amount at least equal to the amount of SFA funds being held on account Undeliverable refunded TIV funds must be returned to the funding TIV program no later than 240 days after the date of non-deliverable notice. Additional attempts may be made to deliver, but they must be made within 45 days after funds are returned or rejected, if not successful, regardless, then no later than 240 days funds are returned to funding SFA program
Cash Management Authorizations Payment, cancellations, and adjustment notifications must be given in writing, unless considered an “affected Individual” Separate written authorizations must be obtained from the student and from the parent, as applicable, and must be freely given Authorization must explain each provision for the activities the school seeks to perform on behalf of the student or parent and how that activity will be performed Written in plain, understandable language that details the student’s/parents’ rights under the authorization A single form may be used to collect multiple authorizations detailing the related services and clearly states that the student/parent may refuse Must clearly state the procedures for cancelling or modifying authorizations An authorization may not be incorporated into any other document that must be signed unless some sort of check off is clearly provided Details the period covered by the authorization, a specific period of time or the entire period the student is enrolled If FSA funds, it must clearly state the maximum time the school will hold the student’s or parent’s TIV funds