1. Work-Study Funds Management: Maximize the Opportunity, Minimize the Liability Presented by Ann Wessman President, National Student Employment Association Assistant Director, Student Financial Aid Iowa State University MASFAA Conference October 2006

2. Work-Study Benefits Graduates better prepared Graduates better prepared Reduces reliance on student loans Reduces reliance on student loans Time management skills Time management skills Connection to university and community Connection to university and community

3. Fundamental Questions 1. How much funding is available? 2. How much should be awarded? Distribution among students Distribution among students Identifying, monitoring, and factoring in trends Identifying, monitoring, and factoring in trends 3. How can administrators monitor earnings? 4. How can you adjust utilization? 5. What do you do if funds remain at year-end?

4. How much funding is available? FWS Final Funding FWS Final Funding Allocation$500,000 Carry Forward 0 Carry Back (5,000) JLD (50,000) Adjusted Allocation$445,000

5. Administrative Cost Allowance (ACA) Administrative Cost Allowance (ACA) Up to 5% of gross FWS earnings Up to 5% of gross FWS earnings Reported on FISAP Reported on FISAPExample: $550,000 Gross Earnings x 5% = $27,500 Adjusted Allocation $445,000 ACA 27,500 Allocation for Earnings $417,500

6. FWS Required Match FWS Required Match Placement CategoryFWSEmployer On-Campus7525 Off-Campus Community Service7525 Eligible Non-Profit9010 Private For-Profit5050 Eligible Tutoring Programs1000

7. Calculating Gross Earnings Calculating Gross Earnings Determine average reimbursement percentage Determine average reimbursement percentage FWS Allocation for Earnings$417,500 Divide by Average Reimbursement 75.9 % Gross Earnings Goal (rounded)$550,000 OR Separate FWS allocation into segments and apply exact reimbursement percentage Separate FWS allocation into segments and apply exact reimbursement percentage

8. How much should be awarded? Keep in mind that… Keep in mind that… Not all who are offered enroll Not all who are offered enroll Not all who enroll accept FWS Not all who enroll accept FWS Not all who accept FWS earn the entire amount Not all who accept FWS earn the entire amount And, students earn at different rates And, students earn at different rates

9. Overcommit/Overaward/Overoffer Overcommit/Overaward/Overoffer Historical Reports Historical Reports Offered to accept patterns Offered to accept patterns Accepted to earned patterns Accepted to earned patterns Prior year is best illustration Prior year is best illustration 3-5 year comparison recommended 3-5 year comparison recommended Expenditure Goal$550,000 Initial Overcommit 200% Initial Amount to Award $1,100,000

10. Additional Items to Consider Additional Items to Consider Changes in packaging strategy Changes in packaging strategy “Climate” changes that might affect earnings “Climate” changes that might affect earnings Economy Economy Student/family behavior Student/family behavior Trends in higher education Trends in higher education Institutional changes Institutional changes Financial aid regulations Financial aid regulations FWS program FWS program

11. How can administrators monitor earnings? Measure frequently Measure frequently Use historical records to make decisions Use historical records to make decisions Compare earnings to assumptions Compare earnings to assumptions Use tracking to make adjustments Use tracking to make adjustments Know where to find the information Know where to find the information Financial aid Financial aid Payroll Payroll Accounting Accounting Accounts Receivable/Payable Accounts Receivable/Payable

12. How can you adjust utilization? Revise awards Revise awards Limit time to accept Limit time to accept “Wait list” “Wait list” Periodic contacts w/students & employers Periodic contacts w/students & employers Focus on employers rather than jobs Focus on employers rather than jobs “Strong matches” “Strong matches” Extend deadlines for reimbursement Extend deadlines for reimbursement Carry forward/Carry back Carry forward/Carry back Adjust employer match Adjust employer match Administrative Cost Allowance Administrative Cost Allowance Job Location & Development (JLD) funds Job Location & Development (JLD) funds Transfer to FSEOG Transfer to FSEOG Identify “problem” employers Identify “problem” employers Increase contracts w/community service agencies Increase contracts w/community service agencies

13. Things to keep in mind Things to keep in mind Consider effects on students and employers Consider effects on students and employers Keep descriptive notes about policy changes to understand the impact in future years Keep descriptive notes about policy changes to understand the impact in future years Back-up plan Back-up plan Early is easier Early is easier

14. What do you do if funds remain at year-end? Carry Forward Carry Forward Transfer to FSEOG Transfer to FSEOG Charge to ACA Charge to ACA JLD JLD Reimburse Institutional CWS Reimburse Institutional CWS

15. If all else fails… If all else fails…Deobligate Campus-Based Funds Reallocation Form Campus-Based Funds Reallocation Form Funds returned to Department of Education Funds returned to Department of Education Redistributed to other schools Redistributed to other schools If you don’t deobligate, funds to back to General Treasury If you don’t deobligate, funds to back to General Treasury

16. Summary Goals Goals 1. Accurately determine amount to be awarded 2. Translate trends, conditions, and historical information into a financial projection 3. Make periodic assessments 4. Employ practices and adjustments to spend 100% of FWS funds

17. Resources National Student Employment Association National Student Employment Association www.nsea.info Listserv, Discussion Board, Research Grants, Career Center, Journal of Student Employment, Student Employee of the Year Start-Up Grants Midwest Association of Student Employment Administrators Midwest Association of Student Employment Administrators www.masea.org Illinois, Indiana, Iowa, Kansas, Kentucky, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, West Virginia, Wisconsin

18. Questions?