Your Financial Aid Playbook: Policies and Procedures

NCASFAA Fall 2011Rose Mary Stelma

What We’ll Talk AboutDefinitionsRequirementsPurpose of Policies and ProceduresGood Practices and TipsChallengesFSA ResourcesSuggested TopicsSamples

Who Needs The Playbook?The Team Owner

◦Dean, VP, Chancellor◦Approves polices

The Head Coach◦Responsible for everything that

happens before, during, and after the game

Who Needs The Playbook?The Assistant Coaches

◦Support the Head Coach ◦May be assigned specific

responsibilities (like working on procedures!)

The Players◦Financial aid staff◦Other offices

The Officials◦Federal and State

Important ReminderThis presentation provides guidance

only.The list of topics is NOT exhaustive –

just a guideAlways review statutes, regulations,

and other guidelines (like Dear Colleague letters, guidance issued by state agencies, etc.)

Resources You NeedA commitment to “get it done”Willingness to use available

resourcesFinancial aid rules, regulations,

statutes, guidance (Dear Colleague, etc.)

Coffee, tea, chocolate – whatever gets and keeps you going

Writing tools

Policy Definition Noun A definite course of action adopted

for the sake of expediency, facility, etc.

Action or procedure conforming to or considered with reference to prudence or expediency

Synonyms: strategy, principle, rule

Source: Dictionary.reference.com

Procedure Definition Noun An act or a manner of proceeding in

any action or process; conduct A particular course or mode of action Synonyms: Management, operation,

maneuver, transaction

Source: Dictionary.reference.com

Federal PerspectiveCampus needs to have written policies

and procedures for the administration of Title IV student assistance programs

Does not have to be a “manual”Tools to assist schools in being good

stewards in administration of programs and delivery of dollars and services

The Purpose of PoliciesHelp an organization reach its long-

term goalsInfluence and determine all major

decisions and actionsAll activities take place within the

policy boundariesExplain the business of financial aid to

others on campusCentralize information

The Purpose of ProceduresSpecific methods Policies in action Day-to-day operations of the

organizationPrevent an employee from holding

your operation hostageAssist with staff training

Good PracticesReference applicable federal and state

statutes and regulationsAlign with organization’s vision,

strategic plan, and core processes, and goals

Review at least annually◦Peer review process that includes

cross-section of individuals◦Clearly defined approval process

Good PracticesAssign the responsibility to maintainUse a standardized process and

formatEasy accessibility for staffDo periodic “reality checks”Version the document

◦Clearly identify current and previous versions

◦Clearly list effective dates

The “Must Do” Items Say what you do and then

do what you say!Verify that everyone is following

the policies and procedures!

Tips for Writing ProceduresAction orientedProperly describe the activity to be

performed. Consistency

◦Use references and terms the same way every time

◦Following the procedure must ensure consistent results

Complete◦No missing information or gaps in

steps or logic

Tips for Writing ProceduresInternal Controls

◦ The document and its described actions demonstrate feedback and control.

◦Preventive◦Detective◦Should not be overly cumbersome

Clarity◦Easy to read and understand

Challenges

NO TIME!!!! TOO MUCH CHANGE!!!!

Develop a schedule Assign responsibilityto write, test, for keeping up withreview, and update statutory and

regulatory changes

RiskNot complying with regulationsAudit findingsFinancial liability

FSA ResourcesQuality Assurance Program home

pageTools for SchoolsA Guide to Creating a Policies and

Procedures Manual

Administrative CapabilityQualified person(s) to administer Title IVChecks and balances/separation of dutiesSatisfactory academic progressConflicting dataFiscal reports and financial statementsFinancial aid counselingPurpose and philosophy of the Financial

Aid OfficeGeneral office administrationCalendar of activities

Institutional EligibilityGeneral requirementsUpdating application informationAdmission policyState authorization

General ProvisionsCertificationTitle IV refundsCompliance audits and audited

financial statementsConsumer informationVerificationProfessional judgment and

dependency overrides

General ProvisionsMisrepresentationDocumentationSecondary confirmationAbility to benefit

Federal Perkins LoanSelection and awarding of studentsMaster Promissory NoteLoan disclosureFiscal procedures and recordsForbearance and defermentContact with borrowersBillingCollectionLitigationCancellation

Federal Work Study and Job Location and DevelopmentSelection and awarding of studentsAssigning FWS jobsJLD procedures and recordsWork Colleges

◦Program procedures and records

FSEOGSelection and awarding of studentsFSEOG fiscal procedures and records

ACG and National SMARTPrograms ended 6/30/2011Historical information

◦Student eligibility requirements◦Calculating awards◦Fiscal control and accounting for the

programs

Federal Direct LoanPackaging policiesCounseling borrowersPayment of a refundPayment of a Return to Title IVAdministrative and fiscal control

Federal Pell GrantCalculating awardsRequired and optional recalculationsFiscal records and disbursement

requirementsDisbursement for books and supplies

TEACH GrantEligibility determinationCounselingFiscal control and fund accounting

Other Federal ProgramsExample: Nursing Student LoanSelection and awarding of studentsFiscal procedures, accounting, and

fiscal recordsDisbursement requirementsPayment of a refund

North Carolina Student Financial Assistance ProgramsSelection and awarding of studentsFiscal procedures, accounting, and

fiscal recordsDisbursement requirementsPayment of a refund

Programs from Other StatesSelection and awarding of studentsFiscal procedures, accounting, and

fiscal recordsDisbursement requirementsPayment of a refund

Institutional Student Financial Assistance ProgramsSelection and awarding of studentsFiscal procedures, accounting, and

fiscal recordsDisbursement requirementsPayment of a refund

AppendicesAcronymsTerms Forms Charts

Sample Purpose Statement

This manual is intended for the use of Student Financial Aid staff, University administration, auditors, and others reviewing the financial aid operation at this University.

Sample Philosophy StatementsThis Community College will be the

“preferred choice” for quality education and training. This Community College is dedicated to fulfilling the educational, training, and cultural needs of the community.

The Financial Aid Office supports the Community College in fulfilling its vision and mission by providing assistance to students who would otherwise be unable to pursue a postsecondary education because of finances.

Sample Cost of Attendance PolicyGenerally, cost of attendance budgets are standardized, based on housing status, enrollment status, and dependency status. Exceptions are made on an individual basis for the following reasons:1. Book & supply expenses in excess of the standard allowance.2. Study abroad expenses3. Etc.

Sample Cost of Attendance Professional Judgment Procedure for Book & Supply Expenses in Excess of the Standard Allowance

1. Collect documentation A. Course Syllabus that lists required

supplies with estimated costs.B. List of required books & supplies from

student. List much include estimated costs.

C. Receipts, or list of items from bookstore.

2. Compare student’s cost to the standard books & supplies allowance

A. If student’s cost is < standard, no adjustment is required

B. If student’s cost is > standard, then continue

3. Add excess amount to books & supplies line item in student’s cost of attendance

4. Add comments to student’s record, explaining why there is an increase – initial & date

5. Award additional aid if applicable (Follow applicable policies and procedures)

6. File paper documentation in student folder – initial & date w action noted.

Internal Control: Director periodically reviews a report listing students who have “nonstandard” cost of attendance

Is Your Playbook Up To Date?

Gainful EmploymentCredit hour definitionState AuthorizationRepeating coursework impact on full

time student definitionWritten agreements between schools

NOT an exhaustive list – just a guide!

Is Your Playbook Up To Date?Incentive compensationHigh School diploma validityR2T4MisrepresentationAbility to BenefitDisbursement of Title IV aid

NOT an exhaustive list – just a guide!

Is Your Playbook Up To Date?Net Price CalculatorVerification changesSatisfactory Academic ProgressNew State Aid ProgramsPreventing Fraud

NOT an exhaustive list – just a guide!

Resources for YouIFAP.ED.GOVIFAP.ED.GOV/QAHOMENASFAA.ORG

Resources used for this presentation

IFAP.ED.GOV/QAHOMEDictionary.comBusinessdictionary.comTechnibble.comBtiworld.comChiff.com