2. Segregate Pennsylvania State Grant funds Only use for eligible students May not use for any other purpose such as: Paying operation expenses Earning interest Generating revenue Accounting Financial records must identify all State Grant transactions If no separate bank account: Control systems must identify balance that is State Grant Maintaining and Accounting for Funds

3. Bank Account Identify ‘PA State Grant’ in name of the account whether separate account or not Setting Up/Changing ACH only Contact fmeftadmin@aessuccess.org (PHEAA’s Financial Management department) to revise ACH when you change banks, bank closes, account numbers change, etc.fmeftadmin@aessuccess.org Maintaining and Accounting for Funds

4. Cash Management Adequate Cash Management System, adheres to: Procedures Deadlines PHEAA procedures in place to: Promote sound cash management of State Grant funds; Provide PHEAA disbursement information to enable budgeting and improve forecasting accuracy; and Minimize costs to the Commonwealth of making funds available to students through the schools

5. Remittance Method Remit To:Remit With: Check PHEAA, P.O. Box 64849, Baltimore, MD 21264 ‑ 4849  payment reason  identification of funds as “Pennsylvania State Grant”  academic year/period; and/or  the students’ names, social security numbers, or PHEAA account numbers ACH/wire transfer Refer to banking information on disbursement roster Refunds to PHEAA Overaward/Overpayment Reduced and/or Cancelled Awards Program Review Findings

6. Refunds to PHEAA PeriodDeadline Penalties for Missed Deadlines Academic Year June 1 following the academic year (example: June 1, 2015 for 2014-15 year) 1.Subsequent disbursements withheld until the refund is made, and; 2.At the Agency’s discretion, as prescribed by regulation § 121.51, an interest charge applied against the outstanding refund beginning June 1 and accruing until the refund is received by the Agency. Summer Term October 31 following the Summer term (example: October 31, 2015 for Summer 2015)

7. Reimbursement to State Grant Recipients Credit Balances – Occurs when student pays bill before State Grant awarded Refund to the student within the term if student requests DO NOT label as State Grant OR Written permission from student to: Apply to subsequent academic year Apply to student’s loan balance Uncashed Student Refund Checks Adhere to Commonwealth’s Unclaimed Property Law http://www.patreasury.gov/unclaimedProperty.html Report to PA Treasury Consult with school’s attorney or Treasury to insure compliance

8. Financial Responsibility and Program Integrity Demonstrate Financial Responsibility of Your School Adhere to Refund Deadlines Adhere to Certification Procedures and DEADLINES for term disbursement rosters Schools should return their certified copy of the term disbursement roster to PHEAA by the dates below to avoid future disbursement holds. Academic Year Term Fall disbursement by November 15 Winter disbursement by February 1 Spring disbursement by May 1 Summer Term Within 30 days of receipt of the roster or within 30 days of the beginning of the first Summer term in which eligibility can be certified, whichever is later.

9. Disbursement Holds Purpose: Verify actual enrollment and eligibility so that when the term disbursement roster is generated, the funds disbursed more closely align with the actual student eligibility Timeline: Generated about two weeks prior to the school’s term start date as reported on Education Cost form and recorded on FG3M Summer Term- every school will get one (implemented for Summer 2014 and beyond) Academic Year- all BTT’s, non-PA schools, and other selected institutions

10. Disbursement Holds ExampleOutstandingIllustration 1 Current term disbursement Outstanding Fall pre-disbursement roster prevents Fall disbursement. 2 Future term disbursement within academic year period Outstanding Fall pre-disbursement roster prevents Winter and/or Spring disbursement. An outstanding Fall pre-disbursement roster will NOT prevent Winter and/or Spring pre-disbursement rosters, but it will prevent all disbursements and disbursement rosters (any rosters with money).

11. Disbursement Holds Rosters with funds will not be sent until any outstanding disbursement rosters for the current academic year or prior periods, including summer are returned.

12. Disbursement Holds ExampleOutstandingIllustration 1 2013 Summer disbursement roster The Summer 2014 disbursement and any subsequent disbursements will be held. 2 2014 Summer disbursement roster The Summer 2014 reconciliation roster is delayed. Also, any subsequent disbursements, including Fall, will be held after October 31, 2014. 3 Prior Academic Year term disbursement roster (2013-14) The Spring 2014 (2013-14) disbursement roster was not returned so the Fall 2014 disbursement and any subsequent disbursements will be held. 42014-15 Academic Year term roster (Fall, Winter, or Spring) The Spring 2015 (2014-15) term disbursement roster was not returned so the 2014-15 Academic Year reconciliation roster is delayed. The Summer 2015 disbursement and any subsequent disbursements will be held.

13. Disbursement Holds Academic year and summer reconciliation rosters with funds will not be sent until all outstanding rosters for the current academic year or prior periods, including summer, are returned.

14. Disbursement Holds Example OutstandingIllustration 1 Summer 2014 reconciliation The following will be held: 1) any Fall 2014 term disbursements after October 31, 2014; and, 2) any subsequent disbursements. 2Summer 2015 reconciliation The following will be held: 1) any Fall 2015 term disbursements after October 31, 2015; and, 2) any subsequent disbursements.

15. Disbursement Holds Over-disbursed funds (overaward/overpayments) are returned as a school refund to PHEAA Disbursement and recon rosters with payments will not be sent until all outstanding refunds for prior periods, including summer are returned.

16. Disbursement Holds Example OutstandingIllustration 1 Prior Summer refund (Summer 2013 or before) The Summer 2014 disbursement and any subsequent disbursements will be held. 22014 Summer refund The following will be held: 1) any Fall 2014 disbursements after October 31, 2014; and, 2) any subsequent disbursements.

17. Disbursement Holds A school’s term or recon roster with payment will not be sent until the school completes reporting of attempted credits for all SG recipients by the published deadlines for any previous periods including summer. Outstanding here means that attempted credits were not reported in accordance with the criteria and deadlines set forth. For the 2013-14 academic year ONLY, PHEAA will allow a grace period from July 31, 2014 to December 1, 2014.

18. Disbursement Holds Example ‘Outstanding’Illustration 1 2013-14 Academic Year Any Academic Year or Summer term disbursements after December 1, 2014, beginning with the Fall 2014 term will be held. If the Fall 2014 term was already disbursed, then subsequent disbursements will be held. 2 Summer 2014 Term Any Academic Year or Summer term disbursements after December 31, 2014, beginning with the Winter 2014 term (2014-15) will be held. If the Winter 2014 and/or Spring 2015 terms were already disbursed, then subsequent disbursements will be held. 3 2014-15 Academic Year Any Academic Year or Summer term disbursements after July 31, 2015, beginning with the Summer 2015 term will be held. If the Summer 2015 term was already disbursed, then subsequent disbursements will be held. 4 Summer 2015 Term Any Academic Year or Summer term disbursements after December 31, 2015 will be held. If the Fall 2015 term was already disbursed, then subsequent disbursements will be held.

19. Disbursement Holds School does not have proper Automated Clearing House (ACH) paperwork completed to facilitate electronic funds transfer (EFT). PHEAA receives notification there is a change in ownership of the school. PHEAA receives notification the school closed. PHEAA determines the school lacks administrative capability.

20. School Obligations Correcting and confirming enrollment and eligibility on Pre- Disbursement (if applicable) Correcting and confirming enrollment and eligibility by reviewing weekly reports; and Status Listing/Status Transmissions GPAD Partner Interface Listings Submitting timely electronic corrections through the Partner Interface or the transmission

21. Retention of Records, Program Review Retention Minimum 5 years Final Reconciliation Roster Dates, Amounts of Awards, Term Payment identification as “PA State Grant” Auditable documents: Those that support student’s ability to meet requirements Educational costs incurred during the payment term(s) Payments/Refunds Program Review

22. Excess Cash/Netting Clarification not a change Excess Cash – Created when student cancellations and/or adjustments made upon eligibility certification of term roster Netting Process – Using ‘Excess Cash’ to certify students who were awarded after the term’s disbursement roster

23. Excess Cash/Netting Academic Year – May continue through Reconciliation Process but NOT on FINAL Reconciliation Summer – Must STOP at Reconciliation. Each student MUST appear on Reconciliation Roster before crediting. Academic Year to pay Summer Summer to pay Academic Year Summer 14 to pay Summer 15 (and vice versa) 2013-14 Academic Year to pay 2014-15 Academic Year (and vice versa)

24. Excess Cash/Netting *Assumes Fall term roster generated on September 8, 2014 StudentRoster Student Status CertificationPayment Student A Fall roster $1,000 on roster Reduced to $500 (half-time) $500 Student B Fall roster $1,000 on roster Reduced to $603 (withdrawal) $603 Student C Fall roster $1,500 on roster $1,500 – no change $1,500 Student D Not on Fall roster Awarded 9/9/2014 $1,000 $1,000 based upon acceptable notification Options: 1.Use $897 excess and $103 school funds to pay 2.Mark as expecting payment and wait until next term to pay

25. Excess Cash/Netting StudentRoster Student Status CertificationPayment Student A Fall roster $1,000 on roster Cancelled Not Enrolled Not applicable Student A Not on Spring roster Awarded 1/2/2015 $1,000 $1,000 based upon acceptable notification School pays student with excess from Fall term Same Student StudentRosterStudent Status CertificationPayment Student AFall roster $1,000 on roster Cancelled Not Enrolled Not applicable Student BNot on Spring roster Awarded 1/2/2015 $1,000 $1,000 based upon acceptable notification School pays student with excess from Student A and Fall term Different Students *Examples assume Fall term roster generated on September 8, 2014 and Spring term roster generated on December 29, 2014

26. Excess Cash/Netting Student Student Status CertificationDifferenceSchool Action Student A $2,000 ($1,000 Fall; $1,000 Spring) Cancelled Spring for not enrolled ($1,000) overpayment 1.School pays Student B with excess from Student A; and 2.School remits refund to PHEAA in the amount of $500; and 3.School requests reconciliation roster to show student changes. Student B $1,500 ($1,000 Fall; $500 Spring) Adjusted Spring to full- time and $1,000 $500

27. Excess Cash/Netting StudentRosterStudent Status CertificationPayment Student A 1 st Summer roster $1,000 on roster Cancelled Not Enrolled Not applicable Student B 2 nd Summer roster $1,000 on roster Cancelled Not Enrolled Not applicable Student C Not on either roster Awarded $1,000 on 8/11/2015 $1,000 based upon acceptable notification School pays Student C with excess. *Assumes 1 st Summer disbursement roster generated on July 13, 2015 and 2 nd Summer disbursement roster on August 10, 2015.

28. Defining Rosters Term reports that: Generate an Electronic Fund Transfer (EFT) Are labeled as term disbursement roster Typical Disbursement Roster Schedule Term Generation Period Period Fall Mid-August through late November Academic Year Winter Late November through mid- February Spring Semester Mid-December through mid- February Spring Quarter Mid-February through late March Summer Early July through August Summer Available securely through: PageCenter report repository Disbursement Transmission process

29. Defining Rosters Reconciliation Rosters are reports that: Generate an Electronic Fund Transfer (EFT), when necessary Are labeled as reconciliation roster Reconciliation Roster Schedule Disbursement Period Regular generation Period Academic Year Early April through June Summer October 1 through December 31* * Payment will not be made after this date

30. Defining Rosters Balance Due PHEAA and Balance Due School both = 0 Amount of funding the school received matches funding disbursed by PHEAA Each student’s FINAL State Grant on Recon Roster status matches school’s records All students who were credited appear on final Recon Roster FG3S

31. Defining Rosters Communicate with other school offices (e.g. Bursar, Business, Technical) Document Monitor all refund payments sent, received and posted to the correct program, year, and period Continue to monitor FG3S for balance changes Request funds due by deadlines

32. Defining Rosters First Reconciliation Roster generated automatically Subsequent rosters must be requested by your school. You must request (sghelp@pheaa.org) when:sghelp@pheaa.org Award/Student Mismatch Balance Is Zero But Students/Awards on Roster ≠ Students Credited Funds Due PHEAA – Your Records Do Not Agree Academic Year Funds – Request Additional Funds June 1 – Recon deadline Summer Funds – Request Additional Funds October 31 – Recon deadline Return within 30 days

33. Defining Rosters Recon Process implemented with Summer 2014 Same rules apply for Summer 2015 First Reconciliation Roster generated automatically All students must be on Recon Roster to be paid (no netting) Subsequent must be requested In writing (sghelp@pheaa.org) by December 31, 2015 – funds will be sentsghelp@pheaa.org After December 31, 2015 – must request roster for balancing but no funds will be sent

34. Defining Rosters Pre-Disbursement Rosters are reports that: DO NOT generate an Electronic Fund Transfer (EFT) Are labeled as pre-disbursement roster 2014-15 All Business, Trade, & Technical Schools All non-Pennsylvania Schools Other Select Institutions Summer 2015 All Schools

35. Defining Rosters Status Listing or Status Transmission PageCenter – Listing Guide to Listing in Document Library Transmission Layout and Test File in Document Library Partner Interface Student Lists Refer to PHEAA.org/training for Tutorials and User Guide GPAD Reports PageCenter - Listing 4 weeks of eligibility changes to student records since initial awarding

36. Roster and Funds Availability Rosters PageCenter Report Repository Disbursement Transmissions Funds Approximately 12 Business Days From Roster Date Adjustment Percentage Procedure Effective 2014-15 – APPLIES TO ALL SCHOOLS 3-Year Average Usage of Disbursed Funds Do not adjust student awards based on PHEAA % Academic Year Notifications – July Summer Notifications – March Percent displays on FG3M (page 1, bottom left)

37. Assumptions, PHEAA Collectables Student on roster - ASSUME credited Roster generated, student not on roster but awarded - ASSUME credited Roster generated & student NOT on roster (no award notification) - ASSUME not credited If assumptions not correct – NOTIFY PHEAA PHEAA collects directly from student PHEAA recovers all or part of prior terms by adjusting remaining terms Student on roster - ASSUME credited Roster generated, student not on roster but awarded - ASSUME credited Roster generated & student NOT on roster (no award notification) - ASSUME not credited If assumptions not correct – NOTIFY PHEAA PHEAA collects directly from student PHEAA recovers all or part of prior terms by adjusting remaining terms

38. Assumptions, PHEAA Collectables Schools should NOT attempt collection if PHEAA Collectable/Offset Schools should contact via Special Request if: Funds not credited so PHEAA collection can be discontinued Correction is needed to record (enrollment, etc.) Student refund letter (logged on ‘Activity’ tab) Grouped at front of roster Roster Summary Page (Totals on FG3S Summary) ‘Special Messages’ on Student Record (Interface)

39. PHEAA Reviews PHEAA will prevent disbursement where it has not occurred Notifications – Income Validation/Other Review listing GPAD – Income Validation Report

40. 1.Confirm all changes/requests for changes have been submitted 2.Use electronic Certification Page/Document Library 3.Print and keep a copy for your files BEFORE submitting Under ‘Certification Procedures, Workshop Materials and Roster Certification page Roster Certification

41. Activity will be logged Last resort- Print from PageCenter Sign, scan, and email using sghelp@pheaa.org address sghelp@pheaa.org Sign and fax to (717)720-3786 Sign and mail using address on the roster

42. FG3S – State Grant College Disbursement Display You now need to add a ‘G’ for the Program Type to view State Grant Disbursement You will use “D” for Distance Education

43. FG3S – State Grant College Disbursement Display continue How to check to see if a refund is due PHEAA Select F10 to access Page 3 – Disbursement and Award Summary A refund is due PHEAA if an amount is displayed in the Balance due PHEAA field This will hold up future funds

44. FG3S – State Grant College Disbursement Display continue How to check to see if a Balance is due the School Select F10 to access Page 3 –Disbursement and Award Summary Funds are due the school if an amount is displayed in the Balance due Institution field

45. FG3S – State Grant College Disbursement Display continue How to check to see if the school has an outstanding roster Review the Status and Disb Roster Returned field The roster is considered outstanding if the status does not show ‘C’ complete and the date fields are blank o This example reflects an outstanding reconciliation roster This will hold up future funds Select F8 to page through the Disbursement Display

46. FG3M –College /Institution Grant Specific Display A new ‘F’ key named “HOLD” will become available on SET2 of the FG3M screen. This option will eventually take you to a transaction that lists the various reasons a school may be on hold.

48. Contact State Grant and Special Programs Staff:  Email sghelp@pheaa.org or Call 1-800-443-0646, Option 3, Option 1 Reserved for Financial Aid Administrators Resources  www.PHEAA.org/training www.PHEAA.org/training Tutorials, Webinars, User Guides, etc. Resources