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Work-Study Funds Management: Maximize the Opportunity, Minimize the Liability

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. Work-Study Benefits .

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Work-Study Funds Management: Maximize the Opportunity, Minimize the Liability

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  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 • Reduces reliance on student loans • Time management skills • Connection to university and community

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

  4. How much funding is available? • 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) • Up to 5% of gross FWS earnings • Reported on FISAP Example: $550,000 Gross Earnings x 5% = $27,500 Adjusted Allocation $445,000 ACA 27,500 Allocation for Earnings $417,500

  6. FWS Required Match Placement Category FWS Employer On-Campus 75 25 Off-Campus Community Service 75 25 Eligible Non-Profit 90 10 Private For-Profit 50 50 Eligible Tutoring Programs 100 0

  7. Calculating Gross Earnings • 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

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

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

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

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

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

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

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

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

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

  17. Resources • 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 www.masea.org Illinois, Indiana, Iowa, Kansas, Kentucky, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, West Virginia, Wisconsin

  18. Questions?

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