Maintaining and Accounting for Funds
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
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.
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
Refunds to PHEAA
Overaward/Overpayment
Reduced and/or Cancelled Awards
Program Review Findings
Remittance
Method
Check
ACH/wire
transfer
Remit To:
PHEAA, P.O. Box

64849, Baltimore, MD 
21264-4849

Refer to banking
information on

disbursement roster
Remit With:
payment reason
identification of funds as
“Pennsylvania State Grant”
academic year/period;
and/or
the students’ names, social
security numbers, or
PHEAA account numbers
Refunds to PHEAA
Period
Academic
Year
Summer
Term
Penalties for Missed
Deadlines
June 1 following the
1. Subsequent
academic year (example:
disbursements withheld
June 1, 2015 for 2014-15
until the refund is made,
year)
and;
2. At the Agency’s
discretion, as prescribed
by regulation § 121.51,
October 31 following the
an interest charge
Summer term (example:
applied against the
October 31, 2015 for
outstanding refund
Summer 2015)
beginning June 1 and
accruing until the refund
is received by the
Agency.
Deadline
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
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
Summer
Term
Fall disbursement by November 15
Winter disbursement by February 1
Spring disbursement by May 1
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.
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
Disbursement Holds
Example Outstanding
Illustration
1
Current term
disbursement
Outstanding Fall pre-disbursement
roster prevents Fall disbursement.
2
Future term
Outstanding Fall pre-disbursement
disbursement within roster prevents Winter and/or Spring
academic year period 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).
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.
Disbursement Holds
Example Outstanding
1
2013 Summer
disbursement roster
Illustration
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.
The Spring 2014 (2013-14) disbursement roster
was not returned so the Fall 2014 disbursement
and any subsequent disbursements will be held.
3
Prior Academic Year
term disbursement
roster (2013-14)
4
2014-15 Academic Year The Spring 2015 (2014-15) term disbursement
term roster (Fall, Winter, roster was not returned so the 2014-15 Academic
or Spring)
Year reconciliation roster is delayed. The Summer
2015 disbursement and any subsequent
disbursements will be held.
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.
Disbursement Holds
Example
Outstanding
Illustration
1
Summer 2014
reconciliation
The following will be held: 1) any Fall 2014 term
disbursements after October 31, 2014; and, 2)
any subsequent disbursements.
2
Summer 2015
reconciliation
The following will be held: 1) any Fall 2015 term
disbursements after October 31, 2015; and, 2)
any subsequent disbursements.
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.
Disbursement Holds
Example
Outstanding
Illustration
1
Prior Summer
refund (Summer
2013 or before)
The Summer 2014 disbursement and any
subsequent disbursements will be held.
2
2014 Summer
refund
The following will be held: 1) any Fall 2014
disbursements after October 31, 2014; and, 2) any
subsequent disbursements.
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.
Disbursement Holds
Example
‘Outstanding’ Illustration
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.
1
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.
School Obligations
Correcting and confirming enrollment and eligibility on PreDisbursement (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
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
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
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)
Excess Cash/Netting
Student
Roster
Student
Status
Certification
Payment
Student A
Fall
roster
$1,000 on
roster
Reduced to
$500 (half-time)
$500
Student B
Fall
roster
$1,000 on
roster
Student C
Fall
roster
$1,500 on
roster
Student D
Not on
Fall
roster
Awarded
9/9/2014
$1,000
Reduced to
$603
(withdrawal)
$1,500 – no
change
$1,000 based
upon
acceptable
notification
$603
$1,500
Options:
1. Use $897 excess and $103
school funds to pay
2. Mark as expecting payment
and wait until next term to
pay
*Assumes Fall term roster generated on September 8, 2014
Excess Cash/Netting
Student
Roster
Fall
roster
Not on
Student A Spring
roster
Student A
Student
Roster
Student A Fall
roster
Student B Not on
Spring
roster
Student
Status
$1,000 on
roster
Awarded
1/2/2015
$1,000
Student
Status
$1,000 on
roster
Awarded
1/2/2015
$1,000
Certification
Cancelled Not
Enrolled
$1,000 based
upon acceptable
notification
Payment
Not applicable
School pays student
with excess from Fall
term
Certification
Payment
Cancelled Not
Enrolled
$1,000 based
upon acceptable
notification
Not applicable
School pays student
with excess from
Student A and Fall term
*Examples assume Fall term roster generated on September 8,
2014 and Spring term roster generated on December 29, 2014
Same
Student
Different
Students
Excess Cash/Netting
Student
Student A
Student B
Student
Status
$2,000
($1,000 Fall;
$1,000
Spring)
Certification Difference
School Action
1. School pays Student B with
($1,000)
excess from Student A; and
overpayment 2. School remits refund to
PHEAA in the amount of
$500; and
3. School requests
$1,500
Adjusted
reconciliation roster to show
($1,000 Fall; Spring to full$500
student changes.
$500
time and
Spring)
$1,000
Cancelled
Spring for
not enrolled
Excess Cash/Netting
Student Roster
Student
A
Student
B
Student
C
1st Summer
roster
2nd Summer
roster
Not on either
roster
Student
Status
$1,000 on
roster
$1,000 on
roster
Awarded
$1,000 on
8/11/2015
Certification
Payment
Cancelled Not
Enrolled
Cancelled Not
Enrolled
$1,000 based
upon
acceptable
notification
Not applicable
Not applicable
School pays Student C
with excess.
*Assumes 1st Summer disbursement roster generated on July 13, 2015
and 2nd Summer disbursement roster on August 10, 2015.
Defining Rosters
Term reports that:
Generate an
Electronic Fund
Transfer (EFT)
Are labeled as
term
disbursement
roster
Typical Disbursement Roster Schedule
Term
Fall
Winter
Spring
Semester
Spring
Quarter
Summer
Generation Period
Period
Mid-August through late November
Late November through midFebruary
Mid-December
February
through
mid-
Academic
Year
Mid-February through late March
Early July through August
Available securely through:
PageCenter report repository
Disbursement Transmission process
Summer
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
October 1 through December 31*
Summer
* Payment will not be made after this date
Defining Rosters
Balance Due PHEAA and Balance Due School both = 0
FG3S
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
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
Defining Rosters
First Reconciliation Roster generated automatically
Subsequent rosters must be requested by your school.
You must request (sghelp@pheaa.org) when:
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
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 sent
After December 31, 2015 – must request roster for balancing
but no funds will be sent
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
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
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)
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
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)
PHEAA Reviews
PHEAA will prevent disbursement where it has not occurred
Notifications – Income Validation/Other Review listing
GPAD – Income Validation Report
Roster Certification
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
Roster Certification
Activity will be logged
Last resort- Print from PageCenter
Sign, scan, and email using
sghelp@pheaa.org address
Sign and fax to (717)720-3786
Sign and mail using address on the roster
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
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
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
FG3S – State Grant College Disbursement
Display continue
How to check to see if the school has an
outstanding roster
Select F8 to page through the Disbursement Display
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
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.
Resources
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
Tutorials, Webinars, User Guides, etc.