MONTHLY PROGRAM RECONCILIATION The purpose of the reconciliation process is to bring the Financial Aid records and the General Ledger records into agreement. Completion of the reconciliation process requires the resolution and detailed explanation of any differences between the cumulative expenditures reported by the Financial Aid Office and those recorded in the General Ledger. 1. The Financial Aid programs for which a monthly reconciliation shall be completed are as follows: a. College Work-Study (CWSP) b. Pell Grant c. Supplemental Educational Opportunity Grant (SEOG) d. Texas Public Educational Grant (TPEG) 2. The Financial Aid Office shall be responsible for initiating the reconciliation process and forwarding the applicable forms (Reconciliation Form--Form #0006 and Reconciliation Worksheets) to the College Business Office by the 20th of the month. 3. The College Business Office shall be responsible for completing the reconciliation process and forwarding the original page of the Reconciliation Form and the worksheets to the District Coordinator of Financial Aid no later than the last working day of the month. 4. A delay in submitting the Reconciliation Form and worksheets to the District Coordinator of Financial Aid may be granted due to extenuating circumstances such as the following: a. Registration activities b. Delays in receiving the necessary reports (General Ledger Account Number Analysis and/or the SAFE Program Reconciliation Report) from Computer Services to complete the reconciliation process
B.
RECONCILIATION FORM/WORKSHEETS 1. Sections are provided on the Reconciliation Form (Form #0006) to record the following information:
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2 ============================================================== === a. b. c.
Expenditure from the SAFE System records Expenditure from the General Ledger Reconciliation of the SAFE System and General Ledger records
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3 ============================================================== === RECONCILIATION PROCEDURES (Continued) B.
RECONCILIATION FORM/WORKSHEETS (Continued) 2. There are two (2) Reconciliation Worksheets that should accompany the Reconciliation Form: a. One Worksheet identifies the transactions that are included in the SAFE System totals but have not yet been recorded in the General Ledger (See Exhibit A). These transactions are hereafter referenced as "Items In Transit". b. The other Worksheet identifies the transactions that are included in the General Ledger but have not been entered into the SAFE System (See Exhibit B). These transactions are hereafter referenced as "Items Not Posted To SAFE".
COMPLETION OF THE RECONCILIATION FORM A.
8.4.1
FINANCIAL AID OFFICE RESPONSIBILITIES The Financial Aid Office shall complete the heading and the first section entitled "Financial Aid Records" for each program being reconciled. 1. Enter the following information in the heading: The College name, the month and year for which the reconciliation is being completed, the name of the financial aid program, the program year, the allocation, and the complete account number. 2. The "Year-to-Date Expenditures from SAFE" amount represents the total cumulative expenditures from the monthly SAFE Reconciliation Report. 3. A review of the General Ledger must be made each month to identify the following and list them on the Reconciliation Form: a. Transactions that have not been posted to the SAFE System but have been recorded in the General Ledger b. Transactions that have been incorrectly recorded in the General Ledger and need an adjustment d. Transactions that have been posted to the SAFE System and included in the totals on the SAFE
DCCCD BUSINESS PROCEDURES MANUAL FINANCIAL AID SECTION 8.4.0 - RECONCILIATION PROCEDURES REV. 07/28/92
Reconciliation Report but have not appeared in the General Ledger The transactions that have not been posted to the SAFE System but are recorded in the General Ledger should be detailed on the appropriate Reconciliation Worksheet and entered in the first section as "Items Not Posted To SAFE".
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5 ============================================================== === COMPLETION OF THE RECONCILIATION FORM (Continued) A.
FINANCIAL AID OFFICE RESPONSIBILITIES (Continued) 5. When errors are identified in the General Ledger, a memorandum describing the needed correction and backup must be sent to the College Business Office requesting that the correction be made. Those errors would also be listed as "Items In Transit". 6. The transactions that have not been recorded in the General Ledger but are included in the totals on the SAFE Reconciliation Report (#SAF10100) should be detailed on the appropriate Reconciliation Worksheet and entered in the first section as "Items In Transit". 7. Any activity recorded to the same account number in the General Ledger that belongs to a previous reporting or allocation year must be identified by Financial Aid as "Cumulative Prior Year Activity". Enter this amount in the third section on the appropriate line.
B.
COLLEGE BUSINESS OFFICE RESPONSIBILITIES The College Business Office shall complete the second and third sections of the Financial Aid Reconciliation Form entitled "Business Office Records" and "Reconciliation". A Financial Aid Reconciliation Form must be completed for each program being reconciled. 1. The entries in the second section "Business Office Records" must be derived from the General Ledger. 2. Most of the entries in the Reconciliation Section will be found in the first and second sections of the Form. a. "Total Cumulative Expenditure to Date per General Ledger" comes from Line 11. b. Total In-Transit" comes from Line 8. c. Cumulative Prior Year Activity" is provided by Financial Aid. d. "Items In-Transit Still Outstanding" are carried forward from previous reconciliations because they have not yet appeared in the General Ledger.
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An Item In-Transit will not be carried over more than two months without "thoroughly-researched" documentation from the College Business Office explaining why the transaction has not cleared. (2) Both the Financial Aid Office and the College Business Office are responsible for ensuring that the Items In-Transit clear the General Ledger in a timely manner. 3. The "Adjusted Total Expenditure to Date" line in the Reconciliation Section should balance with the "Adjusted Total--SAFE" line in the first section. COMPLETION OF THE RECONCILIATION FORM (Continued) B.
COLLEGE BUSINESS OFFICE RESPONSIBILITIES (Continued) 4. The Financial Aid Reconciliation Form shall not be sent to the District Coordinator of Financial Aid until it is balanced. 5. The following documentation should be forwarded with the Financial Aid Reconciliation Form to the District Coordinator of Financial Aid: a. Reconciliation Worksheets b. Copies of adjusting journal entries 6. A copy of the completed Financial Aid Reconciliation Form and copies of the adjusting journal entries shall also be forwarded to the campus Financial Aid Office.
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CAMPUS RECONCILIATION WORKSHEET PROGRAM: MONTH OF: PROGRAM RECONCILIATION REPORT (Financial Aid Records Data) Closing Cumulative Total:
$
Monies Past Reporting Month:
$
CUMULATIVE TOTAL:
$ ITEMS NOT POSTED TO SAFE
Name
Transaction
Amount
TOTAL ITEMS NOT POSTED TO SAFE: GRAND TOTAL:
By/Date
$ $
(Grand total equals Cumulative Total + Items Not Posted to SAFE)
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10 ============================================================== === EXHIBIT "C" (To be sent if student needs to refund Financial Aid due to student's withdrawal or due to a calculation error in the amount of funds disbursed to the student)
OVERPAYMENT NOTICE
date
student's ssn
name address city,state Dear Student: This letter is to inform you that due to *your withdrawal from classes/ a calculation error, you now owe College $______ of the Grant funds that were disbursed to you at the beginning of the semester, . (term) (year) Payment should be made at the ______ College Cashier's Office located in Room no later than . Failure to make payment within the specified time may result in your student records being blocked and referral of the amount you owe to the Department Of Education for collection. Please contact the Financial Aid Office at have any questions.
if you
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11 ============================================================== === Financial Aid Representative
