|CMP 135: Scholarship Allowances|
To establish policies and procedures for accounting and reporting of Scholarship Allowances under GASB 35
University Policy, GAAP, GASB 34 and 35, ABOR
The Governmental Accounting Standards Board issued Statements 34 and 35 to be effective for Governments with total annual revenues of 100 million or more for periods beginning after June 15, 2001. These statements mandated the accounting and reporting of revenues net of discounts and allowances. The statements apply to all public colleges and universities and provide a financial reporting model that shall be implemented for our 2002 fiscal year.
A. Scholarship Allowances shall apply only to Tuition and Fees and Housing as agreed upon by the three state universities. It was determined that any other fees (i.e. Health center, parking, other accounts receivable) paid from Financial Aid would be immaterial. For Audit purposes, a report identifying the materiality of Other A/R will be provided.
B. Revenue will be disclosed net of Scholarship Allowance with the amount of Scholarship Allowance shown parenthetically on the Financial Statement. The tuition and fees revenue to which Scholarship Allowance is associated includes Instate registration, Out-of-State tuition, Class fees, Music fees, late registration, late payment, recreation center, and Trust. Insurance and ASA fees are not included in Scholarship Allowance as these fees are recorded in the Agency fund.
C. Scholarship Allowance will not change the current accounting practices. Financial reports will be adjusted by information acquired through ad hoc reporting. A year end adjustment will be made to the general ledger in the adjustment fund to reflect the scholarship allowance.
D. The following criteria is to determine if PeopleSoft financial aid item type codes are to be included as a Scholarship Allowance and have been identified in the attached listing:
1. Item Types that pay tuition and fees and housing from Departments where financial aid was recorded as revenue in the Restricted Fund are included as a scholarship allowance. If the financial aid was reported as revenue in the Department Fund it is not included as a scholarship allowance when tuition and fees and housing are paid. The revenue has not been reported twice.
2. Graduate Waivers are considered Scholarship Allowance and not compensation (employee benefit). Health Insurance provided to graduate students in considered an extension of the scholarship. Graduate health insurance is not a scholarship allowance as the revenue is recorded in the Department Fund and is not revenue to the university.
3. Special Billing (S/B) is generally not considered to be a Scholarship Allowance. The third party pays the tuition and fees directly to the students account.
4. Department Billing Item Types (D/B) pay tuition and fees from a department. The fees are usually paid from a grant account where revenue has already been reported when the grant money was received. In this case the D/B tem Type would be included as a scholarship allowance. D/B Item Types should be reviewed each year to determine exceptions.
5. Federal and State Grants that are reported in the Restricted Fund are considered to be a Scholarship Allowance.
6. Athletic awards for housing rent are not recorded as a financial aid disbursements but are considered to be a Scholarship Allowance. The funds are taken from athletics to pay housing using an II document in PeopleSoft Financials. But the source of the funds from the athletics account comes from NAU’s local tuition and fees account. Therefore the source of the money is internal.
The amount of funds transferred from Athletics to Housing can be obtained from Business Manager in Residence Life or running an ad hoc report on housing internal documents.
7. STAR program awards that are in the Restricted Fund or supported by a State Appropriation are considered to be a Scholarship Allowance.
8. Student Loans are not included as a Scholarship Allowance. The student is actually paying his own fees. It is just being deferred to a later date.
1) Any financial item types (item code of “F”) not pointed to an agency fund and with the following item type keyword1:
2) Any financial item types with an item code equal to ‘F’ that goes to the Scholarship department id equal to ‘1700110’.
A complete listing of People Soft Financial Aid Item Types is available from the Comptroller's Office upon request.
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