Departmental Educational Foundation Scholarships Awards FY 2004 Procedure Changes

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Departmental Educational Foundation Scholarships
AwardsFY 2004 Procedure Changes
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Objectives

• Provide Responsibility Units with the tools
  needed to effectively track Educational
  Foundation Scholarships awards made by their
  departments
• Eliminate use of central University-wide clearing
  account for tracking Educational Foundation
  Scholarships awards and replace it with
  Responsibility Unit level clearing accounts
• Improve the accuracy of the accounts receivable
  statements sent to the Educational Foundation for
  reimbursement by issuing pre-bills to
  Responsibility Units

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Objectives

• Eliminate need for Educational Foundation to
  return accounts receivable statements to
  University departments for verification before
  issuing payment
• Eliminate the Educational Foundations role of
  intermediary between Financial Aid and the
  Responsibility Unit
• Provide the Educational Foundation with the
  information needed to make timely payments

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• New Process for FY 2004
• Budget Office Established Educational
  Foundation Scholarships Accounts (S500) for each
  USC unit for use in tracking awards made by their
  departments
• Financial Aid Incorporated the new accounts
  into their financial aid tracking system
• Educational Foundation Provides USC units with
  financial reports that detail spendable earnings
  for each endowment account

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• New Process for FY 2004
• Responsibility Unit Determines level funding
  available to support scholarship awards

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• New Process for FY 2004
• Responsibility Unit
• Makes awards to individual students
• Notifies Financial Aid of awards issued
• Monitors S500 department fund account
  transactions throughout the year to ensure that
  only authorized awards are posted, billed, and
  paid by the Educational Foundation

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Example of How the Expenditures Appear on the
General Ledger
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• New Process for FY 2004
• Financial Aid
• Enters departmental awards into their aid
  tracking system using the new S500 accounts
• Resolves any need-based over award issues that
  may arise
• Financial Services
• Applies aid to students tuition statement
• Establishes accounts receivable records for
  tracking and collecting funds from the
  Educational Foundation at the Responsibility Unit
  level
• Issues semester pre-billing statements on or
  around October and March to Responsibility Units
• Establishes due dates for when correcting entries
  are needed to Financial Aid

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• New Process for FY 2004
• USC Unit
• Reviews pre-billing statements for accuracy
• Emails Financial Aid (Barbara Friendly) with any
  needed corrections by due date
• Monitors activity on S500 account to ensure that
  corrections are processed prior to the release of
  the official bill by Financial Services
• Emails the Educational Foundation with an
  endowment account specific listing of authorized
  payments for scholarships (New email address to
  be established)

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Example of Email to Educational Foundation
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Example of Email Attachment
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• New Process for FY 2004
• Financial Aid Processes corrections and
  forwards information to Financial Services
• Financial Services Forwards final semester
  statements to the Educational Foundation for
  payment around November and April of each year

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• New Process for FY 2004
• Educational Foundation
• Compares individual Responsibility Unit email
  authorizations with the final statements from
  Financial Services
• Resolves discrepancies by contacting the
  Responsibility Unit
• Processes payments of financial aid award against
  the spendable balances of the appropriate
  endowment accounts
• Issues check to the University along with a list
  of reconciling items
• Notifies Responsibility Units that they have
  reconciling items to resolve

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• New Process for FY 2004
• Financial Services Applies payment against each
  Responsibility Units S500 account
• Responsibility Unit - Resolves all reconciling
  items and processes corrections through Financial
  Aid
• Budget Office Conducts annual review of S500
  department fund account balances to ensure that
  all activity is cleared out in a timely manner

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• Questions?