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IFAP
FSA Information for Financial Aid Professionals
U.S. Department of Education

Citations: (R)675.19
AsOfDate: 12/31/95

Fiscal procedures and records.

(a) Fiscal procedures. (1) In administering its FWS

program, an institution shall establish and maintain an internal
control system of checks and balances that insures that no office
can both authorize payments and disburse funds to students.

(2) If an institution uses a fiscal agent, that agent may

perform only ministerial acts.

(3) An institution shall maintain funds received under

this part in accordance with the requirements in Sec. 668.164.

(b) Records and reporting. (1) An institution shall

establish and maintain on a current basis financial records that
reflect all program transactions. The institution shall establish and
maintain general ledger control accounts and related subsidiary
accounts that identify each program transaction and separate
those transactions from all other institutional financial activity.

(2) The institution shall also establish and maintain

program and fiscal records that--

(i) Include a certification that each student has worked

and earned the amount being paid. The student's supervisor, an
official of the institution or off-campus agency, shall sign the
certification. The certification shall include or be supported by, for
students paid on an hourly basis, a time record showing the hours
each student worked in clock time sequence, or the total hours
worked per day;

(ii) Include a payroll voucher containing sufficient

information to support all payroll disbursements;

(iii) Include a noncash contribution record to document

any payment of the institution's share of the student's earnings in
the form of services and equipment (see Sec. 675.25(a));

(iv) Are reconciled at least monthly;

(v) Identify each student's account and status;

(vi) Show the eligibility of each student aided under the

program; and

(vii) Show how the need was met for each student.

(3) Each year an institution shall submit a Fiscal

Operations Report plus other information the Secretary requires.
The institution shall insure that the information reported is
accurate and shall submit it on the form and at the time specified
by the Secretary.

(4) The institution must maintain on file all FWS

employment applications for those students it reports on the
Fiscal Operations Report and Application to Participate in the
Federal Perkins Loan, FSEOG, and FWS Programs (FISAP).

(5) The institution shall maintain all records supporting

its application for funds under this part.
(c) Retention of records. (1) Records. Each institution
shall keep intact and accessible records of the application, the
receipt, and the expenditure of Federal funds, including all
accounting records and original and supporting documents
necessary to document how the funds are spent.

*(2) Period of retention. Except for audit questions, an

institution shall keep records for an award year for five years after
it submits its FISAP for that year.

*(3) An institution may keep the records required in this

section on microforms, optical disk, other comparable imaging
technology, or in computer format. If an institution keeps its
records in computer format, it shall maintain, in either hard copy,
microforms, optical disk, or other comparable imaging technology,
the source documents supporting the computer input.

*(4) Audit questions. An institution shall keep records

on any claim or expenditure questioned by Federal audit or
program review until any audit questions are resolved.

(Authority: 42 U.S.C. 2753 and 20 U.S.C. 1094 and 1232f)

(Approved by OMB under control number 1840-0535)