[Ucwsfiscal] Administrative Cost Allowance (ACA) Question

[Sergio Ramirez]

Hi Arvin,

At Irvine, the campus uses Organization Codes (Org Code) in the Kuali Financial System (KFS) to define departments and accounts are created under an Org Code. We have 2 Org Codes for our office, one for office operations accounts (i.e., salaries, travel, equipment, etc.) and another for all student financial aid accounts. We record our ACA into an income account under the operations Org Code and not into a student financial aid account.

Thanks,
Sergio

From: Arvin Tumonong <atumonong at ucmerced.edu>
Sent: Wednesday, August 30, 2023 9:26 AM
To: ucwsfiscal at lists.ucmerced.edu
Subject: [Ucwsfiscal] Administrative Cost Allowance (ACA) Question

Dear All,

We would like to ask everyone about how they manage  the accounting for the Administrative Cost Allowance from the various financial aid programs (PELL, FSEOG, FWS, Dream Loan, LAEP).  We have been utilizing our PELL ACA and direct it to a separate fund number from our Pell student aid funds. We are about to claim ACA from our Campus-Based programs, LAEP, and Dream Loan and our Accounting office is recommending for us to direct those funds into the same fund number as our aid funds and tracking them separately through a program code. The issue is that we have about nine total fund numbers that we use in between these programs, some we rotate on a three year cycle, and some are for types of employment for FWS. We were asking if just like PELL we can create a separate fund number to direct the ACA funds into and at least separate from the student aid funds. They expressed concern that we can't move funds from one fund to the other and change the color of money. We were thinking that ACA when claimed can be considered different color of money. We are still in discussion on how best to handle the ACA funds and was curious to how your institution does it. We would appreciate it if you can answer the following questions and add other insights that might be helpful.

How do you handle ACA funds once you claim it? Do you direct it to the same fund number as the student aid funds or have a separate fund? Do you do an expense offset for existing expense or do you charge expense directly to your ACA account? Are you keeping the federal, state, institutional ACA separately? Any useful tips or recommendations you can share about ACA? Have your ACA spending been looked at during audits?

Thank you for your help.

Sincerely,
Arvin


[cid:image001.png at 01D9DCB7.65171E00]
ARVIN TUMONONG
he/him/his

ASSOCIATE DIRECTOR OF FISCAL MANAGEMENT AND SCHOLARSHIPS
OFFICE OF FINANCIAL AID AND SCHOLARSHIPS

5200 Lake Road | Merced, California 95343
http://financialaid.ucmerced.edu <https://urldefense.com/v3/__http:/financialaid.ucmerced.edu__;!!CzAuKJ42GuquVTTmVmPViYEvSg!NVVa0NT6DeCQ5WOWX5pWCi9JZ_fLKvTYS4LkwAtn0uH9FlG8fUCbrgfT-qs3KgRm-MSaSHjJ402KKK1n6Zv5CA$> | 209.228.4679




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