[Ucwsfiscal] Administrative Cost Allowance (ACA) Question

[Catherine Yu Li]

Davis does the same as Riverside.

Catherine Li
Associate Director || Financial Aid and Scholarships
p. 530-752-6904 | c. 530-400-6274  | w. financialaid.ucdavis.edu<https://financialaid.ucdavis.edu/> | e. ycli at ucdavis.edu<mailto:ycli at ucdavis.edu>
One Shields Avenue, Davis, CA 95616

From: Jose A Aguilar <jose.aguilar at ucr.edu>
Sent: Thursday, August 31, 2023 2:24 PM
To: ucwsfiscal at lists.ucmerced.edu
Subject: Re: [Ucwsfiscal] Administrative Cost Allowance (ACA) Question

Hi Arvin,

At Riverside we one fund number for Pell and Campus-Based Programs (CBP), a separate fund for the Dream Loan ACA, and for LAEP we requested and were granted a separate fund number for the ACA. Our rationale was that we will be required to report to the State ACA expenditures. To my recollection we have not been asked or audited on ACA expenditures. Just the computation.

Best,
Jose


JOSE A. AGUILAR, MBA

Executive Director, Financial Aid Office

Office of Financial Aid

2106 Student Services Building

900 University Avenue | Riverside, CA 92521



Phone: (951) 827-7249 | Fax: (951) 827-5619 |

Email: jose.aguilar at ucr.edu<mailto:jose.aguilar at ucr.edu> |Web: https://financialaid.ucr.edu/

________________________________
From: Arvin Tumonong <atumonong at ucmerced.edu<mailto:atumonong at ucmerced.edu>>
Sent: Wednesday, August 30, 2023 9:25 AM
To: ucwsfiscal at lists.ucmerced.edu<mailto:ucwsfiscal at lists.ucmerced.edu> <ucwsfiscal at lists.ucmerced.edu<mailto: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





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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 | 209.228.4679








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