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Section 10: Budget Planning & Development

Financial Aid Set Asides from Tuition Revenue

Effective Date:

07/24/09

Approved By:

Lenora Chapman, Associate Vice President for Financial Affairs

Last Revised On:

08/26/2015

For Assistance Contact:

Senior Director, Budget Planning and  Development

 Assistant Director, Budget Planning and Development

 

PURPOSE/SCOPE

This guideline establishes the procedures to assure compliance with the financial accounting requirements for mandatory financial aid set asides from student tuition revenues.  There are two separate financial aid revenue sources and provisions mandated by the Texas Education Code covered by this guideline:

  • Texas Public Education Grant (TPEG)

  • Designated Tuition Set-Asides

AUTHORITY

Texas Education Code, Chapter 56 - The Student Financial Assistance Act of 1975

  • Subchapter B. Financial Assistance Funded From Designated Tuition
  • Subchapter C. Texas Public Educational Grants

UNIVERSITY GUIDELINES

Table of Contents

A. Background

Section 54.0513 of the Texas Education Code authorized the governing board of an institution of higher education, under the terms the governing board considers appropriate, to charge any student “an amount designated as tuition that the governing board considers necessary for the effective operation of the institution.” Changes to this tuition rate, known as designated tuition, are authorized by the U. T. System Board of Regents.

Prior to the changes authorized by the 78th Legislature, governing boards were given authority to set the designated tuition rate at an amount not to exceed the statutory tuition rate. Constrained by relatively flat state funding and facing significant enrollment growth, most U. T. academic institutions were at or near the limit of $46 per semester credit hour (SCH) in FY 2003. With the changes by the 78th Legislature, institutions were allowed to exceed the statutory tuition rate.  To help ensure affordability for all Texans, the 78th Legislature mandated financial aid set asides through Sections 56.011 and 56.012 of the Texas Education Code.


B. Responsibilities

The University of Texas at San Antonio Office of Financial Aid within the division of Student Affairs, is responsible for establishing policy and procedures for awarding financial aid to students that are in compliance with the Texas Education Code.  All Cost Centers are established within Department UNW012 – University Wide Financial Aid.

Various departments and administrators reporting to the Associate Vice President for Financial Affairs are responsible for the budget, accounting, financial controls and related monitoring activities for the financial aid programs covered by this guideline:

Senior Director, Budget Planning & Development (Budget Office):

  • Recommends the budget target for each financial aid program based on projected revenues by student level and residency.
  • Evaluates actual enrollment and coordinates reconciliation to assure budget adjustments are made in the financial accounting system.
  • Provides data to the Financial Affairs Student Information System Manager by December of each year for annual reporting to the Texas Higher Education Coordinating Board Integrated Financial Reporting System (IFRS).

 
Assistant Vice President/Controller / Director of Accounting Services (Accounting Office):

  • Coordinates/provides oversight of adjustments to the financial accounting system to ensure accurate reporting in the Annual Financial Report.
  • Ensures timely payment through the Uniform Statewide Accounting System (USAS) as required for remittances to state programs.

Student Information System Manager:

  • Responsible for setting up the Banner tables to ensure students are accurately assessed tuition and fees.  Enables, monitors and assures waiver and exemptions are correctly processed and authorized.
  • Provides, coordinates, analyzes and interprets student information reports; reconciles the feed of student financial data from Banner to the UTShare/PeopleSoft  financial System.
  • Prepares various reports including the annual Integrated Fiscal Reporting System (IFRS) to the Texas Higher Education Coordinating Board.

C. Set Aside Requirements: Establishing Financial Aid Budgets

Enrollment projections determined during the budget development cycle are used to establish the budget requirements for the next fiscal year.   A spreadsheet is created by the Budget Office to document the assumptions and allocation details.   

Once the budgets are set up for the new fiscal year, responsibility for use of the funding in compliance with the Education Code requirements is the purview of the Senior Associate Vice President for Student Affairs.

1. Texas Public Education Grant (TPEG)

      a. §56.033(1)   Resident Student Assistance 15% of each resident student’s charge under §54.051 as provided by the General Appropriations Act for the applicable academic year.   This does not include graduate incremental tuition authorized per §54.008(f).

      Cost Centers: Undergraduate Resident DZX024; Graduate Resident DZX032

      b. §56.033(2)  Nonresident Student Assistance  – 3% of each nonresident student’s charge under §54.051Cost Centers:  Undergraduate Non Resident DZX026; Graduate Non Resident DZX029

      c. §56.033(4)(b) Of the funds set aside from statutory tuition revenue not less than 90% shall be used for Texas Public Education Grants and not more than 10% shall be used for emergency loans under Subchapter D of Chapter 56. Short Term Loan Fund Cost Center: TPEGRS


2. Designated Tuition Set Asides

      a. §56.011.  Resident Undergraduate Student Assistance – 20% of any amount of designated tuition charged to undergraduate resident students in excess of $46 per semester credit hour is set aside for financial aid.  Cost Centers: DAX073 and DZX074 (Workstudy)

      b. §56.012.  Resident Graduate Student Assistance – 15% of any amount of designated tuition charged to resident students enrolled in a graduate program in excess of $46 per semester credit hour is set aside for financial aid.  Cost Center: DZX079

 

D. Source of Enrollment Data

The Budget Office evaluates set asides using a report (CBM001_budget.sql) created by the Office of Information Technology with enrollment data by student level and residency status. The Budget Office has detailed procedures for processing, interpreting and analyzing the raw data.

E. Financial Aid Budget Reconciliation

  1. By the month-end close following each semester’s census date and prior to the fiscal year end closing process (in September, February and August), the Budget Office obtains, analyzes and compares actual enrollment results to the budgeted allocations for required financial aid programs detailed in this guideline. 

  2. The Budget Office completes the forms found in this guideline to detail the amounts of required set asides based on actual as compared to budgeted enrollment data. 

  3. The Budget Office is responsible for making all other entries in the UTShare/PeopleSoft financial  system to reflect the changes in budgeted set aside allocations for:
    1. TPEG and TPEG Loan Program transfers
    2. Designated Tuition Set Asides

The adjustments should be made as soon as possible during the months of October, March and August.

The Budget Office is responsible for communicating the above budgetary changes with the Senior Associate Vice President for Student Affairs to assure UTSA does not over or under allocate financial aid awards for a given academic year.


DEFINITIONS

Term

Definition

Census date

The date in an academic term on which an institution of higher education is required to certify a student's enrollment to the coordinating board for purposes of determining formula funding for the institution.

Designated Tuition

The tuition charge authorized under Texas Education Code Section 54.0513, that a general academic teaching institution, a medical and dental unit, or a public technical institute may impose on any graduate or undergraduate, resident or nonresident student in an amount that the governing board of the institution considers necessary for the effective operation of the institution.

Resident tuition

The amount of tuition paid by a person who is a resident of this state.

Nonresident tuition

The amount of tuition paid by a person who is not a resident of this state and who is not entitled or permitted to pay resident tuition under provisions of the Education Code.

Statutory Tuition

A tuition charge authorized under Texas Education Code Section 54.051,set by the Texas Legislature to be paid by resident or nonresident students.

Texas Public Education Grant (TPEG)

Awarded to undergraduate and graduate students based on need and availability of funds. A limited amount of funds is available to non-residents of Texas as well as foreign students (additional application required). This grant is awarded on a first-come, first-served basis until funds are exhausted.

Uniform Statewide Accounting System (USAS)

The integrated financial system of record for the State of Texas financial records.

REFERENCES/LINKS

RELATED FORMS/WORKSHEETS

  1. Texas Public Education Grant (TPEG) - Financial Aid Budget Reconciliation & Transmittal Form

  2. Designated Tuition Set Aside Financial Aid Budget Reconciliation Form


REVISION HISTORY

Date Description
08/26/15 Updated Responsiblities section B and Budget Reconciliation section E.
08/04/14 Updated DEFINE information for transition to PeopleSoft.
01/23/14 Updated Set Aside Requirements for Texas Public Education Grant (TPEG) and Designated Tuition Set Asides.
06/14/13 Changed all references of "Assistant Vice President for Financial Aid" to "Associate Vice President for Financial Aid."
05/17/13 Update Associate Director to Assistant Director
08/12/09 Guideline published.

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