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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, Financial Affairs

Last Revised On:

08/04/2014

For Assistance Contact:

Mary Simon,  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 Texas Education Code covered by this guideline:

  • Texas Public Education Grant (TPEG)

  • Designated Tuition Set-Asides

AUTHORITY

Texas Education Code, section 56.001. The Student Financial Assistance Act of 1975, amended 2003:

  • Subchapter B. Financial Assistance Funded From Designated Tuition

  • Subchapter C. Texas Public Educational Grants


UNIVERSITY GUIDELINES

Table of Contents

A. Background

Section 54.013 of the Texas Education Code, as amended by the 78th Legislature in 2003, 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 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 – e,g, Integrated Financial Reporting System (IFRS).

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

  • Coordinates/oversight of adjustments to the financial accounting system to assure accurate reporting in the Annual Financial Report.
  • Assures 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 assure 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 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 Assistant Vice President for Financial Aid.

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

      §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

      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. Student Financial Assistance.  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 will be 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 will be set-aside for financial aid.  Cost Center: DZX079

      c. §56.465.  Texas B-On-Time Student Loan Program  - 5% of the amount of designated tuition charged to a resident undergraduate student in excess of $46 per semester.   This amount is netted from the total discussed above in c(2)(a). and remitted to the state per instructions by the State Comptroller. Cost Center: DZX076

     

3. Doctoral Incentive Loan Program

§56.095 (b)  Each institution of higher education shall set aside a portion of the tuition collected from each student enrolled in a doctoral degree program equal to $2 for each semester credit hour for which the student is enrolled. The amount set aside shall be transferred to the state comptroller to be maintained in the state treasury. Allocation details are communicated by the Budget Office to the Assistant Vice President for Financial Aid to assure that budget documents are accurately created following the prevailing campus budget process. Cost Center: DZX080


D. Source of Enrollment Data

Effective Fiscal Year 2009, the Budget Office will evaluate 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 will obtain, analyze and compare actual enrollment results to the budgeted allocations for required financial aid programs detailed in this guideline. 

  2. The Budget Office will complete 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 PEOPLESOFT financial accounting system to reflect the changes in budgeted set aside allocations for:
    1. TPEG and TPEG Loan Program transfers
    2. Designated Tuition Set Asides including B-on-Time
    3. Doctoral Loan Program

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

  1. The B-on-Time and Doctoral Loan program form is emailed to Accounting Services who is responsible for assuring all payments are made to the State treasury in a timely manner as computed and shown on the forms. The form should be sent to Accounting no later than October 15th, March 15th and August 15th of each fiscal year.  The budget changes will have already been entered by the Budget Office when Accounting receives the form.

  2. The Budget Office is responsible for communicating the above budgetary changes with the Assistant Vice President for Financial Aid to assure UTSA does not over or under allocate financial aid awards for a given academic year. 

DEFINITIONS

Term

Definition

B-on-Time (BOT) Student Loan Program

Authorized by the Texas Legislature to improve and increase access to higher education in the State of Texas.  Recipients may use the money to pay for any usual and customary costs of attendance incurred by the student at an eligible institution, including tuition, fees, books, and room and board. The purpose of the Texas B-On-Time Loan program is to provide eligible Texas students no-interest loans to attend colleges and universities in Texas. If a student meets specific goals, the entire loan amount can be forgiven upon graduation.

§56.463 TEXAS B-ON-TIME STUDENT LOAN ACCOUNT.  (a)  The Texas B-On-time student loan account is an account in the general revenue fund. The account consists of gifts and grants and legislative appropriations received under §56.464, tuition set aside under  §56.465, and other money required by law to be deposited in the account.

§56.465. TUITION SET ASIDE FOR PROGRAM.  a)  The governing board of each institution of higher education shall cause to be set aside five percent of the amount of the tuition charged to a resident undergraduate student at the institution under §54.0513 in excess of $46 per semester credit hour. The amount of a student's tuition set aside under this subsection is considered a part of the amount required to be set aside from that tuition under §56.011.  (b)  The amount of tuition set aside under Subsection (a) shall be deposited to the credit of the Texas B-On-time student loan account established under §56.463 or to the interest and sinking fund established by the coordinating board under §52.91(b) in accordance with the resolution of the board establishing such fund.

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.

Doctoral incentive loan repayment program

Provides education loan repayment assistance to individuals from groups that are underrepresented among the faculty and administration of public and independent institutions of higher education in this state to increase the number of individuals from those underrepresented groups among the faculty and administration of public and independent institutions of higher education in this state.

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

Is 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)

Is 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-serve basis until funds are exhausted.

UTSA Grant

The need-based grant awarded to undergraduate and graduate students and sourced from set aside revenue from designated tuition per the Education Code.  This fund is awarded during the regular awarding cycle and is awarded on a first-come, first-serve basis until funds are exhausted. Students will be awarded based on their FAFSA application date.

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 Asides: B-On-Time and Doctoral Set Aside Financial Aid Budget Reconciliation Form


REVISION HISTORY

Date Description
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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