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Section 10: Budget Planning & Development

Financial Aid Set Asides

Effective Date:

07/24/09

Approved By:

Lenora Chapman, Associate Vice President, Financial Affairs

Last Revised On:

01/23/2014

For Assistance Contact:

Senior Director, Budget Planning and Development (210) 458-4344

Assistant Director, Budget Planning and Development (210) 458-6631

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 accounts are established within Unit Code 0023-000.

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 and Financial Reporting:

  • 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 DEFINE (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 Associate Vice President for Financial Aid.

1. Texas Public Education Grant (TPEG)

    A. Section 56.033 - Resident Student Assistance: 15-percent of each resident student’s charge under section 54.051 as provided by the General Appropriations Act for the applicable academic year. This does not include graduate incremental tuition authorized per section 54.008(f).

    Account Numbers: Undergraduate Resident 19-0790-04; Graduate Resident 19-0790-15.

    B. Section 56.033 - Nonresident Student Assistance: 3-percent of each nonresident student’s charge under section 54.051.This does not include graduate incremental tuition authorized per section 54.008(f).

    Account Numbers:  Undergraduate Non Resident 19-0790-05; Graduate Non Resident 19-0790-11.

NOTE: Of the funds set aside from statutory tuition revenue not less than 90 percent shall be used for Texas Public Education Grants and not more than 10 percent shall be used for emergency loans under Subchapter D of chapter 56. Student Financial Assistance.

Short Term Loan Fund Account Number: 32-0000-20.

2. Designated Tuition Set Asides

    A. Section 56.011 - Resident Undergraduate Student Assistance: 15-percent 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.

    Account Numbers: 19-0790-20 and 19-0790-22 (Work-study).

    B. Section 56.012 - Resident Graduate Student Assistance: 15-percent 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.

    Account Numbers: 19-0790-28.

    C. Section 56.465 - Texas B-On-Time Student Loan Program: 5-percent 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 Resident Undergraduate Student Assistance and remitted to the state per instructions by the State Comptroller.

    Account Number: 19-0790-24.

    NOTE: Section 56.011 For designated tuition in excess $46 per SCH requires a minimum of 20% of Resident Undergraduate designation tuition. The Resident Undergraduate Student Assistance 15% + plus the Texas B-On Time Student Loan Program 5% = 20% minimum requirement.
3. Doctoral Incentive Loan Program

Section 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 Associate Vice President for Financial Aid to assure that budget documents are accurately created following the prevailing campus budget process. Account Number: 19-0790-30


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 DEFINE financial accounting system to reflect the changes in budgeted set aside allocations for:

  • TPEG and TPEG Loan Program transfers

  • Designated Tuition Set Asides including B-on-Time

  • Doctoral Loan Program

4. 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 Services 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 Services receives the form.

5. The Budget Office is responsible for communicating the above budgetary changes with the Associate 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

BOT Student Loan Program is authorized by the Texas Legislature to improve and increase access to higher education in the State of Texas.  As per section 56.463 of the Texas Education Code, 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.

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

A 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

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-serve basis until funds are exhausted.

UTSA Grant

A 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
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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