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Activity 3: Excess Cash 34 CFR 668.166

Activity: Use the worksheet to ensure that your school complies with federal regulations mandating that federal funds be disbursed to students within three days of receipt by the institution (for advance pay schools).

In general, excess cash is any FSA funds other than Perkins that are not disbursed by the end of the 3rd business day after funds are received from the Department.

Excess cash is any amount of Title IV, HEA Program funds, other than Federal Perkins Loan Program funds, that an institution does not disburse to students by the end of the third business day following the date the institution received those funds from the Secretary; or deposited or transferred to its Federal account previously disbursed Title IV, HEA Program funds, such as those resulting from award adjustments, recoveries, or cancellations. An institution may maintain an excess cash tolerance for up to seven days for an amount of excess cash that does not exceed one percent of the total amount of funds the institution drew down in the prior award year. The school must immediately return to the Secretary any amount of excess cash over the one-percent tolerance and any amount of excess cash remaining in its account after the seven-day tolerance period. Your school should track excess cash for each program – simply copy a blank excess cash worksheet (below) for each title IV program in which you participate. This will be particularly important to do if you have separate depository accounts for federal funds (for example, one for Pell and one for FDL).

|Drawdowns |Business Office/Disbursement Records |

Date |Funds Drawn |Funds Returned |Account Balance |Date |Disbursed |Refunds |Cash Position | |[pic] |[pic] |[pic] |[pic] |[pic] |[pic] |[pic] |[pic] | |[pic] |[pic] |[pic] |[pic] |[pic] |[pic] |[pic] |[pic] | |[pic] |[pic] |[pic] |[pic] |[pic] |[pic] |[pic] |[pic] | |[pic] |[pic] |[pic] |[pic] |[pic] |[pic] |[pic] |[pic] | |[pic] |[pic] |[pic] |[pic] |[pic] |[pic] |[pic] |[pic] | |[pic] |[pic] |[pic] |[pic] |[pic] |[pic] |[pic] |[pic] | |

Use the Action Plan to develop enhancements to ensure Excess Cash is returned to the Department and that procedures are developed to check for Excess Cash on a regular basis.

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FISCAL MANAGEMENT

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