If a school did not use all of its 2012-2013 Title IV Campus-Based programs’ federal allocations, and that amount not used exceeds 10% of its federal allocation, a school has until February 7, 2014 to submit a request for a waiver of the penalty for not using all of the allocation. If an acceptable request for waiver of the penalty is not submitted by that date, the institution’s Campus-Based federal allocations for 2014-2015 will be reduced by the amount not utilized in 2012-2013. A waiver may be granted only if the school is able to explain that the underuse was due to circumstances beyond its control and why those circumstances are not expected to recur.
A school can tell if they may be subject to the underuse penalty by reviewing its most recent Fiscal Operations Report for 2012-2013 and the Application to Participate for 2014-2015 (FISAP). A school may also tell if they are potentially subject to the penalty by reviewing their Campus-Based Tentative Funding Worksheet for 2014-2015. [The Campus-Based Tentative Funding Worksheets for 2014-2015 are scheduled to be posted to the eCampus-Based (eCB) Web site not later than January 31, 2014.]
Should a school choose to appeal the underuse penalty, the appeal must be submitted via the eCB Web site. The waiver request is accessed through the school’s submitted FISAP on the eCB Web site. (For FAME clients utilizing our fiscal services, you may contact your Client Services Representative via support.fameinc.com for more information.)
If a school’s appeal is approved, the school’s 2012-2013 federal allocation will be reduced, but the penalty will not be applied to the funding for 2014-2015. Therefore, there should not be a reduction in the federal allocation for that program based upon the underuse of 2012-2013 funds. If the appeal is not approved, the 2012-2013 federal allocation will likewise be reduced; however, there will also be a reduction in the 2014-2015 federal allocation for the program in an amount equal to the underused amount.
See the Electronic Announcement dated January 3, 2014 on IFAP for more details. FAME clients may also contact your Client Services Representative via support.fameinc.com.