November 21, 2023
In this announcement, we remind schools of the general disbursement reporting, excess cash, and reconciliation requirements for all Title IV programs. Both the Financial Aid Office and Business Office should review the information provided below, because these requirements apply to disbursement and financial data.
Disbursement Reporting Requirements
The disbursement and disbursement adjustment reporting requirements for all Title IV aid are announced in an annual Federal Register notice. The most recent Federal Register notice, published on June 23, 2023, specifies that a school must submit disbursement records no later than 15 days after making the disbursement or becoming aware of the need to adjust a student’s previously reported disbursement.
Excess Cash Requirements
The Department of Education (the Department) considers excess cash to be any amount of Title IV funds (other than Federal Perkins Loan Program funds) that a school does not disburse to students or parents by the end of the third business day after the date the school (1) received the funds from the Department, or (2) deposited or transferred to its federal account previously disbursed Title IV funds received from the Department. In limited circumstances, cash may be held for up to seven calendar days. A school must meet the excess cash tolerance (not to exceed one percent of the funds drawn down by the school in the prior award year) and must be able to disburse the aid to students within the 7-day period. In no circumstance should cash balances remain beyond the seven days.
