UNDERUSE PENALTY WAIVER FOR THE CAMPUS-BASED PROGRAMS

If a school returns more than 10 percent of its Federal Supplemental Educational Opportunity Grant (FSEOG) or Federal Work-Study (FWS) allocations in a given award year, the allocation for the second succeeding award year is reduced by the dollar amount returned unless the Secretary waives this provision. The deadline to request a waiver of the 2017-2018 Award Year penalty of FWS and FSEOG for the underuse of 2015-2016 Award Year funds is February 6, 2017.http://bit.ly/2kGrs5o

A school can determine if it is subject to an underuse penalty by reviewing its most recent Fiscal Operations Report and Application to Participate (FISAP) or Campus-Based Tentative Funding Worksheet for 2017-2018.The school may submit an underuse penalty waiver request 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.
 
To determine if a school is subject to an allocation reduction in its 2017-2018 FSEOG or FWS funds, review the 2017-2018 FISAP that was due September 30, 2016.
 
For FSEOG – Determine the underused percentage by dividing the unexpended 2015-2016 funds in Part IV, Section E, Item 18 by the school’s 2015-2016 FSEOG allocation in Part IV, Section A, Item 1. If that quotient is more than 10 percent, the 2017-2018 FSEOG allocation will be reduced by the amount of unexpended 2015-2016 FSEOG funds (Part IV, Section E, Item 18).
 
For FWS – Determine the underused percentage by dividing the unexpended 2015-2016 funds in Part V, Section E, Item 19 by the school’s 2015-2016 FWS allocation in Part V, Section A, Item 1. If that quotient is more than 10 percent, the 2017-2018 FWS allocation will be reduced by the amount of unexpended 2015-2016 FWS funds (Part V, Section E, Item 19).
 
Schools may access their Tentative Funding Level worksheets from the eCB website “Self-Service page” under the “Campus-Based Notifications” section. The percentage of underused FSEOG funds is shown in the FSEOG Tentative Funding worksheet at Item 32. Underused Percentage, and the tentative FSEOG Allocation Reduction amount is shown at Item 33. Allocation Reduction. The percentage of underused FWS funds is shown in the FWS Tentative Funding worksheet at Item 35. Underused Percentage, and the tentative FWS Allocation Reduction amount is shown at Item 36. Allocation Reduction.http://bit.ly/2jn8SSP