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Systemwide accounting procedures

Accounting Integrated Statewide Record System procedures

Student Financial Aid

Click on one of the following links to jump to the associated accounting transaction.

1. Perkins Loans
2. Allowance for Doubtful Accounts
3. Workstudy Match
4. Administrative Allowance

Perkins Loans

The general ledger must reflect the amount of outstanding loans. You should update the general ledger as activity occurs. The outstanding loan balance on MnSCU Accounting, at fiscal year close, should equal what you will report on your FISAP. To determine what your outstanding loan balance is, you will need to run a Trial Balance Report (AC0521CP) or you could do a ACurrent G/L Account Balance@ query (AC0460UG). Take your Loans Advanced(8204) and subtract Loan Principal Collected(8214) and any defaulted or cancelled loan object codes (8215-8244) and that is your Current Outstanding Loan Balance.

Note: For those institutions that are using the Central Services-Loan Collection services provided, you will be making monthly entries. Each month, you will receive a document with a check that will tell you the transactions you need to make and the amounts they need to be made for. That document will also tell you a current outstanding loan amount that should equal MnSCU Accounting. At fiscal year closing, MnSCU Accounting, Loan Collections and your FISAP must equal.

The accounting entries for recording loan activity are as follows: (see Attachment A of the FISAP report)

Recording Federal Draws

General Receipt by Cost Center (CP AR0009UG)
					FISAP line #
DR		8110		Cash	1
	CR		9401	Federal Grant Rev	18

Recording Student Loan Match

When you transfer money, from the General Fund to the Perkins Loan fund, you should record it as a mandatory transfer-out and a mandatory transfer-in.

General Fund

Payment Voucher(PV) Transaction
DR		7103		Mandatory Transfer-Out, Student Loan
	CR		8110	Cash

Perkins Loan Fund

General Receipt by Cost Center (CP AR0009UG)
					FISAP line #
DR		8110		Cash	1
	CR		9802	Mandatory Tran-In, Student Loan	20

Disbursing Loans

General Ledger Payment Voucher (PG AC0219UG) if you are using Checkwriter.

Payment Voucher (PG AC0219UG)
					FISAP line #
DR		8204		Student Loans Advanced	4
	CR		8110	Cash	1

General Ledger Expenditure Voucher (EG AC0226UG) if you are using a subsystem.

Expenditure Voucher (EG AC0226UG)
					FISAP line #
DR		8204		Student Loans Advanced	4
	CR		8110	Cash	1

Receipting Loan Payments (two separate transactions are needed)

Recording Principal

General Receipt by General Ledger (CR AR0001UG)
					FISAP line #
DR		8110		Cash	1
	CR		8214	Loan Principal Collected	5

Recording Interest

General Receipt by Cost Center (CP AR0009UG)
					FISAP line #
DR		8110		Cash	1
	CR		9811	Interest on Student Loans	22

Returning Loan Fund Balance

Some institutions are returning part of their capital contribution to the federal government and their general fund. You should make the following entries to return funds.

Return to Federal Government

Payment Voucher (PV)Transaction
					FISAP line #
DR		7290		Loan Repayments to Fed Govt	19
	CR		8110	Cash	1

Return State Match to the General Fund

Perkins Loan Fund

Payment Voucher (PV)Transaction
					FISAP line #
DR		7103		Mandatory Transfer-Out, Student Loan	21
	CR		8110	Cash	11

General Fund

General Receipt by Cost Center (CP AR0009UG)
					FISAP line #
DR		8110		Cash
	CR		9802	Mandatory Tran-In, Std Loan

Loan Cancellations

This assumes that interest has not been previously accrued in MnSCU Accounting but instead is being recorded when it is received.

General Journal Voucher Transaction (JG AC0208UG)
					FISAP line #
DR		72XX		Appropriate Expenditure Code	26-35
	CR		82XX	Appropriate General Ledger Code	7-16
	CR		9811	Interest on Student Loans	22

Defaulted Loans

Note: This assumes that interest has not been previously accrued.

General Journal Voucher Transaction (JG AC0208UG)
					FISAP line #
DR		7219		Cost of Defaulted Loan	36
	CR		8215	Defaulted Loan Principal	6
	CR		9811	Interest on Student Loans	22

Record Collection Agency Costs

Payment Voucher (PV) transaction or Expense Voucher (EV) transaction for institutions using MnSCU Loans Service Center.

Payment Voucher (PV) or Expense Voucher (EV) transaction
					FISAP line #
DR		2892		Fees - Collection Agencies	25.2
	CR		8110	Cash	1

Administrative Cost Allowance

Note: Direct costs should be posted to the Perkins Fund (see section on Reimbursements). If this is not possible, reimburse the general fund with the following entry:

Payment Voucher (PV) transaction
					FISAP line #
DR		7501		Indirect Cost	25.1
	CR		8110	Cash	1

Allowance for Doubtful Accounts

You need to record an Allowance for Doubtful Accounts at least once per year. The allowance should reflect your best estimate of the loans that are uncollectible. The accounting entry is as follows:

General Journal Voucher Transaction (JG AC0208UG)
DR		7903		Bad Debt Expense
	CR		8206	Allowance for Uncollectible Loans

Workstudy Match

Workstudy match should be recorded in the fund responsible for the match, not in the federal financial aid fund.

General Operating Match General operating funds should not be transferred into the local federal and state workstudy accounts for recording student payroll. The Student Payroll Module will process Accounting transactions based on you Work Authorizations.

Private match for off campus students Private matching funds for off campus student workstudy match must be recorded in the general fund. When the student is an employee of the institution, record the revenue as 9375 - Sale of Non-Taxable Service. When the student is an employee of the private vendor, record the expense in your federal or state workstudy account as 7030 - Aid to Non-Govt Organizations.

Administrative Allowance

see Reimbursements - Procedure Acct.8

If you have questions or comments please email us (accounting@so.mnscu.edu), refer to the staff directory link at the top of this page or contact your Campus Assistance contact for additional information.