[Rationale: to provide information to departments who hire students concerning PHEAA Summer Work study credit.]

Normally, the funds received from work study grants, both Federal and State, are considered to be a general unrestricted resource. Part of the reasoning for this approach is to encourage departments to hire students based on the needs of the department and skills required to do the work, not on work study eligibility. A problem arises when grant funding and certain other restricted funding sources are involved. The recording of the credit in these circumstances as an unrestricted resource would overstate the actual net expense in these restricted departments. Proper reporting to a grant funding source would be to show the related payroll expense as net of the PHEAA Summer Work Study credit.

Therefore, PHEAA Summer Work Study funds will be credited based on funding source. In the case of Current Fund Unrestricted (11 Fund) budgets, the credit distribution will be made to the unrestricted general resource area in the 11 Fund. For departments in the Designated Current Fund (12 Fund), moneys received for students employed in a project financed by grant or other restricted sources (endowment allocations or restricted gifts), the money received through the PHEAA Summer Work Study program will be credited to the applicable Designated Current Fund (12 Fund) department. If the crediting of this money to this program were to create a surplus over and above the amount that could be spent for the program, the surplus should either be returned to the granting agency or redirected to similar endeavors, depending on legal and/or regulatory guidelines. If the activity in the Designated Current Fund (12 Fund) was financed with transfers from the Current Unrestricted Fund, the credit will be made to the unrestricted general resource area in the 11 Fund.