Box 9, Folder 7, Document 36

Box 9, Folder 7, Document 36

. URBAN



NATIONAL DEVELOPMENT OFFICE
250 BROADWAY

CORPS NEW YORK, N. ¥. 10007

Revision of College Work-Study Program Manual

The U. S. Office of Education has issued a set of new pages for
the 1968 College Work-Study Program Manual, replacing those sections
which have been affected by the 1968 Higher Education Amendments and
the new College Work-Study Program Regulations (45 CFR 175), copies

of which were recently distributed.

We direct your attention to the new Section 104 (D) (2) which
stiffens the institutional maintenance of effort requirement. The use
of CWSP funds must, as of July 1, 1969, be used to expand an institu-
tion's financial aid program.

The revised Section 607 sets forth more detailed information
on program audit procedures. Where the Urban Corps is the fiscal
agent for the participating colleges, it ie suggested that a copy of the
official Audit Guides be obtained from the appropriate Regional Auditor
ae noted at the end of Section 607.

The revised "Model Off-Campus Agreement" includes several
new sections which clarify the position of an Urban Corps as the em-
ployer and paymaster. This form of agreement may be used inter-
changeably with that recommended in the Urban Corps National Devel-
opment Office report on "Urban Corps-College Contractual Arrange-
ments (Doc. No. 3).

Additional copies of the CWSP Manual and the Regulations may
be obtained upon request from this office or directly from the College
Work-Study Program Branch, Bureau of Higher Education, U.S. Office
of Education, Washington, D.C. 20202.
SUPPLEMENT #1 (May 1969) to the

COLLEGE
WORK-STUDY
PROGRAM

MANUAL, 1963

Materials in this supplement include:
(1) Replacement pages for Pages 1-3, 63, and 6-7,
(2) Replacement for Appendix 1 - Legislation.

(3) New Material, Appendix 2 - College Work-Study Program
Regulations as printed in the May 13, 1969 Federal

Register.
(4) New Material, Appendix 7 - Model Off-Campus Agreement Form.

Ss
D. Fulfillment of Financial Requirements of Participation

An institution participating in the College Work-Study Program
should be fully aware of the following financial responsibilities
which it accepts upon entering the program.

1. Effective August 20, 1968, the law provides that the
Federal share of the compensation of students employed
in the College Work-Study Program cannot exceed 80%,
except that in certain circumstances to be established
by regulation,a Federal share in excess of 80% may be
approved by the Commissioner, From the inception of
the program to August 19, 1967, the Federal share of
the compensation of students employed in the College
Work-Study Program could not exceed 90%. From August
20, 1967 to August 19, 1968, the maximum Federal share
was 85%.

A participating institution is responsible for ensuring
that the remaining share, which is referred to as the
institutional share, is contributed promptly in conjuc-
tion with payroll disbursements,

(Section 603 contains a further discussion of the insti-
tutional and Federal shares of student compensation.)

An institution participating in the College Work-Study
Program is required, under Section 44h(a)(5) of the

law, to maintain its own efforts in the areas of student
employment and student financial aid,

From the inception of the program through fiscal year
1969 (ending June 30, 1969), the Federal funds made
available to an institution for a College Work-Study
Program must be used to expand student employment ex-
penditures beyond those which the institution provided
in its own student employment program prior to its
entry into the College Work-Study Program. (Section
602 contains specific information with regard to the
level of student employment expenditures which must

be maintained, )

After July 1, 1969, and for fiscal years ending on or
after June 30, 1970, the Federal funds made available
to an institution for a College Work-Study Program must
be used to expand student financial aid expenditures
beyond those which the institution provided in its own
student financial aid program prior to fiscal year 1970,
or to its entry into the College Work-Study Program,
whichever is later. (Section 602 will be revised at a
later date.)

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603 Federal and Institutional Shares of Student Compensation

Effective August 20, 1968, the law provides that the Federal share
of the compensation of students employed in the College Work-Study
Program cannot exceed 80%, except that in certain circumstances to
be established by regulation, a Federal share in excess of 80% may
be approved by the Commissioner. From the inception of the program
to August 19, 1967, the Federal share of the compensation of stu-
dents employed in the College Work-Study Program could not exceed
90%. From August 20, 1967 to August 19, 1968, the maximum Federal
share was 85%.

The institutional share of each student's gross compensation, whether
provided in cash or otherwise, (see section 605 for a discussion of
noneash payments) must equal at least 20%. The institutional share
must be contributed promptly in conjunction with payroll disbursements.

All disbursements of compensation of students under the program must be
in the proper Federal/institutional share. This requirement holds true
regardless of the source of the institutional share. (See Section 60.)
In cases where students are working under an agreement entered into
between the institution and a public or private nonprofit agency, the
agreement should specify the extent to which the agency will bear the
cost of such contributions.

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Communications, including telephone toll calls, telegrams, and similar
items, may be charged when such communications are directly related to
the conduct of the off-campus phase of the program. Employee travel
necessary to the conduct of the off-campus activities should be computed
and charged according to the institution's own regulations governing
employee travel expense,

607 Program Audit

Unlike the National Defense Student Loan Fund, which is a revolving
trust fund, Federal College Work-Study funds are accounted for by 6-
month grant periods. All records pertaining to program management

and fiscal control during a given fiscal year must be retained by the
institution for a period of five years following the end of the fiscal
year, or until audited by the Department of Health, Education, and
Welfare Audit Agency or its authorized representative, whichever is
earlier. Records involved in any claim or expenditure questioned by
the Commissioner, or on audit, must be retained until necessary adjust—
ments have been reviewed and approved by the Commissioner,

Under the Fair Labor Standards Act of 1938, as amended, the Department
of Labor requires the retention of records. Employers are required to
keep records on wages, hours, and other items listed in the record-
keeping regulations, 29 CFR Part 516. No particular form of records

is requested. Records must be retained at least three years. (This
record retention period is separate and apart from that required in the
preceding paragraph,) Contact the nearest Office of the Wage and Hour
and Public Contracts Divisions, listed in Appendix 8, for more specific
information.

When the College Work-Study Program at an institution is audited, the
objectives of an audit will be to determine whether the institution;

1. has met the requirements of the applicable laws and regula-
tions in establishing the College Work-Study Program;

2. has established adequate systems of internal control,
accounting, and reporting, and has exercised suitable
controls in the operation of and accounting for the
funds provided for the program; and

3. has established and is following policies and procedures to
ensure that the funds provided are being used only for the
purposes set forth in the institution's agreement with the
Commissioner and that the policies and procedures conform
with the applicable laws and regulations.

Since independent auditors, such as a State auditor or an institution's
own Certified Public Accounting firm, may be authorized to perform
audits of the College Work-Study Program, institutions are encouraged

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APPENDIX 1

Higher Education Act of 1965 (P.L. 89-329)
Title IV, Part C, as amended

Part C--Work-Study Programs

Statement of Purpose; Appropriations Authorized

Sec. 441. (a) The purpose of this part is to stimulate and
promote the part-time employment of students, particularly students
from low-income families, in eligible institutions who are in need
of the earnings from such employment to pursue courses of study at
such institutions,

(b) There are authorized to be appropriated $225,000,000 for
the fiscal year ending June 30, 1969, $255,000,000 for the fiscal
year ending June 30, 1970, and $285,000,000 for the fiscal year
ending June 30, 1971, to carry out this part,

Allotments to States

Sec. 442. (a) From the sums appropriated to carry out this
part for a fiscal year, the Commissioner shall (1) allot not to
exceed 2 per centum among Puerto Rico, Guam, American Samoa, the
Trust Territory of the Pacific Islands, and the Virgin Islands
according to their respective needs for assistance under this
part, and (2) reserve the amount provided by subsection (e). The
remainder of such sums shall be allotted among the States as pro-
vided in subsection (b).

(b) Of the sums being allotted under this subsection--

(1) one-third shall be allotted by the Commissioner among
the States so that the allotment to each State under this
clause will be an amount which bears the same ratio to such
one-third as the number of persons enrolled on a full-time
basis in institutions of higher education in such State bears
to the total number of persons enrolled on a full-time basis
in institutions of higher education in all the States,

(2) one-third shall be allotted by the Commissioner among
the States so that the allotment to each State under this
clause will be an amount which bears the same ratio to such

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one-third as the number of high school graduates (as defined
in section 103(d)(3) of the Higher Education Facilities Act
of 1963) of such State bears to the total number of such
high school graduates of all the States, and

(3) one-third shall be allotted by him among the States
so that the allotment to each State under this clause will
be an amount which bears the same ratio to such one-third
as the number of related children under eighteen years of
age living in families with annual incomes of less than
$3,000 in such State bears to the number of related chil-
dren under eighteen years of age living in families with
annual incomes of less than $3,000 in all the States.

(c) The amount of any State's allotment which has not been
granted to an eligible institution under section 443 at the end
of the fiscal year for which appropriated shall be reallotted by
the Commissioner in such manner as he determines will best assist
in achieving the purposes of this Act. Amounts reallotted under
this subsection shall be available for making grants under section
443 until the close of the fiscal year next succeeding the fiscal
year for which appropriated,

(d) For purposes of this section, the term "State" does not
include Puerto Rico, Guam, American Samoa, the Trust Territory
of the Pacific Islands, and the Virgin Islands.

(e) From the appropriation for this part for each fiscal year
the Commissioner shall reserve an amount to provide work-study
assistance to students who reside in, but who attend eligible
institutions outside of, American Samoa or the Trust Territory of
the Pacific Islands, The amount so reserved shall be allotted to
eligible institutions and shall be available only for the purpose
of providing work-study assistance to such students.

Grants for Work-Study Programs

Sec. 443. (a) The Commissioner is authorized to enter into
agreements with eligible institutions under which the Commissioner
will make grants to such institutions to assist in the operation
of work-study programs as hereinafter provided.

(b) For the purposes of this part the term “eligible institution
means an institution of higher education (as defined in gection 435(b)
of this Act), or an area vocational school (as defined in section 8(2)
of the Vocational Education Act of 1963). L

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Conditions of Agreements

Sec. 444. (a) An agreement entered into pursuant to section 443
shall--

(1) provide for the operation by the institution of a
program for the part-time Sup Loyment of its students in work
for the institution itself</ or work in the public interest
for a public or private nonprofit organization under an
arrangement between the institution and such organization,
and such work--

(A) will not result in the displacement of employed
workers or impair existing contracts for services,

(B) will be governed by such conditions of employ-
ment as will be appropriate and reasonable in light of
such factors as type of work performed, geographical
region, and proficiency of the employee, and

(C) does not involve the construction, operation, or
maintenance of so much of any facility as is used or
is to be used for sectarian instruction or as a place
for religious worship;

(2) provide that funds granted an eligible institution
pursuant to section 443 may be used only to make payments to
students participating in work-study programs, except that an
institution may use a portion of the sums granted to it to
meet administrative expenses, but the amount so used may not
exceed 5 per centum of the payments made by the Commissioner
to such institution for that part of the work-study program
in which students are working for public or nonprofit
organizations other than the institution itsel£;3/

(3) provide that in the selection of students for employ-
ment under such work-study program preference shall be given
to students from low-income families and that employment under
such work-study program shall be furnished only to a student
who (A) is in need of the earnings from such employment in
order to pursue a course of study at such institution, (B) is
capable, in the opinion of the institution, of maintaining
good standing in such course of study while employed under
the program covered by the agreement, and (C) has been
accepted for enrollment as a full-time student at the
institution or, in the case of a student already enrolled
in and attending the institution, is in good standing and
in full-time attendance there either as an undergraduate,
graduate, or professional student;

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(4) provide that the average hours of employment of a
student under such work-study program, shall not exceed
fifteen per week over a semester, or other term used by
the institution in awarding credits, during which the
student is enrolled in classes;

(5) provide that in each fiscal year during which the
agreement remains in effect, the institution shall expend
(from sources other than payments under this part) for
the employment of its students (whether or not in employ-
ment eligible for assistance under this part) an amount
that is not less than its average annual expenditure for
such employment during the three fiscal years preceding
the fiscal year in which the agreement is entered into;4/

(6) provide that the Federal share of the compensation
of students employed in the work-study program in accord-
ance with the agreement will not exceed 80 per centum of
such compensation; except that the Federal share may exceed
80 per centum of such compensation if the Commissioner
determines, pursuant to regulations adopted and promulgated
by him establishing objective criteria for such determina-
tions, that a Federal share in excess of 80 per centum is
required in furtherance of the purposes of this part;

(7) include provisions designed to make employment under
such work-study program, or equivalent employment offered or
arranged for by the institution, reasonably available (to
the extent of available funds) to all eligible students in A
the institution in need thereof; and

(8) include such other provisions as the Commissioner
shall deem necessary or appropriate to carry out the purposes
of this part.

(b) An agreement entered into pursuant to section 443 with an
area vocational school shall contain, in addition to the provisions
described in subsection (a) of this section, a provision that a stu-
dent in such a school shall be eligible to participate in a program
under this part only if he (1) has a certificate of graduation from
a school providing secondary education or the recognized equivalent
of such a certificate, and (2) is pursuing a program of education
or training which requires at least six months to complete and is
designed to prepare the student for gainful employment in a recog-
nized occupation,

(c) For purposes of paragraph (4) of subsection (a) of this
section, in computing average hours of employment of a student
over a semester or other term, there shall be excluded any period
during which the student is on vacation and any period of non-
regular enrollment. Employment under a work-study program during

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any such period of non-regular enrollment during which classes in
which the student is enrolled are in session shall be only to the
extent and in accordance with criteria established by or pursuant
to regulations of the Commissioner.

Sources of Matching Funds

Sec. 445. Nothing in this part shall be construed as restricting
the source (other than this part) from which the institution may pay
its share of the compensation of a student employed under a work-study
program covered by an agreement under this part, and such share may be
paid to such student in the form of services and equipment (including
tuition, room, board, and books) furnished by such institution,

Equitable Distribution of Assistance

Sec, 446. The Commissioner shall establish criteria designed to
achieve such distribution of assistance under this part among eligi-
ble institutions within a State as will most effectively carry out
the purposes of this Act.



1/Effective for fiscal years ending on or after June 30, 1970,
this paragraph has been amended to read as follows:

"(b) For the purposes of this part the term ‘eligible institution’
means an institution of higher education (as defined in section 435(b)
of this Act), an area vocational school (as defined in section 8(2)
of the Vocational Education Act of 1963), or a proprietary institution
of higher education (as defined in section 461(b) of this Act)."

2/Effective for fiscal years ending on or after June 30, 1970,
section 444(a)(1) has been amended by inserting after "work for the
institution itself" the following: "(except in the case of a pro-
prietary institution of higher education),".

3/Effective for fiscal years ending on or after June 30, 1970,
this paragraph has been amended to read as follows:
"(2) provide that funds granted an eligible institution pur-

suant to section 443 may be used only to make payments to
students participating in work-study programs, except that an

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institution may use a portion of the sums granted to it to meet
administrative expenses in accordance with section 463 of this
Act3".

(Section 463 reads as follows:)

"Expenses of Administration

"Sec. 463. (a) An institution which has entered into an agree-
ment with the Commissioner under part A or C of this title shall
be entitled for each fiscal year for which it receives an allotment
under either such part to a payment in Lieu of reimbursement for
its expenses during such fiscal year in administering programs
assisted under such part. The payment for a fiscal year (1) shall
be payable from each such allotment in accordance with regulations
of the Commissioner, and (2) shall (except as provided in subsection
(b)) be an amount equal to 3 per centum of (A) the institution's
expenditures during the fiscal year from its allotment under part A
plus (B) its expenditures during such fiscal year under part C for
compensation of students.

"(b) The aggregate amount paid to an institution for a fiscal
year under this section plus the amount withdrawn from its student
loan fund under section 204(b) of the National Defense Education
Act of 1958 may not exceed $125,000."

4/Effective for fiscal years ending on or after June 30, 1970,
this paragraph has been amended to read as follows:
"(5) provide that the institution will meet the requirements
of section 464 of this Act (relating to maintenance of effort)3;"'

(Section 464 reads as follows:)
"Maintenance of Effort

"Sec, 464. An agreement between the Commissioner and an institu-
tion under part A or part C shall provide assurance that the
institution will continue to spend in its own scholarship and
student-aid program, from sources other than funds received under
such parts, not less than the average expenditure per year made
for that purpose during the most recent period of three fiscal
years preceding the effective date of the agreement,"

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GPo 874-813 *