California Code of Regulations › Title 5 - Education › Division 4 - California Student Aid Commission › Chapter 1 - California Student Aid Commission › Article 12.8 - Learning-Aligned Employment Program › Section 30604 - Institution Fiscal and Administrative Procedures

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) The
				  Commission may conduct audits or program compliance reviews of any Institution to
				  ensure compliance with program requirements, including statutory and regulatory
				  requirements. If the Commission conducts such an audit or review of an Institution,
				  the Institution shall make available at the time of the audit or review, or at any
				  time at the request of the Commission, any records and personnel related to the
				  administration of the Program.
(b)
				  Institutions shall maintain written policies and procedures governing the
				  administration and processing of Program funds. Institutions shall develop and
				  retain program and fiscal records that demonstrate Institutional, employer, and
				  student eligibility, and ensure the accuracy of payments reported. Institutions
				  shall retain Commission funding allocation, and student payment, records for a
				  minimum of three years following the last day of the academic year in which a
				  Program payment was expended, or until outstanding audits are resolved, whichever is
				  later.
(c) Each Institution shall use no
				  more than five percent of the Program funds provided by the Commission for its
				  administrative costs. Institutions shall not collect any additional fees or
				  surcharges from Participating external Employers to cover Institution
				  costs.
(d) All Program funds constitute
				  State funds, which are owned by and held in trust for the State, until withdrawn for
				  Program use. If Program funds are deposited in an interest bearing account, all
				  interest accrued by the Institution on LAEP funds shall be used for student
				  compensation or returned to the Commission.
(e) Program funds allocated to an Institution may
				  be rolled over to future years; however, all Program funds must be expended by June
				  30, 2031, with any unspent Program funds returned to the Commission by September 30,
				  2031.
(f) Because the Program is a
				  need-based program, the Institution shall ensure that the Participating Student's
				  projected earnings will not exceed the Participating Student's financial need when
				  packaging aid. If circumstances change after the award is packaged and a
				  Participating Student earns, or will earn, more than the Participating Student's
				  financial need, the Institution shall take the following steps in the order listed:
(1) The Institution shall reevaluate and adjust
				  the Participating Student's financial aid package as applicable to ensure that the
				  total earned does not exceed the Participating Student's financial need.
(2) If the Participating Student's earnings still
				  exceed the Participating Student's need by $300 or less after the Institution has
				  made appropriate adjustments to the financial aid award and has withheld payment of
				  any undisbursed loan or grant (except the Pell Grant), no further action is
				  necessary.
(3) Institutions shall
				  maintain documentation of the steps the institution took to adjust the financial aid
				  award of any Participating Student whose earnings exceeded the Participating
				  Student's financial need by up to $300.
(4) Participating Students cannot be required to
				  repay wages earned. LAEP earnings can only be adjusted by reducing the hours
				  Participating Students can work in the future, thus reducing future earnings. If the
				  Participating Student's earnings exceed the Participating Student's need by more
				  than $300 after taking the steps above, the Institution must reimburse the
				  Commission from the Institution's funds.