The purpose of this procedure is to clarify that State University of New York (University) campuses have the authority to use state operating funds in support of scholarships and grants, including merit and need-based awards, as well as room and board subsidies. Campuses interested in utilizing such recruitment tools should take steps to develop local scholarship programs in accordance with the following administrative and accounting guidelines.

Informational and publicity materials developed to describe campus scholarship programs should be careful to identify various available awards as scholarships or grants, not waivers or discounts.

Use of State Operating Funds for Student Scholarships

These guidelines enable a campus utilizing state operating funds - not specifically designated for a scholarship - to pay for student financial obligations. This is not a waiver program but is the application of revenue from state operating funds to the student's account to fund a specific scholarship program.

Administrative Guidelines

1. The use of state operating funds, supported by resources including but not limited to tuition and fee revenue, direct state tax support, and other monies held in the funds enumerated in 1(a) is allowed for student scholarships and should be part of an overall, fiscally viable, program and strategy for the recruitment of select in-state and out-of-state students.
   1. Monies held in the following appropriated state funds are eligible: Revenue Offset (CAS: 345.12 / SFS: 22655), General IFR (CAS: 345.10 / SFS: 22653), State University Tuition Reimbursable Account (SUTRA) (CAS: 345.47 / SFS: 22659), Stabilization (CAS: 345.31 / SFS: 22657), Dormitory Operations and Sponsored (CAS: 339.47 / SFS: 21937), Hospital Operations (CAS: 345.22 / SFS: 22656), and Hospital Sponsored (CAS: 345.46 / SFS: 22658), as well as other appropriated funds that may become available to the University.

2.    Scholarship programs can be established in a variety of ways: merit-based, need-based, merit within need, and can include monies to support the cost of attendance, such as tuition, fees, and room and board.

3.     Campuses must establish written eligibility criteria for each scholarship program in accordance with the following principles:

• Scholarship programs must be financially viable for the Campus;
   
• Scholarships must be developed and administered in a nondiscriminatory fashion;

• Scholarships should be available to both in and out-of-state students, although the latter should be limited to the amount that would reduce nonresident tuition to the level of resident tuition.

4.    The cost of a scholarship program must be considered an expense/contra-revenue against the operating budget of the campus to avoid characterizing scholarships as waivers or discounts.

Accounting Guidelines

1.    Students must be fully registered and in full-time matriculated status.

2.    A student’s billing must include the full tuition or other related charges.

3.    An amount equal to the scholarship must appear as a credit against the charges on a student's billing.

4.    Any state (not federal) operating funds may be utilized for a general scholarship or grant. Intercollegiate athletics scholarships shall be paid from the IFR program. Room scholarships must be charged against the dormitory operating account.

Instructions

1.    Prepare a listing with the student's name, student identification number, and scholarship amounts. 

2.    Campus should process the transaction utilizing the University Revenue/Expense Journal application with the object of expenditure codes 558030 or 558630 to the appropriate expenditure account and revenue should be deposited into campus collection fund.  It is recommended that the campus utilize an account with a NACUBO function of 15-Scholarship and Fellowship, as this will designate student aid.

There are no forms relevant to this procedure.

Accounting Journal

Tuition, Fees, and Other Charges - Definitions

College Fee

Fees, Rentals, and Other Charges

NYS Education Law §355 (Powers and duties of trustees – administrative and fiscal functions)

In case of questions, readers are advised to refer to the New York State Legislature site for the menu of New York State Consolidated.

Amended April 25, 2023 to make various technical updates.

Memorandum to presidents from the chancellor, date August 30, 2001 clarifying that campuses have the authority to use state operating funds and tuition revenue in support of scholarships and grants, including merit and need-based awards, as well as room and board subsidies

There are no appendices relevant to this procedure.