Accounting Services

Centralized Disbursement Procedures for Payments to Students

Centralized Disbursement Procedures for Payments to Students

Per the new Scholarship Policy (University Policy for Scholarship Awarding and Administration (II.D.2), as applied to IPFW, the Financial Aid Office will administer all aid related payments to students. This means departments cannot distribute checks at award ceremonies.  (We suggest handing out a letter or certificate.) All payment requests should be forwarded to the Financial Aid Office, except for the situations listed in section I below.  If a special exception is necessary they will be made on a case-by-case basis, with approval by Director of Financial Aid.

Permanent Exceptions:

When payments are made directly through a school or department account, it is the responsibility of the department disbursing the funds to retain documentation that supports payments to non-students.  This documentation should be readily available should the payments be audited.

The following types of payments are processed on a Form DIV Direct Invoice Voucher with a Form PC Payee Certification and are sent directly to Accounting Services for processing:

    1. Payments to non-IPFW students;
    2. Payments of Travel Grants;
    3. Training grants, or “undergraduate fellowships”;
    4. Payments made during periods of student’s non-enrollment*. Example: a student receiving funds to attend a conference/work-shop/non-credit course. * Note: Students are officially enrolled during periods of internship and coop.

Departments should discuss all proposed payments with their Business Manager in advance to determine whether they constitute one of these exceptions.  If an exception is determined to apply, it must be noted on the Form DIV.

If the determination is that an exception does not apply, then the department must use one of procedures below.

Payments of Awards and Prizes

Payment of awards and prizes to U.S. citizens and Permanent Residents will be processed through the Financial Aid Office and disbursed through the Bursar'a Office.  Departments should complete the Form 79A Request for Award or Prize Payment to a Student and forward to the Financial Aid Office, which will code the payment appropriately and notify the Bursar's Office. The Bursar’s Office will generate payment to the student.  If the student has an amount due on their Bursar account, payments will be applied to the amount owed before funds will be disbursed.  Funds are disbursed by check from the Bursar's Office to the student.  

After awards and prizes have been processed, the Financial Aid Office will forward copies of Form 79A to the Tax Department at Purdue for reporting. Awards and prizes are reportable income to the student and must be included for 1099 reporting.

Payments of Scholarships

Payments of all scholarships to U.S. citizens and Permanent Residents will be processed through the Financial Office and disbursed by the Bursar's Office. Departments should complete the necessary Financial Aid form and forward it to the Financial Aid Office, which will code the payment and will notify the Bursar's Office. The Bursar’s Office will generate payment to the students.  If the student has an amount due on their Bursar account, payments will be applied to the amount owed before funds will be disbursed.  Funds are disbursed by check.

Payments of Scholarships, Awards and Prizes to International (non-resident alien) Students

All payments (Scholarships, Awards and Prizes) to Non-resident alien students will be sent directly to the Tax Department using the following forms and documents:

These documents are forwarded to Accounting Services, which will contact the student and issue them a password to the Glacier Tax Compliance web application.  The student must complete the online tax compliance form and provide Accounting Services with the resulting Tax Summary report and copies of the documentation indicated in that report. Once Accounting Services verifies that all the documentation has been provided and completed properly, it will forward the forms and documentation to Purdue for Payment.