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Coronavirus Information

CARES Act Funding Distribution

The University of Montevallo

CARES Act Funding Distribution

Revised on April 8, 2021

Revised on February 1, 2021

Revised on October 30, 2020

Revised on July 2, 2020

Originally published June 8, 2020

A. The University of Montevallo (UM) signed and returned the Recipient’s Funding Certification and Agreement Emergency Financial Aid Grants to Students under the Coronavirus Aid, Relief, and Economic Security (CARES) Act to the Department of Education, including assurance UM has used, or intends to use, no less than 50 percent of the funds received under Section 18004(a)(1) of the CARES Act to provide emergency financial aid grants directly to students. UM received $2,560,001 in total relief funding from the Coronavirus Aid, Relief and Economic Security (CARES) Act. At a minimum, 50 percent of this funding ($1,280,001) was to be distributed by the University as direct payments to students who demonstrated significant need because of the disruption of campus operations due to COVID-19. The University provided these direct payments to students in two steps, as outlined in this funding distribution plan.

PART I:

The University of Montevallo provided a COVID-19 Emergency Relief Fund Application, which could be accessed via the UM Portal. Students who had encountered an immediate financial need as a direct result of the COVID-19 pandemic prior to the Part II distribution, described below, could utilize this application to apply for emergency relief funding through May 22, 2020. A total of $150,000 in CARES Act emergency funding was made available for the direct application grant funding. Grant funds remaining from Part I distributions were included in the Part II funding allocations described below.

CARES Act Part I Policies:

  1. In order to be eligible to receive this funding, a student must have been enrolled at UM for the spring 2020 semester (not in only online courses), must have filed a FAFSA for the 2019-2020 academic year and been eligible to receive Title IV funding as of March 16, 2020.
  2. Students who received funding during Part I of this funding distribution plan are eligible to participate in additional relief during Part II, net of amount distributed in Part I.
  3. In most scenarios, Part I grants were capped at $1,000 unless extreme extenuating circumstances were presented. In no circumstances were grant(s) to any student to exceed the maximum 2019-2020 Pell Grant award of $6,195, as suggested by Secretary DeVos in her letter to college and university presidents on April 9,

CARES Act Part I Procedures:

  1. A student must have completed the online COVID-19 Emergency Relief Fund Application that was available online.
  2. Once a student submitted an application, a member of the Emergency Relief Fund Team reviewed the application with the student, gathered supporting documentation** and recommended a total amount of assistance. Recommendations were then reviewed/approved by Counseling Services case manager, assistance director or Director. Eligibility was reviewed and approved by director of Financial Aid. This team was comprised of members from Business and Finance, Financial Aid Office, Student Affairs and University Advancement.

**Examples of supporting documentation included, but were not limited to, notification of a layoff due to COVID-19, utility bills, bank statements, etc.

  1. Approved Emergency Relief Fund application distribution was processed within 7-10 days of committee approval.

Total funding provided by Part I CARES Act direct application distributions as of June 15, 2020 totaled $51,794.69 and served 135 students.

Part II:

CARES Act Part II Policies

All eligible students received automatic relief in the form of a one-time monetary payment for those who demonstrated financial need, as determined by their Expected Family Contribution (EFC) from their Free Application for Federal Student Aid (FAFSA), their current spring 2020 enrollment status and federal aid acceptance. Students must have been eligible to receive Title IV aid to be considered to receive CARES Act funds. Students who were enrolled exclusively in online courses prior to the University’s transition to all online courses were excluded from Part II. CARES Act Part II grant funds were distributed to 1,716 students between the dates of June 18, 2020, and June 22, 2020, totaling $1,228,206.31.

CARES Act Part II Procedures

The following steps outline the process for Part II of this distribution plan.

  1. Identified Title IV eligible students by EFC categories for allocation of grant funds.
  2. The Business Affairs office emailed each recipient with instructions on use of funds provided by the CARES Act Relief Fund
  3. University Accounting Office distributed payments directly to students.
CARES Act Information
Students Allocation classifications CARES Act Part II Total Distributions
789 FAFSA Filed, Initial Pell Eligible, EFC < $6,195 Title IV Eligible $749,182.98
816 FAFSA Filed, Not Pell Eligible, Title IV Eligible, EFC < $50K $457,841.77
111 FAFSA Not Filed, Pell Eligible, Title IV Eligible, EFC > $50K $21,181.56
1,716 Total Student CARES Act Part II Grant Distributions $1,228,206.31
  CARES Act Part I Grant Distributions $51,794.69
  Total CARES Act student grant funds distributed $1,280,001.00

 

B. The University of Montevallo (UM) signed and returned the Recipient’s FundingCertification andAgreement for the Institutional Portion of the Higher Education Emergency Relief Fund Formula Grants Authorized by Section 18004(a)(1) of the Coronavirus Aid, Relief, and Economic Security (CARES) Act to the Department of Education, including assurance UM has used, or intends to use, no more than 50 percent of the funds received under this CARES Act to provide emergency institutional funding for costs incurred by the University directly related to COVID-19 pandemic. UM received $2,560,001 in total relief funding from the Coronavirus Aid, Relief and Economic Security (CARES) Act. A maximum of 50 percent of this funding ($1,280,000) was used by the University as direct recovery of loss incurred due to required closure of campus housing and campus meals due to the COVID-19 pandemic. The University allocated direct refunds for cost reimbursements in room and board charges to students required to move out of campus housing. The total cost to the University for this Direct Cost Reimbursement totaled $1,353,651.13.

 

Room and Board/Meal REFUNDS related to COVID-19
REFUNDS
Refund Category Refund Amount
Total Housing and Board Refunds $1,338,517.22
Optional Meal Plan Refunds
$15,133.91
Total Refunds related to COVID-19 to students
$1,353,651.13

Quarterly Budget and Expenditure Reporting Required Under CARES Act (Added October 30, 2020)

Quarterly Budget and Expenditure Reporting Required Under CARES Act (Added on February 1, 2021)

Quarterly Budged and Expenditure Reporting Required Under CARES Act (Added on April 8, 2021)

The University of Montevallo Higher Education Emergency Relief Fund Program II (CRRSAA)

March 31, 2021 CARES Act Update

The University of Montevallo

Higher Education Emergency Relief Fund

Program II (CRRSAA)

On December 27, 2020, the President signed the Coronavirus Response and Relief Supplemental Appropriations Act, 2021 (CRRSAA).  This new law provides the U.S. Department of Education with funds to distribute to institutions of higher education in order to prevent, prepare for, and respond to coronavirus through the Higher Education Emergency Relief Fund (HEERF).

$1,280,001 – Student Aid Portion Funds CFDA 84.425E – Summary

For spring 2021, student grants were awarded across four tier levels. The level of award is determined by the exhibited level of need based on Pell eligibility and unmet need as determined by student’s financial aid profile. Note: Allocations for future terms will be determined.

CARES Act Information (Spring 2021 Allocation CRRSAA HEERF II)
Students Award Amount Total Distributions
139 (Pell eligible, unmet need $0-$1,499) $200.00 $27,800.00
244 (Pell eligible, unmet need $1,500-$6,999) $275.00 $67,100.00
140 (Pell eligible, unmet need $7,000-$9,999) $350.00 $49,000.00
280 (Pell eligible, unmet need > $10,000 $400.00 $112,000.00
 
 803 (Total CRRSAA HEERF II Spring 2021 Grant Fund Distribution) $255,900.00
  • Uses of Student Aid Portion Funds: Institutions must make financial aid grants to students, which can be used for any component of the student’s cost of attendance or for emergency costs that arise due to coronavirus, such as tuition, food, housing, health care (including mental health care), or child care. Unlike the CARES Act, the CRRSAA required that institutions prioritize students who receive Pell Grants and authorizes grants to students exclusively enrolled in distance education.
  • Deadline for Use of Student Aid Portion Funds: Funds may be distributed through mid-January 2022.

Overview Questions (Relevant to Student Aid Portion)

  • What changes did Congress make to the (a)(1) programs from the CARES Act to the CRRSAA?
  • a. Expanded the allowable uses of grant funds: Congress expanded the allowable uses for supplemental awards and new awards made under section 314(a)(1) of the CRRSAA and for unspent CARES Act funds, subject to certain limitations.
  • b. Added allocations for students enrolled in exclusively distance education courses: Students enrolled in exclusively distance education courses are included in the CRRSAA section 314 (a)(1) allocation formula. Institutions will now receive allocations that factor in such students under the formula, and the formula also allows exclusively online institutions that were ineligible for funding under section 18004(a)(1) of the CARES Act to apply for grant funds. Amounts apportioned for students enrolled in exclusively distance education courses may be used only for financial aid grants to students.
  • CRRSAA (a)(1) programs questions:
  • a. What are the requirements for making financial aid grants to students? Unlike the CARES Act, the CRRSAA required that institutions prioritize students with exceptional need, such as students who receive Pell Grants, in awarding financial aid grants to students. However, students do not need to be only Pell recipients or students who are eligible for Pell grants. In addition, the CRRSAA explicitly provides that financial aid grants to students may be provided to students exclusively enrolled in distance education.
    • i. Institutions may not (1) condition the receipt of financial aid grants to students on continued or future enrollment in the institution, (2) use the financial aid grants to satisfy a student’s outstanding account balance, unless it has obtained the student’s written (or electronic), affirmative consent, or (3) required such consent as a condition of receipt of or eligibility for the financial aid grant. Note: The Department’s guidance for emergency financial aid grants under section 18004(a)(1) of the CARES Act did not advise institutions to use such grants to satisfy a student’s outstanding account balance. However, upon further considerations, the Department believes that allowing students to consent to the application of a CRRSAA financial aid grant to their student accounts would facilitate such a use of funds, if desired by the student, while retaining the student’s discretion to determine what costs should be covered with his or her financial aid grant funds.
    • ii. Institutions should carefully document how they prioritize students with exceptional need in distributing financial aid grants to students, as the Department intends to establish reporting requirements regarding the distribution of financial aid grants to students consistent with section 314(e) of CRRSAA.
  • b. How may students use their financial aid grants? Financial aid grants for students may be used for any component of the student’s cost of attendance or for emergency costs that arise due to coronavirus, such as tuition, food, health care (including mental health care) or child care. 

$2,761,500 – Higher Education Emergency Relief Fund/ Institution-IHEs CFDA 84.425F – Summary 

For the quarter ended March 31, 2021, the use of CRRSAA Institutional funding is approximately $299,750 for purposes related to COVID-19 pandemic that includes cleaning and sanitation, personal protective equipment (PPE), workplace safety preparations and telework expenses.

  • Uses of Institutional Portion Funds: Institutional portion funds may be used to defray expenses associated with coronavirus (including lost revenue, reimbursement for expenses already incurred, technology costs associated with a transition to distance education, faculty and staff trainings, and payroll), and to carry out student support activities authorized by the HEA that address needs related to coronavirus. Institutional funds may also be used to make additional financial aid grants to students.
  • Periods of Funds Availability: IHE’s have one calendar year from the date of their award to expend funds unless the institution receives a no-cost extension. UM’s GAN was dated January 18, 2021, therefore all funds should be expended by January 17, 2022. Funds may be used for pre-award costs incurred on or after March 13, 2020.

Overview Questions (Relevant to Institutional Aid Portion)

  • What changes did Congress make to the (a)(1) programs from the CARES Act to the CRRSAA?
  • a. Expanded the allowable uses of grant funds: Congress expanded the allowable uses for supplemental awards and new awards made under section 314(a)(1) of the CRRSAA and for unspent CARES Act funds, subject to certain limitations.
  • b. Modified the share of (a)(1) funds that must be can be used for Institutional purposes versus and student financial aid grants: The CARES Act required that 50 percent of an institution’s allocation under section 18004 (a)(1) be used for financial aid grants to students, which was represented by the institution’s CARES Act Student Aid Portion award. The CRRSAA requires that an institution receiving funding under section 314(a)(1) provide the “same amount” in financial aid grants to students from the new CRRSAA funds that is was required or which it would have been required to provide under its original CARES Act Student Aid Portion award. Because this law appropriates more funding (approximately $22 billion instead of $14 billion) for supplemental and new awards under CRRSAA section 314(a)(1), the Department anticipates that, on average, a large share of (a)(1) allocations will be available for institutional support than under the CARES Act.
  • CRRSAA (a)(1) programs questions:
  • a. How has the use of funds changed for institutional uses? Institutions have expanded flexibility in their use of supplemental Institutional Portion funds (CFDA 84.425F). Under section 18004 (c) of the CARES Act, institutions were required to use their Institutional Portion awards to cover any cost associated with significant changes to the delivery of instruction due to the coronavirus and/or for additional emergency financial aid grants, subject to certain limitations. In contrast, allowable uses under the CRRSAA for Institutional Portion awards include:
    • i. Defraying expenses associated with coronavirus (including lost revenue, reimbursement for expenses already incurred, technology costs associated with a transition to distance education, faculty and staff trainings, and payroll).
    • ii. Carrying out student support activities authorized by the Higher Education Act of 1965, as amended (HEA), that address needs related to coronavirus; and

Making additional financial aid grants to students – see section below:

Overview Questions (Relevant to Student Aid Portion)

Similar to what was required for Institutional Portion awards under Section 18004 of the CARES Act and the Department’s Certification and Agreement for those funds, under section 314(d)(3) of the CRRSAA, no supplemental Institutional Portion awards or new Institutional Portion awards may be used to fund  contractors for the provision of pre-enrollment recruitment activities; marking or recruitment; endowments; capital outlays associated with facilities related to athletics, sectarian instruction, or religious worship; senior administrator or executive salaries, benefits, bonus, contracts, incentives; stick buybacks, shareholder dividends, capital distributions, and stock options; or any other cash or other benefit for a senior administrator or executive.

  • b. What “student support activities” may CRRSAA funds be used to support? Section 314(c)(2) allows an institution to spend its CRRSAA funds on student support activities by the HEA, where those student support activities address needs related to the coronavirus. The Department interprets this provision to, among other authorized activities, authorize grantees to use CRRSAA funds to carry out TRIO and Gaining Early Awareness and Readiness for Undergraduate Programs (GEAR UP) program activities to the extent that those activities address needs related to the coronavirus. For example, (a)(1) institutional funds may be used to support the transition to virtual activities, purchase PPE, or support other innovative learning methods that would allow an institution to engage in student support activities authorized under the HEA during COVID-19 pandemic.