2803.02  AUD 10A PROCESS

In order to keep track by agency of the receipt of federal funds coming into the 
State, accounts must be established in the State Controller's Office for each 
financial aid program.  These are project-type accounts and they are 
documented by the submittal of Form AUD 10A to Budget Planning and 
Administration for approval and forwarding to the State Controller's Office.  
(See SUAM Appendix BA 2988-ABS for a sample of AUD 10A).  It is very 
important to note that the accounts set up by the AUD 10A process are not 
specified by fiscal year.  Therefore, the balances in these accounts carry forward 
from one fiscal year to another.

An AUD 10A should be submitted at the beginning of the fiscal year to 
establish, or continue, the project account for each financial aid program.  The 
AUD 10A should reflect the amount in the Governor's Budget for each 
program for the applicable fiscal year.  To determine the balances in the 
existing Controller's accounts, a copy of the Controller's Monthly Account 
Balance Report should be obtained from your Accounting Office.  An AUD 
10A should be submitted to add to or reduce the balance so that it equals the 
amount in the Governor's budget for each financial aid program.

If necessary, additional AUD 10As should be submitted to adjust the balance 
of each account to the expected level of cash draw from the federal 
government during the fiscal year.  This is needed only if the cash draw is 
expected to exceed what is in the Governor's Budget for any individual 
financial aid program as documented on the initial AUD 10A.  The 
Controller's Office does monitor the cash draw against individual financial 
aid programs as the funds are remitted to the State Treasurer.  It is important 
to have enough authorization in each of these accounts to draw funds from 
the federal government when needed.  Therefore, it is desirable to have the 
AUD 10A reflect the largest possible cash draw for the entire fiscal year.