HARRISBURG – The Pennsylvania Higher Education Assistance Agency’s Board of Directors today approved a set of strict guidelines governing reimbursements for travel and business expenses. The board also approved new internal controls and a review process designed to provide greater transparency and more accountability.
The reimbursement guidelines are stricter than IRS regulations and are tougher than those governing any other state agency. The new guidelines are the first significant changes to the organization since Rep. William Adolph became Board Chairman and Sen. Sean Logan became Vice Chairman of the Board.
“We are a public corporation and a public entity. As such, we owe it to the taxpayers of this Commonwealth and our customers to set a higher standard than anyone in our industry. These new guidelines will do just that,” Adolph said.
Adolph added, “While we will always need to earn money and to operate like a business, we are a public entity. We have to set a higher standard while finding creative and innovative ways to meet our goals and the expectations of our students and families.”
Effective immediately, PHEAA Board members will follow the same business and travel expense requirements as PHEAA employees. However, reimbursements to Board members traveling on PHEAA’s behalf will be based on the per diem reimbursement policy established by the IRS.
“We are confident that this modified policy will address any past spending issues that PHEAA had,” said Adolph. “The entire industry has made mistakes and we’re hoping to set an example for everyone in our industry.”
Under the new policy, business expenses are defined as those that are necessary to the operations at PHEAA, keeping our borrower’s and potential borrower’s best interests in mind.
The new guidelines for acceptable business and travel expenses emphasize taking appropriate measures to save on any or all costs incurred with business-related costs. It also requires stricter policies for business-related reimbursements.
Finally, PHEAA will establish internal controls and a quarterly review process to better monitor expense reimbursements. Adolph and other Board members made it clear that PHEAA will continue to market itself aggressively — across the Commonwealth and throughout the nation — in order to fund its public service mission on behalf of Pennsylvania families.
In the past three years, PHEAA’s business earnings have fueled $97.5 million in supplements to the State Grant Program, more than $17 million in loan forgiveness for our military men and women, more than $44 million in loan forgiveness and grants for nurses; and, in total, $200 million this year in benefits to state taxpayers and students. PHEAA’s entire operating budget, in fact, is also funded through its earnings.
“We cannot stop marketing PHEAA without jeopardizing the earnings that so many families depend on to help them afford college. We compete in a highly competitive marketplace. When our CEO or other management team members travel to locations around the country they are doing so on behalf of Pennsylvania students and their families and it is clearly paying huge dividends to this state,” Adolph said.