At the beginning of an award year, what determines the amount of a school's Current Funding Level or Cash Control Amount?

• A. The amount of the school's prior-year disbursement history
• B. The amount of the school's prior-year unsubstantiated cash
• C. the amount of the school's prior-semester disbursements
• D. The amount of the school's current-year enrollment

Answer: (A)

Starting an award year, the amount of a school's Current Funding Level or Cash Control Amount is set based on the school's prior-year disbursement history. This approach ties the funding to actual withdrawal activity from the previous year, providing enough liquidity to cover expected disbursements while helping prevent overspending. It uses a full-year record of how funds were drawn, which is a reliable guide for the upcoming year. Other factors, like unsubstantiated cash, only reflect cash on hand without showing how funds were actually disbursed, and prior-semester disbursements or current-year enrollment do not capture the complete annual spending pattern used to establish the initial funding level.