Pell Grant Funding

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					Session C-12
Title IV Funding to Schools: From COD
              through G5

  For Pell Grants, ACG and National
            SMART Grants

       Anthony T. (Tony) Laing
     U.S. Department of Education
Session Outline

Pell, ACG & National SMART Grant
 Funding

Cash Management

G5 - Updates




                                   2
  Iron Triangle of Funds
Management: Department of
        Education
          Budget
          Service




    COD             G5


                            3
Iron Triangle of Funds
 Management: School

             ED




Financial         Business
Aid Office         Office


                             4
Funding Lifecycle
                         Initial
                      Authorization




      Year End
Reconciliation for
                                      Daily Production
Pell, ACG, National
  SMART Grants




                      Global Jobs




                                                         5
Daily Production
COD 24-Hour Turnaround

   Disbursement Record Deadlines

    10:00 AM ET in COD - Same Day
     10:00 PM ET in COD - Next Day




                                     6
Payment Methods

• Advanced Funded = 5,200 Schools
• JIT Pilot       = 43 Schools
• HCM1, HCM2 &
    Reimbursement = 400 Schools




                                    7
Initial Authorization
• Pell Grant
   – Program-wide authorization in May
      • Advance funded
      • 2008-2009 - $7 billion for 4,645 schools
      • JIT, HCM1, HCM2, & Reimbursement =
        Records First


• ACG & National SMART Grant
   – NO program-wide authorization
   – Records first



                                                   8
When to Submit Disbursement
Records
• Pell Grant
   – 30 Days in advance of disbursement date
   – 7 days before COD sends funding
     transaction to G5

• ACG & National SMART Grant
  – 7 Days in advance of disbursement date
  – 7 days before COD sends funding
    transaction to G5

                                               9
Four Program Wide Global
Reduction Jobs
• Pell Reduction to Net Accepted and Posted
  Disbursements (NAPD)
• Pell W Verification Reduction
• ACG & SMART No Pell De-obligation
• Pell, ACG & SMART Reduction to GAPS Net
  Drawdown




                                              10
Pell Reduction to Net Accepted &
Posted Disbursement Records
 For 2008-2009:
Initial CFL             Disbursement        Warning              Reduction


   • School                • School sends     • In January         • In February
     receives initial        in                 2009, Schools        2009, a
     authorization           disbursement       will receive a       Reduction
     in May                  records            Warning              Cycle will be
                                                                     run




     Reduction Cycle will reduce the
     Authorization to equal Net Accepted and
     Posted Disbursements (NAPD)


                                                                                 11
2008 –2009 Pell CFL Reduction
to NAPD
Example:
May 2008:
  Initial Authorization - $1,000,000

   January 2009:
              NAPD - $500,000


               Reduction - $500,000


                                       12
Pell Reduction to Net Accepted
& Posted Disbursement Records
(NAPD)


 • 2007-2008 Award Year

   – 374 schools reduced by $23 million




                                          13
      Stay Reconciled!


COD    •NAPD
COD    •CFL
G5     •Net Drawdowns



                         14
Stay Reconciled
• Goal is Zero Available Balances

• No Available Balances
  – 1,100 schools in prior years

• No Negative Balances
  – 700-900 schools in prior years




                                     15
School Funding Information
Web Screen
School of Outstanding Students
Funding Info

Program       Pell      Award Year 08-09
Entity ID                                    44544444
Initial CFL                                  $100,000
Current CFL                                  $200,000
Available Balance                            $0
Cash > Net Accepted & Posted Disbursements   $0
Net Accepted & Posted Disbursements          $200,000
Net Drawdowns                                $200,000
Disbursement To Drawdown Ratio               1.0000



                                                        16
Reconciliation Tools
• Reconciliation File
  –Snapshot
  –Mass mailing in September for
   Pell, ACG & National SMART

• YTD File
  –Comprehensive

                                   17
Pell “W” Verification Reduction
• 2008-2009 Award Year “W” Verification
  Reduction scheduled for Summer 2009
• Verification Status of W is an interim status
• Schools must change status to V, S, or
  blank
   – Otherwise, FSA will reduce to zero
• 2007-2008 Award Year Reduction in
  Summer 2008 for 310 schools; 2,117
  students; $3 million


                                              18
No-Pell Deobligation
ACG, National SMART Grant
• If student has either an ACG or National
  SMART Grant and is not a Pell recipient, the
  student will lose the ACG/National SMART
  Grant
• 2008-2009 Award Year No-Pell Deobligation
  scheduled for Summer 2009
• 2007-2008 Award Year
   – ACG         264 schools, 519 students
   – SMART        51 schools, 58 students

                                             19
Reduction to G5 Net Drawdown
Pell, ACG, National SMART Grant
• 2006-2007 Award Year Reduction to G5 Net
  Drawdown scheduled for March 2009
• 2005-2006 Award Year – 529 schools; $5
  million
• Schools not in compliance with 30-day
  reporting rule
• Continued customer service outreach


                                           20
Reduction to G5 Net Drawdown

Example


 Authorization: $1,000,000

   Drawdown: $800,000


      Reduction to G5 Net Drawdown


          Updated Authorization: $800,000


                                            21
Individual Reductions
• POP process
  –Only for Pell, not in ACG &
   National SMART Grant

• Negative Pendings




                                 22
Post-Deadline Processing
• For Award Year 2008-2009:
   – Occurs After September 30, 2009

• Schools request on the Web

• Request only when you are ready to submit




                                          23
Post-Deadline Processing
• 30 days to resubmit records after
  administrative relief granted

• 15 days for a second request

• Continued follow-up




                                      24
Closeout/Reconciliation
• For Award Year 2008-2009, Schools
  SHOULD be reconciled by September 30,
  2009

• Must closeout within…
  – Pell: five years
  – ACG, SMART: four years




                                          25
Pell Administrative Cost
Allowance (ACA)
• Three times during an award year cycle
               For 2008-2009:
                 March 2009
                August 2009
                August 2010

• NO DRAWDOWNS
  Payments sent directly to bank accounts by
  G5

                                           26
Title IV Funding to Schools

Pell, ACG & National SMART Grant
 Funding

Cash Management

G5 - Updates




                                   27
Cash Management Requirements
• 30-day reporting requirement
   – Report changes within 30 days after
     becoming aware of changes

• 3-day cash rule
  – Only draw down cash for use within three
    days




                                               28
Excess Cash
• Includes any Title IV funds received from
  ED that are deposited or transferred into
  a federal account as a result of an award
  cancellation, adjustment, or recovery

• Tolerance -- 1% of prior year amount

• Finding may trigger cash monitoring or
  reimbursement



                                              29
Title IV Funding to Schools

Pell, ACG & National SMART Grant
 Funding

Cash Management

G5 - Updates




                                   30
G5 - Department of Education’s
Payment System

• G5 access

• Assistance available in PC lab

• Send refunds electronically

• Do NOT use paper checks!
                                   31
G5 Home page




               32
Registration Page

• Online form where new users can register
  for access to G5

• Access is granted/denied between 1-2
  business days




                                             33
G5 Registration




                  34
My Awards
• An easy to view list of all of your
  institution’s awards in G5

• Gives a quick snapshot of the Award
  number, Available Balance, Last Date to
  Draw, and Award Status




                                            35
G5 – My Awards Page




                      36
How Do I Get Grant Money???




                              37
Create Payments




                  38
Create Payment – Payment Tab




                               39
Create Payment – Summary Tab




                               40
Automated Email
Tremayne,

Requesting User ID: Tremayne@ed.gov

 Your request made on 08/12/2008 for $100.00,
 has been received. Your control number is
 2008081206381 and you will receive your
 funds on 08/13/2008 in bank account
 ****9426.

 If you did not request this payment, please
 contact Helpdesk at 1-888-336-8930.


                                               41
Reporting




            42
External Award Activity




                          43
External Award History Report




                                44
External Award History Report




 0215S060156   $1,126,423.00   -$374,043.00   $0.00   $0.00   $0.00   -$374,043.00   09/30/2010




                                                                                                  45
External Award History Report


      Q215S06156

      $-741,192.00
      09/30/2010
      $1,126,423.00
      -$741,192.00
      $0.00
      $0.00
      $0.00




                                46
Need Funding Help?

 • COD School Relations Center
   1-800-474-7268

 • G5 Help desk
   1-888-336-8930



                                 47
Related Conference Sessions

                Operational Update for Pell Grants, ACG and
Session C-11
                National SMART Grants
                Higher Education Opportunity Act of 2008 –
Session C-06
                An Update
                Title IV Funding: From COD through G5 (For
Session DL-4
                Direct Loan Schools)

Session FF-12   COD Basics




                                                              48
Contact Information

 Anthony T. (Tony) Laing
  Director, Internal Controls Division – Federal Student Aid
  anthony.laing@ed.gov
  (202) 377-3112




                                                               49

				
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