Title IV Funding to Schools - IFAP

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Title IV Funding to Schools - IFAP Powered By Docstoc
					Session #4
    TITLE IV FUNDING TO
    SCHOOLS: FROM COD
        through GAPS

        Anthony Laing
      George Karayianis
       Tremayne Cobb
Session Outline
  Pell, ACG & National SMART Grant Funding

  Direct Loans Funding

  GAPS – New Web Screens
Iron Triangle of Funds Management:
    Department of Education

              Budget
              Service




       COD              GAPS
Iron Triangle of Funds Management:
                  School

                   USED




     Financial             Business
     Aid Office             Office
Funding Lifecycle
                          Initial
                       Authorization




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




                       Global Jobs
   Daily Production
COD 24-Hour Turnaround
          Deadlines
10:00 AM ET in COD - Same Day
 10:00 PM ET in COD - Next Day
Initial Authorization
 • Pell Grant
   –Program-wide authorization in May
     •Advance Funded
     •Records first for a few exceptions


 • ACG & National SMART Grant
   – NO program-wide authorization
   – Records first
When to Submit Disbursement Records

 • Pell Grant
   – 30 Days in advance of disbursement date
   – 7 days before COD sends funding transaction to
     GAPS


 • ACG & National SMART Grant
   – 7 Days in advance of disbursement date
   – 7 days before COD sends funding transaction to
     GAPS
Pell Administrative Cost
Allowance (ACA)
 • Three Times During an Award Year Cycle
                For 2007-2008:
                  March 2008
                 August 2008
                 August 2009

 • NO DRAWDOWNS
   Payments sent directly to bank accounts by
   GAPS
Pell Reduction to Net Accepted and
Posted Disbursement Records
 For 2007-2008:

Initial CFL                 Disbursement          Warning                 Reduction


   • School receives          • School sends in     • In January 2008,     • In February 2008,
     intial authorization       disbursement          Schools will           a Reduction Cycle
     in May                     records               receive a Warning      will be run




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

COD    •NAPD
COD    •CFL
GAPS   •Net Drawdowns
Reconciliation Tools
  • Reconciliation File
    –Snapshot

  • YTD File
    –Comprehensive
Pell Verification-W Reduction
 • For Award Year 2007-2008, Verification-W
   Reduction will be run in Summer 2008

 • Verification Status of W is an interim status

 • Schools must change status to V, S, or
   blank
    – Otherwise, FSA will reduce to zero
No-Pell Deobligation
ACG, National SMART Grant
 • If student has either an ACG or National
   SMART Grant and not a Pell recipient, the
   student will lose the ACG/National SMART
   Grant

 • For Award Year 2007-2008, No-Pell
   Deobligation will be run in Summer 2008
Reduction to GAPS Net Drawdown
Pell, ACG, National SMART Grant
 • For Award Year 2007-2008, Reduction to
   GAPS Net Drawdown is scheduled for March
   2010

 • Schools not in compliance with 30-day
   reporting rule
Reduction to GAPS Net Drawdown
Example

  Authorization: $1,000,000

     Drawdown: $800,000


         Reduction to GAPS Net Drawdown


             Updated Authorization: $800,000
Individual Reductions
  • POP Process
    –Only for Pell, not in ACG &
     National SMART Grant

  • Negative Pendings
Post-Deadline Processing
 • For Award Year 2007-2008:
    – Occurs After September 30, 2008

 • Schools Request on the Web

 • Request only when you are ready to submit
Closeout/Reconciliation
 • For Award Year 2007-2008, Schools
   SHOULD be reconciled by September
   30, 2008

 • Must closeout within…
   –Pell: Five Years
   –ACG, SMART: Four Years
Title IV Funding to Schools

 Pell, ACG & National SMART Grant Funding

 Direct Loans Funding

 GAPS – New Web Screens
Direct Loan Funding

How do schools
get their
$money$?
Funding Lifecycle
 •   Initial Funding

 •   Disbursement and Loan processing (in COD)

 •   Drawdowns (through GAPS)

 •   Monthly reconciliation disbursements/cash
     – School/COD/GAPS

 •   End of Award Year Reconciliation and Closeout
Iron Triangle of Funds Management:
           Direct Loans

               COD




       GAPS           School
Funding Basics
• Funding based on booked loans/disbursements

• 7 day rule
   – Records submitted up to 7 days in advance of
     disbursement date can trigger change in funding

• Cash Management Regulations
   – 30 day reporting requirement
   – 3 -Day cash rule
   – Monthly reconciliation (DL only)
Funding Delivery Methods

     Advanced
      Funds/
  School-Initiated
    Drawdowns
                     versus
                              Pushed Cash/
                                System-
                                Initiated
                               Drawdowns
Advanced Funds/School-
Initiated Drawdowns
• School receives an initial CFL
• School draws down cash via GAPS
• School submits booked disbursements to
  substantiate cash received
  (including an accepted and linked MPN)
• COD sends CFL increases to GAPS so
  school can continue to drawdown funds
  as needed
Funding Flow
Advanced Funds         SCHOOL




 Batches



           COD                  GAPS




                 CFL
Pushed Cash/System-
Initiated Drawdowns
 • COD initiates drawdown requests and cash is
   deposited in a school’s bank account based on
   disbursements accepted and posted by COD

 • Schools must have an accepted origination
   record and MPN on file before an actual
   disbursement is accepted and cash is pushed
   to a school
Funding Flow
Pushed Cash           SCHOOL




 Batches



           COD                 GAPS




                 CFL
                 Drawdowns
                 FDLs
Example:
Funded Disbursement Listing

Run Date: 11/2/07                                   US Department of Education                                 Page: 1
                                                    Federal Direct Loan Program
                                                 Funded Disbursement Listing Report


                                              For Loans to be Funded by: 11/1/07
                                                 For Academic Year 2007-2008
School: Capital Hair Salon                                                               School Code: G11111
         13 Maple Pl.
          Washington, DC 20202


Student         Loan ID           Disb Date         Gross Fee    Rebate      Net Amt.


Sally Mae     233234454S08G11111001    11/2/07         $2,500    -$100    $38           $2,438
Jerry Jones    212121233S08G11111001   10/28/07        $2,383    -$95      $36          $2,324
Marcy Kay     887890766U08G11111001    11/5/07        $2,000     -$80      $30          $1,950
                                                                                  --------------------
                                                       Total School Amount               $6,712
Cash Management Requirements
  • 30-Day Reporting Requirement
     – 685.301(d) Direct Loan

  • 3-Day Cash Rule
     – 668.162(b)

  • Monthly Reconciliation
    – 685.102(b) Direct Loan
Reconciliation and Closeout
Direct Loan Reconciliation
versus End-Of-Year Closeout
 • Monthly Reconciliation
   – Compare your records with the Dept’s to
     identify and resolve outstanding
     discrepancies

 • Closeout
    – Net Accepted and Posted
    – Disbursements =GAPS net cash
    – Ending Cash Balance (ECB) = 0
Your Ending Cash Balance Equation



             +               -                 -
 Beginning
                   Cash            Refunds         Disburse-
   Cash
                  Receipts         Of Cash          ments
  Balance




                                                   Ending
       -       Upward
             Adjustments   +      Downward
                                 Adjustments   =    Cash
                                                   Balance
COD and GAPS Tools
Direct Loan Reconciliation
 • COD Funding Web screens
 • Reports (COD)
 • School Account Statement (SAS)
   Report
 • GAPS web screens and reports
School Funding Information
Web Screen
School of Outstanding Students
Funding Info

Program       Direct Loan   Award Year 07-08

Entity ID                                      44544444
Initial CFL                                    $56,000
Current CFL                                    $200,000
Available Balance                              $15,000
Cash > Net Accepted & Posted Disbursements     $0
Net Accepted & Posted Disbursements            $185,000
Net Drawdowns                                  $185,000
Disbursement To Drawdown Ratio                 1.0000
Cash Activity Screen
School of Outstanding Students
Program Direct Loan              Award Year 07-08

Net Draws                                             $30,000
Cash > Accepted & Posted Disbursements & older than 30 days $0
                                        Totals
Date of Transaction                                 10/13/07
Time                                                1:35PM
Drawdowns                               $30,000     $2,000
Drawdown adjustments                    $0
Refunds                                 $1,000
Returns                                 $0
Days for On-time reporting
Payment Control Number                              2007101321221
Accepted & Posted Disbursements Applied $20,000     $0
Cash > Accepted & Posted Disbursements $10,000
Source System                                       GAPS
Direct Loan School Account
Statement (SAS) Report
• Monthly COD Report
  –Copied from main database
  –Loan/Disbursement Information
    •Summary
    •Detail
  –Cash Detail
Title IV Funding to Schools

 Pell, ACG & National SMART Grant Funding

 Direct Loans Funding

 GAPS – New Web Screens
         G5 Phase 1
General Overall Improvements

  Enhanced self-management of personal profile
   and account maintenance including self-
   registration, edit profile, password reset, and
   unlock account functionality
  New descriptive payment flag status fields
  More descriptive error messages
  Automated email functionality throughout G5
  Flexible sort functionality
  Introduction of My Home Page
  General Overall Improvements
           (Continued)
• New My Awards Feature will display an interactive list of your
  awards and balances on your G5 Home Page
• Greater Reporting Flexibility with additional report parameters
• New G5 Training and Help Facility will provide Online
  Simulated Training & Materials
• Dynamic Web Based Environment will provide greater screen
  control features and flexibility by utilizing the newest
  technologies
• Consistent Three Step Processing for workflow management
  provides a logical path to process your payment requests
  (Payments > Summary > Confirmation)



Payment Request screen                                           Confirmation screen
                                Summary screen listing
listing individual awards and                                    displaying the control
                                requested amounts in a single
balances to enter request                                        number for the payment
                                list for user to confirm their
amounts                                                          request
                                selections
G5 HOME
 PAGE
Making a Payment Request
Payments Tab
Payment Summary Tab
        Automated Email
Tremayne,

Requesting User ID: Tremayne@ed.gov

  Your request made on 09/25/2007 for
  $25,172.32, has been received. Your control
  number is 2007092506381 and you will receive
  your funds on 09/27/2007 in bank account
  ****9426

• If you did not request this payment, please
  contact Helpdesk at 1-888-336-8930
Creating an Adjustment
Create Adjustments
Adjustment Summary Page
Adjustment Confirmation
Need Funding Help?
 • COD School Relations Center
   1-800-848-0978

 • GAPS Helpdesk
   1-888-336-8930
Related Conference Sessions

 Session #5    Operational Update: ACG & National SMART

               Requirements for Federal Grant Programs:
 Session #10
               Pell, ACG, & National SMART

 Session #40   A Direct Loan Primer
Contact Information
 Anthony Laing
  Supervisor, Pell Program Operations Division
  anthony.laing@ed.gov
  (202) 377-3112

 George Karayianis
  Funds Management Lead, Direct Loan Program Operations
  Division
  george.karayianis@ed.gov
  (202) 377-3141

 Tremayne Cobb
  Management Analyst, Financial System Operations Group
  tremayne.cobb@ed.gov
  (202) 260-4392

				
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