Session 29

COD, GAPS, Pell and Direct Loans: Funding for the Schools

Session 29 - 2

Session Outline
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COD Funding – Process – New Terms Pell Grant Funding Process COD Web Screens Direct Loan Funding Options Netting of Disbursements Cash Management Regulations

Session 29 - 3

Session Outline (continued)
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GAPS Functionality/New Enhancements
– Electronic Refunds – Drawdown Adjustments – Reports – View Access – Payment Request File Upload

Session 29 - 4

One COD Funding Process
Direct Loan Pell

COD process
Session 29 - 5

Funding Terms
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Current Funding Level Net Draws Available Balance Refunds and Returns of Cash
Session 29 - 6

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Funding Terms (continued)
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Net Accepted and Posted Disbursements Cash > Accepted and Posted Disbursement Cash > Accepted and Posted Disbursements and > 30 days.
Session 29 - 7

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Pell Funding Terms
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Pell Grants – Obligation/Authorization = Current Funding Level – Cash = Drawdowns

Session 29 - 8

Current Pell Grant CFL (Obligation) Process
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Initial CFL created in May Schools cannot draw cash in GAPS that exceeds their CFL. Schools submit disbursement records to COD that adjusts CFL within 7 days. CFL level in GAPS is not increased until initial CFL has been exceeded.
Session 29 - 9

School Example of an ESOA
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Initial CFL = $5 million Total Accepted and Posted Disbursements = $2 million Difference = $3 million

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Session 29 -10

Electronic Statement of Account
GAPS AWARD NUMBER A. Previous Pell Grant Obligation Current Pell Grant Obligation Adjustment (Increase + or Decrease -) Previous Pell Grant Obligation/Payment Current Pell Grant Obligation/Payment Adjustment (Increase + or Decrease -) P063P014444 $5,000,000.00 $6,000,000.00 $1,000,000.00+ $0.00 $0.00 $0.00 $5,000,000.00 02/13/2002 3,333 $6,000,000.00 $6,000,000.00 $16,665.00

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GAPS Drawdowns/Payments Date of Last Activity in GAPS YTD Total Unduplicated Recipients YTD Pell Accepted Disbursement Amount YTD GAPS Posted Disbursement Amount YTD Administrative Cost Allowance As of Batch ID 200212345619990101123000

Session 29 -11

CFL (Obligation) Adjustments
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School Generated – Schools submit increases and decreases throughout the year System Generated – Administrative Cost Allowance (ACA) – Negative pending – W Verification Financial Aid Office and Business Office reconcile as of September 30

Session 29 -12

Pell Grant Funds Control
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Initial CFL (May) Reduction to level of accepted and posted disbursement records (February) Post deadline adjustments (after 9/30 administrative relief, audits, decreases) Reduction to level of net GAPS drawdowns (end of second year)
Session 29 -13

Pell Funding Reconciliation
Date CFL = (COD) Disb Records = Cash (COD) (GAPS) $500,000 $500,000 $500,000 $500,000

11/02 2/03 3/04

$1,000,000 $750,000 $750,000 $500,000 $500,000 $750,000 $750,000 $500,000

Session 29 -14

School Funding Info Web Screen (Pell)

Session 29 -15

Unprocessed Deobligations
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A new column on the GAPS website Deobligations in excess of available balance

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Session 29 -16

Unprocessed Deobligation Report
Award Balances Report
Payee DUNS/SSN: Payee Name: Payee Address: 555555555 Tony’s Beauty Schools SMITH, INC, CHICAGO, IL 60603

AWARD BALANCES TABLE (As of February 13, 2002) No 1 2 Award P063P011222 Recipient Ref. 01-02 Pell Authorization $5,000,000.00 $26,693.00 Unprocessed Deobligations ($5,000.00) $0.00 Net Draws ($5,000,000.00) ($26,693.00) Available Balance ($5,000.00) $0.00

P007A006050 00-01 SEOG

Session 29 -17

School Example of Unprocessed Deobligation
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School CFL (obligation) = $5 million Net drawdown in GAPS = $5 million Available balance in GAPS = $0 School submits negative disbursement of $5,000 Unprocessed deobligation of $5,000

Session 29 -18

Resolve Unprocessed Deobligation
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Refund the cash Adjust the drawdown Increase the CFL (obligation)

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Session 29 -19

Funding in COD
Funds Delivery
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Schools can draw down in GAPS the cash they will need to disburse within the next 3 business days. Schools can choose to have COD initiate drawdowns on the school’s behalf based on accepted actual disbursement records.

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Session 29 -20

Direct Loan Funds Control
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CFL = obligation. CFL not limited by obligation but related to disbursements. CFL increases as school submits disbursement records timely.
Session 29 -21

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CFL Process for DL Advance Funding Schools
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Initial CFL created at Beginning of Program Year (Feb.) CFL increases as a school submits disbursement records to COD. Schools draw down their current cash needs in GAPS.
Session 29 -22

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Funding for DL Pushed Cash Schools
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Funding driven by actual disbursement records. Funded Disbursement Listing (FDL) is Generated by COD. Cash electroncially sent to school’s bank account.
Session 29 -23

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Example of Funded Disbursement Listing

Session 29 -24

“Pushing” Cash to Schools
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Cash sent to school to fund disbursements Cash sent to school based on “net” accepted and posted disbursements Funded Disbursement Listing (FDL) indicates amount of money pushed to school.
Session 29 -25

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Practical Effects of Netting Disbursements
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Schools won’t have to return excess cash (if additional disbursements will be made within 3 business days) Keeps disbursements and cash in balance. Makes monthly and year end reconciliation simple.
Session 29 -26

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COD Funding Screens
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School Summary School Funding Info Cash Activity Summary Financial
Session 29 -27

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School Summary Screen

Session 29 -28

School Funding Info Screen (DL)

Session 29 -29

Cash Activity Screen

Session 29 -30

School Summary Financial Info Screen

Session 29 -31

Refunds of Cash Info

Session 29 -32

Cash Management Requirements
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30-Day Reporting Requirement -685.301(d) Direct Loan -685.83 Pell (and annual deadline notice) 3-Day Cash Rule -668.162(b) Monthly Reconciliation -685.102(b) Direct Loan
Session 29 -33

Refunds of Cash

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Funds not disbursed within 3 business days must be returned as Excess Cash to the Department of Education. Encourage schools to return funds electronically via the GAPS web.
Session 29 -34

Advantages of Electronic Refunds
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Posts to GAPS within 2 business days School control over process School directs from which bank account the money will be refunded. Multiple refunds on one screen and at one time. Electronic processing reduces human error and delays.
Session 29 -35

GAPS Award Numbers
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CFDA prefix (ex: P) CFDA suffix (ex: 268, 063) Sub program identifier (ex: K, P) Year identifier (ex: 01) Institution identifier (ex: 2244, 5543) Ex: DL = P268K012244 Pell = P063P015543 Campus Based = P007A992231
Session 29 -36

Access E-Payments Website
(http://e-payments.ed.gov/gapsweb)

Session 29 -37

Logon to GAPS

Session 29 -38

Select Refunds from Main Menu

Session 29 -39

Select “refunds for open awards” and click “initiate refunds”

Session 29 -40

Select “continue”

Session 29 -41