The document is a letter from the Chief Financial Officer of the US Department of Education responding to four members of Congress regarding electronic systems used by the Department. It identifies the Department's core financial management system and several other systems used for travel, loans, contracts, grants, cash reconciliation, and more. For each system, the letter describes what data it handles and how the systems interact through automated interfaces. It also explains how data is regularly submitted to Treasury's government-wide accounting systems and OMB's MAX information system through both automated and manual processes.
The document is a letter from the Chief Financial Officer of the US Department of Education responding to four members of Congress regarding electronic systems used by the Department. It identifies the Department's core financial management system and several other systems used for travel, loans, contracts, grants, cash reconciliation, and more. For each system, the letter describes what data it handles and how the systems interact through automated interfaces. It also explains how data is regularly submitted to Treasury's government-wide accounting systems and OMB's MAX information system through both automated and manual processes.
The document is a letter from the Chief Financial Officer of the US Department of Education responding to four members of Congress regarding electronic systems used by the Department. It identifies the Department's core financial management system and several other systems used for travel, loans, contracts, grants, cash reconciliation, and more. For each system, the letter describes what data it handles and how the systems interact through automated interfaces. It also explains how data is regularly submitted to Treasury's government-wide accounting systems and OMB's MAX information system through both automated and manual processes.
Honorable Darrell Issa Chairman Committee on Oversight and Government Reform House of Representatives Washington, DC 20515 Dear Mr. Chairman: March 31,2011 I am responding to your March 8, 2011, letter requesting information about electronic systems in use at the Department of Education (Department). The specific responses to the questions you posed are enclosed. In addition, we recommend you review the Department's Fiscal Year 2010 Agency Financial Report available at http://www2.ed.gov/about/reports/annual/201 0reportlindex.html . Please do not hesitate to contact Assistant Secretary Gabriella Gomez, Office of Legislation and Congressional Affairs, at 202-401-0020, if you have any questions or require additional information. Enclosure Sincerely, ~ / ? Thomas P. Skelly Delegated to Perform the Duties and Functions of the Chief Financial Officer 400 Maryland Avenue, SW, 4th Floor, Washington, DC 20202-4447 Our Mission is to promote student achievement and preparation/or global competitiveness by fostering educational excellence and ensuring equal access UNITED STATES DEPARTMENT OF EDUCATION OFFICE OF THE CHIEF FINANCIAL OFFICER March 31,2011 Honorable Todd R. Platts Chairman Subcommittee on Government Organization, Efficiency and Financial Management House of Representatives Washington, DC 20515 Dear Mr. Chairman: I am responding to your March 8, 2011, letter requesting information about electronic systems in use at the Department of Education (Department). The specific responses to the questions you posed are enclosed. In addition, we recommend you review the Department's Fiscal Year 2010 Agency Financial Report available at http://www2.ed.gov/aboutirepOJts/annuall2010report/index. html . Please do not hesitate to contact Assistant Secretary Gabriella Gomez, Office of Legislation and Congressional Affairs, at 202-401-0020, if you have any questions or require additional information. Enclosure Sincerely, ~ l ~ Thomas P. Skelly Delegated to Perform the Duties and Functions of the Chief Financial Officer 400 Maryland Avenue, SW, 41b Floor, Washington, DC 20202-4447 Our Mission is to promote student achievement and preparaJionfor global competitiveness by fostering educational exceUence and ensuring equal access UNITED STATES DEPARTMENT OF EDUCATION OFFICE OF THE CHIEF FINANCIAL OFFICER March 31, 2011 Honorable James Lankford Chainnan Subcommittee on Technology, Infonnation Policy, Intergovernmental Relations and Procurement Refonn House of Representatives Washington, DC 20515 Dear Mr. Chainnan: I am responding to your March 8, 2011, letter requesting infonnation about electronic systems in use at the Department of Education (Department). The specific responses to the questions you posed are enclosed. In addition, we recommend you review the Department's Fiscal Year 2010 Agency Financial Report available at http://www2.ed.gov/aboutireports/annual/2010reportJindex.html. Please do not hesitate to contact Assistant Secretary Gabriella Gomez, Office of Legislation and Congressional Affairs, at 202-401-0020, if you have any questions or require additional infonnation. Enclosure Sincerely,
Thomas P. v - ..... 7 Delegated to Perfonn the Duties and Functions of the Chief Financial Officer 400 Maryland Avenue, SW, 4 111 Floor, Washington, DC 20202-4447 Our Mission is to promote student achievement and preparation for global competitiveness by fostering educational excellence and ensuring equal access Honorable Jim Jordan Chairman UNITED STATES DEPARTMENT OF EDUCATION OFFICE OF THE CHIEF FINANCIAL OFFICER March 31, 2011 Subcommittee on Regulatory Affairs, Stimulus Oversight and Government Spending House of Representatives Washington, DC 20515 Dear Mr. Chairman: I am responding to your March 8, 2011, letter requesting information about electronic systems in use at the Department of Education (Department). The specific responses to the questions you posed are enclosed. ' In addition, we recommend you review the Department's Fiscal Year 2010 Agency Financial Report available at http://www2.ed.gov/aboutireports/annua1J201 Oreportlindex.html. Please do not hesitate to contact Assistant Secretary Gabriella Gomez, Office of Legislation and Congressional Affairs, at 202-401-0020, if you have any questions or require additional information. Enclosure Sincerely . ~ J . ~ Thomas P. Skelly Delegated to Perform the Duties and Functions of the Chief Financial Officer 400 Maryland Avenue, SW, 4th Floor, Washington, DC 20202-4447 Our Mission is to promote student achievement and preparation/or global competitiveness by fostering educational exceUence and ensuring equal access Responses to Committee on Oversight and Government Reform US Department of Education March 31, 2011 1. Identify and briefly describe each of your agency's business and accounting systems. If separate divisions, bureaus, or offices of your agency use separate systems, identify which divisions, bureaus, or offices use each system. The Department of Education's department-wide accounting and business systems are all captured under an umbrella system named the Education Centralized Automated Processing System (EDCAPS). A brief description of these systems follows. Please see Attachment 1 for a flowchart of the EDCAPS component systems. The Financial Management Support System (FMSS) is the Department of Education's department-wide core financial management (accounting) system. The services it provides include: funds control, budget planning, general ledger, accounts payable, accounts receivable, administrative payments, and financial reporting. The Government-wide E2 Travel System is a department-wide system and manages all employee and invitational travel authorizations and vouchers with an automated interface to the FMSS. The Nortridge Loan System manages the Department's portfolio of promissory notes and has an automated interface to the FMSS. The Contracts and Purchasing Support System (CPSS) is a department-wide system for contracts management and processes procurement and contract data with an automated interface to the FMSS. The G5 Grants Management System is a department-wide system for grants management and processes grants data with an automated interface to the FMSS. The CheckFree system is a cash reconciliation and SF224 reporting system to the Department of the Treasury. The Unbilled Lockbox processes electronic refunds via P A Y.gov and check refunds through US Bank for the Department with an automated interface to the FMSS. The Accounts Receivable Reporting Database is a database of accounts receivable information used to generate reports specific to accounts receivable functions. The Hyperion Budget Planning System is a department-wide system used to input annual budget plans. The Department of Interior processes all payroll for the Department of Education. Responses to Committee on Oversight and Government Reform US Department of Education The Department of the Treasury processes payments for the Department of Education. The Federal Student Aid Financial Management System (FSA FMS) processes student loan and grant accounting data from the Federal Student Aid systems with an automated interface to the FMSS. Please see Attachment #2 for a diagram of the FSA component systems and their descriptions. 2. Explain how the business and accounting systems identified in response to Request No. 1 interact with one another. All Education systems identified in Response No.1 above interact via automated processes. These processes are controlled through scheduled predefined procedures that either interface via online, real-time or via batch mode depending upon the business requirement. 3. For each system identified in response to Request No.1, state whether information found in that system is regularly or periodically submitted to any of the government-wide accounting systems maintained by the Department of the Treasury, e.g., GFRS, FACTS I, FACTS II, IFCS, etc., ,and explain how and at what intervals those submissions occur, including descriptions of both manual and automated processes. The FMSS regularly submits information to the government-wide accounting systems maintained by the Department of the Treasury. All submissions are automated. The frequency of the submissions is: GFRS--annually; FACTS I and FACTS II--quarterly; and IFCS--quarterly. 4. For each system identified in response to Request No.1, state whether information found in that system is regularly or periodically submitted to the Office of Management and Budget's ("OMB") MAX Information System, and explain how and at what intervals those submissions occur, including descriptions of both automated and manual processes. FMSS data is submitted to Treasury's FACTS II system quarterly for budget execution reporting. From the FACTS II system, MAX is automatically populated with the agency financial data. Department staff uses FMSS data in preparing SF-132 apportionment requests, which are manually entered into the MAX Apportionment module, as needed. Department staff usually processes several requests each month. Department staff also manually enter prior-year budget execution data from FMSS into MAX in budget presentation format during the annual budget formulation process, which normally occurs between November and January. 2 Responses to Committee on Oversight and Government Reform US Department of Education Finally, Department staff periodically responds to OMB Budget Data Requests (BDR' s), which may require FMSS budget execution and financial data to be manually entered into a MAX application module. 5. For each system identified in response to Request No.1, describe recent, current, and planned migration or modernization projects. The FMSS resides on an Oracle database and uses the Oracle Federal Financials 11.5.10 release of the application. A new version of the software has been released (Version 12) and the Department is currently in the initial stages of analyzing the business need, effort, and resources necessary to implement this new version. The E2 Travel system contract with GSA expires in 2013. If a new vendor is chosen, Education will migrate to a new system in 2014. The Nortridge Loan System has no recent, current, or planned modernization projects at this time. The Contracts and Purchasing System--The Department of Education has initiated a project to integrate a new Commercial-Off-The-Shelf (COTS) product into the enterprise, replacing or significantly enhancing the current contract writing system. The G5 Grants Management System--The final component of the G5 implementation was completed March 14, 2011, and the system is now operational. The CheckFree system has no recent, current, or planned modernization projects at this time. The Unbilled Lockbox was recently migrated from US Bank to PA Y.gov for electronic refunds. The Accounts Receivable Reporting Database has no recent, current, or planned modernization projects at this time. The Hyperion Budget Planning System has no recent, current, or planned modernization projects at this time. The Federal Student Aid Financial Management System has no recent, current, or planned modernization projects at this time. 6. In addition to your agency's submissions to government-wide accounting systems maintained by the Department of the Treasury and OMB, as described in response to 3 Responses to Committee on Oversight and Government Reform US Department of Education Requests Nos. 3 and 4, does your agency publish any of the same infonnation online for public viewing? If so, describe how and in what fonnat that information is published. The Department does not publish any of the same information online for public viewing. 7. Identify and briefly describe each system that your agency uses to manage grants, direct loans, and/or loan guarantees. If separate divisions, bureaus, or offices of your agency use separate systems, identify which divisions, bureaus, or offices use each system. The Department uses the G5 Grants Management System to manage grants and direct loan disbursements. The G5 investment has been selected and approved by OMB as a Consortia Lead for the Grants Management Line of Business (GMLoB). The shared service model enables ED to provide services to client agencies that will migrate to the Department of Education's end-to-end grant management system. The G5 solution supports the Agency's grant-making business process and is a full life cycle, end-to-end grants management system (intake of applications, peer review, award, payment, perfonnance monitoring, and final closeout of the grant award). Also, please see Attachment 2 for a description ofthe Federal Student Aid office systems that support grant, direct loan, and/or loan guarantee activity. 8. For each system identified in response to Request No.7, explain how it interacts with any business or accounting system identified in response to Request No.1. G5 interacts with the FMSS accounting system in both a real-time mode for funds control on awards and a batch mode for drawdowns. The FSA-FMS system interfaces with the FMSS accounting system and G5 grants system in a batch mode. Please see Attachment 2 for a description of grant systems with the Federal Student Aid office. 9. For each system identified in response to Request No.7, state whether information found in that system is regularly or periodically submitted to the Catalog of Federal Domestic Assistance (CFDA), and describe how and at what intervals those submissions occur, including descriptions of both automated and manual processes. New programs are entered into the G5 system as pending, manually placed into the Catalog of Federal Domestic Assistance (CFDA), and updated in the Department's Grants System (G5) once approved within the CFDA. The existing CFDA program information is also reviewed and updated on an annual basis. 10. For each system identified in response to Request No.7, state whether infonnation found in that system is regularly or periodically submitted to any of the government-wide grants 4 Responses to Committee on Oversight and Government Reform US Department of Education management and reporting systems, e.g., F AADS, F AADS PLUS, etc., and describe how and at what intervals those submissions occur, including descriptions of both automated and manual processes. Data from the G5 application is submitted to F AADS quarterly (prior to the F AADS discontinuance) and to USASpending.gov (using the FAADS Plus format) bimonthly. The F AADS submission process includes running reports from G5 and manually submitting them to the F AADS system. For USASpending.gov, submissions are run from the G5 database and manually uploaded to USASpending.gov. 11. For each system identified in response to Request No.7, describe recent, current, and planned migration or modernization projects. The final component of the G5 implementation was completed March 14,2011, and the system is now operational. See Attachment 2-The Direct Loan Servicing System and the Conditional Disability Discharge Tracking System are migrating to the Title IV Additional Servicers model and being decommissioned. The Debt Management and Collection System (DMCS) is being replaced by DMCS2. 12. In addition to your agency's submissions to government-wide grants management and reporting systems, described in response to Requests Nos. 9 and 10, does your agency publish any of the same information online for public viewing? If so, describe how and in what format that information is published. Forecast of Funding Opportunities under the Department of Education Discretionary Grant Programs for the fiscal year is posted biweekly to the Department's Web site at http://www2.ed.gov/fundlgrantlfindledlite-forecast.html. The Forecast lists virtually all programs and competitions under which the Department has invited or expects to invite applications for new awards and provides actual or estimated deadline dates for the transmittal of applications under these programs. The lists are in the form of charts-- organized according to the Department's principal program offices--and include programs and competitions previously announced, as well as those planned to be announced. The information is advisory only and is not an official application notice. The Department provides updates to this document starting in the first week of November in a fiscal year and continuing through the following July. Education also publishes a Discretionary and Formula Grants Award database on the Department's Web site at http://wdcrobcolpOl.ed.gov/CFAPPS/grantaward/start.cfin. The 5 Responses to Committee on Oversight and Government Reform US Department of Education database contains information on discretionary and formula grants made in the last several years. It has multiple methods for searching, viewing, and downloading data about awards. 13. Identify and briefly describe each system that your agency uses to manage contracts. If separate divisions, bureaus, or offices of your agency use separate systems, identify which divisions, bureaus, or offices use each system. The Department of Education uses a contract writing system, CPSS. It supports the acquisition process from pre-award planning activities (e.g., initiating, fund obligation and commitment, contract assembly, and issuance) through contract close out. 14. For each system identified in response to Request No. 13, explain how it interacts with any business or accounting system identified in response to Request No.1. CPSS has a near real-time two-way interface to the FMSS. Financial data in support of commitments, adjustments to commitments, obligations, adjustments to obligations and vendor data are passed from CPSS to the FMSS. Account classification codes are sent from the FMSS to CPSS. Status messages regarding posting status are sent to CPSS from theFMSS. 15. For each system identified in response to Request No. 13, state whether information found in that system is regularly or periodically submitted to any of the government-wide contract management and reporting systems, e.g., FPDS, FPDS-NG, FAPIIS, etc., and describe how and at what intervals those submissions occur, including descriptions of both automated and manual processes. Contract data is submitted to USASpending on behalf of Education from the Federal Procurement Data System - Next Generation (FPDS-NG). To ensure that contract actions get entered into FPDS-NG, the Department's CPSS automatically requires FPDS-NG reporting be completed before a contract obligation can be made. To address timeliness, Education ensures that all new grant and loan transactions are submitted twice monthly. This ensures that we meet the 3D-day reporting requirement. We also enter contract data near real-time, which exceeds the requirement for posting in the Federal Procurement Data System within 3 days of award. 16. For each system identified in response to Request No. 13, describe recent, current, and planned migration or modernization projects. The Department of Education has initiated a project to integrate a new Commercial-Off- The-Shelf (COTS) product into the enterprise, replacing, or significantly enhancing the current contract writing system. 6 Responses to Committee on Oversight and Government Reform US Department of Education 17. In addition to your agency's submissions to government-wide contract management and reporting systems, described in response to Request No. 15, does your agency publish any of the same information online for public viewing? If so, describe how and in what format that information is published. Department contracting personnel manually post contract opportunities and awards to FedBizOps and also post a list of active contracts and the annual forecast of contract opportunities to the Department's Web site in html, .doc, .docx, andlor PDF format. 18. Briefly describe your agency's efforts to comply with OMB's memorandum on the Open Government Directive - Federal Spending Transparency, dated April 6, 2010. In particular, describe whether and how your agency has begun to collect and report sub- awards data, as required by the memorandum, and describe how your agency's reports on OMB's data quality metrics, as required by the memorandum, are generated. The Department complies with the guidance ofOMB's Memorandum of April 6, 2010, by issuing new grant policies around "Sub-award and Executive Compensation Reporting Requirements under the Federal Funding Accountability and Transparency Act." The policy disseminated information about sub-award and executive compensation reporting requirements set forth in the Federal Funding Accountability and Transparency Act (FFATA), and to establish guidance and policy regarding the inclusion of the related special grant award conditions established by OMB for the purpose of ensuring compliance with FF AT A. The policy further requires all prime awardees to report sub-awards by the end of the month following the month the award or obligation was made. Prime awardees and sub-awardees information is reported to the Federal Sub-award Reporting System (FSRS) and is made available to the public via USASpending.gov. Department program staff ensure grantee compliance with FF AT A reporting requirements, by including the applicable Grant Award Notification (GAN) attachment with GANs that are to be issued to prime awardees that must comply with FFATA reporting requirements. Program staff also remind these grantees of their reporting requirements during monitoring. 19. If your agency interacts directly with USASpending.gov, in addition to submitting information to the systems that feed USASending.gov, describe the nature, frequency, and purposes of that interaction. The Department interacts with USASpending.gov for bimonthly data submissions. Outside ofthis, the Department works with the USASpending.gov technical teams to answer data submission and display questions. The Department has contacted the USASpending.gov team approximately five times over the past year. 7 Responses to Committee on Oversight and Government Reform US Department of Education 20. Describe the data quality controls and procedures that your agency has implemented for information that is submitted to USASpending.gov, including information submitted directly and information submitted to one of the systems that feeds USASpending.gov. For grant and loan data, Education staff conducts a 3-way validation ofthe data between the G5 grant system, the file submitted, and USASpending. The Office of the Chief Financial Officer extracts information from the 05 grant system and validates it against the FMSS general ledger in order to generate monthly department-wide financial spending reports. For contract data, the Education staff compares the FPDS-NO accounting data against the accounting data in the Department's CPSS contract system. In addition, the agency Senior Procurement Executive certifies annually in writing the accuracy of the data the Department submits to FPDS-NO. 21. State whether all of your agency' s current grants, contracts, and loans are accurately reflected on USASpending.gov, and, if not, estimate the percentage of current grants, contracts, and loans that are not accurately reflected, using both the number of transactions and the dollar figures. 99 percent of the Department's current grant data represented on USASpending.gov is accurately reflected. 100 percent of the Department's current contract data represented on USASpending.gov is accurately reflected. 22. State whether your agency incurs any reporting burdens or costs as a result of its obligations under the Federal Financial Assistance Transparency Act ("FFATA") that it does not incur as a result of other reporting obligations, and estimate those burdens and costs in worker-hours and dollars. Approximately 1 FTE is required to support the FFATA reporting requirements. 8 Responses to Committee on Oversight and Government Refonn US Department of Education 23. Identify the individual(s) who serve(s) as Senior Accountable Official(s) ("SAO") over federal spending data quality for your agency, as defined by OMB. Danny A. Harris, Ph.D. Chief Information Officer Office of the Chief Information Officer US Department of Education 9 G5/GAPS AR Bal, Unapplied Refunds, and AC Treasury GL - General Ledger AR - Accounts Receivable Fed Admin - Federal Administrator PO - Purchase Orders AP - Accounts Payable GAPS/G5 - Grants Management Attachment 1 EDCAPS System Flowchart FSA FMS 0 - Gl :J], , " ; ,, ; ', Fed Admin I, Unbilled lockbox FMSS Oracle Financials
PO AP "I: Nortridge .; ;0.. :- , . CPSS EOCAPS Functional Arc h itectu re Hyperlon Budget Planning e2 Travel System 001 Attachment 2 Federal Student Aid Grant and Loan Financial Overview Chart External Partnars/Services I Department 01 Educltion Systems I other Government Systems Common Services for Borrowers (CSa)
5, ..... (DLSS) 4.0 Central Processing System I .. O.. odc..:! '" Mac':::':6 6.0 Common f f 01iglnaUon & Disbursemenl I ! (COO) ! 7.0 Trtle IV 3.0 Federal studenl Additionsl Aid Financial Se1Vi<:ers (TIVAS) Management System 1.0 U.S. T,.asuIY (FSA FMS) 1 5.0 E-Campus Based 3.1 Lenders .... (eCB)
2.0 Education Central 3.2 Guaranty Automated Processing Agendas System (EOCAPS) Overview This appendix shows a high level overview of the systems and services that support Federal Student Aid's (FSA) grant and loan financial activity. The numbers on the sections below correspond to the numbering on the chart above. Please note that the Title IV Additional Servicers (7.0) and the Common Services for Borrowers (CSB) components (B.O - 11.0) are service contracts, not FSA systems. In addition, non- financial supporting systems (e.g., NSLDS, etc.) are not included in the diagram. 1.0 Treasury See Appendix 1. 2.0 EDCAPS See Appendix 1. 3.0 Financial Management System (FMS) FMS consolidates and manages all Federal Student Aid program transactions from Federal Student Aid's "feeder" systems. FMS facilitates reconciliation and internal program management and reporting. The system tracks and manages payment processing for Federal Direct Loan originations and processes refunds to borrowers for overpaid loans and payments I Attachment 2 to lenders (3.1) and guaranty agencies (3.2). It also performs validations and reasonability checks to minimize erroneous payments. FMS is currently in "operations and maintenance" (O&M) mode. 4.0 Central Processing System (CPS) Central Processing System (CPS) provides a centralized system for processing the FAFSA form and determining aid eligibility. CPS processes each submitted FAFSA through a series of data checks, formula calculations, and data matching/verifications with other Federal agency databases. CPS also sends eligibility notifications to applicants, schools, service providers, and State agencies. 5.0 eCampus-Based The eCampus-Based system addresses the Congressionally mandated activities of providing Campus-Based funds to eligible Title IV institutions. The Federal Perkins Loan, Federal Work- Study, and Federal Supplemental Educational Opportunity Grant Programs are referred to as Campus-Based programs because the Department allocates these funds to participating institutions for students who need financial aid to meet the costs of postsecondary education. The eCampus-Based system uses Web-based technologies that improve service, reduce improper payment of student aid, and strengthen financial management and internal controls by providing relevant and timely information in the management of day-to-day operations. 6.0 Common Origination and Disbursement (COD) The COD system enables approximately 6,200 eligible institutions of higher education to originate and disburse approximately $41 billion of Title IV funds. These funds are disbursed to approximately 9.6 million eligible students/recipients each award year under the Federal Direct Loan program, Federal PELL, ACG/SMART, IASG, and TEACH grant programs. The COD system processes, stores, and reconciles data from several FSA programs. The COD contractor provides operation and maintenance, a call center, and customer service to assist institutions with processing data and managing their administration of Federal Direct Loans and grants. The COD system began servicing Foreign School operations during the 2010/2011 award year. In addition, COD serves as FSA's loan distribution vehicle across the Title IV Additional Servicers (TIVAS). 7.0 Title IV Additional Servicers (TIVAS) TIVAS provide a full range of serviCing functions for student loans such as processing of payments, debt collection, and loan consolidation. Customer services range from call centers to system maintenance and enhancements. The performance-based deliverable pricing structure of the contracts encourages the contractor to avert borrower delinquency and move delinquent borrowers to repayment status. Servicing costs are associated with three main drivers: 1) loan volume, specifically unique borrowers; 2) timing of loan servicing, when unique borrowers begin receiving loans; and 3) distribution of total volume among loan statuses: In-School, Grace or Current Repayment, Delinquency, and Default. These are not government-owned systems, but service contracts only with ACS Education Solutions, LLC. 2 Attachment 2 Common Services for Borrowers (CSB) 8.0 Direct Loan Servicing System (DLSS) The Direct Loan Servicing System (DLSS) services Direct Loans while borrowers are in school, in deferment status, or in repayment. DLSS, like the TIVAS, provides a full range of servicing functions for student loans such as processing of payments, debt collection, and loan consolidation. In support of the 100% Direct Lending model, DLSS is in the process of transferring its loan portfolio to the TIVAS model. DLSS will then be decommissioned. This is not a government-owned system, but part of a service contract with ACS Education Solutions, LLC. 9.0 Direct Loan Consolidation System (DLCS) The Direct Loan Consolidation System (DLCS) serves to simplify loan repayment by allowing the borrower (Le., students) to combine several types of federal student loans with various repayment schedules into a single loan. The consolidated loans are then sent to the Title IV Servicers (TIVAS) through the Common Origination and Disbursement (COD) system. This is not a government-owned system, but part of a service contract with ACS Education Solutions, LLC. 10.0 Debt Management & Collection System (DMCS) The Debt Management and Collection System (DMCS) is the repository and management system for the Department's defaulted loan and grant overpayments that went to borrowers and/or schools. DMCS is responsible for the collection and servicing of these defaulted loans and grants. DMCS is in the process of being replaced by the new Debt Management & Collection System (DMCS2). DMCS and DMCS2 are not government-owned systems, but part of a service contract with ACS Education Solutions, LLC. 11.0 Conditional Disability Discharge Tracking System (CDDTS) The CDDT System supports financial servicing and tracks borrower claims for total and permanent disability discharges. Final discharge of the loan and interest is made if the borrower meets all eligibility requirements in an allotted period. If borrowers are determined to be ineligible for disability based on program guidelines, they are returned to an active servicing status. In support of the 100% Direct Lending model, CDDTS is in the process of transferring its loan portfolio to the TIVAS model. CDDTS will then be decommissioned. This is not a government-owned system, but part of a service contract with ACS Education Solutions, LLC. 3