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 = (COD) Cash (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 6 7 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.

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Makes monthly and year end reconciliation simple.
Session 29 -26

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

Enter the amount(s) to be refunded and click “continue”

Session 29 -42

Click “verify selected awards”

Session 29 -43

Refund Confirmation

Session 29 -44

Payment Request Screen- Import from File Upload

Session 29 -45

Drawdown Adjustments
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Can’t move more than has been drawn Net adjustment must equal zero Do not use adjustments as a substitute for returning excess cash. Do not use adjustments to close out a year or bring your school’s cash balance to zero.
Session 29 -46

Open Awards

Session 29 -47

Enter the amounts to be adjusted and click “Okay”

Session 29 -48

Click “yes” if you want GAPS to process the request

Session 29 -49

GAPS Reports
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GAPS Reports – Activity Report • Cumulative Activity by award • Detail Activity by day – Refund Report • detailed list of refunds including confirmation numbers
Session 29 -50

Select “Activity Report”

Session 29 -51

Activity Report Cumulative Summary

Session 29 -52

Activity Report - Record Detail

Session 29 -53

Refund Report

Session 29 -54

View Access
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Limit 5 user ids per school Download form off e-payment web Fax completed form to GAPS – (202-401-0006) Additional questions, call GAPS Helpdesk – 1-888-336-8930

Session 29 -55

GAPS Helpdesk

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1-888-336-8930

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Helpdesk hours of operation are 8 a.m. to 6 p.m. Monday through Friday, ET.

Session 29 -56

How do I become a COD Full Participant?
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Schools must register with COD to become a Full Participant in Award Year 2003-2004 To register, contact COD School Relations
– Email CODSupport@acs-inc.com
• Indicate “2003-2004 Full Participant” in Subject Line

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– Call COD School Relations
• Select Award Year 2002-2003 and express interest to COD CSR
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All EDExpress Users must register as Full Participants for 2003-2004
Session 29 -57

How do I obtain access to the COD Web Site?
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Submit a Security Administrator Request Letter on school or corporate letterhead
– Security Administrator is responsible for setting up additional users at your institution – Reporting/Attending school relationships in COD will automatically allow access to other school codes

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Refer to announcements on IFAP for detailed instructions and mailing address
– 6/3/02 - Updated: COD Website Access for Schools – 6/3/02 - COD Website Access for Vendors/3rd Party Servicers
Session 29 -58

How do I contact COD Customer Service?
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Email CODSupport@acs-inc.com Call COD School Relations Center
– 1-800-4-P-GRANT for Pell Grants – 1-800-848-0978 for Direct Loans – Enter Award Year 2002-2003

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COD Web Site (www.cod.ed.gov)

Session 29 -59

Where can I get more information?
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IFAP Web Site (www.IFAP.ed.gov)
– Common Origination and Disbursement page – Announcements and FAQs – COD Technical Reference

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COD Web Site (www.cod.ed.gov)
– Daily Processing Updates – School Funding and Processing Information

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Contact COD Customer Service
Session 29 -60

COD Sessions
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Session 19 – Cash Management A-Z Session 21 – What’s New for Direct Loan Processing in 2003-2004? Session 22 – What’s New for Pell Grant Processing in 2 003-2004? Session 23 – COD and Pell Grants: Updates to Edits and Record Layouts for 2003-2004 Session 24 – COD and Direct Loan: Updates to Edits and Record Layouts for 2003-2004 Session 25 – Meet the COD Customer Service Team and Get Answers to Your COD Questions
Session 29 -61

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COD Sessions
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Session 26 – COD: Using the New Web Site Session 27 – COD Full Participants for 2003-2004 Session 28 – COD and Direct Loans: Balancing the Books Session 29 – COD, Pell, and Direct Loans: Funding for Schools Session 58 – Tribally Controlled Colleges: Operating as a Full Participant in the COD environment COD Customer Service staff are available in the PC Lab

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Session 29 -62

Session 29 -63