Session #4 TITLE IV FUNDING TO SCHOOLS: FROM COD through GAPS Anthony Laing George Karayianis Tremayne Cobb

2 Session Outline Pell, ACG & National SMART Grant Funding Direct Loans Funding GAPS – New Web Screens

3 Iron Triangle of Funds Management: Department of Education Budget Service CODGAPS

4 Iron Triangle of Funds Management: School USED Business Office Financial Aid Office

5 Funding Lifecycle Initial Authorization Daily ProductionGlobal Jobs Year End Reconciliation for Pell, ACG, National SMART Grants

6 Daily Production COD 24-Hour Turnaround Deadlines 10:00 AM ET in COD - Same Day 10:00 PM ET in COD - Next Day

7 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

8 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

9 Pell Administrative Cost Allowance (ACA) Three Times During an Award Year Cycle For : March 2008 August 2008 August 2009 NO DRAWDOWNS Payments sent directly to bank accounts by GAPS

10 Pell Reduction to Net Accepted and Posted Disbursement Records For : Initial CFL School receives intial authorization in May Disbursement School sends in disbursement records Warning In January 2008, Schools will receive a Warning Reduction In February 2008, a Reduction Cycle will be run Reduction Cycle will reduce the Authorization to equal Net Accepted and Posted Disbursements (NAPD)

11 Stay Reconciled! COD NAPD COD CFL GAPS Net Drawdowns

12 Reconciliation Tools Reconciliation File –Snapshot YTD File –Comprehensive

13 Pell Verification-W Reduction For Award Year , 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

14 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 , No-Pell Deobligation will be run in Summer 2008

15 Reduction to GAPS Net Drawdown Pell, ACG, National SMART Grant For Award Year , Reduction to GAPS Net Drawdown is scheduled for March 2010 Schools not in compliance with 30-day reporting rule

16 Reduction to GAPS Net Drawdown Example Authorization: $1,000,000 Drawdown: $800,000Reduction to GAPS Net DrawdownUpdated Authorization: $800,000

17 Individual Reductions POP Process –Only for Pell, not in ACG & National SMART Grant Negative Pendings

18 Post-Deadline Processing For Award Year : –Occurs After September 30, 2008 Schools Request on the Web Request only when you are ready to submit

19 Closeout/Reconciliation For Award Year , Schools SHOULD be reconciled by September 30, 2008 Must closeout within… –Pell: Five Years –ACG, SMART: Four Years

20 Title IV Funding to Schools Pell, ACG & National SMART Grant Funding Direct Loans Funding GAPS – New Web Screens

21 Direct Loan Funding How do schools get their $money$?

22 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

23 Iron Triangle of Funds Management: Direct Loans COD GAPSSchool

24 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 Basics

25 versus Funding Delivery Methods Advanced Funds/ School-Initiated Drawdowns Pushed Cash/ System- Initiated Drawdowns

26 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 Advanced Funds/School- Initiated Drawdowns

27 SCHOOL GAPS COD Batches CFL Funding Flow Advanced Funds

28 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 Pushed Cash/System- Initiated Drawdowns

29 Funding Flow Pushed Cash SCHOOL GAPS COD Batches CFL Drawdowns FDLs

30 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 School: Capital Hair Salon School Code: G Maple Pl. Washington, DC Student Loan ID Disb Date Gross Fee Rebate Net Amt. Sally Mae S08G /2/07 $2,500 -$100 $38 $2,438 Jerry Jones S08G /28/07 $2,383 -$95 $36 $2,324 Marcy Kay U08G /5/07 $2,000 -$80 $30 $1, Total School Amount $6,712

31 30-Day Reporting Requirement – (d) Direct Loan 3-Day Cash Rule – (b) Monthly Reconciliation – (b) Direct Loan Cash Management Requirements

32 Reconciliation and Closeout

33 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 Direct Loan Reconciliation versus End-Of-Year Closeout

34 Beginning Cash Balance Cash Receipts Refunds Of Cash + Ending Cash Balance = Downward Adjustments + Upward Adjustments - Disburse- ments Your Ending Cash Balance Equation --

35 COD Funding Web screens Reports (COD) School Account Statement (SAS) Report GAPS web screens and reports COD and GAPS Tools Direct Loan Reconciliation

36 School of Outstanding Students Funding Info Program Direct LoanAward Year School Funding Information Web Screen Entity ID 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 Ratio1.0000

37 Cash Activity Screen School of Outstanding Students Program Direct LoanAward Year Net Draws $30,000 Cash > Accepted & Posted Disbursements & older than 30 days $0 Totals Date of Transaction10/13/07 Time1:35PM Drawdowns$30,000 $2,000 Drawdown adjustments$0 Refunds$1,000 Returns$0 Days for On-time reporting Payment Control Number Accepted & Posted Disbursements Applied$20,000 $0 Cash > Accepted & Posted Disbursements$10,000 Source SystemGAPS

38 Monthly COD Report –Copied from main database –Loan/Disbursement Information Summary Detail –Cash Detail Direct Loan School Account Statement (SAS) Report

39 Title IV Funding to Schools Pell, ACG & National SMART Grant Funding Direct Loans Funding GAPS – New Web Screens

40 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 functionality throughout G5  Flexible sort functionality  Introduction of My Home Page

41 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 listing individual awards and balances to enter request amounts Confirmation screen displaying the control number for the payment request Summary screen listing requested amounts in a single list for user to confirm their selections

42 G5 HOME PAGE

43 Making a Payment Request

44 Payments Tab

45 Payment Summary Tab

46 Automated Tremayne, Requesting User ID: Your request made on 09/25/2007 for $25,172.32, has been received. Your control number is 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

47 Creating an Adjustment

48 Create Adjustments

49 Adjustment Summary Page

50 Adjustment Confirmation

51 COD School Relations Center GAPS Helpdesk Need Funding Help?

52 Related Conference Sessions Session #5Operational Update: ACG & National SMART Session #10 Requirements for Federal Grant Programs: Pell, ACG, & National SMART Session #40A Direct Loan Primer

53 Contact Information Anthony Laing Supervisor, Pell Program Operations Division (202) George Karayianis Funds Management Lead, Direct Loan Program Operations Division (202) Tremayne Cobb Management Analyst, Financial System Operations Group (202)