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

3. 2 Session Outline Pell, ACG & National SMART Grant Funding Direct Loans Funding GAPS – New Web Screens

4. 3 Iron Triangle of Funds Management: Department of Education Budget Service CODGAPS

5. 4 Iron Triangle of Funds Management: School USED Business Office Financial Aid Office

6. 5 Funding Lifecycle Initial Authorization Daily ProductionGlobal Jobs Year End Reconciliation for Pell, ACG, National SMART Grants

7. 6 Daily Production COD 24-Hour Turnaround Deadlines 10:00 AM ET in COD - Same Day 10:00 PM ET in COD - Next Day

8. 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

9. 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

10. 9 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

11. 10 Pell Reduction to Net Accepted and Posted Disbursement Records For 2007-2008: 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)

12. 11 Stay Reconciled! COD NAPD COD CFL GAPS Net Drawdowns

13. 12 Reconciliation Tools Reconciliation File –Snapshot YTD File –Comprehensive

14. 13 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

15. 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 2007-2008, No-Pell Deobligation will be run in Summer 2008

16. 15 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

17. 16 Reduction to GAPS Net Drawdown Example Authorization: $1,000,000 Drawdown: $800,000Reduction to GAPS Net DrawdownUpdated Authorization: $800,000

18. 17 Individual Reductions POP Process –Only for Pell, not in ACG & National SMART Grant Negative Pendings

19. 18 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

20. 19 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

21. 20 Title IV Funding to Schools Pell, ACG & National SMART Grant Funding Direct Loans Funding GAPS – New Web Screens

22. 21 Direct Loan Funding How do schools get their $money$?

23. 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

24. 23 Iron Triangle of Funds Management: Direct Loans COD GAPSSchool

25. 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

26. 25 versus Funding Delivery Methods Advanced Funds/ School-Initiated Drawdowns Pushed Cash/ System- Initiated Drawdowns

27. 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

28. 27 SCHOOL GAPS COD Batches CFL Funding Flow Advanced Funds

29. 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

30. 29 Funding Flow Pushed Cash SCHOOL GAPS COD Batches CFL Drawdowns FDLs

31. 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 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

32. 31 30-Day Reporting Requirement –685.301(d) Direct Loan 3-Day Cash Rule –668.162(b) Monthly Reconciliation –685.102(b) Direct Loan Cash Management Requirements

33. 32 Reconciliation and Closeout

34. 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

35. 34 Beginning Cash Balance Cash Receipts Refunds Of Cash + Ending Cash Balance = Downward Adjustments + Upward Adjustments - Disburse- ments Your Ending Cash Balance Equation --

36. 35 COD Funding Web screens Reports (COD) School Account Statement (SAS) Report GAPS web screens and reports COD and GAPS Tools Direct Loan Reconciliation

37. 36 School of Outstanding Students Funding Info Program Direct LoanAward Year 07-08 School Funding Information Web Screen Entity ID44544444 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

38. 37 Cash Activity Screen School of Outstanding Students Program Direct LoanAward Year 07-08 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 2007101321221 Accepted & Posted Disbursements Applied$20,000 $0 Cash > Accepted & Posted Disbursements$10,000 Source SystemGAPS

39. 38 Monthly COD Report –Copied from main database –Loan/Disbursement Information Summary Detail –Cash Detail Direct Loan School Account Statement (SAS) Report

40. 39 Title IV Funding to Schools Pell, ACG & National SMART Grant Funding Direct Loans Funding GAPS – New Web Screens

41. 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 email functionality throughout G5  Flexible sort functionality  Introduction of My Home Page

42. 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

43. 42 G5 HOME PAGE

44. 43 Making a Payment Request

45. 44 Payments Tab

46. 45 Payment Summary Tab

47. 46 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

48. 47 Creating an Adjustment

49. 48 Create Adjustments

50. 49 Adjustment Summary Page

51. 50 Adjustment Confirmation

52. 51 COD School Relations Center 1-800-848-0978 GAPS Helpdesk 1-888-336-8930 Need Funding Help?

53. 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

54. 53 Contact Information Anthony Laing Supervisor, Pell Program Operations Division anthony.laing@ed.gov (202) 377-3112 anthony.laing@ed.gov George Karayianis Funds Management Lead, Direct Loan Program Operations Division george.karayianis@ed.gov (202) 377-3141 george.karayianis@ed.gov Tremayne Cobb Management Analyst, Financial System Operations Group tremayne.cobb@ed.gov (202) 260-4392 tremayne.cobb@ed.gov