Session C-12

Title IV Funding to Schools: From COD through G5

For Pell Grants, ACG and National SMART Grants

Anthony T. (Tony) LaingU.S. Department of Education

Pell, ACG & National SMART Grant Funding

Cash Management

G5 - Updates

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Session Outline

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Iron Triangle of Funds Management: Department of

Education

Budget Budget ServiceService

CODCOD G5G5

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Iron Triangle of Funds Management: School

EDED

BusinesBusinesss

OfficeOffice

FinancialFinancialAid Aid

OfficeOffice

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Funding Lifecycle

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Daily ProductionCOD 24-Hour Turnaround

Disbursement Record Deadlines

10:00 AM ET in COD - Same Day10:00 PM ET in COD - Next Day

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Payment Methods

• Advanced Funded = 5,200 Schools• JIT Pilot = 43 Schools• HCM1, HCM2 & Reimbursement = 400 Schools

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Initial Authorization• Pell Grant

– Program-wide authorization in May• Advance funded• 2008-2009 - $7 billion for 4,645 schools• JIT, HCM1, HCM2, & Reimbursement =

Records First

• ACG & National SMART Grant – NO program-wide authorization– Records first

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When to Submit Disbursement Records• Pell Grant

– 30 Days in advance of disbursement date– 7 days before COD sends funding

transaction to G5

• ACG & National SMART Grant – 7 Days in advance of disbursement date– 7 days before COD sends funding

transaction to G5

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Four Program Wide Global Reduction Jobs

• Pell Reduction to Net Accepted and Posted Disbursements (NAPD)

• Pell W Verification Reduction• ACG & SMART No Pell De-obligation• Pell, ACG & SMART Reduction to GAPS Net

Drawdown

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Pell Reduction to Net Accepted & Posted Disbursement Records

For 2008-2009:

Reduction Cycle will reduce the Authorization to equal Net Accepted and Posted Disbursements (NAPD)

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2008 –2009 Pell CFL Reduction to NAPDExample:

Initial Authorization - $1,000,000

May 2008:

NAPD - $500,000

Reduction - $500,000

January 2009:

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Pell Reduction to Net Accepted & Posted Disbursement Records (NAPD)

• 2007-2008 Award Year

– 374 schools reduced by $23 million

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Stay Reconciled!

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Stay Reconciled

• Goal is Zero Available Balances

• No Available Balances– 1,100 schools in prior years

• No Negative Balances– 700-900 schools in prior years

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School of Outstanding StudentsFunding Info Program Pell Award Year 08-09

School Funding InformationWeb Screen

Entity ID 44544444

Initial CFL $100,000

Current CFL $200,000

Available Balance $0

Cash > Net Accepted & Posted Disbursements $0

Net Accepted & Posted Disbursements $200,000

Net Drawdowns $200,000

Disbursement To Drawdown Ratio 1.0000

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Reconciliation Tools

• Reconciliation File–Snapshot–Mass mailing in September for Pell, ACG & National SMART

• YTD File–Comprehensive

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Pell “W” Verification Reduction

• 2008-2009 Award Year “W” Verification Reduction scheduled for Summer 2009

• Verification Status of W is an interim status• Schools must change status to V, S, or

blank– Otherwise, FSA will reduce to zero

• 2007-2008 Award Year Reduction in Summer 2008 for 310 schools; 2,117 students; $3 million

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No-Pell DeobligationACG, National SMART Grant• If student has either an ACG or National

SMART Grant and is not a Pell recipient, the student will lose the ACG/National SMART Grant

• 2008-2009 Award Year No-Pell Deobligation scheduled for Summer 2009

• 2007-2008 Award Year – ACG 264 schools, 519 students– SMART 51 schools, 58 students

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Reduction to G5 Net DrawdownPell, ACG, National SMART Grant• 2006-2007 Award Year Reduction to G5 Net

Drawdown scheduled for March 2009

• 2005-2006 Award Year – 529 schools; $5 million

• Schools not in compliance with 30-day reporting rule

• Continued customer service outreach

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Reduction to G5 Net Drawdown

Example

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Individual Reductions

• POP process–Only for Pell, not in ACG & National SMART Grant

• Negative Pendings

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Post-Deadline Processing

• For Award Year 2008-2009:– Occurs After September 30, 2009

• Schools request on the Web

• Request only when you are ready to submit

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Post-Deadline Processing• 30 days to resubmit records after

administrative relief granted

• 15 days for a second request

• Continued follow-up

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Closeout/Reconciliation• For Award Year 2008-2009, Schools

SHOULD be reconciled by September 30, 2009

• Must closeout within…– Pell: five years– ACG, SMART: four years

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Pell Administrative Cost Allowance (ACA)• Three times during an award year cycle

For 2008-2009:March 2009August 2009August 2010

• NO DRAWDOWNSPayments sent directly to bank accounts by G5

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Title IV Funding to Schools

Pell, ACG & National SMART Grant Funding

Cash Management

G5 - Updates

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• 30-day reporting requirement– Report changes within 30 days after

becoming aware of changes

• 3-day cash rule– Only draw down cash for use within three

days

Cash Management Requirements

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Excess Cash• Includes any Title IV funds received from

ED that are deposited or transferred into a federal account as a result of an award cancellation, adjustment, or recovery

• Tolerance -- 1% of prior year amount

• Finding may trigger cash monitoring or reimbursement

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Title IV Funding to Schools

Pell, ACG & National SMART Grant Funding

Cash Management

G5 - Updates

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G5 - Department of Education’s Payment System

• G5 access

• Assistance available in PC lab

• Send refunds electronically

• Do NOT use paper checks!

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G5 Home page

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Registration Page

• Online form where new users can register for access to G5

• Access is granted/denied between 1-2 business days

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G5 Registration

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My Awards

• An easy to view list of all of your institution’s awards in G5

• Gives a quick snapshot of the Award number, Available Balance, Last Date to Draw, and Award Status

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G5 – My Awards Page

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How Do I Get Grant Money???

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Create Payments

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Create Payment – Payment Tab

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Create Payment – Summary Tab

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Automated Email

Tremayne,

Requesting User ID: Tremayne@ed.gov

Your request made on 08/12/2008 for $100.00, has been received. Your control number is 2008081206381 and you will receive your funds on 08/13/2008 in bank account ****9426.

If you did not request this payment, please contact Helpdesk at 1-888-336-8930.

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Reporting

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External Award Activity

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External Award History Report

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External Award History Report

0215S060156 $1,126,423.00 -$374,043.00 $0.00 $0.00 $0.00 -$374,043.00 09/30/2010

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External Award History Report

Q215S06156

$-741,192.00

09/30/2010

$1,126,423.00

-$741,192.00

$0.00

$0.00

$0.00

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• COD School Relations Center 1-800-474-7268

• G5 Help desk1-888-336-8930

Need Funding Help?

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Related Conference Sessions

Session C-11Operational Update for Pell Grants, ACG and National SMART Grants

Session C-06Higher Education Opportunity Act of 2008 – An Update

Session DL-4Title IV Funding: From COD through G5 (For Direct Loan Schools)

Session FF-12 COD Basics

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Contact Information

Anthony T. (Tony) LaingDirector, Internal Controls Division – Federal Student Aid anthony.laing@ed.gov(202) 377-3112