Session 25 Show Me the Money How to

Session 25 Show Me the Money: How to Get & Maintain Funding for Pell Grants, Campus-Based and Direct Loans Anthony Laing Dorothy Dorsey George Karayianis Tremayne Cobb

Discussion Outline q Funding overview q Pell, Campus-Based, & Direct Loan funds process q GAPS refund adjustment functionality 1

Program Offices and GAPS q Program Offices – Funding Authority q GAPS – Cash – 3 Day Cash Rule q Turnaround Time – 3 -5 Days 2

Funding Flow Pell and DL COD or ds ec D isb ur se m ion at iz or en t. R th Au Drawdown Request SCHOOL GAPS 3

Funding Flow Campus-Based FISAP tho riz a tion Ap pl ica tio n Da ta Au GAPS Drawdown Request SCHOOL 4

Funding Terminology q Funding Terms – COD = Current Funding Level (CFL) – Campus-Based/GAPS = Authorization – Pell/Campus-Based (ESOA) = Obligation q Award Records q Anticipated/Actual Disbursements (NAPD) q Substantiation 5

Pell Grant CFL Process q Initial CFL created in May q Disbursement data drive CFL q GAPS drawdown should not exceed CFL q Disbursement Release Indicator (DRI) – 7 Day rule 6

Pell Daily CFL Adjustments q School Generated Schools submit disbursement data q System Generated Negative Pending Potential Over-award Process (POP) 7

Pell Global CFL Reductions q Reduction to level of disbursement data (February) q Reduction for “W” Verification (Apr-Aug) q Reduction to GAPS drawdown (end of second year) 8

Pell Administrative Cost Allowance q $5 for every recipient award calculated q Three payments q March, August 2004 -2005 = March 2005 August 2006 9

Ongoing Pell Reconciliation q Definition School Funding/Student Data = COD Funding/Student Data = GAPS Cash q Common Goal FAA /Business Office = ED Department q Monthly Reconciliation & Closeout by Sept 30 th 10

Ongoing Pell Reconciliation q Post Deadline Adjustments After September 30: – Administrative Relief – Audits – Decreases 11

Pell Funding Reconciliation Date CFL = Disb Records = Cash (COD) (GAPS) 11/04 $1, 000 $750, 000 $500, 000 2/05 $750, 000 $500, 000 3/06 $500, 000 $750, 000 $500, 000 12

Pell Reconciliation Tools q COD Year to Date File q COD Reconciliation File q COD Pending Disbursement List q COD ESOA q COD Web Screens q GAPS Web Reports 13

Negative Available Balances Action $5, 000 in disbursement records $5, 000 negative disbursement CFL Available Balance in GAPS $5, 000 $0 $4, 995, 000 ($5, 000) 14

How to Resolve Negative Balances q Refund the Cash q Adjust the drawdown q Increase the CFL 15

Pell Award Year Funding Calendar q June - Initial Authorization q Sep 30 - End of Fiscal Year q Feb - Reduce to Disbursement Data q March - 1 st ACA Payment q Apr-Aug - “W” Verification Reductions q Aug - 2 nd ACA Payment 16

Pell Award Year Funding Calendar q Sep 30 - Award Year Closeout q Oct-May - Administrative Relief q Aug - 3 rd ACA Payment q March - Reduction to GAPS drawdown 17

Campus-Based Calendar 2005 – 2006 Award Year q FISAP On the Web Available 8/1/04 q Reallocation Form Due 8/20/04 q Supplemental Awards Issued 9/15/04 q FISAP & Combined Certification Due 10/1/04 q FISAP Edit Corrections Due 12/15/04 18

Campus-Based Calendar 2005 – 2006 Award Year (cont’d) q Tentative Awards Posted 2/1/05 q Under-Use Waiver Request Due 2/11/05 q Work Colleges Application Agreement Due 3/11/05 q Under-Use Waiver Notification Issued 3/15/05 q Final Awards Issued 4/1/05 19

Campus-Based Calendar 2005 – 2006 Award Year (cont’d) q Community Service Waiver Request Due 4/30/05 q Close-Out of Awards Posted 5/1/05 q TC Payments Issued 6/1/05 q Inst. Share Waiver Notification Issued 6/30/05 q Funds Available for Draw Down 7/1/05 20

Campus-Based Programs Funding Formula q Base Guarantee – The minimum award based on prior participation - barring penalties q Institution Need – Calculation based on tuition, enrollment & eligible aid applicant data q Fair Share – How much of the appropriation a school would receive based on its need compared to all other schools’ need 21

Campus-Based Programs Funding Formula q Fair Share Shortfall - amount by which Fair Share exceeds Adjusted Base Guarantee q Underuse Penalty – Amount of previous year unexpended funds (if over 10% of total award) 22

Campus-Based Programs Funding Formula (Perkins) q Annual Appropriation q Institution’s Request q 1999 -2000 Base Guarantee (reduced by reduction factor) 23

Campus-Based Programs Funding Formula (Perkins –cont’d) q Default Rate > 25% - no funds awarded q Base Guarantee + Fair Share - Underuse Penalty (OR) + Underuse Penalty Distribution 24

Campus-Based Programs Funding Formula (FWS) q Annual Appropriation q Institution’s Request q 1999 -2000 Base Guarantee 25

Campus-Based Programs Funding Formula (FWS – cont’d) q 1999 -2000 Pro Rata and additional FWS funds q Base Guarantee + Fair Share – Underuse Penalty (OR) + Underuse Penalty Distribution 26

Campus-Based Programs Funding Formula (FSEOG) q Annual Appropriation q Institution’s Request q 1999 -2000 Base Guarantee 27

Campus-Based Programs Funding Formula (FSEOG) q 1999 -2000 Pro Rata q Base Guarantee + Fair Share – Underuse Penalty (OR) + Underuse Penalty Distribution 28

Campus-Based Appropriation FWS FSEOG Perkins/TC 2004 -2005 $770 M $998 M $165 M 2003 -2004 $760 M $1. 004 B $166 M 2002 -2003 $725 M $1. 011 B $167 M 2001 -2002 $691 M $1. 011 B $160 M 2000 -2001 $631 M $934 M $130 M 1999 -2000 $619 M $870 M $130 M 29

Waiver Processing q Underuse Penalty Waiver – Deadline 2/11/05 request via FISAP q Title III/V Eligibility – Annual application thru website: • http: //www. ed. gov/about/offices/list/ope/i dues/index. html – Waiver Notification of FWS/FSEOG Institutional Share req – 6/30/05 q Community Service Waiver – Deadline for submission 5/21/05 30

References q FISAP On The Web www. cbfisap. ed. gov q Campus-Based Call Center (877) 801 -7168 Email CBFOB@ED. GOV q IFAP Postings www. ifap. ed. gov q PIN Site Registration www. pin. ed. gov q Student Aid Internet Gateway Enrollment www. fsawebenroll. ed. gov 31

Direct Loan Funds Control q CFL = obligation. q CFL not limited by obligation but related to disbursements. q CFL increases as school submits disbursement records timely. 32

Direct Loan CFL Process q Initial CFL created in February q Disbursement records drive CFL q GAPS drawdowns should be substantiated within 30 days 33

School Example Part I Initial CFL (04 -05 Award Year) = $5 M School draws $3 M on 5/1/04 Available balance = $2 M. (5 M-3 M) Amt. Of Substantiated cash = $0 Amt. Of Unsubstantiated cash = $3 M 34

School Example Part II School reports $2 M in disbursement records on 5/10/04 School’s CFL increased to $7 M (5+2) School’s available balance = $4 M. (7 M-3 M) Amt. Of Substantiated cash = $2 M Amt. Of Unsubstantiated cash = $1 M 35

School Example Part III School reports $1 M in disbursement records on 5/20/02 School’s CFL increased to $8 M (5+3) School’s available balance = $5 M. (8 M-3 M) Amt. Of Substantiated cash = $3 M Amt. Of Unsubstantiated cash = $0 M 36

Direct Loan Reconciliation ECB Equation Beginning Cash Balance - + Cash Receipts Upward Adjustments + - Refunds of Cash Downward Adjustments = - Disbursements Ending Cash Balance 37

Direct Loan Reconciliation q Definition School Funding/Student Data = COD Funding/Student Data = GAPS Cash q Common Goal FAA /Business Office = ED Department q Monthly Reconciliation 38

Direct Loan Processing Example Date Disbursement = Net Draws Records (COD) (GAPS) 7/04 $1, 000 $900, 000 6/05 $4, 000 $5, 000 7/06 $, 6, 250, 000 $6, 500, 000 closeout $6, 250, 000 39

Direct Loan Reconciliation Tools q Direct Loan School Account Statement (SAS) Report q COD Web Screens q GAPS Web Reports 40

DL SAS Report - Example SAS Year –To-Date Cash Summary School Code: G 11111 Beginning Balance Cash Receipts Refunds Total Net Cash Booked Disbursements Booked Adjustments Total Booked Disbursements Ending Cash Balance $0 $110, 000 $100, 000 $90, 000 -$10, 000 $80, 000 $20, 000 41

School Funding Info Web Screen EDUCATION UNIVERSITY Funding Info Program Direct Loan Award Year 05 -06 Initial CFL $56, 000 Current CFL $200, 000 Available Balance $15, 000 Cash > NAPD $0. 0 NAPD $185, 000 Net Drawdowns $185, 000 Disbursement To Drawdown Ratio 1. 0000 42

GAPS Functionality – GAPS award numbers – View Access: What it looks like – Reports – Unprocessed De-obligations 43

GAPS Award Numbers q CFDA prefix (ex: P) q CFDA suffix (ex: 268, 063) q Sub program identifier (ex: K, P) q Year identifier (2003 -2004) q Institution identifier (ex: 2244) q DL = P 268 K 042244 q Pell = P 063 P 032244 q Campus-Based = P 007 A 032244 44

GAPS Access q Full Access q View Access – Limit 5 user IDs of each access per school q Download form off e-payment web q Fax completed form to GAPS – (202 -205 -0729) 45

View-Only Log In 46

View-Only Main Menu 47

View Access: Payment Request 48

View Access: Payment Request 49

Full Access: Payment Request 50

GAPS Report q Activity Report • Cumulative Activity by award • Detail Activity by day q. Award Balance Report 51

Select “Activity Report” 52

Activity Report Selection Screen 53

Activity Report Cumulative Summary 54

Activity Report - Record Detail 55

Select “Award Balance Report” 56

Award Balance Report 57

Unprocessed De-Obligation Definition - A negative Authorization (obligation) sent from COD to GAPS that is not processed in GAPS due to lack of available balance in GAPS. Instead of creating a negative balance, GAPS holds the negative obligation until a positive authorization/refund/or adjustment creates enough balance. 58

Unprocessed De-Obligation: Report 59

UD: How it adds up q Positive Authorizations = $98, 263 q Total Payments = $94, 238 q Available Balance = $ 4, 025 q Negative Authorizations = $-46, 100 q UD = (42, 075) 60

Contact Information q GAPS Helpdesk: 1 -888 -336 -8930 q Pell: 1 -800 -474 -7268 q Campus-Based: 1 -877 -801 -7168 q Direct Loan: 1 -800 -848 -0978 61

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