**Pell Processing for Phase-In Participants**

## Overview 

Phase-In Participants may continue to use their custom software,
EDExpress or a third party software to create and import Pell records in
the 2002-2003 Award Year. The programmatic changes are detailed in the
Implementation section. This section reviews Pell Processing and
includes changes due to COD.

## Pell Grant Funding 

The funding for the Federal Pell Grant Program is based on an award year
that begins each academic year with an initial authorization amount,
beginning July 1 and ending on September 30, fifteen months later, when
schools can no longer request routine increases. However, extensive
post-deadline processing continues for five years until the funding is
cancelled.

COD supports schools participating in Advanced Funding, Just-In-Time
(JIT), or Reimbursement methods of funding. Advanced Funding is the
primary method of payment for Federal Pell Grants, in which the school
receives an initial obligation amount which it may draw down. This
obligation amount is not increased until the net accepted disbursement
amount exceeds the initial authorization amount. JIT Funding is a method
of payment that was made available for the first time in the 1999-2000
Award Year. JIT skips the initial funding process and deposits funds
directly into the school's bank account each time student level
Disbursement Records are processed.

The Case Management Oversight (CMO) staff at ED determines when a school
is required to participate in Reimbursement. This method of payment is
for schools requiring additional reporting for Federal Pell Grant fund
payments.

***Initial Authorization for Advance Funded Schools***

The School Participation Data is updated at the beginning of each award
year for all schools eligible to participate in the Federal Pell Grant
Program. Once the school data has been updated, initial funding amounts
are calculated for all schools participating in the Advance Funding
method of payment. This batch process runs once a year in May. After the
school data is updated for all eligible schools and the initial funding
is determined for all appropriate schools, initial funding is complete.

The Pell Processor sends an Electronic Statement of Account (ESOA) to
schools to notify them of their initial authorization. As the school
reports disbursements, any necessary adjustments to the authorization
are made and GAPS is notified so that funds will be available to the
school. The Pell Processor enables the Department to track a school's
need for funds as the award year progresses and adjust the school's
authorization on that basis.

The Electronic Statement of Account (ESOA) is a 200-byte fixed-length
record. ESOAs are transmitted by the Pell Processor to SAIG on the same
day they are processed by the Department. The file is sent
electronically in the PGAS message class. A school can retrieve ESOAs at
any time for a six-month period following their placement on the
network. If they are not retrieved within this six-month period, they
are deleted.

ESOAs are transmitted in batches containing a batch header record, one
or more ESOA detail records, and a batch trailer record.

***When do schools get their funding?***

Pell Grant funds become available to schools on July 1 of each award
year.

***What formula is used to calculate funding?***

An initial authorization is not intended to fund a school for the entire
award year. This initial authorization provides the basis for immediate
funding for the new award year. As each advance-funded school submits
disbursement batches, the total accepted amount for each batch is
applied to the initial authorization. When the batch total exceeds the
amount of the initial authorization, the authorization will be increased
to cover each additional batch as it is accepted.

Remember that Origination Records do not increase your authorization
level; only Disbursement Records increase authorizations.

As in previous years, the initial authorization for 2002-2003 is
determined based on a percentage of disbursement data that is submitted
and accepted during the 2001-2002 award year.

The formula used to determine your initial authorization is based on
three criteria:

-   Previous Award Year's Disbursements

-   Type of Academic Calendar Used at the school

-   Percentage Level Associated with Academic Calendar

**[Example:]{.underline}**

School A is a semester school that disbursed \$100,000 in AY 2001-2002.

> Criteria:
>
> \$100,000
>
> Semester School
>
> Semester Schools receive 40%
>
> School A would receive an Initial Authorization of \$40,000 for AY
> 2002-2003.

***Is the money deobligated?***

Yes. Near the end of the award year, a program is run to bring the
amount of obligations down to the current disbursement amount.

***Can initial funding be increased?***

Yes. Schools may ask for an increase to their initial authorization by
submitting an email request to: <pell.systems@ed.gov>

You may also call the Pell Grant Hotline 1-800-4PGRANT (1-800-474-7268)
if you have any questions concerning Initial Authorization.

### Funds Drawdown

Two types of funds drawdown are available:

-   Advance Funding

-   JIT

#### Advance Funding

An initial authorization is produced by the Pell Processor for which a
school must submit disbursement records to justify and increase its
authorization level. Once this is done, the school can draw down funds
through the Grants Administration and Payment System (GAPS). The Pell
Processor issues an ESOA to the institution showing the status of the
school's account in detail and summary format. Disbursement records may
be received as early as 30 days prior to the disbursement date for
Advance Funded schools. However there will be no increase in funding
levels until seven days before the disbursement date.

#### Just-In-Time Funding

In Just-in-Time, a disbursement record that is accepted becomes both a
report of a disbursement for a student and a request for funds. The Pell
Processor accepts a disbursement record from a school only if the school
has sent in an acceptable origination record or sends an acceptable
origination record at the same time it sends the student's initial
disbursement record.

A school participating in JIT Funding submits a disbursement record no
earlier than seven days prior to the actual disbursement date reported
in the record. Based on the accepted and processed disbursement record,
the Pell Processor automatically sends a transaction to GAPS which draws
down funds and deposits them directly into the school's bank account
without any further action by the school. The Pell Processor transmits
an ESOA to the school showing the status of its account in detail and
summary format. GAPS then sends the Pell Processor an acknowledgement.

## COD Student Identifier 

Phase-In Participants will continue to use the Origination ID on their
records; however, the Student Identifiers for COD are the Current SSN,
Current Date of Birth, and current Last Name. In the legacy system the
SAR ID on the ISIR and the Attending Campus Pell Number were used to
create the Origination ID for the student. In order to link the legacy
records and COD Processing system, new fields have been added to the
Origination record to include this data. The Pell Processor will verify
the information in the new fields matches the information on file for
the student. Therefore, when submitting updated origination records,
schools should ensure they are using the correct ISIR Transaction Number
that matches the current SSN, Date of Birth, or Last Name.

The Identifiers can be changed when necessary. Changes to SSN, Date of
Birth and the Student Name must be reported to CPS as corrections to the
ISIR prior to reporting the change to the Pell Processor on the
Origination record. Students, in general, should not submit a new Free
Application for Student Financial Aid (FASFA) to correct a problem
unless specifically instructed to do so by CPS.

## Origination Records 

The origination record establishes a student's eligibility and amount of
annual Pell Grant award.

-   Origination records are prepared and submitted by schools to the
    Pell Processor.

-   Origination record data is received and edited by the Pell Processor
    to ensure that the student is eligible to receive the reported
    amount of Federal Pell Grant funds and to establish the student in
    the Pell Processor's database.

After the Pell Processor edits the origination data, it returns the
accepted, corrected, duplicate, or rejected values for each origination
record in an origination acknowledgement record. The origination
acknowledgement record contains:

-   Acceptance status of the record.

-   Accepted or corrected value for each data item.

-   Comment codes for corrections or rejections.

In a rejected record, all data is sent back as reported by the school.
For accepted records, the origination acknowledgement record also
contains a calculated student scheduled award.

Origination records can be updated, if needed, when the school receives
the origination acknowledgement record. Changes to the origination
record which result in a reduction of the award amount may result in the
Pell Processor generating negative disbursements. Origination award
amounts are used to verify disbursement requests.

No changes should be made to any record that has not been acknowledged.

### Submitting Origination Records

#### Headers and Trailers

A fixed length file batch submission can include one type of data, such
as Origination or multiple types of data such as Origination and
Disbursement. To keep the data in order, there is a system of Headers
and Trailers.

An example is provided below:

Transmission Header

Transmission Batch Header "PGOR03IN"

Grant Batch Header "#O"

Origination Record

Grant Batch Trailer

Transmission Batch Trailer

Transmission Batch Header "PGDR03IN"

Grant Batch Header "#D"

Disbursement Record

Grant Batch Trailer

Transmission Batch Trailer

Transmission Trailer

For schools using EDExpress for creating batches and EDconnect to send
them, simply batch and export student data as the instructions indicate
and all Headers and Trailers will automatically be applied when the data
is sent.

Schools using a third-party software or a mainframe to process their
data can use EDconnect to send the data. EDconnect will apply the
Transmission Header and Trailer and the Transmission Batch Header(s) and
Trailer(s) to the batches. The third party software or mainframe must
create the Grant Batch Header(s) and Trailer(s).

> The software the school uses to prepare origination records should
> enter data in the correct origination record format. Some fields that
> can be entered in the origination record are required, and others are
> optional. The
>
> school will need to make sure the information is correct in both types
> of fields of the origination record for that student.

**Tip**: When a Grant Batch Header fails batch-level edits, the Grant
Batch Header returned provides the Legacy Batch Reject Reasons. The
Batch number will also be available for viewing with COD edits on the
COD Web page.

#### Construction

> Schools must be operational for EDE Electronic Payments Service in
> order to submit Federal Pell Grant origination and disbursement data
> via the SAIG. Schools must also have successfully submitted an
> application to use SAIG and been assigned a valid TG number to submit
> electronic files . (The school/servicer point initiates an origination
> record batch by transmitting the following):

-   **Grant Batch Header Record**: The grant batch header record reports
    > the record length, the batch type, the school's identifying code
    > numbers, and processing dates.

-   **Origination Record**: An origination record is included for each
    > student reported in the origination batch. All fields applicable
    > to the recipient must be completed. No fields may be left blank
    > unless noted in the record layout.

```{=html}
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```
-   **Grant Batch Trailer Record**: The grant batch trailer record
    > reports the number of student records included in the
    > transmission; the amount reported on this transmission; and the
    > total number of records in the transmission.

-   **Grant Batch Editing**: The Pell Processor receives each
    origination batch from the SAIG and performs specific batch-level
    edits. If the submission passes all of these edits, the batch is
    submitted for Federal Pell Grant program processing. If a grant
    batch fails any of the batch-level edits, the header record is
    updated to indicate the reason for rejection and the header and
    trailer are returned to the submitting school/servicer for
    corrective action. None of the transaction data in the rejected
    batch are forwarded to the program for processing.

The grant batch reject reasons field, positions 77 -- 100 of the grant
batch header record, indicates the specific reject reason(s).

Each batch number may only be submitted once for processing. If the same
batch number is submitted twice, it will be rejected on the second
submission. If a batch is sent twice in error at the same time, both
batches will be rejected. The batch number in the Grant Header and the
Grant Trailer must both be changed with each new batch.

All other fields contain blanks. When the Pell Processor finds a missing
grant batch trailer, it constructs a grant batch trailer record for the
returned batch.

During the edit process, batches are either approved or rejected. For
rejected batches, the grant header and trailer are returned immediately
to the school without the detail records. The rejected grant header
shall have the comment codes to notify the school why the batch was
rejected. Schools must resubmit the detail records in new batches with
new batch numbers after the errors are corrected. If the Pell Reporting
Campus ID number in the grant header record is missing or incorrect, the
batch acknowledgement cannot be returned to the school.

The grant batch reject reasons are specific to electronic processing and
are different from the edit/comment codes produced in Federal Pell Grant
Program processing. Grant batch reject reasons indicate errors related
to the transmission of origination and disbursement data between the
school/servicer and the Pell Processor. The edit/comment codes, on the
other hand, apply to all Federal Pell Grant origination and disbursement
processing. Rejected batch numbers can also be viewed on the COD Web
page with the applicable COD edit(s).

**Origination Record Batch Processing**

Federal Pell Grant processing creates an origination acknowledgement for
every record sent, except those transactions that are skipped due to
rejected batches. An origination acknowledgement is returned to the
school/servicer for each student record in origination record batches
received and processed by the Federal Pell Grant Program. (You can view
rejected origination records on the COD Web page with COD associated
edits. All questions regarding these records should be directed to Pell
Customer Service at 1-800-4PGRANT \[1-800-474-7268\]).

The Pell Processor transmits origination acknowledgement batches to the
network for pick-up by the school/servicer. The school/servicer should
receive back an origination acknowledgement batch for each accepted
origination record batch it transmits. Batch integrity is maintained
during processing.

The Pell Processor transmits origination acknowledgement batches to the
network the same day they are processed by the Federal Pell Grant
Program. The school/servicer retrieves the origination acknowledgement
batches following their placement on the network.

### Origination Acknowledgement Records

Origination acknowledgement records contain the data reported by the
school/servicer on the origination records, edit/comment codes, and any
corrections or reject reasons applied during Federal Pell Grant
processing of the origination records.

The school/servicer must review each origination acknowledgement batch
for corrections applied and for rejects; then correct the data as
required. The school/servicer corrects origination acknowledgements by
transmitting a new origination record for each student whose data
requires changes.

Duplicates are not rejected records, but should be reviewed by schools/
servicers for any problems or software issues.

## Disbursement Records

Disbursement records are used to report student Pell Grant disbursement
data to ED. They also determine and commit the amount of Federal Pell
Grant funding available to each school.

As in prior award years, each school under the Advance Payment method
receives an initial authorization as start-up funding. Schools receive
an Electronic Statements of Account (ESOA) for each adjustment to their
authorization, after the disbursements exceed the initial authorization.
For example, if the initial authorization amount established by the
Department is \$100,000 and the school reports disbursements totaling
\$101,000, that school's authorization will increase by \$1,000.

Schools prepare and submit records for each disbursement made to a
recipient, using EDExpress or their own software. Each disbursement
record must have a unique reference number (01-65). In assigning these
numbers, it is recommended that schools start with number one (01) and
use consecutive numbers for each additional disbursement transaction
submitted to the Department for that student. (Note that 66-99 is now
reserved for ED use.)

> The Pell Processor receives and edits the disbursement record against
> accepted origination records. If an origination record match is not
> found, the Pell Processor rejects the disbursement record. If a
> disbursement exceeds the Accepted Award amount for the Entire Year the
> record is corrected by adjusting it downwards. If a disbursement
> record exceeds 100% of the student's eligibility across all schools,
> the record is temporarily accepted for the amount submitted. At the
> same time, an MRR is sent to all schools at which the student has a
> disbursement for that academic year. The schools then have 30 days to
> correct the Overpayment. If the overpayment is not resolved, all
> disbursements are reduced to zero. Schools may resubmit disbursements
> to reinstate the student's grant.
>
> Disbursement records may be received as early as 30 days prior to the
> reported disbursement date for Advance Funded schools or seven days
> for JIT schools. However there will be no increase in funding levels
> until seven days before the scheduled disbursement date.

### General Process for Disbursements

Schools report each payment made to an eligible student with a
Disbursement Record. Schools send Disbursement Records electronically
via the SAIG. Disbursement batches can be sent at the same time as
Origination batches. However, to ensure that the student's Origination
is processed and accepted before the Disbursement, it is recommended
that Originations be batched and transmitted prior to Disbursements.

Before the Pell Processor can accept a Disbursement Record, there must
be an accepted Origination Record on file for the student. Any
Disbursement Record received prior to receiving an accepted Origination
Record will be rejected. Likewise, if Origination and Disbursement
records are sent at the same time and the Origination Record is
rejected, then the Disbursement Record will also be rejected.

Schools may send a Disbursement Record for each Pell Grant disbursement
either before or after the disbursement has been made. The reported
record should contain information regarding a single disbursement
activity for the student. To view all fields of the Disbursement Record,
please see the Disbursement Record layout description in Custom Layouts.

When Disbursement Records are received, they are edited to make sure
there are no errors. The Pell Processor verifies that the reported
disbursement amount does not exceed the student's Origination Award
amount. Acknowledgements are sent back to the school for each
Disbursement Record. Acknowledgements are generally returned to the
school within three to five hours.

Once the Disbursement Records are accepted, the Pell Processor submits
the data to the Financial Management System (FMS). This action generates
obligations and payment transactions for the Grants Administration and
Payment System (GAPS). When the school's reported disbursements exceed
its current authorization an ESOA is generated which increases the Pell
Funds available for the school.

### Disbursement Acknowledgement Records

After processing disbursement records for a school, the Pell Processor
sends the school a disbursement acknowledgement. The acknowledgement
provides schools with an accurate and timely status of their accepted
Federal Pell Grant disbursements. With this information, schools can
reconcile their disbursement records with the Department. It is
recommended that schools send origination records to the Pell Processor
early so that records can be edited and problems resolved before
disbursements are made to students.

### Changes to Disbursement Record Information

Very few items can be corrected on a Disbursement Record. However, the
record layouts explain which corrections are valid. The Pell Processor
will not allow the student to receive more than the accepted award
amount on the Origination Record. If the Pell Processor calculates that
the student is going to receive more than the accepted amount on the
origination record, the award is either reduced or the record is
rejected.

### School Changes to Disbursement Information

To correct payment amounts, it may be necessary to update the
Origination Record before the school submits a new Disbursement Record.
The enrollment status, COA, and EFC on the Origination Record can affect
disbursement amounts on the Disbursement Record. The school should
verify the accepted award amount on the Origination Record and correct
the Origination Record before submitting a new Disbursement Record.

Unlike Origination Records, the information on the new Disbursement
Record does not replace the existing record. Instead, the payment amount
reported on the new Disbursement Record is added to or subtracted from
the accepted payment amount, resulting in a new total payment to the
student.

Because the old Disbursement Record information is not replaced, a
school cannot actually correct an incorrect disbursement date. If a
school reported an anticipated disbursement that was not made, it should
send a new Disbursement Record with a negative disbursement for the
amount that it reported it would pay.

If the Origination Acknowledgements and Disbursement Acknowledgements
that the school receives are accurate and there are no changes to the
students' awards, the school should simply retain these records in their
files. However, if the information for any student is incorrect or there
are changes during the award year, the school should submit corrections.

The most frequently required changes are to COA, verification status (to
update a "W"---payment without documentation), and payment amounts and
dates. Other changes occur less frequently, except in cases of error.
For instance, one would not expect the school's academic calendar to
change during the award year.

## Rejected Records

An enhancement in 2002-2003 is the way rejected records are handled. The
new COD Web page will allow Phase-In Participants to view their rejected
records online. After the Pell Processor processes the Origination,
Disbursement, and Data Requests, an acknowledgement is sent to the
school and any rejected records are placed in a "holding bin." Phase-In
Participants may view rejected record(s) and determine which corrections
need to be made. They will then be able to send a corrected record
through EDExpress or their software. In 2002-2003, Phase-In Participants
can not create or correct records via the COD Web Page, but they can
view the records that have been accepted or rejected.

The holding bin will hold the rejected records even after the record has
been corrected and accepted. This will allow schools to review a
complete documentation of all records submitted for processing.

## Data Request Records

Schools may request information from the Pell Processor by submitting a
data request. These files are Multiple Reporting, Statement of Account,
Year-to-Date, and Reconciliation data. The Pell Processor sends the
Multiple Reporting Record and Statement of Account automatically
throughout the Award Year to notify schools of changes and potential
problems. Schools can also obtain this information on demand with a data
request. The school must always request the Year-to-Date and
Reconciliation files.

A Data Request may be sent as an electronic file or may be submitted via
www.pellgrantsonline.ed.gov for award years prior to 2002-2003.

**Data Request Acknowledgement Records**

After the Data Request record is received and processed, a Data Request
Acknowledgement record is sent back to the institution for each data
request received.

#### Institution Data Records

The Institution data record has been discontinued in the 2002-2003 award
year. Updates to a school's address, contact person, and telephone
numbers can be made at
[http://eligcert.ed.gov](http://eligcert.ed.gov/). It is not recommended
to use the RFMS Web page to update Institution information because the
RFMS Web page is for award years prior to 2002-2003.

***Multiple Reporting Records***

The Multiple Reporting Record (MRR) process provides information to a
school about a student's origination and disbursement status at other
schools and the amount of the scheduled award disbursed. This function
allows schools to identify the two primary types of multiple reporting
conditions: concurrent enrollment and eligibility overaward. Schools may
request MRRs at any time by submitting a data request record
electronically or online.

An MRR will be system-generated by the Pell Processor if a disbursement
record is submitted and the system detects a Potential Overaward Project
(POP) condition. You can also request an MRR any time after the student
record is originated. POP is a process which detects that an eligible
student may receive more than the maximum Federal Pell Grant scheduled
award amount at two or more schools.

### Multiple Reporting Record Process

Schools prepare and submit eligible students' origination records to the
Pell Processor using EDExpress or their own software. After a school
receives an Origination Acknowledgement, it may submit a data request
record with a type code of "M" (for multiple). The Pell Processor
receives and edits the MRR data request to verify that the student has
been originated at that school and that the physical layout of the
record is accurate. If the record passes these edits, the Pell processor
will search the database to identify all other originations and
disbursements submitted by other schools for the student requested on
the MRR. The Pell Processor returns the data requested or rejects the
request. If the request is rejected, the school receives an
acknowledgement of the rejection reason.

Schools are encouraged to request MRRs prior to requesting disbursements
to reduce the number of problems with POP. A copy of the edits that the
Pell Processor uses to process data request records is included at the
end of this section in Appendix D. To provide additional assistance in
submitting data requests records and the most effort-free process as
possible, many of the Pell Processor edits have been incorporated into
the EDExpress software.

### Requesting Multiple Reporting Records

There are several options available to you when requesting an MRR. A
school can submit a data request created in either EDExpress, their own
software, or on the COD Web page.

### POP 

Beginning with 2002-2003, a change is being implemented to improve the
efficiency in which POP situations are resolved. After receiving an MRR,
schools have 30 days to mediate with the other POP-affected school(s)
and correct overpayment situations. After 30 days, if the student is
still in an Overpaid status, all schools involved will receive
system-generated negative disbursement. The negative disbursement will
reduce all previously accepted disbursements to the student to zero for
the award year.

A school may resubmit valid disbursement record(s) individually,
indicating the correct disbursement date and amount the student
received. If multiple schools resubmit disbursements, causing an
Overpaid status again, the Pell Processor will again send an MRR to all
involved schools informing them of the recurring POP situation. Then
after 30 days, the schools will receive system-generated negative
disbursements decreasing the student's disbursements to zero. If this
cyclic situation occurs, it is suggested that schools contact Customer
Service for assistance in mediating and resolving the POP situation
before resubmitting disbursements.

## Reconciliation File

For 2002-2003, the Reconciliation File has not been changed. This type
of request can be a request for an individual student or an entire
school.

The Reconciliation file is a one-record summary of the data the Pell
Processor has for a student. This record can be used to reconcile the
school's total disbursement amount per student with the Pell Processor.
If the amounts do not match, information on the Reconciliation record
should help to determine where the discrepancy is located.

## Year-To-Date (YTD) Records

The YTD origination record for a student will show the origination
information stored in the Pell Processing System, correction data, and
the total amount disbursed to the student for the year.

The YTD disbursement records for the student show the accepted data for
each disbursement the school reported. The YTD records show the school
the information the Department has about its students, which may
conflict with the school records.

The YTD summary will show the number of recipients at the school; the
number of origination and disbursement records that were accepted,
corrected, duplicated, or rejected; and, for a certain edit codes, the
number of times the school received that specific edit code on an
acknowledgement.

The school's software should generate the information needed for
reconciling its records with the Department's records. For example, the
school may be able to automatically compare its records to the YTD
record to get a list of students who have differing disbursement amounts
in the two sets of records. Schools should consult the documentation for
their software for more information on the uses of YTD data.

The YTD file is used in reconciliation and in replacing a corrupted
database. It also provides information to schools about a student\'s
origination and disbursement status as well as a summary total of all
origination and disbursement data submitted by a school.

### General Purpose of the YTD File and the Process for Requesting It

In the legacy system for years prior to the 1999-2000 cycle, the YTD
file was used to replace lost databases. This functionality has been
retained in COD.

#### Purpose of the YTD File

The YTD file performs a dual role. Schools can request the YTD file to
replace a corrupt database or to reconcile its records with the accepted
data that the Pell Processor has retained. Schools who use EDExpress
have the following options:

-   Comparing and printing a discrepancy report,

-   Printing all YTD records,

-   Updating selected records, and

-   Updating/rebuilding all.

#### Process for Requesting a YTD File

You may request a YTD file at any time by submitting a data request
record or by using the COD Web site.

#### Format of the YTD File 

> Each YTD file contains three parts:

1.  The last accepted Origination Record for each student,

2.  Each accepted Disbursement Record for each student, and

3.  A summary of data sent to the school.

> The Origination portion contains all accepted data from the last
> accepted origination record at the Pell Processor for the students at
> your school. The Disbursement portion provides you with each accepted
> disbursement associated with the origination. The summary provides the
> school with information on all origination and disbursements contained
> in the YTD record.
>
> **Note:** The \"YTD Disbursement Amount\" is located on the
> Origination portion of the record beginning at position 304. This
> value reflects the current amount of accepted disbursements for a
> specific origination ID in the Pell Processor database.

#### For EDExpress Users

The YTD Comparison Report will list the differences between your
database and the imported YTD file; it prints in two sections. The first
section notes the Pell Origination exceptions; and the second section
prints the Pell Disbursement exceptions, followed by a one-page summary
of the Origination and Disbursement data.

When importing a YTD file you can mark the \"Compare and Print
Exception?\" box so the software will identify the differences between
the information in the import file and your EDExpress database Pell
tables and generate a discrepancy report in Last Name order.

Verify that you have imported all Pell Origination and Disbursement
acknowledgements before running the compare feature; this will ensure
the data in the YTD file is being compared against your most current
processing results.

You should also delete records for students not attending your school
that have been created but not submitted for processing. Otherwise,
these records will be flagged as exceptions on the import Compare Report
under the Pell database exceptions.

If you are not sure whether you want to use the Update option, we
recommend you use the compare feature the first time you import the YTD
file to view which updates may occur. There may not be any exceptions.

You also have the option to select the \"Print All\" box which will
print all records in the YTD file in Last Name order.

Once you have imported the YTD file with the compare option selected and
verified the potential updates, you can re-import the same YTD file and
choose \"Update: Selected Records." With this feature you can update
specific student records with the information from the imported YTD
file, if you are missing an acknowledgement file and want to update
specific records that were in the missing batch.

The \"Rebuild All\" Update option will overwrite all the records in your
database that have matching origination IDs in the YTD file.

### Electronic Statement of Account (ESOA)

The ESOA summarizes the status of a school\'s spending authorization
versus amount expended to date for that award year.

A school can send requests electronically for ESOA data batches. The
request is sent via the SAIG.

There are two ways a school can receive an ESOA:

-   By submitting a data request for the ESOA, or

-   By the Pell Processor automatically generating the ESOA.

If a school is Advanced Funded, an ESOA will be received when the
initial authorization is performed. When the Pell processor has accepted
enough disbursements to exceed their authorization level, it
automatically generates a new ESOA to the school. The ESOA is only
generated when the authorization level is exceeded or decreased; it is
not generated each time a disbursement is accepted.

If a school is JIT, an ESOA is produced each time a disbursement batch
with accepted records is processed. This is because there is no inital
authorization level that has to be exceeded.

The Pell Processor generates ESOAs and sends them in message class
batches with a header and trailer record back to the SAIG. Schools can
retrieve the ESOAs for a 6-month period following placement on the SAIG.

### General Process for Electronic Correspondence from ED to Schools

Throughout the year, the Federal Pell Grant Program produces electronic
letters and messages to communicate information from ED and the Federal
Pell Grant Program to participating schools. School-specific letters are
sent from ED in a text file through SAIG.

Some Electronic Correspondence media include:

-   **IFAP Web site**: The IFAP Web site is an ED Web site designed to
    provide information to financial aid professionals. It has an
    electronic library and search tool and contains publications,
    regulations, and guidance correspondence regarding the
    administration of the Title IV Federal Programs.

> The following frequently requested publications are maintained:

-   Action letters

```{=html}
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-   Dear Partner Letters

-   Electronic Announcements (P-Messages)

-   New issues in Federal Registers

-   SFA Handbooks

At the IFAP Web site, there are many links to other EDE sites, such as:

-   SFA Training Web site

-   SFA School Portal

-   SFA Conference Registration Web site

-   SFA Download

-   Direct Loan Web site

-   Publications Ordering Web site

#### P-Messages

P-messages are a type of ad hoc correspondence from ED. They are
messages sent via e-mail, SAIG Message, or Listserv to every eligible
school in the Federal Pell Grant Program. They are also posted on the
IFAP Web Page as an Electronic Announcement. These messages are used to
communicate an announcement or problem.

#### SFATECH

SFATECH is an online e-mail listserv for technical questions about
Student Financial Aid (SFA) systems and software. Inquiries posted to
the listserv are reviewed by ED staff and forwarded to the appropriate
Title IV program analyst for response.

Pell-specific questions are forwarded to <pell.systems@ed.gov>. The
mailbox is reviewed and responses are sent within 24 hours of receipt.
If a response needs further clarification, it is referred to a
Development Team Leader. If it requires more than a one-day response, an
e-mail will be sent to the school advising of this delay.

If a question is received that requires additional information or
clarification from the originator, an attempt will be made to contact
the originator by a telephone call. If unsuccessful, an e-mail will be
sent to SFATECH to have a private e-mail sent to the originator rather
than the entire listserv.

**COD Web Site**

To improve school access to Pell Grant Data, schools can verify batch
status, student records, submit data requests, or enter institution data
records via the Internet at the Federal Pell Grant Program Web site. In
addition, the schools can enter post-deadline records via this
interface. The COD Web Site is available 24 hours a day, 7 days a week.

**RFMS Web Site**

The RFMS Web site will remain up until December 2002 for Award Years
1999-2000 through 2001-2002. At that time the data for these years will
be migrated to the COD Web site.

[http://www.pellgrantsonline.ed.gov](http://www.pellgrantsonline.ed.gov/)

### Pell Interfaces

#### School Interface

Schools use the EDExpress software and third-party software to send
Origination and Disbursement records to the Pell Processor through the
Student Aid Internet Gateway (SAIG). The Pell Processor sends related
Acknowledgement records back to the schools through SAIG.

Schools send batches of origination and disbursement records because of
paying or expecting to pay Federal Pell Grant funds to students. Schools
can send batches across the SAIG. These batches of records are processed
with records accepted, accepted with corrections, duplicates, or
rejected.

For each type of batch, a detailed acknowledgement is sent back to the
school after processing is complete. Each acknowledgement contains the
acceptance status, accepted field values, and comments explaining the
processing results if necessary. Comment codes are returned to explain
rejections and corrections. Batches that are rejected are not processed
and no information is retained other than the reject reason. The Batch
number and COD edit code can also be viewed on the COD Web page. The
acknowledgement also contains additional data calculated during
processing.

### ED Systems

The Pell Processor interfaces with the following ED systems to receive
or send data.

-   Central Processing System (CPS)

-   Postsecondary Education Participants System (PEPS)

-   Student Aid Internet Gateway (SAIG)

-   Grants Administration Payment System (GAPS)

-   Financial Management Systems (FMS)

-   Financial Management Systems Software (FMSS)

-   National Student Loan Data System (NSLDS)

#### Central Processing System (CPS)

CPS provides student eligibility information to the Pell Processor for
processing detail records Reciprocally, the Pell Processor provides
recipient data to CPS for reporting purposes. School data is also
provided to CPS, until the point in time when CPS interfaces directly
with PEPS.

***Postsecondary Education Participants System (PEPS)***

PEPS provides the Pell Processor with school eligibility information. A
school's eligibility to participate in the Federal Pell Grant Program
can change anytime throughout the academic year; therefore, updates must
be provided to the Pell Processor on a regular basis.

***Student Aid Internet Gateway (SAIG)***

The SAIG (formerly TIVWAN) is the primary vehicle that transports data
between the Pell Processor and schools via the Internet. It also
provides participation data. This data assists the Pell Processor in
determining which schools are eligible to send data electronically.

By enrolling in SAIG, schools are able to exchange information
electronically with the U.S. Department of Education. Many student
financial aid services can be accessed via the SAIG. Schools must
determine which services they need, and enroll appropriate individuals
as destination point administrators (DPAs) for the specific services
that the school wants them to access. When a school enrolls a new DPA, a
destination will be established with an assigned \"TG\" number that
identifies the DPAs' destination point on the SAIG.

Schools may enroll destination point administrators with their own
destination points (mailboxes) for each service or function, or you may
combine services and functions through a single DPA with a single
destination point (DP). Where permitted, the DPA will determine which
SAIG users are allowed access to that destination point. The DPA must
enforce the security requirements as outlined in the SAIG User
Statement, including the completion and maintenance of this
statement(s). The President/CEO/Chancellor must certify that each DPA
has developed secure procedures in compliance with the security
requirements for permitting other people to use his/her destination
point. The DPA must also complete a profile for each SAIG user within
the EDconnect software used to connect to SAIG.

#### Grants Administration Payment System (GAPS) 

GAPS is the system within the ED Central Processing System (EDCAPS) that
processes obligations and payment transactions. The Pell Processor sends
obligations and payments to GAPS. GAPS provides an acknowledgement back
to the Pell Processor with processing results. In addition, GAPS
provides updates to transactions which affect the available balance.

#### Financial Management Systems (FMS)

FMS is the system that forwards the financial data from COD to GAPS and
from GAPS the information is applied to FMSS. The FMS system is within
the SFA.

#### Financial Management Systems Software (FMSS)

FMSS is a system within EDCAPS. FMSS posts obligations received from
GAPS to the General Ledger and processes receivables for the Department
of Education.

#### National Student Loan Data System (NSLDS)

NSLDS receives payment information for all students receiving Federal
Pell Grants.

### Other Pell Processing Functions

#### Administrative Cost Allowance 

The Administrative Cost Allowance is money that ED pays schools to
offset some of the cost of delivering financial aid to students. For the
Federal Pell Grant Program, the amount is \$5.00 for each student at the
school who receives a Federal Pell Grant. This amount is based on the
number of Pell recipients reported by the school, including students who
withdrew from school or were transferred (even if all Federal Pell
Grants were recovered). The Pell Processor then calculates
Administrative Cost Allowance (ACA) payments for Pell Operations
approval.

#### Administrative Cost Allowance Letter

Administrative Cost Allowance Letters are transmitted electronically
through SAIG at least three times a year for all participating Federal
Pell Grant schools. The letter notifies schools that they will receive,
under separate cover, a direct deposit into their bank account from the
Federal Reserve to cover certain expenses associated with administering
the Federal Pell Grant program.

#### Sample Electronic Administrative Cost Allowance Text Message

Shown below is the Sample Electronic Administrative Cost Allowance Text
Message that is sent electronically to schools notifying them of the ACA
amount being deposited in their account.

**Note:** Your institution should expect a deposit totaling
9999999999999.99 for Administrative Cost Allowance supporting reporting
of 99999999 student disbursements for the award year 2003.

#### Verification Status

For 2002-2003, the valid values for the Student Verification Status
reported on the Origination record are 'V' for Verified, 'W' for Without
Documentation, and 'Blank'. The value 'Blank' is used for students not
selected for verification.

Institutions that originate students using the 'W' verification status
may only disburse up to 50% of the student's scheduled Pell Grant. The
school must subsequently update the verification status in those
students\' Origination records to 'V' after validating their income
information. Near the end of the award year all funds for students with
a "W" Verification Status are zeroed out. The Pell Processor sends a
warning notification to schools after June 30 if they still have
students with Verification Status of "W".

#### Percent Eligibility Used at a School vs. Total Percent of Eligibility Used

The Pell Processor calculates the Percent Eligibility Used at a school
and the Total Percent of Eligibility Used whenever a disbursement record
is accepted. These percentages are used in the POP calculations and the
percentages are sent to NSLDS.

The Percent Eligibility Used at a school field is calculated by summing
all of the accepted disbursement records for a student at an attended
institution and dividing that amount by the Scheduled Federal Pell Grant
at the attended institution. Round to four places after the decimal.

The Total Percent of Eligibility Used field is calculated by summing up
all of the Percent Eligibility Used amounts at all campuses attended by
this student for the current school year. This amount will be rounded to
four places after the decimal. The Pell Processor performs percentile
rounding that checks for schools using whole dollar disbursements.

Example:

+-------------+-----------------+-----------+-----------+-----------+
| **School    | **Sch.          | **Disb.** | **        | **Total** |
| A**         | Federal**       |           | Percent** |           |
|             |                 | **Amt.**  |           | **        |
| **Student** | **Pell Grant**  |           | **Elig.** | Percent** |
+-------------+-----------------+-----------+-----------+-----------+
| 1           | 3300            | 350.00    | 0.1970    | 0.2275    |
+-------------+-----------------+-----------+-----------+-----------+
| 1           | 3300            | 300.25    | 0.1970    | 0.2275    |
+-------------+-----------------+-----------+-----------+-----------+
| 2           | 1750            | 500.00    | 0.2857    | 0.5718    |
+-------------+-----------------+-----------+-----------+-----------+

+-------------+-----------------+-----------+-----------+-----------+
| **School    | **Sch.          | **Disb.** | **        | **Total** |
| B**         | Federal**       |           | Percent** |           |
|             |                 | **Amt.**  |           | **        |
| **Student** | **Pell Grant**  |           | **Elig.** | Percent** |
+-------------+-----------------+-----------+-----------+-----------+
| 1           | 3300            | 100.50    | 0.0305    | 0.2275    |
+-------------+-----------------+-----------+-----------+-----------+
| 2           | 3300            | 250.33    | 0.2861    | 0.5718    |
+-------------+-----------------+-----------+-----------+-----------+
| 2           | 1750            | 250.33    | 0.2861    | 0.5718    |
+-------------+-----------------+-----------+-----------+-----------+

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