# Presentation: 661179

## <date/time>

## Session 29

***COD, GAPS, ***
***Pell and Direct Loans:***
***Funding for the Schools***

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## Session Outline

-  COD Funding
- Process
- New Terms
- Pell Grant Funding Process
- COD Web Screens
- Direct Loan Funding Options
- Netting of Disbursements
- Cash Management Regulations

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## Session Outline (continued)

- GAPS Functionality/New Enhancements
- Electronic Refunds
- Drawdown Adjustments
- Reports
- View Access
- Payment Request File Upload

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## One COD Funding Process

- Direct Loan

- Pell

-   COD process

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##  Funding Terms

- Current Funding Level
- Net Draws
- Available Balance
- Refunds and Returns of Cash

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## Funding Terms(continued)

- Net Accepted and Posted Disbursements
- Cash > Accepted and Posted Disbursement
- Cash > Accepted and Posted Disbursements and > 30 days.

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## Pell Funding Terms

- Pell Grants
- Obligation/Authorization = Current Funding Level
- Cash = Drawdowns

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## Current Pell Grant CFL (Obligation) Process

- Initial CFL created in May
- Schools cannot draw cash in GAPS that exceeds their CFL.
- Schools submit disbursement records to COD that adjusts CFL within 7 days.
- CFL level in  GAPS is not increased until initial CFL has been exceeded.

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## School Example of an ESOA

- Initial CFL = $5 million
- Total Accepted and Posted
-         Disbursements = $2 million
- Difference = $3 million

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## Electronic Statement of Account

- GAPS AWARD NUMBER                                           		P063P014444
- 	A. 	Previous Pell Grant Obligation			$5,000,000.00
- 		Current Pell Grant Obligation			$6,000,000.00
- 		Adjustment (Increase + or Decrease -)		$1,000,000.00+
- 	B.	Previous Pell Grant Obligation/Payment		$0.00
- 		Current Pell Grant Obligation/Payment		$0.00
- 		Adjustment (Increase + or Decrease -)		$0.00
- 	GAPS Drawdowns/Payments      			$5,000,000.00
- 	Date of Last Activity in GAPS	     			02/13/2002
- 	YTD Total Unduplicated Recipients	      		 3,333
- 	YTD Pell Accepted Disbursement Amount			$6,000,000.00
- 	YTD GAPS Posted Disbursement Amount 		$6,000,000.00
- 	YTD Administrative Cost Allowance			$16,665.00
- 	As of Batch ID	  200212345619990101123000

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## CFL (Obligation)  Adjustments

- School Generated
- Schools submit increases and decreases throughout the year
- System Generated
- Administrative Cost Allowance (ACA)
- Negative pending
- W Verification
- Financial Aid Office and Business Office reconcile as of September 30

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## Pell Grant Funds Control

- Initial CFL (May)
- Reduction to level of accepted and posted disbursement records (February)
- Post deadline adjustments (after 9/30 - administrative relief, audits, decreases)
- Reduction to level of net GAPS drawdowns (end of second year)

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## Pell Funding Reconciliation

- Date         CFL    =    Disb Records  =       Cash
-                (COD)            (COD)               (GAPS)

| 11/02 | $1,000,000 | $750,000 | $500,000 |
| --- | --- | --- | --- |
| 2/03 | $750,000 | $750,000 | $500,000 |
| 3/04 | $500,000 | $750,000 | $500,000 |
|  | $500,000 | $500,000 | $500,000 |

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## School Funding Info Web Screen (Pell)

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## Unprocessed Deobligations

- A new column on the GAPS website
- Deobligations in excess of available balance

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## Unprocessed Deobligation Report

**                                        ****Award Balances Report**
- Payee DUNS/SSN:	555555555
- Payee Name:	Tony’s Beauty Schools
- Payee Address:	SMITH, INC, CHICAGO, IL 60603
**AWARD BALANCES TABLE****(As of February 13, 2002)****	**
**No       Award           Recipient ****	****Authorization       Unprocessed         Net Draws       Available Balance****	****	****  Ref.****	****                               Deobligations****	**
- P063P011222	01-02 Pell	  $5,000,000.00       ($5,000.00)        ($5,000,000.00)          ($5,000.00)
- P007A006050   00-01 SEOG    $26,693.00	$0.00	      ($26,693.00)                 $0.00

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## School Example of Unprocessed Deobligation

- School CFL (obligation) = $5 million
- Net drawdown in GAPS = $5 million
- Available balance in GAPS = $0
- School submits negative disbursement of $5,000
- Unprocessed deobligation of $5,000

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## Resolve Unprocessed Deobligation

- Refund the cash
- Adjust the drawdown
- Increase the CFL (obligation)

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## Funding in COD

- Funds Delivery
- Schools can draw down in GAPS the cash  they will need to disburse within the next 3 business days.

- Schools can choose to have COD initiate drawdowns on the school’s behalf based on accepted actual disbursement records.

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## Direct Loan Funds Control

- CFL  = obligation.
- CFL not limited by obligation but related to disbursements.
- CFL increases as school submits disbursement records timely.

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## CFL Process for DL Advance Funding Schools

- Initial CFL created at Beginning of Program Year (Feb.)
- CFL increases as a school submits disbursement records to COD.
- Schools draw down their current cash needs in GAPS.

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## Funding for DL Pushed Cash Schools 

- Funding driven by actual disbursement records.
- Funded Disbursement Listing (FDL) is Generated by COD.
- Cash electroncially sent to school’s bank account.

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## Example of Funded Disbursement Listing 

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## “Pushing” Cash to Schools

- Cash sent to school to fund disbursements
- Cash sent to school based on “net” accepted and posted disbursements
- Funded Disbursement Listing (FDL) indicates amount of money pushed to school.

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## Practical Effects of Netting Disbursements

- Schools won’t have to return excess cash (if additional disbursements will be made within 3 business days)
- Keeps disbursements and cash in balance.
- Makes monthly and year end reconciliation simple.

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## COD Funding Screens

- School Summary
- School Funding Info
- Cash Activity
- Summary Financial

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## School Summary Screen

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## School Funding Info Screen (DL)

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## Cash Activity Screen

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## School Summary Financial Info Screen

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## Refunds of Cash Info

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## Cash Management Requirements

- 30-Day Reporting Requirement
- 	-685.301(d) Direct Loan
- 	-685.83 Pell (and annual deadline notice)
- 3-Day Cash Rule
- 	-668.162(b)
- Monthly Reconciliation
- 	-685.102(b) Direct Loan

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## Refunds of Cash

- Funds not disbursed within 3 business days must be returned as Excess Cash to the Department of Education.
- Encourage schools to return funds electronically via the GAPS web.

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## Advantages of Electronic Refunds

- Posts to GAPS within 2 business days
- School control over process
- School directs from which bank account the money will be refunded.
- Multiple refunds on one screen and at one time.
- Electronic processing reduces human error and delays.

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## GAPS Award Numbers

- CFDA prefix (ex: P)
- CFDA suffix (ex: 268, 063)
- Sub program identifier (ex: K, P)
- Year identifier (ex: 01)
- Institution identifier (ex: 2244, 5543)
- Ex: DL  =  P268K012244
- Pell  =        P063P015543
- Campus Based = P007A992231

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## Access E-Payments Website (http://e-payments.ed.gov/gapsweb)

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## Logon to GAPS

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## Select Refunds from Main Menu

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## Select “refunds for open awards”  and click  “initiate refunds”

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## Select “continue”

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## Enter the amount(s) to berefunded and click “continue”

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## Click “verify selected awards”

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## Refund Confirmation

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## Payment Request Screen- Import from File Upload

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## Drawdown Adjustments

- Can’t move more than has been drawn
- Net adjustment must equal zero
- Do not use adjustments as a substitute for returning excess cash.
- Do not use adjustments to close out a year or bring your school’s cash balance to zero.

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## Open Awards

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## Enter the amounts to be adjusted and click “Okay”

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## Click “yes” if you want GAPS to process the request

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## GAPS Reports 

- GAPS Reports
- Activity Report
- Cumulative Activity by award
- Detail Activity by day
- Refund Report
- detailed list of refunds including confirmation numbers

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## Select “Activity Report”

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## Activity Report - Cumulative Summary

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## Activity Report - Record Detail

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## Refund Report

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## View Access

- Limit 5 user ids per school
- Download form off e-payment web
- Fax completed form to GAPS
- (202-401-0006)
- Additional questions, call GAPS Helpdesk
- 1-888-336-8930

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## GAPS Helpdesk

- Helpdesk hours of operation are 8 a.m. to 6 p.m. Monday through Friday, ET.

- 1-888-336-8930

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## How do I become a COD Full Participant?

- Schools must register with COD to become a Full Participant in Award Year 2003-2004
- To register, contact COD School Relations
- Email CODSupport@acs-inc.com
- Indicate “2003-2004 Full Participant”  in Subject Line
- Call COD School Relations
- Select Award Year 2002-2003 and express interest to COD CSR
- All EDExpress Users must register as Full Participants for 2003-2004

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## How do I obtain access to the COD Web Site?

- Submit a Security Administrator Request Letter on school or corporate letterhead
- Security Administrator is responsible for setting up additional users at your institution
- Reporting/Attending school relationships in COD will automatically allow access to other school codes
- Refer to announcements on IFAP for detailed instructions and mailing address
- 6/3/02 - Updated: COD Website Access for Schools
- 6/3/02 - COD Website Access for Vendors/3rd Party Servicers

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## How do I contact COD Customer Service?

- Email  CODSupport@acs-inc.com
- Call COD School Relations Center
- 1-800-4-P-GRANT for Pell Grants
- 1-800-848-0978 for Direct Loans
- Enter Award Year 2002-2003
- COD Web Site (www.cod.ed.gov)

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## Where can I get more information?

- IFAP Web Site (www.IFAP.ed.gov)
- Common Origination and Disbursement page
- Announcements and FAQs
- COD Technical Reference
- COD Web Site (www.cod.ed.gov)
- Daily Processing Updates
- School Funding and Processing Information
- Contact COD Customer Service

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## COD Sessions

- Session 19 – Cash Management A-Z
- Session 21 – What’s New for Direct Loan Processing in 	2003-2004?
- Session 22 – What’s New for Pell Grant Processing in 2	003-2004?
- Session 23 – COD and Pell Grants: Updates to Edits and 	Record Layouts for 2003-2004
- Session 24 – COD and Direct Loan: Updates to Edits and 	Record Layouts for 2003-2004
- Session 25 – Meet the COD Customer Service Team and 	Get Answers to Your COD Questions

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## COD Sessions

- Session 26 – COD: Using the New Web Site
- Session 27 – COD Full Participants for 2003-2004
- Session 28 – COD and Direct Loans: Balancing the 	Books
- Session 29 – COD, Pell, and Direct Loans: Funding for 	Schools
- Session 58 – Tribally Controlled Colleges: Operating as a 	Full Participant in the COD environment
- COD Customer Service staff are available in the PC Lab

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## Slide 63

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