# Presentation: 695711

## Session C-12

**Title IV Funding to Schools:  From COD through G5**
**For Pell Grants, ACG and National SMART Grants**
- Anthony T. (Tony) Laing
- U.S. Department of Education

## Pell, ACG & National SMART Grant Funding

Cash Management

G5 - Updates

**Pell, ACG & National SMART Grant Funding**
**Cash Management**
**G5 - Updates**

**Session Outline**

## Iron Triangle of Funds Management: Department of Education

**Iron Triangle of Funds Management: Department of Education**

## Iron Triangle of Funds Management: School 

**Iron Triangle of Funds Management: School**** **

## Funding Lifecycle

**Funding Lifecycle**

## Daily ProductionCOD 24-Hour Turnaround

**Daily Production****COD 24-Hour Turnaround**

**Disbursement Record Deadlines**
- 10:00 AM ET in COD  - Same Day10:00 PM ET in COD - Next Day

## Payment Methods

**Payment Methods**

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

## Initial Authorization

**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

## When to Submit Disbursement Records

**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

## Four Program Wide Global Reduction Jobs

**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

## Pell Reduction to Net Accepted & Posted Disbursement Records

**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)

## 2008 –2009 Pell CFL Reduction to NAPD

***Example:***

**Initial Authorization - $1,000,000**

**May 2008:**

**NAPD - $500,000**

**Reduction - $500,000**

**January 2009:**

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

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

- 2007-2008 Award Year
- 374 schools reduced by $23 million

## Stay Reconciled!

**Stay Reconciled!**

## Stay Reconciled 

**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

**Notes:**
UD Outreach
Zeroing out available balances especially as years are getting cancelled. 

## School Funding InformationWeb Screen

_**School of Outstanding Students**_
- Funding Info
**Program**     Pell		**Award Year**  08-09

**School Funding Information****Web 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  |

## Reconciliation Tools

**Reconciliation Tools**

- Reconciliation File
- Snapshot
- Mass mailing in September for Pell, ACG & National SMART
- YTD File
- Comprehensive

## Pell “W” Verification Reduction

**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

## No-Pell DeobligationACG, National SMART Grant

**No-Pell Deobligation****ACG, 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*

## Reduction to G5 Net DrawdownPell, ACG, National SMART Grant

**Reduction to G5 Net Drawdown****Pell, 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

## Reduction to G5 Net DrawdownExample

**Reduction to G5 Net Drawdown*****Example***

## Individual Reductions

**Individual Reductions**

- POP process
- Only for Pell, not in ACG & National SMART Grant
- Negative Pendings

## Post-Deadline Processing

**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

## Post-Deadline Processing

**Post-Deadline Processing**

- 30 days to resubmit records after administrative relief granted
- 15 days for a second request
- Continued follow-up

## Closeout/Reconciliation

**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

## Pell Administrative Cost Allowance (ACA)

**Pell Administrative Cost Allowance (ACA)**

- Three times during an award year cycle
*For 2008-2009:*
- March 2009
- August 2009
- August 2010
- NO DRAWDOWNSPayments sent directly to bank accounts by G5

## Title IV Funding to Schools

**Title IV Funding to Schools**

**Pell, ACG & National SMART Grant Funding**
**Cash Management**
**G5 - Updates**

## 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 

- 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**

## Excess Cash

**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

## Title IV Funding to Schools

**Title IV Funding to Schools**

**Pell, ACG & National SMART Grant Funding**
**Cash Management**
**G5 - Updates**

## G5 - Department of Education’s Payment System

**G5 - Department of Education’s Payment System**

- G5 access
- Assistance available in PC lab
- Send refunds electronically
*Do NOT use paper checks!*

## G5 Home page

**G5 Home page**

## Registration Page

- Online form where new users can register for access to G5
- Access is granted/denied between 1-2 business days

## G5 Registration

**G5 Registration**

## 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

## G5 – My Awards Page

**G5 – My Awards Page**

## How Do I Get Grant Money???

## Create Payments

**Create Payments**

## Create Payment – Payment Tab

**Create Payment – Payment Tab**

## Create Payment – Summary Tab

**Create Payment – Summary Tab**

## 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.*

## Reporting

## External Award Activity

**External Award Activity**

## External Award History Report

**External Award History Report**

## External Award History Report

**External Award History Report**

- _0215S060156_                   $1,126,423.00   -$374,043.00     $0.00       $0.00            $0.00  -$374,043.00    09/30/2010

## External Award History Report

**Q215S06156**
**$-741,192.00**
**09/30/2010**
**$1,126,423.00**
**-$741,192.00**
**$0.00**
**$0.00**
**$0.00**

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

G5 Help desk
1-888-336-8930

- COD School Relations Center
- 1-800-474-7268
- G5 Help desk
- 1-888-336-8930

**Need Funding Help?**

## Related Conference Sessions

**Related Conference Sessions**

| Session C-11 | Operational Update for Pell Grants, ACG and National SMART Grants |
| --- | --- |
| Session C-06 | Higher Education Opportunity Act of 2008 – An Update |
| Session DL-4 | Title IV Funding:  From COD through G5 (For Direct Loan Schools) |
| Session FF-12 | COD Basics |

## Contact Information

**Contact Information**

**Anthony T. (Tony) Laing**Director, Internal Controls Division – Federal Student Aid _[anthony.laing@ed.gov](mailto:anthony.laing@ed.gov)__(202) 377-3112_