# Presentation: 768309

## 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

**Session 25**

## Discussion Outline

- Funding overview
- Pell, Campus-Based, & Direct Loan funds process
- GAPS refund and adjustment functionality

## Program Offices and GAPS

- Program Offices
- Funding Authority
- GAPS
- Cash
- 3 Day Cash Rule
- Turnaround Time
- 3-5 Days

## Funding Flow  

**Authorization  **

**SCHOOL**

**GAPS**

**COD**

**Drawdown Request**

- Disbursement Records

- Pell and DL

## Funding Flow  

**SCHOOL**

**GAPS**

**Drawdown Request**

- FISAP

**Authorization  **

- Application Data

- Campus-Based

## Funding Terminology

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

## Pell Grant  CFL Process

- Initial CFL created in May
- Disbursement data drive CFL
- GAPS drawdown should not exceed CFL
- Disbursement Release Indicator  (DRI)
- 7 Day rule

## Pell Daily CFL Adjustments

-  School Generated
- 		Schools submit disbursement data
-  System Generated
- 		Negative Pending
- 		Potential Over-award Process (POP)

## Pell Global CFL Reductions

- Reduction to level of disbursement data (February)
- Reduction for “W” Verification (Apr-Aug)
- Reduction to GAPS drawdown (end of second year)

## Pell Administrative Cost Allowance	

- $5 for every recipient award calculated
- Three payments
- March, August, August
-     2004-2005 =  March 2005
- 			        August 2005
- 			        August 2006

## Ongoing Pell Reconciliation

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

## Ongoing Pell Reconciliation

- Post Deadline Adjustments
- After September 30:
- 	Administrative Relief
-   Audits
-   Decreases

## Pell Funding Reconciliation

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

| 11/04 | $1,000,000 | $750,000 | $500,000 |
| --- | --- | --- | --- |
| 2/05 | $750,000 | $750,000 | $500,000 |
| 3/06 | $500,000 | $750,000 | $500,000 |
|  | $500,000 | $500,000 | $500,000 |

## Pell Reconciliation Tools

- COD Year to Date File
- COD Reconciliation File
- COD Pending Disbursement List
- COD ESOA
- COD Web Screens
- GAPS Web Reports

## Negative Available Balances

| Action | CFL | Available Balance in GAPS |
| --- | --- | --- |
| $5,000,000 in disbursement records | $5,000,000 | $0 |
| $5,000 negative disbursement | $4,995,000 | ($5,000) |

## How to Resolve Negative Balances

- Refund the Cash
- Adjust the drawdown
- Increase the CFL

## Pell Award Year Funding Calendar

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

## Pell Award Year Funding Calendar

- Sep 30    -  Award Year Closeout
- Oct-May  -  Administrative Relief
- Aug         -  3rd ACA Payment
- March      - Reduction to GAPS drawdown
- 

## Campus-Based Calendar 2005 – 2006 Award Year  

- FISAP On the Web Available 8/1/04
- Reallocation Form Due 8/20/04
- Supplemental Awards Issued 9/15/04
- FISAP & Combined Certification Due 10/1/04
- FISAP Edit Corrections Due 12/15/04

## Campus-Based Calendar 2005 – 2006 Award Year (cont’d)

- Tentative Awards Posted 2/1/05
- Under-Use Waiver Request Due 2/11/05
- Work Colleges Application Agreement Due 3/11/05
- Under-Use Waiver Notification Issued 3/15/05
- Final Awards Issued 4/1/05

## Campus-Based Calendar 2005 – 2006 Award Year (cont’d)

- Community Service Waiver Request Due 4/30/05
- Close-Out of Awards Posted 5/1/05
- TC Payments Issued 6/1/05
- Inst. Share Waiver Notification Issued 6/30/05
- Funds Available for Draw Down 7/1/05

## Campus-Based Programs Funding Formula

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

## Campus-Based Programs Funding Formula

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

## Campus-Based Programs Funding Formula (Perkins)

- Annual Appropriation
- Institution’s Request
- 1999-2000 Base Guarantee (reduced by reduction factor)

## Campus-Based Programs Funding Formula (Perkins –cont’d)

- Default Rate > 25% - no funds awarded
- Base Guarantee + Fair Share - Underuse Penalty (OR) + Underuse Penalty Distribution

## Campus-Based Programs Funding Formula (FWS) 

- Annual Appropriation
- Institution’s Request
- 1999-2000 Base Guarantee

## Campus-Based Programs Funding Formula (FWS  – cont’d)

- 1999-2000 Pro Rata and additional FWS funds
- Base Guarantee + Fair Share – Underuse Penalty (OR) + Underuse Penalty Distribution

## Campus-Based Programs Funding Formula (FSEOG)

- Annual Appropriation
- Institution’s Request
- 1999-2000 Base Guarantee

## Campus-Based Programs Funding Formula (FSEOG)

- 1999-2000 Pro Rata
- Base Guarantee + Fair Share – Underuse Penalty (OR) + Underuse Penalty Distribution

## Campus-Based Appropriation

**	**	 FWS		FSEOG 	Perkins/TC
- 2004-2005 	 $770M 	$998M 	$165M
- 2003-2004 	 $760M 	$1.004B 	$166M
- 2002-2003 	 $725M 	$1.011B 	$167M
- 2001-2002 	 $691M 	$1.011B 	$160M
- 2000-2001 	 $631M 	$934M 	$130M
- 1999-2000	 $619M 	$870M	$130M

## Waiver Processing

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

## References

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

## Direct Loan Funds Control

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

## Direct Loan CFL Process

- Initial CFL created in February
- Disbursement records drive CFL
- GAPS drawdowns should be substantiated within 30 days

## School ExamplePart I

- School ExamplePart I

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

## School ExamplePart II

- School ExamplePart II

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

## School ExamplePart III

- School ExamplePart III

- School reports $1M in disburse-
- ment records on 5/20/02
- 		**Sc**hool’s CFL increased to $8M (5+3)
- 		School’s available balance = $5M.  (8M-3M)
- Amt. Of Substantiated cash = $3M
- Amt. Of Unsubstantiated cash = $0M

## Direct Loan Reconciliation ECB Equation

**Beginning**
**Cash**
**Balance**

**Cash**
**Receipts**

**Refunds **
**of**
**Cash**

**+**

**-**

**Ending**
**Cash****Balance**

**=**

**Downward**
**Adjust-****ments**

**+**

**Upward**
**Adjust-****ments**

**-**

**Disburse-****ments**

**-**

## Direct Loan Reconciliation

- Definition
- 	School Funding/Student Data =
- 	COD Funding/Student Data    =
- 	GAPS Cash
- Common Goal
- 	FAA /Business Office = ED Department
- Monthly Reconciliation

## Direct Loan Processing  Example

-      Date       Disbursement      =     Net Draws
- 			     Records
- 			      (COD)                      (GAPS)

| 7/04 | $1,000,000 | $900,000 |
| --- | --- | --- |
| 6/05 | $4,000,000 | $5,000,000 |
| 7/06 | $,6,250,000 | $6,500,000 |
|  |  |  |

**$6,250,000**

**$6,250,000**

**closeout**

## Direct Loan Reconciliation Tools

- Direct Loan School Account Statement (SAS) Report
- COD Web Screens
- GAPS Web Reports

## DL SAS Report - Example

**SAS Year –To-Date Cash Summary**
- School Code:  G11111
- Beginning Balance 						$0
- 	Cash Receipts			$110,000
- 	Refunds				$10,000
- Total Net Cash						$100,000
- 	Booked Disbursements		$90,000
- 	Booked Adjustments		-$10,000
- Total Booked Disbursements				$80,000
- Ending Cash Balance					$20,000

**$20,000**

## 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

## GAPS Functionality 

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

## GAPS Award Numbers

- CFDA prefix (ex: P)
- CFDA suffix (ex: 268, 063)
- Sub program identifier (ex: K, P)
- Year identifier (2003-2004)
- Institution identifier (ex: 2244)
- DL  =  			P268K042244
- Pell  =        		P063P032244
- Campus-Based = 	P007A032244

## GAPS Access

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

## View-Only Log In

## View-Only Main Menu

## View Access: Payment Request

## View Access: Payment Request

## Full Access: Payment Request

## GAPS Report 

- Activity Report
- Cumulative Activity by award
- Detail Activity by day

- Award Balance Report

## Select “Activity Report”

## Activity Report Selection Screen

## Activity Report - Cumulative Summary

## Activity Report - Record Detail

## Select “Award Balance Report”

## Award Balance Report

## 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.

## Unprocessed De-Obligation: Report

## UD:  How it adds up

- Positive Authorizations = $98,263
- Total Payments = $94,238
- Available Balance = $ 4,025
- Negative Authorizations = $-46,100
- UD = (42,075)

## Contact Information

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

## Slide 63