# Presentation: 760704

## <date/time>

## Session 31

***Grant Administration and Payment System (GAPS) Update***

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## Presenters

- Anthony Laing - Acting Director Pell Operations
- George Karayianis - Funds Team Lead Direct Loan Operations
- Ruth Ann Harrold - GAPS Representative

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## Session Outline

-  Pell Funding Terms
- Obligations
- Cash
- Unprocessed Deobligations
- Direct Loan Funding
- Cash Control Amount
-  Drawdowns
- Option 2 and Standard Origination Schools

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## Session Outline (continued)

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

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## Pell Funding Terms

- Pell Grants
- Obligation
- Cash

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## Current Pell Grant Obligation Process

- Initial Obligation in May
- Schools draw cash in GAPS not to exceed their obligation level
- Schools submit disbursement records to RFMS that adjust obligation levels
- Schools can request Year-to-date and/or Reconciliation Reports at any time.

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## Initial Obligation

- Created in May
- Schools submit disbursement records
- Obligation level in GAPS is not increased until initial obligation has been exceeded

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## School Example

- Initial Obligation = $5 million
- Total Accepted 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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## 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 Obligation (May)
- Reduction to level of accepted 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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## 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 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

- Increase the obligation
- Refund the cash
- Adjust the drawdown

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## Direct Loan Funding Terms

- Direct Loans
- Cash Control Amount
- Drawdowns

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## Direct Loan Funding Process

- Initial CCA
- Schools draw and/or receive cash not to exceed their CCA level
- Timely reporting of disbursements in the LOS increases CCA level
- Monthly reconciliation reports sent to school

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## Direct Loan School Funding Example:

- School initial CCA = $5 million
- School draws/receives = $3 million in drawdowns
- Available balance = $ 2 million
- The CCA will be increased as the school submits disbursement records timely.

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## Funding for Direct Loan Schools 

- Option 2 Schools:
- Go directly into GAPS and request the money they need to disburse to students within the next 3 business days.
- Standard Origination Schools:
- Have cash deposited in their bank account based on disbursement information submitted and accepted by the Loan Origination System.

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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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## Excess 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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## Awards and net drawswill be displayed

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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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## 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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## Logon to GAPS

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## Select “Payment Requests” from Main Menu

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## Select for either Direct Loan, Pell, or Campus Based adjustments

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## Open Awards

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## Money can be adjusted fromone campus to another

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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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## Adjustment Confirmation

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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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## From Main Menu select “Reports”

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## Select “Activity Report”

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## Activity Report Selection Screen

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## Activity Report - Cumulative Summary

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## Activity Report - Record Detail

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## Refunds Report

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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

- 1-888-336-8930
- Helpdesk hours of operation are 8 a.m.
- to 6 p.m. Monday through Friday, ET.

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## Questions??

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