# Presentation: 469618

## Session DL-04

**Title IV Funding To Schools:  From COD Through G5 (For Direct Loans)**
- George Karayianis
- U.S. Department of Education

## Title IV Funding to Schools

**Title IV Funding to Schools**

**Direct Loan Funding**
**Cash Management**
**G5 – Updates**

## Direct Loan FundingProcess Overview

**Direct Loan Funding****Process Overview**

## Triangle of Funds Management:Direct Loans

## Funding Lifecycle

- Initial funding
- Disbursement and loan processing (in COD System)
- Drawdowns (through G5)
- Monthly reconciliation disbursements/cash
- School/COD System/G5
- End-of-award year reconciliation and closeout

## Funding based on actual disbursements
7 day rule 
Records submitted up to 7 days in advance of disbursement date can trigger an increase in funding

- 7 day rule
- Records submitted up to 7 days in advance of disbursement date can trigger an increase in funding

**Funding Basics**

## Funding Delivery Methods

**Funding Delivery Methods**

**Notes:**
Currently there are 2 different funding methods, or ways schools get money for DLs
Advance funding/school initiated drawowns, or Pushed Cash/system initiated drawdowns.  The names here are important because they focus us on the key difference between the two.  Advance funded schools are where the school initiates the drawdowns.  Push Cash is where the “system” or in the case “COD” initiates the drawdowns on behalf of the school.
.  

## School receives an initial CFL
School draws down cash via the G5 Web site
School sends in MPNs and actual disbursement records to substantiate cash received
COD System sends CFL increases to G5 so school can continue to drawdown funds as needed

- School draws down cash via the G5 Web site
- School sends in MPNs and actual disbursement records to substantiate cash received
- COD System sends CFL increases to G5 so school can continue to drawdown funds as needed

**Advanced Funds/School-Initiated Drawdowns**

**Notes:**
Funding is program and award year specific.  So, for each award year, let’s say 06-07, each advance funded school is given an initial CFL or current funding level.  The CFL is another term for the amount of money or authorization from which a school can draw against.  If you think of it in terms of your personal bank account,  your initial CFL would be similar to the amount you deposited to open your account.     Once an advance funded school has their initial CFL, they can drawdown (via G5) their current cash need.  Then the  school will send in disbursement records to substantiate (or account for) the cash they drew down.  As cash is substantiated, CDO will give the school more CFL so the school will continue to have funds to draw against.

## Funding Flow Advanced Funds

**SCHOOL**

**G5**

**COD System**

**Batches**

**CFL**

**Funding Flow Advanced Funds**

## The COD System initiates drawdown requests based on actual disbursements accepted and posted by the COD System and cash is deposited in a school’s bank account 

Schools must have an accepted origination record and MPN on file before an actual disbursement is accepted and cash is pushed to a school

- Schools must have an accepted origination record and MPN on file before an actual disbursement is accepted and cash is pushed to a school

**Pushed Cash/System-Initiated Drawdowns**

**Notes:**
The second funding type or method we have in DL is called Pushed Cash/system initiated drawdowns.  For school’s on Pushed Cash, COD takes on the bulk of the funding responsibility.  Under this funding type, COD initiates the appropriate amount of funds for a school and the cash is automatically deposited in the school’s bank account.  COD generates the funding based on actual disbursements submitted by the school and accepted by COD.  Note that school’s must have an accepted origin. Record and MPN on file before an actual disbursement can be accepted and funded.  Every time funds are “pushed” to a school, a report is generated telling the school which students to pay with the funds they received.  
The advantages to the Push Cash system are many:
Less work for school (funding is done by COD)
System is self balancing (cash vs disbursements)
COD tells the school which students to fund
Makes reconciliation and closeout very easy

## Funding Flow Pushed Cash

**SCHOOL**

**G5**

**COD System**

**Batches**

**CFL**
**Drawdowns**

**FDLs**

**Notes:**
If you want to add something to this, you could add the Direct Loan Servicing Center (DLSC) and draw a line from COD to DLSC showing booked loan information going to DLSC.

## Example:Funded Disbursement Listing

## Title IV Funding to Schools

**Title IV Funding to Schools**

**Direct Loan Funding**
**Cash Management**
**G5 – Updates**

## 30-Day Reporting Requirement
685.301(d) Direct Loan
3-Day Cash Rule
668.162(b)
Monthly Reconciliation
685.102(b) Direct Loan

- 685.301(d) Direct Loan
- 3-Day Cash Rule
- 668.162(b)
- Monthly Reconciliation
- 685.102(b) Direct Loan

**Cash Management Requirements**

## Monthly reconciliation 
Compare your records with the Dept’s to identify and account for discrepancies
Ending Cash Balance (ECB) may not equal $0
Closeout
Process ensuring all records are processed and all cash is accounted for
The “final” reconciliation, but your ECB must = $0

- Monthly reconciliation
- Compare your records with the Dept’s to identify and account for discrepancies
- Ending Cash Balance (ECB) may not equal $0
- Closeout
- Process ensuring all records are processed and all cash is accounted for
- The “final” reconciliation, but your ECB must = $0

**Direct Loan Reconciliation versus End-Of-Year Closeout**

**Notes:**
Monthly reconciliation is a regulation and school’s should be comparing their records with the Dept’s to identify and resolve any outstanding discrepancies.  There are many reports and web screens in both COD and G5 that can help you with your reconciliation.
The closeout process occurs at the end of the award year when your school sends in any remaining records or cash to  close the award year.  The goal is to be at an ECB of 0, where disbursements = net drawdowns/cash.

## Your Ending Cash Balance Equation

**Cash**
**Balance**

**Cash**
**Receipts**

**Refunds **
**Of Cash**

**+**

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

**=**

**Booked**
**Adjustments**

**-**

**Booked **
**Disburse-****ments**

**Your Ending Cash Balance Equation**

**-**

**-**

## School Account Statement (SAS)
COD funding Web screens
COD reports
G5 Web screens and reports 

- COD funding Web screens
- COD reports
- G5 Web screens and reports

**COD and G5 Tools****Direct Loan Reconciliation**

## School Funding InformationWeb Screen

## Cash Activity Screen

## Monthly file sent from the COD System  
Contains school data as reflected on the COD System 
Sections of the SAS
Cash summary
Disbursement summary by loan type
Cash detail
Loan/disbursement information

- Contains school data as reflected on the COD System
- Sections of the SAS
- Cash summary
- Disbursement summary by loan type
- Cash detail
- Loan/disbursement information

**Direct Loan School Account Statement (SAS)**

## Title IV Funding to Schools

**Title IV Funding to Schools**

**Direct Loan Funding**
**Cash Management**
**G5 – Updates**

## G5

**G5**

- Department of Education’s payment system
- Formerly known as GAPS
- Provides location for all school funding processes
- Drawdowns
- Drawdown adjustments
- Refunds
- G5 funding reports

## G5 Homepage

**G5 Homepage**

## G5 Registration

**G5 Registration**

**Notes:**
G5 Access Form: Online form where new users can register for access to G5.  Access is granted/denied between 1-2 business days
Available in PC Lab
BUT it is preferred to NOT use paper!

## 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 Request my Direct Loan Funds???

## Create Payments

**Create Payments**

## Create Payment – Payment Tab

**Create Payment – Payment Tab**

## Create Payment – Summary Tab

**Create Payment – Summary Tab**

## Automated E-mail

*George,*
*Requesting User ID: Georgek@school.edu *
*   **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.*

## 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

## Select Drawdown Adjustments from Payments Menu

## Enter School ID

## Click Continue

## Enter Amount of Adjustment

## Click Continue

## Click Submit Adjustments

## Adjustment Confirmation

## Advantages of Electronic Refunds

- Posts to GAPS within 2 business days
- You control process
- You direct from which bank account the money is refunded
- Multiple refunds on one screen and at one time
- Reduces human error and delays

## Enter Refund Functionality

## Enter Refund Amount

## Confirm refund and click continue

## Select confirm to process refund 

## Refund confirmation

## G5 Reporting

## External Award Activity

## External Award History Report

## External Award History Report

## External Award History Report

## COD School Relations Center 
1-800-848-0978

G5 Helpdesk
1-888-336-8930

- 1-800-848-0978
- G5 Helpdesk
- 1-888-336-8930

**Need Funding Help?**

## Related Conference Sessions

| Session DL-01 | Direct Loan Fundamentals |
| --- | --- |
| Session DL-02 | Direct Loan Servicing Fundamentals |
| Session DL-03 | Direct Loan Tools (hands-on) |
| Session DL-05 | Unlocking the Potential of Direct Loan Reports |
| Session DL-06 | COD Web Hands-on for Direct Loans |
| Session C-12 | Title IV Funding to Schools:  From COD through G5 (For Pell Grants, ACG, and National SMART) |

## Contact Information

**George Karayianis**Funds Management Lead, Direct Loan Program Operations Division_[george.karayianis@ed.gov](mailto:george.karayianis@ed.gov)_(202) 377-3141