# Presentation: 267437

## Session 42

**Direct Loan Funding and Cash Management A-Z**
- George Karayianis
- Tremayne Cobb

## Session Overview

- Funding Process Overview
- Funding Methods
- Using GAPS
- Hands-On Exercise

## Funding Process Overview

**Funding Process Overview**

## Funding Delivery Methods

- Advanced Funds/School- Initiated Drawdowns

- Pushed Cash/System- Initiated Drawdowns

## Advanced Funds/School-Initiated Drawdowns

- School receives an initial CFL.
- School draws down cash via the GAPS Web site.
- School sends in disbursement records to substantiate cash received.
- COD sends CFL increases to GAPS so school can continue to drawdown funds as needed.

## Funding Flow - Advanced Funds

**SCHOOL**

**GAPS**

**COD**

- Batches

**CFL/authorization**

## Pushed Cash/System-Initiated Drawdowns

- COD initiates drawdown requests and cash is  deposited  in a school’s bank account based on disbursements accepted and posted by COD.
- Schools must have an accepted origination record and MPN on file before an actual disbursement is accepted and cash is pushed to a school.

## Funding Flow - Pushed Cash

**SCHOOL**

**GAPS**

**COD**

- Batches

**CFL/authorization and drawdown request**

## Ex:  Funded Disbursement Listing 

- Run Date:  11/2/06	                                    US Department of Education			 Page:  1
- Federal Direct Loan Program
-   Funded Disbursement Listing Report
- For Loans to be Funded by:  11/1/06
- For Academic Year 2006-2007
- School:  George’s Hair Salon                                                                                                School Code:  G11111
- 	      13 Maple Pl.
- 	     Washington, DC 20202
- Student             Loan ID	             Disb Date          Gross	 Fee     Rebate        Net Amt.
- Sally Mae       233234454S07G11111001     11/2/03          $2,500      -$100     $38           $2,438
- Jerry Jones      212121233S07G11111001   10/28/03         $2,383      -$95        $36          $2,324
- Marcy Kay      887890766U07G11111001    11/5/03          $2,000      -$80        $30          $1,950
-                                                                                                     	          --------------------				 	                   Total School Amount                $6,712

## Monitoring Statuses

- Cash Monitoring 1 (HCM1)
- Funding method can be Advanced Funds or Pushed Cash
- Cash Monitoring 1 (HCM2) and Reimbursement
- Funding method is Pushed Cash
- Required to have a signed MPN on file and accepted origination record before COD will accept actual disbursement

## Cash Management Requirements

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

## Reconciliation and Closeout 

## Direct Loan Reconciliation versus End-of-Year Closeout

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

- Monthly Reconciliation
- Compare your records with the Dept’s to identify and resolve outstanding discrepancies.
- Closeout
- Net Accepted and Posted
- Disbursements =GAPS net cash
- Ending Cash Balance (ECB) = 0

## COD and GAPS Tools to help reconcile Direct Loans

- COD Funding Web screens
- Reports (COD)
- GAPS

## School Funding Info Web Screen 

_**School of Outstanding Students**_
- Funding Info
**Program**     Direct Loan	**Award Year**  06-07
- Entity ID						44544444
- Initial CFL						$56,000
- Current CFL						$200,000
- Available Balance					$15,000
- Cash > Net Accepted & Posted Disbursements		$0
- Net Accepted & Posted Disbursements			$185,000
- Net Drawdowns						$185,000
- Disbursement To Drawdown Ratio			1.0000

## Cash Activity Screen

- _School of Outstanding Students_
**Program**   Direct Loan		**Award Year**  06-07
**Net Draws**					               $30,000
**Cash > Accepted & Posted Disbursements & older than 30 days    **$0
- 					**Totals**
- Date of Transaction					**10/23/06**
- Time							1:35PM
- Drawdowns				**$30,000**  	$2,000
- Drawdown adjustments			**$0**
- Refunds					**$1,000**
- Returns					**$0**
- Days for On-time reporting
- Payment Control Number		                                      2006102321221
- Accepted & Posted Disbursements Applied	**$20,000**   	$0
- Cash > Accepted & Posted Disbursements	**$10,000**
- Source System						GAPS**	**

## The Department of Education’s Grant Administration and Payment System  (GAPS)

## E-Payments Web site(http://e-grants.ed.gov)

## Logon to GAPS

- ed101

- *******

## Select “Payment Requests”  from Main Menu

**Main Menu**
- School of Outstanding Students
- 100 Student Way
- Bookville, AZ 22222
- Please select one of the following options:

**Select “Payment Requests”  from Main Menu**

- Payment Requests

## Select “Create Direct Loan Payment Requests” from Payment Requests Menu 

| Create Payment Requests |
| --- |
| Modify Payment Requests |
| View Payment Requests |
| Adjust Drawdown Amounts |
| View Authorization History |
| Create Direct Loan Payment Requests |
| Modify Direct Loan Payment Requests |
| View Direct Loan Payment Requests |
| Adjust  Direct Loan Drawdown Amounts |

## Enter Payment Amount

| Document Number | School | Year | Recipient Reference | Last Date to Draw Funds | Request Amt |
| --- | --- | --- | --- | --- | --- |
| P268k059999 | School of Outstanding Students | 2005 | ABC1 | 7/31/2006 |  |
| P268k069999 | School of Outstanding Students | 2006 | ABC2 | 7/31/2007 |  |
| P268k079999 | School of Outstanding Students | 2007 | ABC3 | 7/31/2008 |  |

| Sort:  ● Document No.  ●  School  ●  Recipient Reference | School of Outstanding Students  100 Student Way   Bookville, AZ 22222 |
| --- | --- |

| Payee DUNS:  111111111 | Pay by:  ACH | Deposit Date (MM/DD/YYYY  10/19/2006 |
| --- | --- | --- |

**Direct Loan Payment Requests (Create)**

- You have             to save your work

-  2:02

- Return to Payment Requests Menu

- Exit

## Electronic Refunds

**Main Menu**
-  School of Outstanding Students
- 100 Student Way
- Bookville, AZ 22222
- Please select one of the following options:

**Refunds**

## Check “refunds to open awards” and “initiate refunds”

**Refunds Menu**
- School of Outstanding Students
- 100 Student Way
- Bookville, AZ 22222
- Please select one of the following options:

**Initiate Refunds**

**X**

## Awards and net draws will be displayed

| PR Award Number | Net Draws | Refund Amount | Account Name |
| --- | --- | --- | --- |
| P268k059999 | $23,000 | $   | School Refund Account A |
|  |  |  |  |
| P268k069999 | $18,000 | $   |       School Refund Account A |
|  |  |  |  |
| P268k079999 | $3,000 | $   | School Refund Account A |
|  |  |  |  |

**Refunds to Open Awards**
- Please note ---  your session will be timed out after 10 minutes of inactivity.  Any button click will reset the inactivity timer.
- DUNS Number:  111111111

## Enter the amount(s) to be refunded 

| PR Award Number | Net Draws | Refund Amount | Account Name |
| --- | --- | --- | --- |
| P268k059999 | $23,000 | $   | School Refund Account A |
|  |  |  |  |
| P268k069999 | $18,000 | $   |       School Refund Account A |
|  |  |  |  |
| P268k079999 | $3,000 | $   | School Refund Account A |
|  |  |  |  |

**Refunds to Open Awards**
- Please note ---  your session will be timed out after 10 minutes of inactivity.  Any button click will reset the inactivity timer.
- DUNS Number:  111111111

- 100.00

- Continue

- Cancel

## Refund Confirmation

|  |  |  |  |  |
| --- | --- | --- | --- | --- |
| P268k079999 | $3,000 | $1,293 | School Refund Account A | 20061018R01000 |

**PR Award            Net Draws        Refund Amt               Account Name                              Confirmation Number**

|  |  |
| --- | --- |

**Comments**

-                                          Grand Total:                                                            $1,293
-                                Settlement Date:                                                   10/20/2006
-                                                NOTE:  It will take two days  before refund is posted to GAPS

**Refunds to Open Awards Confirmation**
- DUNS Number:  111111111

- First

- Previous

- P268k059999 – P268k079999

- Next

- Last

## 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 “Payment Requests” from Main Menu

**Main Menu**
-  School of Outstanding Students
- 100 Student Way
- Bookville, AZ 22222
- Please select one of the following options:

**Payment Requests**

## Select Adjust Direct Loan Drawdown Amounts

| Create Payment Requests |
| --- |
| Modify Payment Requests |
| View Payment Requests |
| Adjust Drawdown Amounts |
| View Authorization History |
| Create Direct Loan Payment Requests |
| Modify Direct Loan Payment Requests |
| View Direct Loan Payment Requests |
| Adjust  Direct Loan Drawdown Amounts |

- Adjust Direct Loan Drawdown Amounts

## Adjustments between years and/or                     campuses

| School | Academic Year | Net Draws | Adjustments |
| --- | --- | --- | --- |
| School of Outstanding Students - Boston | 2006 | $3,000 |  |
| School of Outstanding Students - Boston | 2007 | $5,000 |  |
| School of Outstanding Students - Dallas | 2006 | $4,000 |  |
| School of Outstanding Students - Dallas | 2007 | $10,000 |  |

|               Total | $22,000 |                $0.00 |
| --- | --- | --- |

| Payee DUNS:  111111111 |        School of Outstanding Students                       Bookville, AZ  22222 |
| --- | --- |

**Direct Loan Drawdown Adjustments**

- Return to Payment Requests Menu

- Select  New Payee

- OK

- Cancel

- Exit

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

| School | Academic Year | Net Draws | Adjustments |
| --- | --- | --- | --- |
| School of Outstanding Students - Boston | 2006 | $3,000 | ($500) |
| School of Outstanding Students - Boston | 2007 | $5,000 | $1,000 |
| School of Outstanding Students - Dallas | 2006 | $4,000 | $700 |
| School of Outstanding Students - Dallas | 2007 | $10,000 | ($1.200) |

|               Total | $22,000 |                $0.00 |
| --- | --- | --- |

| Payee DUNS:  111111111 |        School of Outstanding Students                       Bookville, AZ  22222 |
| --- | --- |

**Direct Loan Drawdown Adjustments**

- Return to Payment Requests Menu

- Select  New Payee

- OK

- Cancel

- Exit

## Adjustment Confirmation

| School | Academic Year | Net Draws | Adjustments |
| --- | --- | --- | --- |
| School of Outstanding Students - Boston | 2006 | $2,500 |  |
| School of Outstanding Students - Boston | 2007 | $6,000 |  |
| School of Outstanding Students - Dallas | 2006 | $4,700 |  |
| School of Outstanding Students - Dallas | 2007 | $8,800 |  |

|               Total | $22,000 |                $0.00 |
| --- | --- | --- |

| Payee DUNS:  111111111 |        School of Outstanding Students                       Bookville, AZ  22222 |
| --- | --- |

**Direct Loan Drawdown Adjustments**

- Return to Payment Requests Menu

- Select  New Payee

- Exit

- The drawdown amounts have been adjusted

## GAPS Reports

**Main Menu**
- School of Outstanding Students
- 100 Student Way
- Bookville, AZ 22222
- Please select one of the following options:

**      ****Reports**

## Select “Activity Report”

| Activity Report |
| --- |
| Refund  Report |
| Award Balances Report |

- Activity Report

**Reports Menu**

## Activity Report - Selection Screen

| Payee DUNS | 111111111 |
| --- | --- |
| Payee Name | School of Outstanding Students |
| Award(s) Status | ● Any     ●  Open    ●  Closed |
| Period |  From                                             Through |
| PR Award Number |  |

- Select

**Activity Report (Select)**

- Return to Payment Requests Menu

- Select  New Payee

- Exit

## Activity Report - Cumulative Summary

| Row ID | PR Award Number | A
Cumulative
Draws | B
Cumulative 
Refunds | C
Cumulative 
Returns | DNet
Adjustments | E (A-B-C+D)
Net 
Drawdowns |
| --- | --- | --- | --- | --- | --- | --- |
|  | P268k059999 | $6,000 | $1,000 | $0 | ($500) | $4.500 |
|  | P268k069999 | $7,000 | $0 | $0 | $500 | $7,500 |
|  | P268k079999 | $4,000 | $600 | $0 | $0 | $3,400 |

- 1

- 2

- 3

| Cumulative Summary Table
From October 2002 Through October 2006 |
| --- |

| Payee DUNS | 111111111 |
| --- | --- |
| Payee Name | School of Outstanding Students |
| Payee Address | 100 Student Way   Bookville, AZ  22222 |

## Activity Report - Record Detail

| Payee DUNS | 111111111 |
| --- | --- |
| Payee Name | School of Outstanding Students |
| Payee Address | 100 Student Way   Bookville, AZ  22222 |

| Date | Drawdowns | Refunds | Returns | Adjustments |
| --- | --- | --- | --- | --- |
| 10/16/2006 |  | ($500) |  |  |
| 9/1/2006 | $2,000 |  |  |  |
| 8/18/2006 | $1,300 |  |  |  |
| 7/4/2006 | $700 |  |  |  |

| Transactions |
| --- |

| PR Award Number |
| --- |
| P268k079999 |

| DETAIL TABLE |
| --- |

## GAPS Access

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

## GAPS Helpdesk

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

## Other Direct Loan Sessions

- Session 40	Hands On Tour of  DL Tools
- Session 41	Best Practices in Using DL LSDA
- Session 43	Best Practices for Processing DL at Your School
- Session 44	Direct Loans A – Z
- Session 45	Direct Loans – How to Get Started
- Session 46	What’s New in Direct Loans: Grad PLUS and 			other HERA Related Changes
- Session 47	Direct Loan Reconciliation and Closeout
- Session 48	Direct Loan Reports & Reference Materials-Tools 		of the Trade
- Session 49	How Direct Loan Servicing is Improving the 			Financial Aid Experience for You and Your 			Students