# Presentation: 483731

## Direct Loans: Reconciliation, Putting the Pieces Together - A Case Study

- Allison Richards
- Julie Aloisio

**Session 7**

## Reconciliation: A Definition

- The process by which the Direct Loan Cash Balance recorded on the Department of Education system is reviewed and compared with a school’s internal records on a monthly basis.  The school must identify and resolve all discrepancies, and explain any reason for their Ending Cash Balance.

## Reconciliation: Three Key Systems

- Business
- Office

- Financial
- Aid
- Office

- COD

## Reconciliation: A Process Flow

## Electronic University

- A Case Study

## Reviewing the SAS

## Reviewing the SAS

## Reviewing the SAS

## Reviewing the SAS

## Reviewing the SAS

## Reviewing the SAS

## Reviewing the SAS

## What Did You Find?

- SAS shows:
- Ending Cash Balance (ECB) = $7253
- Total Net Unbooked = $3264
- Cash>Accepted and Posted Disbursements = $3989
- Why?

## Comparing Cash Summaries

- Electronic University

## Cash Summary from School Records

- Booked + Unbooked

## Compare School Records to SAS Cash Summary

## What Did You Find?

- Discrepancies:
- Difference in Refund of Cash = ($725)
- Difference in Booked Adj = $1250
- Difference in Unbooked Disbs = $862
- Why?

## Cash Discrepancies

- Electronic University

## Cash Discrepancies: Common Causes

- Timing Issues
- Cash transactions in wrong year or split between years
- Funds sent as refunds of cash that should have been a payment (or the reverse)
- Funds recycled for disbursement in a different award year

## Refund of Cash Discrepancies: Research Tools

- Cash Detail Comparison Report (DL Tools)
- FAO Cash Report
- COD Website – Refund of Cash/Cash Activity
- SAS Cash Detail (previously shown)
- Business Office Cash Report
- Bank Statements
- Cancelled Checks

## Refund of Cash: Cash Detail Comparison

## Refund of Cash: FAO Cash Report

## Refund of Cash: COD Website

## Refund of Cash: Explaining Discrepancies

- Sent Refund of Cash on 4/29/04 for $725 to COD.   Check deposited 5/7/04. Track Timing Difference for May SAS Reconciliation.

## Refund of Cash: Documenting Discrepancies

- 1 discrepancy – school sent Refund of Cash to COD on 4/29/04 for $725.
- COD Received and Processed on 5/7/04.
- Add to Action Item List:
- Track RF timing difference for May SAS Reconciliation.

## Disbursement Discrepancies

- Electronic University

## Disbursement Discrepancies: Common Causes

- Unsent/unacknowledged disbursement batches
- Rejected disbursements
- Disbursements recorded in business office but not in DL/Financial Aid System
- Unbooked Records
- School Data Loss

## Disbursement Discrepancies: Research Tools

- Disbursement Detail Comparison Report (DL Tools)
- FAO Disbursement Report
- Business Office Disbursement Report
- COD Website – Award/Disbursement Detail
- SAS Disbursement Detail
- Student Account Files
- Business Office Ledgers/Statements of Account

## Disbursement: Disbursement Detail Comparison

## Disbursement: Disbursement Detail Comparison

**??**

## Disbursement: Disbursement Detail Comparison

## Disbursement: Disbursement Detail Comparison

## Disbursement: FAO Disbursement Report

- $862 Not at COD

## Disbursement: FAO Disbursement Report

- $1632 No MPN

## Disbursement: FAO Disbursement Report

- +$1632

## Disbursements: Explaining Discrepancies

- ($1250) in adjustments done via COD web, not entered in school database.

- $862 in Disbs for Jesse James not sent/accepted at COD. Send Disb/MPN.

- $3264 Missing MPNs at COD.  Research MPNs at school, obtain new notes.

## Disbursements: Documenting Discrepancies

- 2 discrepancies
- ($1250) in booked adjustments entered via COD web.
- $862 disbursed is still in “B” status, and is not on COD (unbooked).
- Additional $3264 Unbooked on SAS due to missing MPNs on COD.
- Add to Action Item List:
- Record ($1250) Adjustments on EDExpress.
- Send $862 Disbs for Jesse James to COD.
- Obtain MPNs for $3264 unbooked loans.

## Ending Cash Balance

- Electronic University

## Ending Cash Balance: Documenting Reasons

- SAS ECB $7253
- -$725 RF Timing Diff
- -$3264 Need MPN
- _-$862 Send/Book Disb_
- $2402
- What is the cause of remaining balance?

## Three Key Systems: Where to Look Next

- Business
- Office

## Perform Internal Reconciliation

- Compare Business Office/Financial records to Direct Loan System
- Develop procedures/schedule for internal reconciliation and assign responsibilities
- Compare based on overall cash/disbursement totals and/or student detail
- Troubleshoot discrepancies

## ECB: Business Office Report

## ECB: Compare Business Office to FAO Cash Summary

## ECB: Business Office Disb Detail

## ECB: Compare Business Office to FAO Disb Detail

**x**

**x**

**x**

## Ending Cash Balance: Explaining Reasons

- ECB $7253 =
- -$725 RF Timing Diff
- -$862 Send/Book Disb
- -$3264 Need MPN
- -$2402 Disbs not in DL System and not at COD

## Documentation

- Electronic University

## Ending Cash Balance: Documenting Differences & Reasons for ECB

## Reconciliation: Action Item List

## Monthly Reconciliation: How do I Know I am Finished?

- All discrepancies have been identified and resolved.
- Timing issues are tracked for reconciliation in next month’s SAS.
- Reasons for any Ending Cash Balance have been identified.
- All monthly reconciliation efforts have been documented.

## Additional Information

- Reports and Tools

## 30 Day Warning Report (COD)
Booked Status Report (EDExpress or custom)
Pending Disbursement List 
(EDExpress: List - Anticipated Disbursements, Pending Actual Disbursements)
Funded Disbursement List 
(EDExpress: List - Actual Disbursements, Booked and Unbooked)
Disbursement Measurement Tool Report (DL Tools)
Cash Summary Report (DL Tools – optional)
Ledgers, Bank Statements, Cancelled Checks
Other Internal School Reports

- Booked Status Report (EDExpress or custom)
- Pending Disbursement List
- (EDExpress: List - Anticipated Disbursements, Pending Actual Disbursements)
- Funded Disbursement List
- (EDExpress: List - Actual Disbursements, Booked and Unbooked)
- Disbursement Measurement Tool Report (DL Tools)
- Cash Summary Report (DL Tools – optional)
- Ledgers, Bank Statements, Cancelled Checks
- Other Internal School Reports

- Monthly Reconciliation: Other Reports and Tools

## Monthly Reconciliation: Other Reports and Tools

- COD Resources and Tools
- COD Customer Service, 1-800-848-0978
- Issue identification and resolution
- Outreach emails
- Adhoc Reports
- COD website, https://cod.ed.gov

## PC Lab
COD Customer Service
Direct Loan Operations

- COD Customer Service
- Direct Loan Operations

- Additional Information

- Session 6, Balancing the Books for 2003-2004 and Beyond
- Day 2, 1:30-2:45 pm
- Day 4, 10:30-11:45 am

## QUESTIONS?