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OMB Number: 1845
- 0039 Revised: 0 3 / 17 /201 5 RIN Number: XXXX
- XXXX (if applicable) **SUPPORTING STATEMENT FOR PAPERWORK REDUCTION ACT SUBMISSION**  **Reporting under Pell Grant Common Origination and Disbursement (COD) System A. Justification**  1. Explain the circumstances that make the collection of information necessary . Identify any legal or administrative requirements that necessitate the collection. Attach a hard cop y of the appropriate section of each statute and regulation mandating or authorizing the collection of information , or you may provide a valid URL link or paste the applicable section 1 . Specify the review type of the collection (new, revision, extension, reinstatement with change, reinstatement without change) . If revised, brie fl y specify the changes. If a rulemaking is involved, make note of the sections or changed sections, if applicable. The Federal Pell Grant program is a student financial assistance program authorized under th e Higher Education Act of 1965, as amended (HEA) . The program provide s grant assistance to an eligible student attending an institution of higher education. The institution determines the student’s award and disburses program funds on behalf of the Department of Education (ED). Institutions are required to report student Pell Grant pay ment information to ED electronically . Electronic reporting is conducted through the Common Origination and Disbursement (COD) s ys tem. The COD s ys tem is used by institutions to request, report, and reconcile grant funds received from the Pell Grant program. More information about the COD sy stem is available on ED’s web site at http://ifap.ed.gov under the section “Sy stems & Processing Links

– Programs” 2. Indicate how, by whom, and for what purpose the information is to be used. Except for a new collection, indicate the actual use the agency has made of the information received from the current collection. ED uses the information collected in the COD s ys tem to aid in ens uring compliance with fiscal and administrative requirements under the HEA for the Pell Grant program and under 34 CFR 690 for the Pell Grant program regulations. 3. Describe whether, and to what extent, the collection of information involves the use of automated, electronic, mechanical, or other technological collection techniques or forms of information technology , e.g. permitting electronic submission of responses, and the basis for the decision of adopting this means of collection. Also describe an y consideration given to using technology

to reduce burden.

1 Please limit pasted text to no longer than 3 paragraphs.2

OMB Number: 1845
- 0039 Revised: 0 3 / 17 /201 5 RIN Number: XXXX
- XXXX (if applicable) COD is a multi
- functional application providing options to participating institutions for processing Federal grant program data electronically . COD may be used as a high volume transaction applic ation, or as a fully web
- enabled application for which ED provides the necessary

software (EDExpress) at no charge. Institutions are not required to use EDExpress

– they

may develop their own software, purchase software, or contract with a third
- part y ser

vicer to report Pell Grant data to ED via the COD s ys tem. 4. Describe efforts to identify duplication. Show specificall y wh y an y similar information already available cannot be used or modified for use for the purposes described in Item 2 above. There is no information available from any other source that contains the information in this data collection. 5. If the collection of information impacts small businesses or other small entities, describe any methods used to minimize burden. A small entity may be (1) a small business which is deemed to be one that is independently owned and operated and that is not dominant in its field of operation; (2) a small organization that is any not - for
- profit enterprise that is independently owned and operated and is not dominant in its field; or (3) a small government jurisdiction, which is a government of a city , count y, town, township, school district, or special district with a population of less than 50,000. ED makes available, at no charge, software (EDExpress) that an institution may use to report Federal grant data in the XMLformat required under the COD s ys tem. 6. Describe the consequences to Federal program or policy activities if the collection is not conducted or is conducted less frequentl y, as well as an y technical or legal obstacles to reducing burden. Without this information, ED cannot process pay ments to institutions for students who are eligible to receive Pell Grant program funds. 7. Explain any

special circumstances that would cause an informat ion collection to be conducted in a manner:

 requiring respondents to report information to the agency more often than quarterl y;  requiring respondents to prepare a written response to a collection of information in fewer than 30 day s after receipt of it;  requiring respondents to submit more than an original and two copies of any document;  requiring respondents to retain records, other than health, medical, government contract, grant - in
- aid, or tax records for more than three years;  in connection with a statistical survey , that is not designed to produce valid and reliable results than can be generalized to the universe of study ;  requiring the use of a statistical data classification that has not been reviewed and approved b y OMB;  that includes a pledge of c onfidentiality that is not supported by

authority established in statute or regulation, that is not supported by disclosure and data security policies that are3

OMB Number: 1845
- 0039 Revised: 0 3 / 17 /201 5 RIN Number: XXXX
- XXXX (if applicable) consistent with the pledge, or that unnecessaril y i mpedes sharing of data with other agencies fo r compatible confidential use; or  requiring respondents to submit proprietary trade secrets, or other confidential information unless the agency can demonstrate that it has instituted procedures to protect the information’s confidentiality to the extent pe rmitted by law. Institutions are required to report Federal grant data to ED more frequentl y than quarterl y to account for the expenditure of Federal funds in a timely manner and to otherwise meet the program’s statutory

and regulatory

requirements. 8. As a pplicable, state that the Department has published the 60 and 30 Federal Register notices as required b y 5 CFR 1320.8(d), soliciting comments on the information collection prior to submission to OMB. Summarize public comments received in response to that notice and describe actions taken b y the agency in response to these comments. Specifically address comments received on cost and hour burden. Describe efforts to consult with persons outside the agency to obtain their views on the availability

of data, frequency

of collection, the clarity

of instruction and record keeping, disclosure, or reporting format (if an y), and on the data elements to be recorded, disclosed, or reported. Consultation with representatives of those from whom information is to be ob tained or those who must compile records should occur at least once every 3 years
– even if the collection of information activity

is the same as in prior periods. There may be circumstances that may preclude consultation in a specific situation. These c ircumstances should be explained. ED meets regularl y with members of the financial aid community at national regional and state association conferences, as well as at the ED
- sponsored conferences, on way s to improve the COD s ys tem. Inaddition to this 6 0 day comment period, there will be a 30 day comment period open for the public to provide input regarding these burden estimates. 9. Explain any

decision to provide any

pay ment or gift to respondents, other than remuneration of contractors or grantees with meaningful justification
. ED will not provide payment or gifts to users of the COD sy stem. The submission of the Pell Grant data is mandatory
. 10. Describe an y assurance of confidentiality provided to respondents and the basis for the assurance in statute, regulation, or agency policy . If personally

identifiable information (PII) is being collected, a Privacy Act statement should be included on the instrument. Please provide a citation for the Sy stems of Record Notice and the date a Privacy Impact A ssessment was completed as indicated on the I C Data Form . A confidentiality statement with a legal citation that4

OMB Number: 1845
- 0039 Revised: 0 3 / 17 /201 5 RIN Number: XXXX
- XXXX (if applicable) authorizes the pledge of confidentiality should be provided. 2 If the collection is subject to the Privacy Act, the Privacy

Act statement is dee med sufficient with respect to confidentiality . I f there is no expectation of confidentiality , simply state that the Department make s no pledge about the confidentiall y of the data. No assurance of confidentiality is provided to respondents. 11. Provide additional justification for an y questions of a sensitive nature, such as sexual behavior and attitudes, religious beliefs, and other matters that are commonly considered private. The justification should include the reasons wh y the agency considers the questions necessary , the specific uses to be made of the information, the explanation to be given to persons from whom the information is requested, and any steps to be taken to obtain their consent. No questions of a sensitive nature are requested in COD
. 12. Provide estimates of the hour burden of the collection of information. The statement should:

 Indicate the number of respondents by affected public ty

pe (federal government, individuals or households, private sector

– businesses or other for
- profit , private sector

– not - for
- profit institutions, farms, state, local or tribal governments), frequency of response, annual hour burden, and an explanation of how the burden was estimated, including identification of burden type: recordkeeping, reporting or third party disclosure. All narrative should be included in item 12. Unless directed to do so, agencies should not conduct special survey s to obtain information on which to base hour burden estimates. Consultation with a sample (fewer than 10) of potenti al respondents is desirable. If the hour burden on respondents is expected to vary widel y because of differences in activity , size, or complexity , show the range of estimated hour burden, and explain the reasons for the variance. Generall y, estimates sho uld not include burden hours for customary and usual business practices.

 If this request for approval covers more than one form, provide separate hour burden estimates for each form and aggregate the hour burdens in the ROCI S IC Burden Analy sis Table. (T he table should at minimum include Respondent types, IC activity , Respondent and Responses, Hours/Response, and Total Hours)  Provide estimates of annualized cost to respondents of the hour burdens for collections of information, identifying and using appro priate wage rate categories. The cost of contracting out or paying outside parties for information collection activities should not be included here. Instead, this cost should be included in Item 14.

2 Requests for this information are in accordance with the following ED and OMB policies: Privacy Act of 1974, OMB Circular A
- 108

– Privacy Act Im plementation

– Guidelines and Responsibilities, OMB Circular A
- 130 Appendix I

– Federal Agency Responsibilities for Maintaining Records About Individuals, OMB M
- 03
- 22

– OMB Guidance for Implementing the Privacy Provisions of the E
- Government Act of 2002, OMB M
- 06
- 15

– Safeguarding Personally Identifiable Information, OM : 6
- 104

– Privacy Act of 1974 (Collection, Use and Protection of Personally Identifiable Information)5

OMB Number: 1845
- 0039 Revised: 0 3 / 17 /201 5 RIN Number: XXXX
- XXXX (if applicable)

The minimum reporting requirement is one record for o rigination and disbursement data per student, per grant award, per award ye ar. Institutions may correct an accepted COD record as many times as they

wish, but are not required to submit changes unless the student’s award amount changes from the accepted o rigination amount originall y established in COD. The current burden for this collection is: Respondents Responses Burden Hours 5,447 9,792,925 685,505 For the 2014
- 2015 award year, the projected number of FAFSA completers is expected to be reduced by 2.86%. Based on the 8,738,722 unduplicated student recipients for the Federal Pell Grant program for 2013
- 2014, the number of unduplicated Federal Pell Grant recipients for 2014
- 2015 is estimated to be 8,488,8 43 multiplied by

.07 hours per recipient for the institution to enter data in the COD sy stem for a total of 594 , 219 hours
. Affected Entities # of # of Hrs/ Burden Respondents Responses Response Hours For
- profit institutions 2,116 1 , 697 , 769 .07 118 , 844 Not
- for
- profit institutions 1, 717 1,1 03 , 549 .07 77 , 248 Public 1,8 79 5 , 687 , 525 .07 3 9 8, 127 **Revised T otals**  **5, 712**  **8 ,**  **488 ,**  **843 594**  **, 219**  We estimate the burden costs to the institutions to be $16 to $21 per hour. The average burden cost estimate for an institution is between $ 1 , 664 (1 04
. 03 hours X $16/hour) and $2, 185 (1 04
. 03 hours X $21/hour). For the 5 , 7 12 institutions the total cost is between $ 9 , 507 , 510 and $1 2 , 478 , 606 . The averag e total cost i s estimated at $10 ,9 33,058
. 13. Provide an estimate of the total annual cost burden to respondents or record keepers resulting from the collection of information. (Do not include the cost of any hour burden shown in Items 12 and 14.)

 The cost estimate should be split into two components: (a) a total capital and start
- up cost component (annualized over its expected useful life); and (b) a total operation and maintenance and purchase of services component. The estimates should take into account costs ass ociated with generating, maintaining, and disclosing or providing the information. Include descriptions of methods used to estimate major cost factors including s ys tem and technology acquisition, expected useful life of capital equipment, the discount rat e(s), and the time period over which costs will be incurred. Capital and start - up costs include, among other items, preparations for collecting information such as6

OMB Number: 1845
- 0039 Revised: 0 3 / 17 /201 5 RIN Number: XXXX
- XXXX (if applicable) purchasing computers and software; monitoring, sampling, drilling and testing equipment; an d acquiring and maintaining record storage facilities.  If cost estimates are expected to vary widel y, agencies should present ranges of cost burdens and explain the reasons for the variance. The cost of contracting out information collection services shou ld be a part of this cost burden estimate. In developing cost burden estimates, agencies may consult with a sample of respondents (fewer than 10), utilize the 60
- day

pre - OMB submission public comment process and use existing economic or regulatory

impact anal ys is associated with the rulemaking containing the information collection, as appropriate.  Generally , estimates should not include purchases of equipment or services, or portions thereof, made: (1) prior to October 1, 1995, (2) to achieve regulatory co mpliance with requirements not associated with the information collection, (3) for reasons other than to provide information or keep records for the government or (4) as part of customary and usual business or private practices. Also, these estimates should not include the hourly costs (i.e., the monetization of the hours) captured above in Item 12 Total Annualized Capital/Startup Cost : Total Annual Costs (O&M) :

____________________ Total Annualized Costs Requested : There are no additional costs to respondents other than those listed in Item #12
. 14. Provide estimates of annualized cost to the Federal government. Also, provide a description of the method used to estimate cost, which should include quantification of hours, operational expenses (such as equipment, overhead, printing, and support staff), and any other expense that would not have been incurred without this collection of informat ion. Agencies also may aggregate cost estimates from Items 12, 13, and 14 in a single table. The annual cost to the Federal Government for the processing of this information is estimated to be $ 26 , 972 , 4 00. This cost includes ED labor costs, contractor s taff time in preparing and electronically transmitting the information; contractor costs associated with processing the pay

ment data submitted by

institutions; and recording and analyzing the data for funding decisions and ensuring the institution’s compli ance with the program statute and regulations. ED labor and program administration costs = $2,948 , 4 00 Contractor costs for processing the student pay ment data = $2 4 , 024 ,000. 15. Explain the reasons for an y program changes or adjustments. Generally, adjus tments in burden result from re
- estimating burden and/or from economic phenomenon outside of an agency ’s control (e.g., correcting a burden estimate or an organic increase in the size of the reporting universe). Program changes result from a deliberate action that materiall y changes a collection of information and generally are result of new statute or an agency action (e.g., changing a form, revising regulations, redefining the respondent universe, etc.). Burden changes should be disaggregated by t ype of c hange (i.e., adjustment, program change due to new statute,7

OMB Number: 1845
- 0039 Revised: 0 3 / 17 /201 5 RIN Number: XXXX
- XXXX (if applicable) and/or program change due to agency discretion), ty

pe of collection (new, revision, extension, reinstatement with change, reinstatement without change) and include totals for changes in burden hours , responses and cost s (if applicable)
. This is a request for an extension of the current collection package. There is a decrease in the burden hours of 91,286 due to the anticipated decrease in the number of eligible Pell Grant recipients. There is no change to the underlying regulations
. 16. For collections of information whose results will be published, outline plans for tabulation and publication. Address any complex analy

tical techniques that will be used. Provide the time schedule for the entire project, including beginning and ending dates of the collection of information, completion of report, publication dates, and other actions. The results of the collection will not be published. 17. If seeking approval to not display the expiration date for OMB approval of the information collection, explain the reasons that display would be inappropriate. ED is not seeking approval not to display the OMB expiration date. 18. Explain each exception to the certification statement identified in the Certification of Paperwork Reduction Act. There are no exceptions to the certification statement.