Session C-12 Title IV Funding to Schools: From COD through G5 For Pell Grants, ACG and National SMART Grants Anthony T. (Tony) Laing U.S. Department of Education

Pell, ACG & National SMART Grant Funding Cash Management G5 - Updates 2 Session Outline

3 Iron Triangle of Funds Management: Department of Education Budget Service CODG5

4 Iron Triangle of Funds Management: School ED Business Office Financial Aid Office

5 Funding Lifecycle Initial Authorization Daily ProductionGlobal Jobs Year End Reconciliation for Pell, ACG, National SMART Grants

6 Daily Production COD 24-Hour Turnaround Disbursement Record Deadlines 10:00 AM ET in COD - Same Day 10:00 PM ET in COD - Next Day

7 Payment Methods Advanced Funded = 5,200 Schools JIT Pilot = 43 Schools HCM1, HCM2 & Reimbursement= 400 Schools

8 Initial Authorization Pell Grant –Program-wide authorization in May Advance funded $7 billion for 4,645 schools JIT, HCM1, HCM2, & Reimbursement = Records First ACG & National SMART Grant – NO program-wide authorization – Records first

9 When to Submit Disbursement Records Pell Grant –30 Days in advance of disbursement date –7 days before COD sends funding transaction to G5 ACG & National SMART Grant –7 Days in advance of disbursement date –7 days before COD sends funding transaction to G5

10 Four Program Wide Global Reduction Jobs Pell Reduction to Net Accepted and Posted Disbursements (NAPD) Pell W Verification Reduction ACG & SMART No Pell De-obligation Pell, ACG & SMART Reduction to GAPS Net Drawdown

11 Pell Reduction to Net Accepted & Posted Disbursement Records For : Initial CFL School receives initial authorization in May Disbursement School sends in disbursement records Warning In January 2009, Schools will receive a Warning Reduction In February 2009, a Reduction Cycle will be run Reduction Cycle will reduce the Authorization to equal Net Accepted and Posted Disbursements (NAPD)

–2009 Pell CFL Reduction to NAPD Example: Initial Authorization - $1,000,000 May 2008: NAPD - $500,000 Reduction - $500,000 January 2009:

13 Pell Reduction to Net Accepted & Posted Disbursement Records (NAPD) Award Year –374 schools reduced by $23 million

14 Stay Reconciled! COD NAPD COD CFL G5 Net Drawdowns

15 Stay Reconciled Goal is Zero Available Balances No Available Balances – 1,100 schools in prior years No Negative Balances – schools in prior years

16 School of Outstanding Students Funding Info Program PellAward Year School Funding Information Web Screen Entity ID Initial CFL$100,000 Current CFL$200,000 Available Balance$0 Cash > Net Accepted & Posted Disbursements$0 Net Accepted & Posted Disbursements$200,000 Net Drawdowns$200,000 Disbursement To Drawdown Ratio1.0000

17 Reconciliation Tools Reconciliation File –Snapshot –Mass mailing in September for Pell, ACG & National SMART YTD File –Comprehensive

18 Pell “W” Verification Reduction Award Year “W” Verification Reduction scheduled for Summer 2009 Verification Status of W is an interim status Schools must change status to V, S, or blank –Otherwise, FSA will reduce to zero Award Year Reduction in Summer 2008 for 310 schools; 2,117 students; $3 million

19 No-Pell Deobligation ACG, National SMART Grant If student has either an ACG or National SMART Grant and is not a Pell recipient, the student will lose the ACG/National SMART Grant Award Year No-Pell Deobligation scheduled for Summer Award Year –ACG264 schools, 519 students –SMART 51 schools, 58 students

20 Reduction to G5 Net Drawdown Pell, ACG, National SMART Grant Award Year Reduction to G5 Net Drawdown scheduled for March Award Year – 529 schools; $5 million Schools not in compliance with 30-day reporting rule Continued customer service outreach

21 Reduction to G5 Net Drawdown Example Authorization: $1,000,000 Drawdown: $800,000Reduction to G5 Net DrawdownUpdated Authorization: $800,000

22 Individual Reductions POP process –Only for Pell, not in ACG & National SMART Grant Negative Pendings

23 Post-Deadline Processing For Award Year : –Occurs After September 30, 2009 Schools request on the Web Request only when you are ready to submit

24 Post-Deadline Processing 30 days to resubmit records after administrative relief granted 15 days for a second request Continued follow-up

25 Closeout/Reconciliation For Award Year , Schools SHOULD be reconciled by September 30, 2009 Must closeout within… –Pell: five years –ACG, SMART: four years

26 Pell Administrative Cost Allowance (ACA) Three times during an award year cycle For : March 2009 August 2009 August 2010 NO DRAWDOWNS Payments sent directly to bank accounts by G5

27 Title IV Funding to Schools Pell, ACG & National SMART Grant Funding Cash Management G5 - Updates

28 30-day reporting requirement –Report changes within 30 days after becoming aware of changes 3-day cash rule –Only draw down cash for use within three days Cash Management Requirements

29 Excess Cash Includes any Title IV funds received from ED that are deposited or transferred into a federal account as a result of an award cancellation, adjustment, or recovery Tolerance -- 1% of prior year amount Finding may trigger cash monitoring or reimbursement

30 Title IV Funding to Schools Pell, ACG & National SMART Grant Funding Cash Management G5 - Updates

31 G5 - Department of Education’s Payment System G5 access Assistance available in PC lab Send refunds electronically Do NOT use paper checks!

32 G5 Home page

33 Registration Page Online form where new users can register for access to G5 Access is granted/denied between 1-2 business days

34 G5 Registration

35 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

36 G5 – My Awards Page

37 How Do I Get Grant Money???

38 Create Payments

39 Create Payment – Payment Tab

40 Create Payment – Summary Tab

41 Automated Tremayne, Requesting User ID: Your request made on 08/12/2008 for $100.00, has been received. Your control number is 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

42 Reporting

43 External Award Activity

44 External Award History Report

45 External Award History Report 0215S $1,126, $374, $0.00 $0.00 $0.00 -$374, /30/2010

46 External Award History Report Q215S06156 $-741, /30/2010 $1,126, $741, $0.00

47 COD School Relations Center G5 Help desk Need Funding Help?

48 Related Conference Sessions Session C-11 Operational Update for Pell Grants, ACG and National SMART Grants Session C-06 Higher Education Opportunity Act of 2008 – An Update Session DL-4 Title IV Funding: From COD through G5 (For Direct Loan Schools) Session FF-12COD Basics

49 Contact Information Anthony T. (Tony) Laing Director, Internal Controls Division – Federal Student Aid (202)