Session 29

COD, GAPS,
Pell and Direct Loans:
Funding for the Schools

Session 29 - 2
 Session Outline

■ COD Funding
– Process
– New Terms
■ Pell Grant Funding Process
■ COD Web Screens
■ Direct Loan Funding Options
■ Netting of Disbursements
■ Cash Management Regulations

Session 29 - 3
 Session Outline
(continued)
■ GAPS Functionality/New Enhancements
– Electronic Refunds
– Drawdown Adjustments
– Reports
– View Access
– Payment Request File Upload

Session 29 - 4
 One COD Funding
Process
Direct Loan Pell

COD
process
Session 29 - 5
 Funding Terms

■ Current Funding Level

■ Net Draws

■ Available Balance

■ Refunds and Returns of Cash

Session 29 - 6
 Funding Terms
(continued)

■ Net Accepted and Posted Disbursements

■ Cash > Accepted and Posted

Disbursement

■ Cash > Accepted and Posted

Disbursements and > 30 days.

Session 29 - 7
 Pell Funding Terms

■ Pell Grants

– Obligation/Authorization = Current
Funding Level

– Cash = Drawdowns

Session 29 - 8
 Current Pell Grant CFL
(Obligation) Process
■ Initial CFL created in May
■ Schools cannot draw cash in GAPS that
exceeds their CFL.
■ Schools submit disbursement records to
COD that adjusts CFL within 7 days.
■ CFL level in GAPS is not increased until
initial CFL has been exceeded.

Session 29 - 9
 School Example of
an ESOA
■ Initial CFL = $5 million

■ Total Accepted and Posted

Disbursements = $2 million

■ Difference = $3 million

Session 29 -10
 Electronic Statement
of Account
GAPS AWARD NUMBER P063P014444

A. Previous Pell Grant Obligation $5,000,000.00

Current Pell Grant Obligation $6,000,000.00
Adjustment (Increase + or Decrease -) $1,000,000.00+

B. Previous Pell Grant Obligation/Payment $0.00

Current Pell Grant Obligation/Payment $0.00
Adjustment (Increase + or Decrease -) $0.00

GAPS Drawdowns/Payments $5,000,000.00

Date of Last Activity in GAPS 02/13/2002

YTD Total Unduplicated Recipients 3,333

YTD Pell Accepted Disbursement Amount $6,000,000.00
YTD GAPS Posted Disbursement Amount $6,000,000.00
YTD Administrative Cost Allowance $16,665.00

As of Batch ID 200212345619990101123000
 

Session 29 -11
 CFL (Obligation)
Adjustments
■ School Generated
– Schools submit increases and decreases
throughout the year
■ System Generated
– Administrative Cost Allowance (ACA)
– Negative pending
– W Verification
■ Financial Aid Office and Business Office
reconcile as of September 30

Session 29 -12
 Pell Grant Funds
Control
■ Initial CFL (May)
■ Reduction to level of accepted and posted
disbursement records (February)
■ Post deadline adjustments (after 9/30 -
administrative relief, audits, decreases)
■ Reduction to level of net GAPS drawdowns
(end of second year)

Session 29 -13
 Pell Funding
Reconciliation

Date CFL = Disb Records = Cash

(COD) (COD) (GAPS)

11/02 $1,000,000 $750,000 $500,000

2/03 $750,000 $750,000 $500,000
3/04 $500,000 $750,000 $500,000
$500,000 $500,000 $500,000

Session 29 -14
School Funding Info
Web Screen (Pell)

Session 29 -15
 Unprocessed
Deobligations

■ A new column on the GAPS website

■ Deobligations in excess of available

balance

Session 29 -16
 Unprocessed
Deobligation Report
Award Balances Report
Payee DUNS/SSN: 555555555
Payee Name: Tony’s Beauty Schools
Payee Address: SMITH, INC, CHICAGO, IL 60603
AWARD BALANCES TABLE
(As of February 13, 2002)

No Award Recipient Authorization Unprocessed Net Draws Available Balance

Ref. Deobligations
6 P063P011222 01-02 Pell $5,000,000.00 ($5,000.00) ($5,000,000.00) ($5,000.00)
7 P007A006050 00-01 SEOG $26,693.00 $0.00 ($26,693.00) $0.00

Session 29 -17
 School Example of
Unprocessed
Deobligation
■ School CFL (obligation) = $5 million
■ Net drawdown in GAPS = $5 million
■ Available balance in GAPS = $0
■ School submits negative disbursement of
$5,000
■ Unprocessed deobligation of $5,000

Session 29 -18
 Resolve
Unprocessed
Deobligation
■ Refund the cash

■ Adjust the drawdown

■ Increase the CFL (obligation)

Session 29 -19
 Funding in COD

Funds Delivery
■ Schools can draw down in GAPS the
cash they will need to disburse within the
next 3 business days.

■ Schools can choose to have COD initiate

drawdowns on the school’s behalf based on
accepted actual disbursement records.

Session 29 -20
 Direct Loan Funds
Control
■ CFL = obligation.

■ CFL not limited by obligation but related to

disbursements.

■ CFL increases as school submits

disbursement records timely.

Session 29 -21
 CFL Process for DL
Advance Funding
Schools
■ Initial CFL created at Beginning of
Program Year (Feb.)

■ CFL increases as a school submits

disbursement records to COD.

■ Schools draw down their current cash

needs in GAPS.

Session 29 -22
 Funding for DL Pushed
Cash Schools
■ Funding driven by actual disbursement
records.

■ Funded Disbursement Listing (FDL) is

Generated by COD.

■ Cash electroncially sent to school’s bank

account.

Session 29 -23
Example of Funded
Disbursement Listing

Session 29 -24
 “Pushing” Cash to
Schools
■ Cash sent to school to fund disbursements

■ Cash sent to school based on “net”

accepted and posted disbursements

■ Funded Disbursement Listing (FDL)

indicates amount of money pushed to
school.

Session 29 -25
 Practical Effects of
Netting Disbursements
■ Schools won’t have to return excess cash
(if additional disbursements will be made
within 3 business days)

■ Keeps disbursements and cash in balance.

■ Makes monthly and year end reconciliation

simple.
Session 29 -26
 COD Funding Screens

■ School Summary

■ School Funding Info

■ Cash Activity

■ Summary Financial

Session 29 -27
School Summary
Screen

Session 29 -28
School Funding Info
Screen (DL)

Session 29 -29
Cash Activity Screen

Session 29 -30
School Summary
Financial Info Screen

Session 29 -31
Refunds of Cash Info

Session 29 -32
 Cash Management
Requirements
■ 30-Day Reporting Requirement
-685.301(d) Direct Loan
-685.83 Pell (and annual deadline notice)
■ 3-Day Cash Rule
-668.162(b)
■ Monthly Reconciliation
-685.102(b) Direct Loan

Session 29 -33
 Refunds of Cash

■ Funds not disbursed within 3 business

days must be returned as Excess Cash to
the Department of Education.
■ Encourage schools to return funds
electronically via the GAPS web.
Session 29 -34
 Advantages of
Electronic Refunds
■ Posts to GAPS within 2 business days
■ School control over process
■ School directs from which bank account
the money will be refunded.
■ Multiple refunds on one screen and at one
time.
■ Electronic processing reduces human error
and delays.

Session 29 -35
 GAPS Award Numbers
■ CFDA prefix (ex: P)
■ CFDA suffix (ex: 268, 063)
■ Sub program identifier (ex: K, P)
■ Year identifier (ex: 01)
■ Institution identifier (ex: 2244, 5543)
■ Ex: DL = P268K012244
■ Pell = P063P015543
■ Campus Based = P007A992231

Session 29 -36
Access E-Payments Website
(http://e-payments.ed.gov/gapsweb)

Session 29 -37
Logon to GAPS

Session 29 -38
Select Refunds from Main Menu

Session 29 -39
Select “refunds for open
awards” and click “initiate
refunds”

Session 29 -40
Select “continue”

Session 29 -41
Enter the amount(s) to be
refunded and click “continue”

Session 29 -42
Click “verify selected awards”

Session 29 -43
Refund Confirmation

Session 29 -44
Payment Request
Screen- Import from
File Upload

Session 29 -45
 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.

Session 29 -46
Open Awards

Session 29 -47
Enter the amounts to be
adjusted and click
“Okay”

Session 29 -48
Click “yes” if you want
GAPS to process the
request

Session 29 -49
 GAPS Reports

■ GAPS Reports
– Activity Report
• Cumulative Activity by award
• Detail Activity by day
– Refund Report
• detailed list of refunds including
confirmation numbers

Session 29 -50
Select “Activity Report”

Session 29 -51
Activity Report -
Cumulative Summary

Session 29 -52
Activity Report - Record
Detail

Session 29 -53
Refund Report

Session 29 -54
 View Access

■ Limit 5 user ids per school

■ Download form off e-payment web
■ Fax completed form to GAPS
– (202-401-0006)
■ Additional questions, call GAPS Helpdesk
– 1-888-336-8930

Session 29 -55
 GAPS Helpdesk

■ 1-888-336-8930

■ Helpdesk hours of operation are 8 a.m. to

6 p.m. Monday through Friday, ET.

Session 29 -56
 How do I become a
COD Full Participant?
■ Schools must register with COD to become a Full
Participant in Award Year 2003-2004
■ To register, contact COD School Relations
– Email CODSupport@acs-inc.com
• Indicate “2003-2004 Full Participant” in Subject Line
– Call COD School Relations
• Select Award Year 2002-2003 and express interest to COD
CSR
■ All EDExpress Users must register as Full
Participants for 2003-2004

Session 29 -57
 How do I obtain access
to the COD Web Site?
■ Submit a Security Administrator Request Letter
on school or corporate letterhead
– Security Administrator is responsible for setting up
additional users at your institution
– Reporting/Attending school relationships in COD will
automatically allow access to other school codes
■ Refer to announcements on IFAP for detailed
instructions and mailing address
– 6/3/02 - Updated: COD Website Access for Schools
– 6/3/02 - COD Website Access for Vendors/3rd Party
Servicers

Session 29 -58
 How do I contact COD
Customer Service?

■ Email CODSupport@acs-inc.com
■ Call COD School Relations Center
– 1-800-4-P-GRANT for Pell Grants
– 1-800-848-0978 for Direct Loans
– Enter Award Year 2002-2003

■ COD Web Site (www.cod.ed.gov)

Session 29 -59
 Where can I get more
information?
■ IFAP Web Site (www.IFAP.ed.gov)
– Common Origination and Disbursement page
– Announcements and FAQs
– COD Technical Reference
■ COD Web Site (www.cod.ed.gov)
– Daily Processing Updates
– School Funding and Processing Information
■ Contact COD Customer Service

Session 29 -60
 COD Sessions

■ Session 19 – Cash Management A-Z

■ Session 21 – What’s New for Direct Loan Processing in
2003-2004?
■ Session 22 – What’s New for Pell Grant Processing in 2
003-2004?
■ Session 23 – COD and Pell Grants: Updates to Edits and
Record Layouts for 2003-2004
■ Session 24 – COD and Direct Loan: Updates to Edits and
Record Layouts for 2003-2004
■ Session 25 – Meet the COD Customer Service Team and
Get Answers to Your COD Questions

Session 29 -61
 COD Sessions

■ Session 26 – COD: Using the New Web Site

■ Session 27 – COD Full Participants for 2003-2004
■ Session 28 – COD and Direct Loans: Balancing the
Books
■ Session 29 – COD, Pell, and Direct Loans: Funding for
Schools
■ Session 58 – Tribally Controlled Colleges: Operating as a
Full Participant in the COD environment
■ COD Customer Service staff are available in the PC Lab

Session 29 -62
Session 29 -63