Session 42

Session 42

Direct Loan Funding and Cash Management A-Z

George Karayianis

Tremayne Cobb

2

Session Overview

• Funding Process Overview

• Funding Methods

• Using GAPS

• Hands-On Exercise

3

“How do schools get their $Money$?”

Funding Process Overview

4

Funding Delivery Methods

Advanced Funds/School-

Initiated Drawdowns Pushed

Cash/System- Initiated

Drawdowns

5

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.

6

Funding Flow - Advanced FundsSCHOOL

GAPS

COD

Batches

CFL/authorization

7

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.

8

Funding Flow - Pushed CashSCHOOL

GAPS

COD

Batches

CFL/authorization and drawdown request

9

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

10

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

11

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

12

Reconciliation and Closeout

13

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

14

COD and GAPS Tools to help reconcile Direct Loans

• COD Funding Web screens

• Reports (COD)

• GAPS

15

School Funding Info Web Screen

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

16

Cash Activity ScreenSchool of Outstanding StudentsProgram Direct Loan Award Year 06-07

Net Draws $30,000Cash > Accepted & Posted Disbursements & older than 30 days $0

TotalsDate of Transaction 10/23/06Time 1:35PMDrawdowns $30,000 $2,000Drawdown adjustments $0Refunds $1,000Returns $0Days for On-time reportingPayment Control Number 2006102321221Accepted & Posted Disbursements Applied $20,000 $0 Cash > Accepted & Posted Disbursements $10,000Source System GAPS

17

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

18

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

19

Logon to GAPS

ed101

*******

20

Main Menu

School of Outstanding Students 100 Student Way

Bookville, AZ 22222

Please select one of the following options: Payment Requests

ReportsRefunds

Password MaintenanceUser’s Guide

Select New PayeeHelpExit

Select “Payment Requests” from Main Menu

Payment Requests

21

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

22

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



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

2:02Return to Payment Requests Menu

Exit

23

Electronic Refunds

Main Menu


Bookville, AZ 22222

Please select one of the following options:

Payment RequestsReportsRefunds



Refunds

24

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

Refunds MenuSchool of Outstanding Students

100 Student WayBookville, AZ 22222


Refunds to Open AwardsPerkinsInterest

Refunds to Closed AwardsInitiate Refund

Bank Account Maintenance

Refunds Report

Initiate Refunds

X

25

Awards and net draws will be displayed

PR Award Number Net Draws Refund Amount Account Name

P268k059999P268k059999 $23,000$23,000 $ $ School Refund Account ASchool Refund Account A



Refunds to Open AwardsPlease note --- your session will be timed out after 10 minutes of inactivity. Any button click will reset the inactivity

timer.

DUNS Number: 111111111

26

Enter the amount(s) to be refunded

PR Award Number Net Draws Refund Amount Account Name




Refunds to Open AwardsPlease 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

27

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 ConfirmationDUNS Number: 111111111

First Previous P268k059999 – P268k079999

Next Last

28

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

29

Select “Payment Requests” from Main Menu

Main Menu


Bookville, AZ 22222

Please select one of the following options: Payment Requests

ReportsRefunds



Payment Requests

30

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 AmountsAdjust Direct Loan Drawdown Amounts

31

Adjustments between years and/or campuses

School Academic Year Net Draws Adjustments

School of Outstanding Students - Boston 2006 $3,000


School of Outstanding Students - Dallas 2006 $4,000


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

32

Enter the amounts to be adjusted and click “OK”


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




Select New Payee

OK Cancel

Exit

33

Adjustment Confirmation






Total $22,000 $0.00




Select New Payee

Exit

The drawdown amounts have been adjusted

34

GAPS Reports

Main Menu


Bookville, AZ 22222


Payment RequestsReportsRefunds



Reports

35

Select “Activity Report”

Activity Report

Refund Report

Award Balances Report

Activity Report

Reports Menu

36

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)


Select New Payee

Exit

37

Activity Report - Cumulative Summary

Row ID PR Award Number

A

Cumulative

Draws

B

Cumulative

Refunds

C

Cumulative

Returns

DNet

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 Address 100 Student Way Bookville, AZ 22222

38

Activity Report - Record Detail



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

TransactionsPR Award Number

P268k079999

DETAIL TABLE

39

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)

40

GAPS Helpdesk

• 1-888-336-8930

• Helpdesk hours of operation are 8 a.m.

• to 6 p.m., EST, Monday through Friday.

41

Other Direct Loan SessionsSession 40 Hands On Tour of DL ToolsSession 41 Best Practices in Using DL LSDASession 43 Best Practices for Processing DL at Your SchoolSession 44 Direct Loans A – ZSession 45 Direct Loans – How to Get StartedSession 46 What’s New in Direct Loans: Grad PLUS and other

HERA Related ChangesSession 47 Direct Loan Reconciliation and CloseoutSession 48 Direct Loan Reports & Reference Materials-Tools

of the TradeSession 49 How Direct Loan Servicing is Improving the

Financial Aid Experience for You and Your Students

Documents

Session 42