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Session 66
ED Forms 2000 for
Beginners: Annual
Reporting Katrina Turner
Nettie Harding
2
Loans In RepaymentCategory Calculations
AR-1 Loans Guaranteed (Except Federal Consolidation)
Minus AR-2 All Loans Cancelled (Except Federal Consolidation)
Plus AR-3 Federal Consolidation Loans Guaranteed
Minus AR-4 Federal Consolidation All Loans Cancelled
Minus AR-5 Uninsured Loans
Plus AR-6 Loans Transferred In
Minus AR-7 Loans Transferred Out
Minus AR-8 Default Claims Paid
Minus AR-9 Bankruptcy Claims Paid
Minus AR-10 Death and Disability Claims Paid
Minus AR-11 Closed School/False Certification Claims Paid
Minus AR-12 Loans Paid in Full
Minus AR-13 Federal Stafford and Unsubsidized Stafford Interim Loans
Minus AR-14 Total Loans in Deferment Prior to First Payment
Equals Loans in Repayment
3
Loans In Repayment (Con’t.)
All amounts are cumulative since the inception of the
agency except for line items AR-13 and AR-14 which
are amounts as of the end of the current fiscal year.
4
Federal Fund Section
Includes line items:
AR-15 through AR- 29
In accordance with 34 CFR 682.419, the Guaranty
Agency Federal Fund, is a separate account that
contains only funds belonging to the Federal
Government.
5
AR-15 Beginning Balance (from 9/30/xx)
AR-15 should be equal to ending balance (AR-26) of the prior year.
6
AR-16 Investment Income
• Amount of all investment
income recognized in the
Federal Fund, including
net increases/ decreases in
fair value of investments
• Interest activity is reported
on AR-16
7
AR-17 Reinsurance from ED
• Amount of federal reinsurance from ED
• Net of Refunds
• Overpayments & repurchases for defaults
• Bankruptcies
• Death
• Disability
• Closed Schools or False Certification
8
AR-18 Collections of Default Loans- Reinsurance Complement
• Amount of reinsurance
complement from default
collections
• This amount should equal
the twelve months
reported fiscal year to date
(FYTD) on the monthly
GAFR, line items MR-10
through MR-13 for the
current FFY.
9
AR-19 Federal Default Fee
• Effective for loans
guaranteed on or after July
1, 2006.
• The fee is equal to 1
percent of the principal
amount of loans
guaranteed on or after July
1, 2006
10
AR-20 Other Revenue• Include deferred revenues
• Report itemized entries
• For example:
– Secretary’s Share of default collections (up to 8.5% of collection costs charged the borrower) on default FFEL
– DL Consolidation loans
– OIG interest penalty
– Audit findings
– Usage fees
These examples are not inclusive
11
AR-21 Claims Expensed to Lenders
• Claims expensed during
the FFY
• Net of refunds
• Overpayments and
repurchases for all FFEL
programs loans
12
AR-22 Recall of Federal Funds to the Restricted Account
• Amount of the agency’s
required share of the
reserved fund recall,
which was deposit in a
restricted account
• No reporting required
for this line item
13
AR-23 Transfer to Operating Fund for Default Aversion
• Report net Default Aversion expense recognized for delinquent loans which agencies receive lenders requests for default aversion assistance
• Payment is authorized under the Department’s regulation and guidance for the current FFY
• Amount should reconcile to line AR-30, Default Aversion Fee Revenue
14
AR-24 Transfer to Operating Fund for Account Maintenance Fee
• Report the transfer amount, regardless of the actual transfer, from Federal Fund for AMF for the current FY
• Amount should reconcile to line AR-33, Transfer from Federal Fund for AMF
• FY 07 No Spending Cap
• FY 06
– Spending Cap $220M
– Payment Methodology
– Authority to Transfer Funds Rescinded 7/1/2006
15
AR-25 Other Expenses• Other expenses which are not
reported elsewhere, such as:
– provision for loan losses
– SES recognized on collections of defaulted, consolidated,and rehabilitated FFEL loans
– Guarantor retention
• Report itemized entries, such as:
– Prior year accrual, depreciation
16
AR-26 Ending Balance
• The ending balance must
equal the sum of AR-15
through AR- 20 minus
AR-21 through AR-26 as
well as the ending balance
on AR-57 (Federal Fund
Balance Sheet Section)
• AR-26 must equal AR-57
17
AR-27 Amount Transferred from Federal Fund to Operating Fund for Operating Expenses (Repayable)
• Money borrowed from
Federal Fund for operating
expenses
• No reporting required
for this line item
18
AR- 28 Amount Received from Operating Fund to Repay Advance for Operating Expenses
• Repayment of amounts
borrowed from Agency
Operating Fund.
• No reporting required
for this line item
19
Operating Fund Section
Includes line items:
AR- 29 through AR- 42
In accordance to 34 CFR 682.423, the
Guaranty Agency Operating Fund is a separate
account that contains only funds belonging to
the Guaranty Agency
20
AR-29 Beginning Balance (from 9/30/xx)
• AR-29 should be equal to
ending balance (AR-40) of
the prior year.
21
AR-30 Default Aversion Fee Revenue
• Report Default Aversion Fee
(DAF) recognized for
delinquent loans which
agencies receive lenders
requests for default aversion
assistance
• Payment is authorized under the
Department’s regulation and
guidance for the current FFY
• Amount should reconcile to line
AR-23, Transfer to Operating
Fund for Default Aversion
22
AR-31 Loan Processing and Issuance Fee Revenue
• Report loan processing
and issuance fee revenue
recognized
23
AR-32 Account Maintenance Fee
• Report account
maintenance fees
recognized from the
Department
24
AR-33 Transfer from Federal Fund for Account Maintenance Fee
• Report account maintenance
fees recognized subject to
Federal Fund settlement (AR-
24, Transfer to Operating fund
for Account Maintenance Fee)
when amount exceeds ED’s
budgetary cap
• Authority to Transfer Funds
Rescinded 7/1/2006
25
AR-34 Collections of Defaulted Loans Less Reinsurance Complement
• Report collection revenue recognized from payments to GA by defaulted borrowers
• Amount reported should be your agency’s share of collections. Does not include SES of collections
• Include receipts from rehabilitated loan sales and consolidation of defaulted loans under the FFEL program
• Do not include amounts reported in AR-18
26
AR-35 Investment Income
• The amount of all
investment income
recognized in the
Operating Fund including
net increase (decrease) in
fair value of investments
27
AR-36 Other Revenue• Other revenues that are FFEL and
non-FFEL not already reported elsewhere Includes:
– Payments received to consolidate loans under the Direct Loan Program
– Net Secretary’s fee
• Report itemized entries Includes:
– Default aversion
– VFA revenue
28
AR-37 Collections of Defaulted Loans
• Formally SES was
reported in this line item
• Currently Secretary’s
Equitable Share should be
reported in AR-20, Other
Revenue and AR-25,
Other Expense
• No reporting required
for this line item
29
AR-38 Operating Expense
• Expenses associated with:
– Application processing
– Loan disbursement
– Enrollment and repayment
status management
– Default aversion activities
– Claims processing
– Default collection activities
– School and lender training
– Financial aid awareness
30
AR-39 Other Expenditures
• Report FFEL and Non FFEL
expenses
– Include amounts used for
default prevention activities
• Itemized entries may include:
– Administration costs
– Transfers to federal fund
– OIG audit liabilities
– 48-hour rule
31
AR-40 Ending Balance
• The ending balance must
equal the sum of AR-29
through AR-36 minus AR-
37 through AR-39 equals
AR-40
32
AR-41 Amount Received from Federal Fund for Operating Expenses
• Money received from
Federal Fund for operating
expenses.
• No reporting required
for this line item
33
AR-42 Amount Repaid to Federal Fund For Operating Expenses
• Money repaid to Federal
Fund from Operating
Fund
• No reporting required
for this line item
34
Restricted Account
• The Restricted Accounts
AR-43 through AR-47
are obsolete
35
Balance Sheet (Federal Fund)
Include line items:
AR-48 through AR-57
The balances reported in this section should
reconcile to amounts reported on the
Guarantor’s audited financial statements as of
the end of the Federal fiscal year 9/30/xx
36
AR-48 Cash, Cash Equivalents and Investments
• Report cash, cash
equivalents and
investment (regardless of
maturity date of
investments) balances.
• If applicable, report
Voluntary Flexible
Agreement (VFA) escrow
balance
37
AR-49 Restricted Account Cash, Cash Equivalent and Investments
• Amount of Federal Fund
Cash deposit on the
Restricted Account as of
October 1
• Do not report escrow
balances
• No reporting required
38
AR-50 Net Investment in Property, Plant, Equipment, and Inventory
• Report balances of
property, plant, equipment
LESS accumulated
depreciation
39
AR-51 Accounts Receivable from ED
• Report balances owed to
the Federal Fund by ED
• For example:
– Reinsurance and other
payments
40
AR-52 Other Assets
• Report total balances of other
current and non-current asset
accounts that were not reported
in line items AR-48 through
AR-51.
• Report itemized entries
Includes:
– Guarantee fee receivable
– Receivable from Operating
Fund
– Default aversion fee rebate
41
AR-53 Accounts Payable, Accrued Expenses and Other Current Liabilities
• Report liabilities for
expenses due, other than
ED, including amounts
due Operating Fund
• Claim payments payable
to lenders, if amount is to
be paid within 12 months
42
AR-54 Accounts Payable to ED
• Report other liabilities for
expenses due ED within
the next 12 months
43
AR-55 Other Liabilities
• Report other liabilities that are
not reported elsewhere
Including:
– Outstanding federal
advances due to Ed
– Remaining reserve return
obligation
– To be paid more than 12
months from current date
– FY 07 Recall Amount must
be reported in this line item
44
AR-56 Allowances and Other Non-Cash Charges to Federal Fund
• Report the net present value:
– Expected future claims
– Net recoveries
– Amount to be paid on guaranteed loans
MINUS
– expected reimbursements of these claims
– Other allowances (such as deferred unearned Federal default fees)
45
AR-57 Federal Fund Balance
• The Federal Fund balance on an
accrual basis for the fiscal year
being reported is calculated:
– ADD AR-48 through AR-
52 and subtracting AR-53
through AR-56
• This amount should represent
the equity on the audited
balance sheet section of the
Federal Fund.
• AR-57 must equal AR-26
46
Technical SlideWe appreciate your feedback and comments.
Katrina Turner Nettie Harding
202.377-3311 202-377-3307
202.275.0913
