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Session 6.


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Session 6. Direct Loans: Balancing the Books for 2002-2003 and Beyond. Allison Richards Client Account Manager - Region 8. Wendy Jerreld COD Customer Service - Niagara Falls. Isiah Dupree Direct Loan Operations. Session 6. Cash Management and Reconciliation Closeout for 2002-2003
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Session 6 Direct Loans: Balancing the Books for 2002-2003 and Beyond Allison Richards Client Account Manager - Region 8 Wendy Jerreld COD Customer Service - Niagara Falls Isiah Dupree Direct Loan Operations

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Session 6 Cash Management and Reconciliation Closeout for 2002-2003 Post-Closeout Processing

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Cash Management and Reconciliation To see month to month compromise, we should first comprehend the money administration life cycle and our own particular day by day preparing… .

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Refund of Cash ( ideal ) Request Funds Cash Receipts Cash Trans Disbursements Changes Adjustments Disbursements Refund of Cash Booked Loans Payments Cash Management Life Cycle School GAPS Treasury/FRB COD Borrower DLSC Reporting Follow the Money

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Cash Management Life Cycle Refund of Cash Request Funds GAPS Cash Receipts Cash Trans Disbursements Adjustments Refund of Cash COD Cash Receipts Refunds of Cash Disbursements Adjustments

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Cash Receipts Requesting Funds Advance Pay – https://e-grants.ed.gov/gapsweb/, or GAPS Hotline at 888-336-8930 Pushed Cash – Based on genuine distributions Receiving Funds Direct store to class financial balance Managing Funds Defining "prompt need" and other money administration necessities For more data, audit 34 CFR, 668.161-163

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Disbursements Disbursing Funds Substantially approach payment 30 day delay for 1 st time borrowers Late Disbursements Notifications to borrowers Reporting Disbursements 30 days from date of payment Future-dated payment Booked versus Unbooked Disbursements Award, MPN, Disbursement = Booked Disbursements must book to exchange obligation to the Department For more data, audit 34 CFR, 668.164-165

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Disbursement Adjustments Reasons Eligibility Changes Return at Borrower's Request Reporting Adjustments 30 days from date of Adjustment Returning or reusing stores (see Refunds of Cash, next slide) For more data, survey 34 CFR, 668.164-165

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Refunds of Cash Reasons Received a greater number of assets than dispensed Disbursement Adjustment to Borrower's Account Regulations – Returning or reusing reserves Methods of Return Electronically through GAPS (http://e-grants.ed.gov/gapsweb/) Check – Mail to: COD School Relations Center Attn: Refunded Cash P.O. Box 9001 Niagara Falls, NY 14302 For more data, survey 34 CFR, 668.166

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Payment to Servicing Does not effect school's money parity May be made by school or by borrower Should be sent to: U S Department of Education Direct Loan Servicing Center ATTN: Payment Center P.O. Box 530260 Atlanta, GA 30353-0260 Note: Please ensure you show plainly the understudy's name and credit ID number and this is a PAYMENT, not a change, to the understudy's advance.

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Beginning Cash Balance Cash Receipts Refunds of Cash Booked Disburse-ments Booked Adjust-ments* Ending Cash Balance Computing Your ECB: The Direct Loan Cash Equation - + - = * Downward Adjustments are negative; upward alterations are certain.

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Computing Your ECB: The Direct Loan Cash Equation Ending Cash Balance Unbooked Disburse-ments Unbooked Adjust-ments* Cash > Accepted & Posted Disbs - = * Downward Adjustments are negative; upward modification are sure.

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Additional Cash Management Resources The Blue Book , June 2001, Chapters 4, 5 and 6 Federal Student Aid Handbook 2003-04 Volume 2, Chapters 5, 6, and 11 Title IV Federal Regulations, 34 CFR, Subpart K, General Provisions, upgraded November 1, 2002 FSA Coach Web-based Tutorial, Lesson 6

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Daily Processing – Things To Do During the Month Organize – Finish What You Start Monitor Your Cash Flow Use Your Reports Perform Internal Reconciliation

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STOP START Organize – Finish What You Start Map your procedure and methodology Monitor your procedure Ensure the sum total of what records have been sent to and acknowledged at COD Consider overseeing timing issues to complete what you begin inside the month

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Monitor Your Cash Flow Ensure money receipts are presented on the right year Verify asked for assets have been gotten Comply with money administration courses of events Ensure that all assets got are either dispensed or returned Verify right addresses are utilized when returning assets

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Use Your Reports 30 Day Warning Report (COD) Booked Status Report (EDExpress or custom) Pending Disbursement List (EDExpress: List - Edit-Only Disbursements) Funded Disbursement List (EDExpress: List - Actual Disbursements) Actual Disbursements – Booked and Unbooked Report (DL Tools) Cash Summary Report (DL Tools – discretionary) Ledgers, Bank Statements, Canceled Checks Other Internal School Reports

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Perform Internal Reconciliation Compare Business Office/Financial records to Direct Loan System Develop strategies/plan for interior compromise and dole out duties Compare taking into account general money/payment aggregates and/or understudy subtle element Troubleshoot errors

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Monthly Reconciliation School Account Statement (SAS) Reconciling School Data to the SAS Monthly Reconciliation – Common Causes of Discrepancies Other Reports and Tools Monthly Reconciliation: How would I Know I am Finished?

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School Account Statement: What is it? Contains the Department's authentic consummation money parity for your school Meets administrative necessities for month to month compromise document. Produced the main few days of the month, with information through end of earlier month The SAS turns out with various alternatives effectively chose as a matter of course yet schools can redo a hefty portion of those.

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SAS: What is it? Money Summary Monthly* and Year-To-Date (YTD) - will dependably be sent Cash Detail Monthly and/or YTD - will dependably be sent Summary by Loan Type Monthly and YTD , or Not at All Loan Detail Disbursement Transaction Level - Monthly and/or YTD or Not at All Loan Level - YTD or Not at ALL * Red Bold signifies preselected default alternatives

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NEW SAS: How would I get it? Consequently sent to schools each month Fixed Length File (Default) or Comma/Pipe Delimited Message Class: DSLF##OP/DSDF##OP DSDD##OP/DSLD##OP Batch Type: AS Schools can browse different report alternatives online at http://cod.ed.gov/

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SAS: How would I get it?

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Select Fixed Length, Comma Delimited (with or without headers), or Pipe Delimited. Year-to-Date, Monthly, or Both "Yes" to get, or "No" to not SAS: How would I get it?

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SAS - What Do I Do with It? Group it Vendor Software Mainframe/Homegrown System DL Tools 3.0 (accessible for all schools) Print it Compare* to class records Direct Loan System Business Office Records *To utilize the DL Tools Compare you should get Fixed Length Year-to-Date advance point of interest documents.

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School Receives SAS Compare Cash Detail NO Compare Cash Summary Resolve Issues Match ? Determined ? Analyze Loan Detail YES DONE Reconciling School Data to the SAS

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Monthly Reconciliation: Causes for Common Discrepancies Timing Issues Cash Issues Cash exchanges in wrong year or split between years Funds sent as discounts of money that ought to have been an installment (or the opposite) Funds reused for dispensing in an alternate grant year

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Monthly Reconciliation: Causes for Common Discrepancies Loan Issues: Unsent/unacknowledged payment groups Rejected payment Disbursements recorded in business office however not in DL/Financial Aid System Unbooked Records School Data Loss

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Monthly Reconciliation: Other Reports and Tools DL System Reports Cash Summary Report Cash/Loan Detail Reports Status Reports: Loan, Promissory Note, Disbursement Pending and/or Accepted Disbursement Lists Common Record Responses/Acknowledgments and blunder reports DL Tools or custom correlation reports

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Monthly Reconciliation: Other Reports and Tools Business Office Records Bank Statements Canceled Checks Ledgers Cash Detail Reports Student Accounts or Account Cards Disbursement/Loan Detail Reports

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DONE Monthly Reconciliation: How would I Know I am Finished? The sum total of what errors have been distinguished and determined. Timing issues are followed for compromise in one month from now's SAS. All month to month compromise endeavors have been reported.

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Closeout for 2002-2003 Closeout for 2002-2003 is July 31, 2004

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Closeout for 2002-2003 The start of the nearby out procedure starts with COD Customer Service sending Remaining Balance Letters to schools Sent by means of email to Financial Aid Administrator

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Closeout for 2002-2003 If COD did not have a substantial email address, a paper letter was sent by customary mail.

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A Zero Balance Confirmation Form was incorporated with the letter. Closeout for 2002-2003

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Closeout for 2003-2003 Zero Balance Confirmation Form Only return on the off chance that you concur with the Department's zero completion money adjust and zero unbooked credit advance parity. Return by means of mail to: COD School Relations Center PO BOX 9001 Niagara Falls, NY 14302 Fax to: 877-623-5082

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Closeout for 2002-2003 Program Year Close Out Once Zero Balance Form is gotten: Department will favor closeout. COD will no more acknowledge bunches from the schools. COD site will no more permit on-line changes. Reports will never again be produced. Supports no more accessible in GAPS. Program Year Closeout Letter is sent by means of mail to President. Re-Opening a School Written solicitation faxed or sent to COD Customer Service FSA will audit ask for and support or deny. Closeout exercises will begin again the next month end.

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Closeout for 2002-2003 Steps to Achieve Closeout Review your email address for the Financial Aid Administrator and roll out any improvements or overhauls that perhaps required at  http://www.eligcert.ed.gov Avoid the Rush Closeout inside 30 da