session dl-04

Session DL-04

Title IV Funding To Schools: From COD Through G5 (For

Direct Loans)

George KarayianisU.S. Department of Education

2

Title IV Funding to Schools

Direct Loan Funding

Cash Management

G5 – Updates

3

“How do schools get their $Money$?”

Direct Loan FundingProcess Overview

4

Triangle of Funds Management:Direct Loans

COD COD SystemSystem

G5G5 SchoolSchool

5

Funding Lifecycle

• Initial funding• Disbursement and loan processing (in COD

System)• Drawdowns (through G5)• Monthly reconciliation disbursements/cash

– School/COD System/G5• End-of-award year reconciliation and

closeout

6

• Funding based on actual disbursements• 7 day rule

– Records submitted up to 7 days in advance of disbursement date can trigger an increase in funding

Funding Basics

7

versus

Funding Delivery Methods

Advanced Funds/

School-Initiated Drawdowns

Pushed Cash/ System-Initiated

Drawdowns

8

• School receives an initial CFL• School draws down cash via the G5 Web

site• School sends in MPNs and actual

disbursement records to substantiate cash received

• COD System sends CFL increases to G5 so school can continue to drawdown funds as needed

Advanced Funds/School-Initiated Drawdowns

9

SCHOOL

G5COD System

Batches

CFL

Funding Flow Advanced Funds

10

• The COD System initiates drawdown requests based on actual disbursements accepted and posted by the COD System and cash is deposited in a school’s bank account

• Schools must have an accepted origination record and MPN on file before an actual disbursement is accepted and cash is pushed to a school

Pushed Cash/System-Initiated Drawdowns

11

Funding Flow Pushed CashSCHOOL

G5COD System

Batches

CFLDrawdowns

FDLs

12

Example:Funded Disbursement Listing

13

Title IV Funding to Schools

Direct Loan Funding

Cash Management

G5 – Updates

14

• 30-Day Reporting Requirement– 685.301(d) Direct Loan

• 3-Day Cash Rule– 668.162(b)

• Monthly Reconciliation– 685.102(b) Direct Loan

Cash Management Requirements

15

• Monthly reconciliation – Compare your records with the Dept’s to

identify and account for discrepancies– Ending Cash Balance (ECB) may not equal

$0• Closeout

– Process ensuring all records are processed and all cash is accounted for

– The “final” reconciliation, but your ECB must = $0

Direct Loan Reconciliation versus End-Of-Year Closeout

16

BeginningCash

Balance

CashReceipts

Refunds Of Cash+

EndingCash

Balance=BookedAdjustments-

Booked Disburse-

ments

Your Ending Cash Balance Equation

- -

17

• School Account Statement (SAS)• COD funding Web screens• COD reports• G5 Web screens and reports

COD and G5 ToolsDirect Loan Reconciliation

18

School Funding InformationWeb Screen

19

Cash Activity Screen

20

• Monthly file sent from the COD System – Contains school data as reflected on

the COD System • Sections of the SAS

– Cash summary– Disbursement summary by loan type– Cash detail– Loan/disbursement information

Direct Loan School Account Statement (SAS)

21

Title IV Funding to Schools

Direct Loan Funding

Cash Management

G5 – Updates

2222

G5

• Department of Education’s payment system• Formerly known as GAPS• Provides location for all school funding processes

– Drawdowns– Drawdown adjustments– Refunds– G5 funding reports

2323

G5 Homepage

2424

G5 Registration

25

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

2626

G5 – My Awards Page

27

How do I Request my Direct Loan Funds???

2828

Create Payments

2929

Create Payment – Payment Tab

3030

Create Payment – Summary Tab

31

Automated E-mail

George,

Requesting User ID: Georgek@school.edu

Your request made on 08/12/2008 for $100.00, has been received. Your control number is 2008081206381 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 1-888-336-8930.

32

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

33

Select Drawdown Adjustments from Payments Menu

34

Enter School ID

35

Click Continue

36

Enter Amount of Adjustment

37

Click Continue

38

Click Submit Adjustments

39

Adjustment Confirmation

40

Advantages of Electronic Refunds• Posts to GAPS within 2 business days• You control process• You direct from which bank account the

money is refunded• Multiple refunds on one screen and at one

time• Reduces human error and delays

41

Enter Refund Functionality

42

Enter Refund Amount

43

Confirm refund and click continue

44

Select confirm to process refund

45

Refund confirmation

46

G5 Reporting

47

External Award Activity

48

External Award History Report

49

External Award History Report

50

External Award History Report

51

• COD School Relations Center 1-800-848-0978

• G5 Helpdesk1-888-336-8930

Need Funding Help?

52

Related Conference Sessions

Session DL-01 Direct Loan Fundamentals

Session DL-02 Direct Loan Servicing Fundamentals

Session DL-03 Direct Loan Tools (hands-on)

Session DL-05Unlocking the Potential of Direct Loan Reports

Session DL-06 COD Web Hands-on for Direct Loans

Session C-12Title IV Funding to Schools: From COD through G5 (For Pell Grants, ACG, and National SMART)

53

Contact Information

George KarayianisFunds Management Lead, Direct Loan Program Operations Divisiongeorge.karayianis@ed.gov(202) 377-3141