Maintained for Historical Purposes

This resource is being maintained for historical purposes only and is not currently applicable.

(P-96-04) (P-96-04) Procedures for 1995-96 Federal Pell Grant account adjustments after the SEPTEMBER 30, 1996 submission deadline.

DCLPublicationDate: 10/1/96
DCLID: P-96-4
AwardYear:
Summary: Procedures for 1995-96 Federal Pell Grant account adjustments after the SEPTEMBER 30, 1996 submission deadline.


OCTOBER 1996

P-96-4


SUMMARY: Procedures for 1995-96 Federal Pell Grant account
adjustments after the SEPTEMBER 30, 1996
submission deadline.

References:
- October 1993 Recipient's Guide to the U.S. Department of
Education Payment Management System (ED/PMS)
- Chapter 4 of the 1995-96 Federal Student Financial Aid
Handbook
- Dear Colleague Letter GEN-94-14 dated April 1994
- Federal Register, dated April 29, 1994, Final Rule, Federal Pell
Grant program
- Federal Register, dated April 17, 1996, Notice of Deadline Dates
for Receipt of Applications, Reports and other Documents for the
1995-96 Award Year
- Federal Register, dated November 1, 1994, Final Rule, Federal
Pell Grant program

Dear Colleague:

In this letter, you will find instructions for:
1. Reconciling your institution's actual 1995-96 Federal Pell Grant
student payments with the payments accepted by the program,
and
2. Using three methods to report post-deadline award adjustments.

RECONCILING YOUR 1995-96 FEDERAL PELL GRANT
PAYMENTS WITH PAYMENTS ACCEPTED BY THE
PROGRAM

YOUR FINAL 1995-96 PELL GRANT AUTHORIZATION
CANNOT EXCEED THE TOTAL STUDENT PAYMENTS
ACCEPTED BY THE PROGRAM FROM YOUR SUBMISSIONS
THROUGH SEPTEMBER 30, 1996. You should reconcile your
institutional records with the processed student payment data, and
the accompanying IPS Batch Report, for EACH of your
submissions during the school year. This ongoing reconciliation
process will help you avoid, or greatly minimize, post-deadline
adjustments.

If you have submitted additional payment data since the date of
your most recent Student Payment Summary (SPS), you may
request an update by calling the Pell Grant Institutional
Access System (IAS) at 1-800-4PGRANT (1-800-474-7268).

You should use each SPS to confirm that we received AND
ACCEPTED all of your Federal Pell Grant payments, or to correct
your institutional records for payments we could NOT accept.
Please refer to pp. 4-109 to 4-124 in the 1995-96 Federal Student
Financial Aid Handbook for detailed instructions on using the SPS.

To reconcile your institution's 1995-96 Federal Pell Grant Program
records, look for the following conditions:

1. A recipient's payment data appears on your institution's records
but does not appear on the SPS (NEW RECIPIENT);

2. A recipient's payment data appears on your institution's records
for an award amount GREATER THAN the amount shown on
the SPS (INCREASE AWARD ADJUSTMENT), and:

3. A recipient's payment data appears on your institution's records
for an award amount LESS THAN the amount shown on the SPS
(DECREASE AWARD ADJUSTMENT)

If you complete your reconciliation process as of
September 30, 1996 and find that you need to increase funding for
previously reported students or for new students, you may meet the
criteria for requesting Administrative Relief and/or Audit
adjustments that are identified later in this letter. To report
decreases, use the Decrease Award Report format that is explained
below.

Section V of the April 17, 1996 Federal Register notice also
provides additional information on post-deadline adjustments.

REPORTING DECREASE AWARD AMOUNTS

If a student's Total Payment Amount (sum of Amount paid to date
and Remaining amount to be paid) shown on your latest SPS, or in
your processed student records from a submission after the
last SPS, exceeds the actual amount you paid that student, OR if the
student received an overpayment, you must report the decrease
award amount in the format shown by the sample Decrease Award
Report in Enclosure 1. For your convenience, we provided a
facsimile you may use to report award decreases in
Enclosure 2. You may use this format to decrease awards, or to
report recoveries, for 1995-96 and any prior school year. You must
submit SEPARATELY for each year. You can also use your
normal reporting media. DO NOT SEND CHECKS to the U.S.
Department of Education to return decrease award amounts.

You may NOT use decrease award amounts to pay a NEW
recipient, or to INCREASE another student's award. For further
information concerning overawards and overpayments, please refer
to pp. 4-85 through 4-89 of the 1995-96 Federal Student Financial
Aid Handbook.

The institutional administrator officially responsible for the
accuracy and completeness of the Decrease Award Report must
provide a HAND-WRITTEN, ORIGINAL signature. If we receive
your Decrease Award Report without an original signature, we will
return it UNPROCESSED. Print or type the name and title of the
person whose signature appears on the Decrease Award Report.
For Date Signed, print or type the date that the responsible official
signed the Decrease Award Report. For numbers only, for
example, enter November 10, 1996 as 11/10/96.

Please send your Decrease Award Reports to the Herndon (or
Reston), Virginia address provided below. For each 1995-96
Decrease Award Report that you submit, we will return Processed
Payment Vouchers with an IPS Batch Report. We will also adjust
your Federal Pell Grant authorization to reflect the decrease award
amount and we will send you an updated 1995-96 Statement of
Account (SOA).


REGULAR MAIL
U.S. Department of Education
Application and Pell Processing
Systems Division, PSS
P.O. Box 10800
Herndon VA 20172-7009

COURIER SERVICE
U.S. Department of Education
Application and Pell Processing
Systems Division, PSS
c/o PRC, Inc.
ATTN: G-T01 PGRFMS/DMS
12001 Sunrise Valley DR
Reston VA 20191-3423


REQUESTING ADMINISTRATIVE RELIEF

IF YOU FIND ANY INCREASE AWARD ADJUSTMENTS OR
NEW RECIPIENT RECORDS, you may request administrative
relief if: (a) the U.S. Department of Education or one of its
contractors made an administrative or processing error which
prevented you from meeting the September 30, 1996 deadline; or
(b) an event, such as a natural disaster, prevented you from meeting
the deadline. To request Administrative Relief, send a written
statement describing the problem in detail (see 59 FR 146,
April 17, 1996, pp. 39244-39245). We must RECEIVE your
request for administrative relief no later than JANUARY 31, 1997
at the address below:

U.S. Department of Education
Institutional Financial Management Division, AFMS
P.O. Box 23781
Washington DC 20026-0781

If we approve your request for Administrative Relief, we will notify
you by letter. You may then submit the approved student data
through your usual submission media (electronic, tape, diskette,
or Payment Vouchers/Processed Payment Vouchers with an IPS) to
the Herndon (or Reston) address. You must include a copy of our
letter approving your request with your tape, diskette or paper
submission.


ADJUSTING AUTHORIZATIONS THROUGH AUDIT REPORTS

IF YOU FIND ANY INCREASE AWARD ADJUSTMENTS
AND/OR NEW RECIPIENT RECORDS AND DO NOT
QUALIFY FOR ADMINISTRATIVE RELIEF, your institution
may seek funding for such award adjustments when they are
brought to the attention of the U.S. Department of Education in
accordance with either 34 CFR 690.83 (c) or (e) of the Federal Pell
Grant program regulations.

For additional information and instructions concerning the audit
process, please refer to the April 1994 Dear Colleague Letter
GEN 94-14.

Send questions concerning the audit authorization adjustment
process to:

U.S. Department of Education
Audit Resolution Branch, IMD
ATTN: Federal Pell Grant Authorization Adjustments
P.O. Box 23800
Washington DC 20026-3800

You may call the Audit Resolution Branch on (202) 708-8208.
DO NOT SUBMIT AUDIT REPORTS TO THE INSTITUTIONAL
FINANCIAL MANAGEMENT DIVISION, AFMS.

RECONCILING TO FEDERAL CASH TRANSACTIONS
REPORTS (ED/PMS 272A)

As a final reminder, please check with your business office to
ensure that your institution's Federal Cash Transactions Report
(ED/PMS 272A) accurately shows all of your 1995-96 Federal
Pell Grant Expenditures. You can find the program expenditures
from your institution's most recent ED/PMS 272A on your latest
Statement of Account or Electronic Statement of Account.
If the amount reported on your institution's final ED/PMS 272A is
lower than your authorization, we will automatically reduce your
authorization to the ED/PMS 272A level as part of ED's
internal reconciliation process. If this happens, your institution's
authorization may be reduced below your actual need.

If you have any questions concerning these instructions, please refer
to pages 1-34 of the 1995-96 Federal Student Financial Aid
Handbook for a list of Financial Management Specialists
and their telephone numbers. If you cannot reach the Specialist
directly, you may call our central number (202) 708-9807 or contact
us by fax at (202) 401-0387.

Sincerely,


Michele L. Selvage, Director
Institutional Financial Management Division
Accounting and Financial Management Service

Enclosures (2)

**[The enclosures, samples of Decrease Award Reports, are
currently unavailable for viewing on the BBS. Please reference your
paper letter for additional information, or follow the instructions,
below, for downloading the WordPerfect for Windows version of the
letter.]**

Last Modified: 09/30/1996