Maintained for Historical Purposes

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

Administrative Cost Allowance

PublicationDate: 5/1/2000
Summary: Administrative Cost Allowance
Author: PSS - Program Systems Service


Posted on May 1, 2000

TO: All Destination Points
FROM: Pell Grant Processing
RE: Administrative Cost Allowance

THIS MESSAGE: Announces RFMS has begun to process the Administrative Cost Allowance

On April 20, 2000 the Federal Pell Grant program began to process the first Administrative Cost Allowance (ACA) payment for 1999-2000. You should begin to see these funds deposited into your bank account in the coming days.
Please share this information with your business office.

Section 690.10 of the Federal Pell Grant regulations authorizes this payment. You may only use these funds to defray the costs of administering the Federal Pell Grant, Federal Supplemental Educational Opportunity Grant, Federal Work-Study and Federal Perkins Loan programs. In your total number of Federal Pell Grant recipients, we include the students that you reported disbursements for who subsequently dropped out of school with a full recovery of their Federal Pell Grant award, as well as students who transferred into or out of your institutional system.

Your total recipient count excludes the following:

1. Applicants determined ineligible for a Federal Pell Grant or rejected by the Central Processing System -- do not report these students to us;

2. Students that you have submitted origination records for but you have not received an accepted disbursement acknowledgment from RFMS for;

3. Recipients whose disbursement record(s) were previously submitted and accepted (multiple records including negative disbursements and duplicate records are not included); and

4. Students whose disbursement record(s) we reject and do not retain (recipients are not included until an acceptable disbursement record is received).

The U.S. Department of Education's Grants Administration and Payment System (ED/GAPS) has forwarded this ACA payment electronically through the Federal Reserve Bank of Richmond, VA. If your institution has not initiated a direct deposit form (Standard Form 1199A) to establish a unique bank account for ACA payments, ED/GAPS automatically deposits these funds into your existing account. If you do not receive a payment (and you have submitted disbursement records that were accepted by RFMS) or if you need assistance in defining your proper bank account, please call the GAPS Hotline at 1-888-336-8930.

In the late summer of 2000 we will make a second adjustment to your 1999-2000 ACA for the additional recipients at your institution, including students included in item 4 above whose data you resolve and resubmit correctly. To ensure your ACA payment counts each of your Federal Pell Grant Recipients, you must report an acceptable disbursement record within thirty days of paying the student.

The RFMS program has sent by electronic file (PGTX00OP) through TIV WAN a brief text message about the amount of the ACA and the number of unduplicated recipients submitted for your school. This text file can be opened in Wordpad, WORD or Word Perfect.

We do not need your institution to acknowledge that you received your Administrative Cost Allowance payment. Please forward a copy of this notice to your Business office.

If you have any questions, please call the Pell Grant Hotline at 1-800-474-7268.

Last Modified: 04/30/2000