Maintained for Historical Purposes

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

Administrative Cost Allowance Payment

PublicationDate: 8/15/2000
Summary: Administrative Cost Allowance Payment
Author: General Manager: SFA School Channel

Posted on August 15, 2000

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

THIS MESSAGE: Announces RFMS has begun to process the Second Administrative
Cost Allowance for 1999-2000

On August 10, 2000 the Federal Pell Grant program began to process the second
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

3. Recipients for whom you previously received an ACA Payment for the
1999-2000 Award Year 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 2001 we will make a third 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 1-800-4PGRANT
(1-800-474-7268) or via e-mail at

Last Modified: 08/14/2000