Summary: Federal Pell Grant Program Verification Status Code "W" Deobligation
Author: General Manager: SFA School Channel
Posted on August 28, 2000
TO: All Destination Points
FROM: Pell Grant Processing
RE: Federal Pell Grant Program Verification Status Code "W" Deobligation
The Recipient Financial Management System (RFMS) has reduced
to zero ($0.00) all award payments previously accepted for any
student on file with a Verification Status Code of "W" as of
August 25, 2000. This is in accordance with Federal regulation
34 CFR 668.50. Schools were allowed to pay students with a Verification
Status Code of "W" one payment of up to 50% of their scheduled award.
With this action, the previously accepted student payment transactions have
been deobligated and will be reflected in your school's authorization amount
in the Department's Grants Administration and Payments System (GAPS).
A PGTX warning message and list of students who still had Verification Status
Code of "W" as of June 26, 2000 was sent to the effected schools on July 1, 2000.
Schools with obligation amounts effected by this procedure will
receive a PGTX file indicating the number of students and total amount of
decrease. They will also receive a system-generated negative
disbursement file; a new Statement of Account reflecting the
decrease will be sent when the funds are deducted from the school's
obligation amount. The system-generated negative disbursement will
- Message class PGDA00OP or PGSD00OP
- Record length 200 for PGDA00OP and 210 for PGSD00OP
- Batch Type #G
Schools having an excess cash balance as a result of our "zeroing out" your W
verification status recipient(s) should return the excess funds to GAPS unless
you will be using these funds within the time proscribed in the cash management rules.
Schools that do not receive a PGTX file or #G file, did not have any
students with Verification Status Code "W" and they will not be
affected by this process.
If RFMS "zeroed out" any recipients who are entitled to Pell assistance
schools should submit an updated origination record with the correct
verification status code (and transaction number if necessary). Please be aware, if
corrections to the ISIR are necessary, the deadline for electronic
corrections is August 25, 2000 (for more information on deadlines see-
Federal Register, July 30, 1999). CPS (1-800-330-5947) can answer
questions about the ISIR corrections process. Corrections to the
origination record will be accepted through October 2, 2000.
After an updated origination record has been accepted, schools may
submit disbursement records for disbursements that had been previously
approved and then deobligated and for any remaining disbursements that
were paid to the student. These disbursements must be submitted with
a new disbursement reference number and received by October 2, 2000.
If you have any questions, please contact Pell Grant Customer Service
at 800-4PGRANT (1-800-474-7268) or send e-mail to email@example.com