Maintained for Historical Purposes

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

Summary: Final Administrative Cost Allowance Payment for 2000-2001

Publication Date: August 21, 2002

Author: General Manager: FSA School Channel

Summary: Final Administrative Cost Allowance Payment for 2000-2001


Posted on 08-21-2002

TO: All Destination Points
FROM: Pell Grant Operations
SUBJECT: Final Administrative Cost Allowance Payment for 2000-2001

The Recipient Financial Management System (RFMS) has processed the third and final Administrative Cost Allowance (ACA) payment for 2000-2001.

On August 19, 2002 the Federal Pell Grant program began processing the third and final Administrative Cost Allowance payment for 2000-2001. Please share this information with your business office. An electronic file (PGTX01OP) containing a brief text message about the amount of the ACA and the number of unduplicated recipients submitted for your school will be sent through SAIG. This text file can be opened in WordPad, WORD or WordPerfect.

Section 690.10 of the Federal Pell Grant regulations authorizes payment of five dollars for each unduplicated Pell Grant recipient. Schools 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 whom 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;

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

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)were rejected. (Recipients are not included until an acceptable disbursement record received).

The U.S. Department of Education's Grants Administration and Payment System (ED/GAPS) will forward 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.

To ensure your ACA payment includes each of your Federal Pell Grant Recipients you must report an acceptable disbursement record within thirty days of paying the student.

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. We will shortly calculate and send the second round of ACA payments for the 2001-02 award year.

If you have any questions, please call the COD Customer Relations number at 1-800-474-7268 and specify the 2000-01 award year.

Last Modified: 08/20/2002