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Summary: First Administrative Cost Allowance Payment For 2002-2003

Publication Date: June 6, 2003

Author: General Manager: FSA Schools Channel

Summary: First Administrative Cost Allowance Payment For2002-2003


Posted on 06-06-2003

To: Financial Aid Community and All Destination Points

From: G. Kay Jacks, General Manager, School Channel, FSA

Re: First Administrative Cost Allowance Payment For 2002-2003

The Common Origination & Disbursement (COD) system will begin processing the first Administrative Cost Allowance (ACA) payments for 2002-2003 on June 14. Schools will begin to see these payments deposited directly into their bank accounts in the coming weeks. ACA amount notifications will not be sent to individual schools via SAIG mailboxes. Instead, these amounts will be displayed on your reporting school's Electronic Statement of Account (ESOA) and on the School Funding Information screen on the COD Website (http://cod.ed.gov).

ACA amounts are not included in the Current Funding Level (CFL) totals but are direct payments to schools based on student recipient information. Section 690.10 of the Federal Pell Grant regulations authorizes a payment of five dollars for each Federal Pell Grant recipient. These funds may be used only to defray the costs of administering the Federal Pell Grant, Federal Supplemental Educational Opportunity Grant, Federal Work-Study and Federal Perkins Loan programs. The total number of Federal Pell Grant recipients includes students with reported disbursements 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.

2. Students for whom origination records were accepted in COD for but who COD has not received an accepted disbursement.

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

4. Students whose disbursement record(s) are rejected.

This ACA payment is based on records COD has processed since the start-up of the 2002-2003 year through June 6. In the next few months, COD will issue a second payment of your 2002-2003 ACA for any additional recipients at your institution, including those in item 4 above whose data you resolve and resubmit correctly.

The U.S. Department of Education's Grants Administration and Payment System (ED/GAPS) forwards ACA payments 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 COD) or if you need assistance in defining your proper bank account, please call the GAPS Hotline at: 1-888-336-8930.

We do not need your institution to acknowledge that you received your Administrative Cost Allowance payment. But we ask that you please forward a copy of this notice to your Business office ts for the 2002-2003 Award Year. If you have any questions, please call the COD School Relations Center at: 1-800-4PGRANT or e-mail CODSupport@acs-inc.com.