Summary: Second Administrative Cost Allowance Payment For 2002-2003

Publication Date: September 2, 2003

Author: General Manager: FSA Schools Channel

Summary: Second Administrative Cost Allowance Payment For 2002-2003

 

Posted on 09-02-2003

To: Financial Aid Community
From: � General Manager, School Channel, FSA
Re: Â Â Â Â Â Â Â Â Second Administrative Cost Allowance Payment For 2002-2003

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The Common Origination & Disbursement (COD) system will began processing the second Administrative Cost Allowance (ACA) payments for 2002-2003 for over 3400 schools on August 28.  Schools will begin to see these payments deposited directly into their bank accounts in the coming week.  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 web site (http://cod.ed.gov).

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·        The “Total Unduplicated Recipients” field is a count of unduplicated recipients for the 2002-2003 Award Year.Â

·        The “ACA” field is the dollar amount paid to the school to date for the award year.

·        The “Last ACA Payment Date” is the last date for which ACA payments were paid for the award year.

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Please note; the School Funding Information screen is incorrectly displaying ACA payment for attending schools. Refer to the COD Processing Update item titled “COD Financial Screens Incorrect on COD Web Site” for continued updates on this issue.

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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.

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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 but for whom COD has not received accepted disbursement records.

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.

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This latest ACA payment is based on records COD has processed since the first run of ACA on June 6, 2003, and includes any additional recipients at your institution, including those in item 4 above whose data you resolve and resubmit correctly. .

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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.

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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 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.