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Summary: Federal Pell Grant 2005-2006 Award Year Initial Authorization for Advanced Funded Schools

Publication Date: May 20, 2005

Author: G. Kay Jacks, General Manager, FSA Application, School Eligibility and Delivery Services

Summary: Federal Pell Grant 2005-2006 Award Year Initial Authorization for Advanced Funded Schools

Posted on 05-20-2005

We have processed the Federal Pell Grant Initial Authorization for the 2005-2006 Award Year, for schools receiving Federal Pell Grant funds under the advanced funding method. A school's Initial Authorization, known in the Common Origination and Disbursement (COD) System as Current Funding Level (CFL), was determined based on a percentage of the disbursement data submitted and accepted during the 2004-2005 Award Year. Shortly, we will generate an Electronic Statement of Account (ESOA) listing the amount of the school's Initial CFL for the 2005-2006 Award Year and send it to the school's SAIG mailbox in the message class PGAS06OP.

Notes:

  • Schools participating in the Just in Time pilot and schools on Reimbursement, Heightened Cash Monitoring 1 (HCM1), or Heightened Cash Monitoring 2 (HCM2) have not received an Initial CFL. These schools are eligible for a CFL once actual disbursements have been accepted and posted. A new ESOA is sent to a school each time its CFL amount changes.
  • Schools that will send and receive Pell Grant origination and disbursement data to the COD System using the Extensible Markup Language (XML) Common Record for the first time in 2005-2006 and that have not yet demonstrated successful transmission of the XML Common Record will receive an Initial CFL equal to 5 percent of the school's 2004-2005 Net Accepted and Posted Disbursements (NAPD). As a reminder to these schools, we are implementing this precautionary funding limitation to minimize the possibility of funds being drawn down when it is possible that records documenting the use of those funds will not be accepted by the COD System. The Initial CFL for these schools will be increased to its full amount (generally, 50 percent of the school's 2004-2005 NAPD) after successful demonstration of XML Common Record processing capability.

An advanced funded school can view its Initial CFL on the School Summary Information screen and the Funding Information screen on the COD Web site at www.cod.ed.gov/. This information will not be available for viewing on the Department's Grant Administration and Payment System (GAPS) Web site until Friday, July 1, 2005. 2005-2006 Award Year funds will not be available for drawdown in the GAPS until July 1, 2005.

Although 2005-2006 Pell Grant funds will not be available in the GAPS until July 1, 2005, the COD System will accept actual disbursements beginning June 21, 2005. As a school submits actual disbursements, the total accepted and posted amount for each disbursement is applied to the amount of the Initial CFL. Only after the Initial CFL amount has been reached will the school's CFL be increased to cover additional accepted and posted disbursements. A new ESOA is sent to the school each time its CFL amount changes.

At this time, we want to remind schools of the following disbursement-related information:

  • The earliest date on which a school may disburse a Pell Grant for the 2005-2006 Award Year, either with Federal funds or its own funds, is July 1, 2005.
  • A school can submit a disbursement with a Disbursement Release Indicator (DRI) equal to false at any time. The COD System will accept and respond to an anticipated disbursement but will not generate a funding transaction until the DRI is changed to true.
  • The DRI must be equal to true in order for a CFL adjustment to occur.
  • The COD System will accept actual disbursements up to 30 days before the disbursement date. However, the COD System will not create a CFL adjustment until seven days before the disbursement date.

If you have any questions about this announcement, contact the COD School Relations Center at 800/4PGRANT. You may also e-mail CODSupport@acs-inc.com.