Publication Date: March 20, 2006
Author: G. Kay Jacks, General Manager, FSA Application, School Eligibility and Delivery Services
Summary: Third and Final Pell Grant Administrative Cost Allowance Payments for 2004-2005 Award Year
Posted on 03-20-2006
Administrative Cost Allowance Payment Background
The Federal Pell Grant regulations at 34 CFR 690.10 provide for an Administrative Cost Allowance (ACA) payment of $5.00 to each participating school for each student who receives a Federal Pell Grant at that school for an award year. 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.
ACA payment amounts are not included in a school's Current Funding Level (CFL) but are direct payments made to a school based on its unduplicated student recipient information. A school's total number of Federal Pell Grant unduplicated recipients, used in the calculation of the ACA payment, includes students with at least one reported accepted actual disbursement (DRI = true) in the Common Origination and Disbursement (COD) System. A student will be included in the calculation even if there is a full recovery of the entire Federal Pell Grant award.
A school's total unduplicated recipient count excludes students-
Third and Final Administrative Cost Allowance Payments for 2004-2005 Award Year
The third and final ACA payment for the 2004-2005 Award Year is based on records that the COD System has processed from the date we processed the second ACA payments for the 2004-2005 Award Year (August 26, 2005) up to the date that we process the third and final ACA payments for the 2004-2005 Award Year. We began processing the third and final ACA payments for all schools on March 18, 2006. Schools will begin to see these payments deposited directly into their bank accounts over the next few weeks.
The Department's Grant Administration and Payment System (GAPS) forwards ACA payments electronically through the Federal Reserve Bank of Richmond, VA into schools' bank accounts. If a school has not initiated a direct deposit form (Standard Form 1199A) to establish a unique bank account for ACA payments, the GAPS will automatically deposit these funds into the school's existing account. Schools do not need to acknowledge receipt of ACA payments. However, we ask that schools forward a copy of this announcement to their Business offices for inclusion in 2004-2005 Award Year records.
ACA payment amount notifications will be sent to reporting schools. Specifically, we will send an Electronic Statement of Account (ESOA) (Message Class PGAS05OP) that reflects the ACA payment amount to the reporting school's Student Aid Internet Gateway (SAIG) mailbox. Additionally, the ACA payment amount will be displayed on the School Funding Information screen on the COD Web site (www.cod.ed.gov). On the School Funding Information screen-
If your school needs assistance in identifying the bank account into which the ACA payment was deposited, call the GAPS Hotline at 888/336 8930.
If your school does not receive an ACA payment (and your school has submitted actual disbursements for the 2004-2005 Award Year that were accepted by the COD System since August 26, 2005), contact the COD School Relations Center at 800/4PGRANT. You may also e-mail CODSupport@acs-inc.com.