| Publication Date: August 1, 2006 Author: G. Kay Jacks, General Manager, Application, Operations and Delivery Services, Federal Student Aid Summary: HERA Operational Implementation Guidance (CPS, COD System, and EDExpress Suite) -National SMART Grant 2006-2007 Award Year Initial Authorization Posted on 08-01-2006 As explained in an Electronic Announcement posted on July 18, 2006, we have processed the National Science and Mathematics Access to Retain Talent Grant (National SMART Grant) Initial Authorizations for the 2006-2007 Award Year. The calculation of Initial Authorization, known in the Common Origination and Disbursement (COD) System as Current Funding Level (CFL), amounts was based on the following four considerations:
Because National SMART Grant is a new program, we do not yet have information that would enable us to target funds to schools based on prior history of National SMART Grant recipients. For this reason, we made calculations based on the proportional volume of 2005-2006 Pell Grant recipients at 4-year degree-granting schools and the limited amount of funds that has been appropriated for this program. In some instances, this resulted in amounts that were less than a full National SMART Grant award, and, therefore, these schools have not received an Initial CFL. If a school does not initially receive funding but has identified eligible disbursements between now and December 16, 2006, a request for funding can be made as described below. In addition to schools not qualifying for an Initial CFL based on projected low volume, schools on the Reimbursement funding method or the Cash Monitoring funding method under 34 CFR 668.162(e)(2), that is, Heightened Cash Monitoring 2 (HCM2), also have not received an Initial CFL. In a separate communication, we informed a school that is eligible to process National SMART Grant awards and that receives funds under the Reimbursement or HCM2 funding method how we will handle its funding. A school that meets the criteria has received a 2006-2007 Initial CFL for the National SMART Grant Program. We anticipate that the Initial CFL will be sufficient for the school to disburse National SMART Grant funds until the school can submit disbursement records to the COD System beginning December 16, 2006. We are in the process of generating and sending an Electronic Statement of Account (ESOA) that lists the amount of a school's Initial CFL for the National SMART Grant Program for the 2006-2007 Award Year. We will send the ESOA to the school's Student Aid Internet Gateway (SAIG) mailbox in the message class SGAS07OP. A school will be able to view its Initial CFL on the Funding Information screen on the COD Web site. Beginning this week, but no earlier than August 2, 2006 (the effective date of the National SMART Grant regulations), the school will be able to draw down funds for National SMART Grant awards, as applicable, via the Grant Administration and Payment System (GAPS). The school must draw down and disburse National SMART Grant funds in accordance with the cash management regulations in 34 CFR 668 Subpart K. Note: The GAPS Award Number for the National SMART Grant Program is P376S06xxxx. The "xxxx" will be populated with a school's GAPS award sequence number that currently exists for the Pell Grant and Direct Loan programs.
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