Posted Date:September 6, 2012
|Author:||William Leith, Service Director, Program Management, Federal Student Aid|
Subject: Additional TEACH Grant Closeout Information for 2011-2012 Award Year
In a May 31, 2012 Electronic Announcement, we provided Teacher Education Assistance for College and Higher Education (TEACH) Grant Closeout information for the 2011-2012 Award Year. This announcement provides additional information to supplement the previous guidance. As a reminder, to be considered successfully closed out, a school must--
Have an Ending Cash Balance (Net Drawdowns – Total Net Booked Disbursements) of $0 and Total Net Unbooked Disbursements of $0, as reflected on its TEACH Grant School Account Statement (SAS) Report.
When is the processing deadline?
There are two separate deadlines for a school to consider as it completes TEACH Grant processing for the 2011-2012 Award Year.
The processing deadline to submit TEACH Grant award and disbursement records is 8:00 P.M. (ET) on Friday, September 28, 2012. The COD System subsequently must accept all records submitted by the processing deadline in order for them to be included in the school's final TEACH Grant Ending Cash Balance for 2011-2012. Any 2011-2012 Award Year batches or records received after the processing deadline will be rejected and returned to the school.
However, for actual disbursements to generate the appropriate funding level increase in G5 prior to the scheduled G5 shutdown, they must be received by the COD System no later than 9:00 A.M. (ET) on Friday, September 28, 2012, and subsequently accepted. (See the Note below for additional information and related Electronic Announcements). Schools should plan final closeout efforts accordingly.
Although the final processing deadline for 2011-2012 TEACH Grant awards is September 28, 2012, a school must follow all existing regulations for drawing funds and reporting disbursements in a timely manner. Most schools should be able to reach a Zero Ending Cash Balance much earlier than the September 28, 2012 deadline.
Note: In other Electronic Announcements posted on September 6, 2012, we provide comprehensive information related to activities and deadlines that coincide with the September 28, 2012 closeout deadline for 2011-2012 TEACH Grant awards. These announcements are about the end of the Federal fiscal year and the deadline for 2011-2012 Iraq and Afghanistan Service Grant and Pell Grant awards. Schools should also refer to these announcements to ensure that 1) all necessary reports are obtained and 2) all applicable 2011-2012 origination, disbursement, and change records are submitted and accepted prior to the outages to allow funding increases to process as appropriate.
When is the deadline for drawdowns and/or drawdown adjustments?
Drawdowns and/or drawdown adjustments must be requested by 8:00 P.M. (ET) on Friday, September 28, 2012.
As of this deadline, all schools will have their Current Funding Level (CFL) reduced to Net Drawdowns/Payments on the COD System, preventing access to further funds through G5. Accordingly, schools should request necessary drawdowns as soon as possible to ensure the requests are processed prior to the TEACH Grant closeout deadline.
How will a school learn its final balance?
In early October 2012, we will produce a final 2011-2012 TEACH Grant SAS Report and send it to all schools. This will serve as a final record of the school's official Ending Cash Balance for 2011-2012.
What if a school does not successfully close out by the deadline?
Schools that have not successfully closed out by the processing deadline and have a Positive Ending Cash Balance will be sent a Final Demand Letter requesting the return of the outstanding balance as a refund of cash. Final Demand Letters will be mailed by April 2013. If the outstanding balance is not paid by the deadline noted in the letter, a receivable will be established and the school will be billed accordingly.
Schools that have not successfully closed out by the processing deadline and have a Negative Ending Cash Balance will be sent a Negative Balance Letter requesting the resolution of the outstanding balance. Negative Balance Letters will be mailed by April 2013.
We appreciate your cooperation as we work to close out the 2011-2012 TEACH Grant Award Year. If you have questions about this announcement or need assistance with closeout, please contact the COD School Relations Center at 800/848-0978. You may also e-mail CODSupport@acs-inc.com.