Posted Date:September 4, 2015
|Author:||Sue O'Flaherty, Service Director, Program Management, Federal Student Aid|
Subject: Additional TEACH Grant Closeout Information for 2014-2015 Award Year
In a June 5, 2015 Electronic Announcement, we provided Teacher Education Assistance for College and Higher Education (TEACH) Grant Closeout information for the 2014-2015 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 2014-2015 Award Year.
The processing deadline to submit TEACH Grant award and disbursement records is 9:00 P.M. (ET) on Wednesday, September 30, 2015. 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 2014-2015. Any 2014-2015 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 8:00 A.M. (ET) on Wednesday, September 30, 2015, 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 the 2014-2015 TEACH Grant awards is September 30, 2015, existing regulations for drawing/returning funds and reporting disbursements supersede this deadline date. By meeting these regulatory requirements, a school should be able to reach a Zero Ending Cash Balance shortly after making final disbursements for the award year, rather than waiting for the September 30, 2015 final processing deadline.
Note: In other Electronic Announcements posted on September 4, 2015, we provide comprehensive information related to activities and deadlines that coincide with the September 30, 2015 processing deadline for the 2014-2015 TEACH Grant Award Year. These other announcements are about the end of the Federal fiscal year and the Pell Grant and Iraq and Afghanistan Service Grant 2014-2015 Award Year processing deadline. Schools should also refer to these announcements to ensure that all applicable 2014-2015 origination, disbursement, and change records are submitted and accepted prior to the processing deadlines to allow funding increases to process and the school to drawdown any additional funds as appropriate.
When is the deadline for drawdowns, drawdown adjustments, and/or refunds of cash?
Drawdowns, drawdown adjustments, and/or refunds of cash must be requested no later than 9:00 P.M. (ET) on Wednesday, September 30, 2015.
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 processing deadline.
Note: Refunds of cash can take up to 7-9 days to process through G5 and be reflected in the COD System. Refunds processed in close proximity to the processing deadline will not be included in your final balance as reflected on the final TEACH Grant SAS. Refunds should be made as soon as possible, and within regulatory requirements.
How can a school review its current balances?
Schools should refer to their most recent TEACH Grant SAS for their official ending cash balance, and to perform monthly reconciliation.
To view up-to-date cash balance information at any time, schools may access the COD Web site, School Funding Information Screen. The School Funding Information Screen is updated daily and allows a school to review its Net Drawdowns, Net Accepted & Posted Disbursements, and Cash > Net Accepted & Posted Disbursement balances.
How will a school learn its final balance?
In early October 2015, we will produce a final 2014-2015 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 2014-2015 and should be kept as part of your reconciliation documentation.
What if a school does not successfully close out by the deadline?
Any school that has not successfully closed out by the processing deadline and has a positive Ending Cash Balance will be sent a Final Demand Letter requesting the return of the outstanding balance as a refund of cash. 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.
Any school that has not successfully closed out by the processing deadline and has a negative Ending Cash Balance will be sent a Negative Balance Letter requesting the resolution of the outstanding balance.
We appreciate your cooperation as we work to close out the 2014-2015 TEACH Grant Award Year. If you have questions about this announcement or need assistance with closeout, please contact the COD School Relations Center at 800/474-7268. You may also e-mail CODSupport@ed.gov.