Maintained for Historical Purposes

This resource is being maintained for historical purposes only and is not currently applicable.

Title IV Reporting Requirements

PublicationDate: 7/1/95
ChapterNumber: 6
ChapterTitle: Title IV Reporting Requirements
SectionNumber: 3
SectionTitle: Department of Education Payment Management System (ED/PMS)
PageNumbers: 246-250


*28*
ED/PMS is an acronym for the Department of Education Payment
Management System. ED/PMS is the central repository for payment
transactions for schools receiving funds from ED through Financial
Services (FS). ED/PMS is a system; FS is the office within ED that
administers the system.

((Award authorizations))
Schools participating in the Federal Pell Grant and campus-based
programs and Level 1 schools in the Federal Direct Loan Program
must request funds through ED/PMS. (Schools do NOT request
FFEL funds through ED/PMS, and Level 2 and Alternative
Origination [Level 3] Federal Direct Loan Schools do not request
funds through ED/PMS.) Each school has an account with ED/PMS
for its Title IV campus-based and Federal Pell Grant funds and a
separate account for its Federal Direct Loan Program funds. Once a
school receives an official award authorization, the authorization
amount is recorded in the school's ED/PMS account and the school
may request payments against the funds available in its account.*29*
The amount of funds available is equal to the advance payment sum
of all funds authorized by program offices within ED MINUS the
funds the school has already received. A school may receive funds
through ED/PMS in advance or by reimbursement.

Schools also use ED/PMS to report Title IV program expenditures,
with the exceptions of expenditures of FFEL and Federal Direct
Loan funds. ( For information about reporting Title IV expenditures
through ED/PMS see section 6.3.2.)

6.3.1 Requesting Payments

((Advance payment))
ED/PMS pays most schools in advance. Schools receive funds from
ED/PMS through the Automated Clearinghouse/Electronic Funds
Transfer (ACH/EFT) system or FEDWIRE.

((ACH/EFT))
ACH/EFT is also referred to as direct deposit. Under ACH/EFT,
ED/PMS electronically transfers a school's payments through the
Federal Reserve Bank (FRB) network to the school's depositor
account at a designated financial institution.

((FEDWIRE))
Under FEDWIRE, funds are transferred directly from ED through
the FRB network to the school's depositor account at a designated
financial institution. FEDWIRE generally is used to transfer funds to
states and some large postsecondary institutions. A bank is allowed
to charge a school a fee for processing FEDWIRE transactions.

((Reimbursement payment))
ED/PMS pays some schools by reimbursement. A school may be
required to go to the reimbursement payment method at the request
of an ED program office. Generally, reimbursement occurs if, in the
past:

- a school did not comply with ED's regulations; OR

- a school did not meet program requirements; OR

- an ED program office identified other problems with a school's
award authorization.

A school's ED/PMS account may also be changed to reimbursement
at the request of FS if:

- the school has defaulted on an agreement to repay a debt due ED
OR

- the school has abused advance payment privileges.

Detailed instructions for enrolling in and using ACH/EFT and
FEDWIRE and for obtaining payments by reimbursement can be
found in Chapter 3 of the ED/PMS Recipient's Guide.

More information about advance payment, reimbursement,
reimbursement payment, ACH/EFT, and FEDWIRE is contained in
Chapter 4 of this book.

6.3.2 Reporting Expenditures

((ED/PMS 272 Report))
The ED/PMS 272 Report is an electronic or paper financial report
that schools use to report on cash disbursements. ED uses the
information from a school's ED/PMS Report to determine if federal
funds financed through ED/PMS are disbursed in accordance with
federal cash management requirements.

A school receives an ED/PMS 272 Report monthly or quarterly from
ED (this is determined by the amount of funds received)*30* for
each general account that it has in ED/PMS. A general account is
one for which a school receives funds and for which it is required to
report disbursements. A school retrieves the monthly report
electronically (see section 6.4.); the quarterly report is mailed to a
school's business office.

Regardless of whether a school reports monthly or quarterly, a hard
copy of the ED/PMS Report contains six documents. (A seventh
document, the Error Correction Document [ED/PMS 272C], was
discontinued as of March 31, 1993.) A sample ED/PMS 272 Report
can be found on pages 281-285.

6.3.2.1 Transmittal Letter

((Documents contained in ED/PMS 272 Report))
Each ED/PMS 272 Report contains a transmittal letter. School fiscal
officers should read the letter carefully, as it contains important
information and notices about federal financial reporting
requirements, such as the deadline for filing the quarterly ED/PMS
Report.

6.3.2.2 Federal Cash Transactions Report: Status of Federal Cash

This report, referred to as the ED/PMS 272 page 1, summarizes a
school's cash status and fund activity through the end of the reporting
period. This summary report must be completed last, after the school
has completed ED/PMS 272A.

6.3.2.3 ED/PMS 272A: Federal Cash Transaction Report

ED/PMS 272A contains a list of awards that are open and active--
that is, those for which a school is receiving funds and reporting
disbursements. This report must be completed before the ED/PMS
272 page 1 is completed.

A school is required to report cumulative cash disbursements (federal
cash transactions) through the end of the reporting period. ED/PMS
272A lists the cumulative amount of each award authorization, along
with prior cumulative disbursements that the school reported for each
award. The report also lists any resolutions of previous problems
with awards.

Specific instructions for completing ED/PMS 272A can be found in
Appendix L of the ED/PMS Recipient's Guide.

6.3.2.4 ED/PMS 272B: Statement of Cash Accountability

This part of the ED/PMS report is similar to a bank statement. It
provides detailed information on disbursements, adjustments, and
itemized payments in a school's ED/PMS account and shows the
amount of cash for which a school is held accountable.

The ED/PMS 272B is used to identify problems with payments
received through ED/PMS. Appendix M of the ED/PMS Recipient's
Guide contains more information about this document.

6.3.2.5 ED/PMS 272F: Authorizations for Future Periods

The ED/PMS 272F lists award authorizations that will be available to
a school at a later date. These awards are not included in the school's
available funds balance, instead they are maintained within ED/PMS
until the start-date of the award. This report is provided for
information only; it does not require any action on the part of the
school.

A complete description of ED/PMS 272F can be found in Appendix
O of the ED/PMS Recipient's Guide.

6.3.2.6 ED/PMS 272G: Inactive Documents Report

A school uses ED/PMS 272G to identify expired awards, the amount
of any unused funds left on the expired award, and the date the
award will close in ED/PMS.

((Automated suspension process))
An automated suspension process is used to close expired awards.
This process identifies awards to be closed and suspends or
deobligates unused funds from them on a quarterly basis. Unused
funds are suspended in the quarter preceding the closing date listed
on the ED/PMS Report.

Funds are suspended when reported disbursements (expenditures) are
less than the authorized award amount. When an award is
suspended, the authorized amount is reduced to the amount of
disbursements a school reported. This reduces the amount of funds
available to the school. Suspended awards are closed in the next
ED/PMS reporting period and are noted on the ED/PMS 272G
Report.

Automated suspension does not replace the current award close-out
process, nor does it replace any function that falls under the
responsibility of an ED grant or program office that issues awards.

Appendix P of the ED/PMS Recipient's Guide gives detailed
information about using the ED/PMS 272G.


*28* NOTE: Two Dear Colleague Letters were anticipated at the
time this edition was written that provide new procedures for
handling Pell, ACA, and Perkins Loan cancellations through
ED/PMS.

*29* There is no official award authorization amount for the
William D. Ford Federal Direct Loan Program. Direct Loan funds
are requested on the basis of a school's immediate need.
(See Chapter 4.)

*30* Note: This monthly or quarterly process does not fluctuate
month-to-month or quarter-to-quarter. Once a grantee is reporting
monthly, it continues to report monthly.

Last Modified: 06/30/1995