Bulletin ID
DLB - 99 - 31
| PublicationDate: 6/1/99 BulletinID: DLB - 99 - 31 June 1999 DLB 99-31 Subject: Program Year Closeout Steps and Tools Dear Partner: Direct Loan Bulletin 99-30 provided you with information on the closeout process for the 1997-98 Direct Loan program year. The following steps and recommendations offer additional assistance on closing out the program year and guidance on using the 732-LOS files. 1. Query internal system for batches not sent to the Loan Origination Center (LOC); for batches sent to the LOC but not acknowledged; for acknowledgment received from the LOC but not imported into the school's system; for records rejected by the LOC that have not been corrected and re-transmitted by the school; for unbooked loans: loans with origination records and promissory notes but no first disbursement record; loans with origination records and first disbursement records but no promissory note; any other queries as necessary to determine whether there are unbooked loans on your system. 2. Review 30 Day Warning Report Determine whether loans on the report are still valid. Submit missing promissory notes or disbursements records. Cancel any loans that will not be disbursed. 3. 732-LOS File Import the 732-LOS Summary file (DIS498OP). Compare total balances for cash receipts, returns of excess cash, booked disbursements and unbooked disbursements to total balances on the school's internal system. If balances do not agree, import the 732-LOS Detail file (DIS598OP). Compare cash records (drawdowns and returns of excess cash) to institutional bank records. Compare loan records to the records on school internal systems. Resolve discrepancies: Cash Discrepancies:As a result of the conversion to the Grants, Administration and Payment System (GAPS) for schools to draw down Direct Loan funds, there are many instances where drawdowns and excess cash have been recorded in the incorrect program year at the Loan Origination System.If you have determined that drawdowns/returns of excess cash are missing from the 732-LOS, call the LOC to determine whether those drawdowns/returns of excess cash were allocated to another program year instead of 1997-98. Loan Discrepancies: If loan amounts do not agree, determine whether all disbursement transactions for the loan have been sent to the LOC. Transmit any outstanding disbursements to the LOC. If all disbursements have been submitted, contact the LOC to determine why loan amounts do not agree. In any other situations where cash or loan discrepancies exist, call the LOC for assistance in getting the records corrected. The Direct Loan Client Account Managers have developed a Microsoft Access application (compare program) to assist schools in the comparison of school data with the 732- LOS data provided by the LOC. Schools that are interested in using this program as a tool for reconciling their 732-LOS data to their internal records should contact their Regional Direct Loan Client Account Manager for information and assistance on using this application. Please note that the Access application is only a tool to aid in the closeout process. It will not create a zero balance or find ALL discrepancies. The compare program can only find things that are different within the system and the 732-LOS report. For example, if a group of disbursements was never entered into the software or school system, there is no way to detect that with the compare program. The school should balance all internal systems before using this program. Please remember that the 1997-1998 closeout deadline is July 31, 1999. Thank you for your continued support of the Direct Loan Program. Sincerely, Margaret E. White Acting Chair Direct Loan Task Force |