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() Summary: Guidance for 2001-2002 Reconciliation – Early Closeout Deadline

Publication Date: June 2002

Bulletin ID: DLB-02-20


Summary: Guidance for 2001-2002 Reconciliation -- Early Closeout Deadline


June 2002

DLB-02-20

Subject: Guidance for 2001-2002 Reconciliation -- Early Closeout Deadline

Dear Partner,

This bulletin is intended to provide some guidance to schools about the final closeout process for the 2001-2002 Program Year. The Loan Origination Center will be transferring all processing functions to the COD School Relations Center in early 2003. In order to ensure a smooth transition and minimize data migration to the new center, the 2001-2002 program year must be closed out by December 31, 2002. (Please note: For schools that are processing using a Borrower-Based Academic Year, we will accommodate those records that may fall beyond the 12/31/2002 date.)

To be considered successfully closed out, schools must have an ending cash balance of zero, as reflected on their DLSAS/732 report. Your school will be receiving a status letter shortly, which will provide your Ending Cash Balance, Unbooked Loan Balance, and your latest reported loan period end date for the 2001-2002 Program Year. We hope that this information will assist you in your reconciliation and closeout process.

A key factor to an easy reconciliation and closeout process is staying on top of the process. We encourage schools to complete some simple steps while reviewing their internal records and the records at the Loan Origination Center:

· Ensure drawdowns and excess cash are accounted for and applied to the correct program year.

· Ensure all student disbursements as well as adjustments are accurate, reported, and accepted.

· Ensure all batches have been sent and accepted.

· Resolve all outstanding rejected records.

· Return all unused funds/excess cash to the Loan Origination Center.

Reconciliation should be performed on a monthly basis. The final closeout stage should begin as of the last loan period end date of a school's processing year. Further, all final disbursement records, promissory notes, and any changes should be submitted within 30 days of the disbursement date to meet the 30-day reporting requirement. Also, as a reminder, all excess cash not used within 3 business days should be returned to the Department as excess cash (with some exceptions granted that could give an additional 7 calendar days). In other words, most of your closeout activity should occur shortly after you finish disbursing for the Program Year.

There are numerous tools and assistance available to aid in reconciliation efforts including:

· DLSAS/732 Reports

· 30 Day Warning Reports

· GAPS

· DL Tools 732 Compare Program

· Customer Service Representative/Reconciliation Accountant assistance

· Client Account Manager assistance

If you have any questions about the closeout process or about this bulletin, please contact the Loan Origination Center at 1-800-848-0978 or your regional Client Account Manager.

We thank you for your support in the reconciliation effort and for your ongoing partnership in the Direct Loan Program.

Sincerely,

Jane Holman
Acting Director, Title IV Delivery
Schools Channel

Post Script: For schools that are currently working on any prior year balances, please continue to do so. The final closeout date for 2000-2001 has not changed and will remain July 31, 2001. The 2000-2001 program year and all prior years must be completely closed out in order to effectively transition to the COD School Relations Center in early 2003.