Publication Date: February 2003
Bulletin ID: DLB-03-04
Summary: Important 2001-2002 Closeout Information: Final Program Review and Determination Process
Posted on 02-03-2003
February 2003
DLB-03-04
Subject: Important 2001-2002 Closeout Information: Final Program Review and Determination Process
Dear Partner,
The final deadline for 2001-2002 closeout has passed. As of January 31, 2003, the Loan Origination Center (LOC) has discontinued processing of all 2001-2002 electronic batches and manual changes to loan information. Any batch data received after this date will be placed in a hold file and will not be processed unless appropriate steps are taken by your school and approval is granted by the Department (see below for more information). A 732 report was run after processing was completed on January 31, 2003 and will be sent to schools early next week. The ending cash balances provided on this report will be used to determine further correspondence with schools.
What if I have a positive ending cash balance?
Schools with an outstanding positive balance (a balance greater than zero) will begin the Final Program Review and Determination (FPRD) process as allowed by Subpart H, Sections 668.113 and 668.114 of the Federal Register. You should receive your FPRD letter by mid-February. Please note that copies of the FPRD letters are sent to the school's state and/or accrediting agencies. If your school has any remaining borrower-based loans needing to be disbursed, please see below.
The FPRD process allows for an appeal. You will receive appeal process instructions in the FPRD letter. Please be as specific as possible in your appeal. For example:
· If you sent batches to the LOC after January 31, 2003, please provide detailed information, such as batch id and number of records in the batch.
· If you sent a check to the Payment Center that was applied as a payment, but it should have gone to the LOC as excess cash, the LOC will need a copy of the check (both front and back).
Further, it is important that you return your appeal as soon as possible, rather than waiting for the appeal deadline. This will enable the Department to efficiently process the appeals. Schools that wait to appeal or who provide incomplete information may experience delays.
If your school returns the appeal within the required time frame and it is approved, you may be contacted by the LOC for additional information to resolve any outstanding issue outlined in your appeal. However, despite a written appeal, you must submit all data electronically to the LOC, as allowed by 34 CFR 685.300 (b)(11). If an additional extension is requested and approved, the Office of Hearing and Appeals will notify you in writing with further instructions.
What if I have a negative ending cash balance?
Schools with an outstanding negative balance (a balance less than zero) will not receive an FPRD at this time. However, if you have any outstanding issues that need to be resolved, please contact the LOC. If you need to request a final drawdown, you should contact Sharon.Smith@ed.gov and send a cc: to Isiah.Dupree@ed.gov.
What if my school has a balance, but has borrower-based loans that still have eligible anticipated disbursements to be made after January 31, 2003?
All schools with a positive balance will receive an FPRD letter at this time. There will be no exceptions for schools specifically because you are processing with a borrower-based year. However, we will make every effort to reduce the balance by considering records for borrower-based loans that may be reflected in this balance. If your school has additional disbursements to report that are within regulatory requirements, regardless of whether they directly contribute to your ending cash balance as of January 31, 2003, please make sure to provide this information in your appeal.
What if I do not receive a FPRD letter or have a zero balance, but have borrower-based loans that still have eligible anticipated disbursements to be made after January 31, 2003?
Some schools may have borrower-based loans or late disbursements that need to be disbursed later this spring. You will be allowed to make and report these additional disbursements as needed and to request funds accordingly. However, if you plan to report additional disbursements to the Department under this process, please contact the LOC for assistance and approval for this extended processing.
When these disbursements need to be made, you will be expected to comply with all applicable cash management and disbursement reporting regulations. You will also be expected to complete final closeout within 30 days of the date of the last expected disbursement {34 CFR 685.301(d)(1, 2)}.
We appreciate your cooperation and hard work in the reconciliation effort. If you have any questions about closeout or the information in this bulletin, please contact your customer service representative for 2001-2002 at 800/848-0978.
Sincerely,
Jane Holman
Acting Director, Title IV DeliverySchools Channel