Maintaining and Accounting for Funds Segregate Pennsylvania State Grant funds Only use for eligible students May not use for any other purpose such as: Paying operation expenses Earning interest Generating revenue Accounting Financial records must identify all State Grant transactions If no separate bank account: Control systems must identify balance that is State Grant Maintaining and Accounting for Funds Bank Account Identify ‘PA State Grant’ in name of the account whether separate account or not Setting Up/Changing ACH only Contact [email protected] (PHEAA’s Financial Management department) to revise ACH when you change banks, bank closes, account numbers change, etc. Cash Management Adequate Cash Management System, adheres to: Procedures Deadlines PHEAA procedures in place to: Promote sound cash management of State Grant funds; Provide PHEAA disbursement information to enable budgeting and improve forecasting accuracy; and Minimize costs to the Commonwealth of making funds available to students through the schools Refunds to PHEAA Overaward/Overpayment Reduced and/or Cancelled Awards Program Review Findings Remittance Method Check ACH/wire transfer Remit To: PHEAA, P.O. Box 64849, Baltimore, MD 21264-4849 Refer to banking information on disbursement roster Remit With: payment reason identification of funds as “Pennsylvania State Grant” academic year/period; and/or the students’ names, social security numbers, or PHEAA account numbers Refunds to PHEAA Period Academic Year Summer Term Penalties for Missed Deadlines June 1 following the 1. Subsequent academic year (example: disbursements withheld June 1, 2015 for 2014-15 until the refund is made, year) and; 2. At the Agency’s discretion, as prescribed by regulation § 121.51, October 31 following the an interest charge Summer term (example: applied against the October 31, 2015 for outstanding refund Summer 2015) beginning June 1 and accruing until the refund is received by the Agency. Deadline Reimbursement to State Grant Recipients Credit Balances – Occurs when student pays bill before State Grant awarded Refund to the student within the term if student requests DO NOT label as State Grant OR Written permission from student to: Apply to subsequent academic year Apply to student’s loan balance Uncashed Student Refund Checks Adhere to Commonwealth’s Unclaimed Property Law http://www.patreasury.gov/unclaimedProperty.html Report to PA Treasury Consult with school’s attorney or Treasury to insure compliance Financial Responsibility and Program Integrity Demonstrate Financial Responsibility of Your School Adhere to Refund Deadlines Adhere to Certification Procedures and DEADLINES for term disbursement rosters Schools should return their certified copy of the term disbursement roster to PHEAA by the dates below to avoid future disbursement holds. Academic Year Term Summer Term Fall disbursement by November 15 Winter disbursement by February 1 Spring disbursement by May 1 Within 30 days of receipt of the roster or within 30 days of the beginning of the first Summer term in which eligibility can be certified, whichever is later. Disbursement Holds Purpose: Verify actual enrollment and eligibility so that when the term disbursement roster is generated, the funds disbursed more closely align with the actual student eligibility Timeline: Generated about two weeks prior to the school’s term start date as reported on Education Cost form and recorded on FG3M Summer Term- every school will get one (implemented for Summer 2014 and beyond) Academic Year- all BTT’s, non-PA schools, and other selected institutions Disbursement Holds Example Outstanding Illustration 1 Current term disbursement Outstanding Fall pre-disbursement roster prevents Fall disbursement. 2 Future term Outstanding Fall pre-disbursement disbursement within roster prevents Winter and/or Spring academic year period disbursement. An outstanding Fall pre-disbursement roster will NOT prevent Winter and/or Spring pre-disbursement rosters, but it will prevent all disbursements and disbursement rosters (any rosters with money). Disbursement Holds Rosters with funds will not be sent until any outstanding disbursement rosters for the current academic year or prior periods, including summer are returned. Disbursement Holds Example Outstanding 1 2013 Summer disbursement roster Illustration The Summer 2014 disbursement and any subsequent disbursements will be held. 2 2014 Summer disbursement roster The Summer 2014 reconciliation roster is delayed. Also, any subsequent disbursements, including Fall, will be held after October 31, 2014. The Spring 2014 (2013-14) disbursement roster was not returned so the Fall 2014 disbursement and any subsequent disbursements will be held. 3 Prior Academic Year term disbursement roster (2013-14) 4 2014-15 Academic Year The Spring 2015 (2014-15) term disbursement term roster (Fall, Winter, roster was not returned so the 2014-15 Academic or Spring) Year reconciliation roster is delayed. The Summer 2015 disbursement and any subsequent disbursements will be held. Disbursement Holds Academic year and summer reconciliation rosters with funds will not be sent until all outstanding rosters for the current academic year or prior periods, including summer, are returned. Disbursement Holds Example Outstanding Illustration 1 Summer 2014 reconciliation The following will be held: 1) any Fall 2014 term disbursements after October 31, 2014; and, 2) any subsequent disbursements. 2 Summer 2015 reconciliation The following will be held: 1) any Fall 2015 term disbursements after October 31, 2015; and, 2) any subsequent disbursements. Disbursement Holds Over-disbursed funds (overaward/overpayments) are returned as a school refund to PHEAA Disbursement and recon rosters with payments will not be sent until all outstanding refunds for prior periods, including summer are returned. Disbursement Holds Example Outstanding Illustration 1 Prior Summer refund (Summer 2013 or before) The Summer 2014 disbursement and any subsequent disbursements will be held. 2 2014 Summer refund The following will be held: 1) any Fall 2014 disbursements after October 31, 2014; and, 2) any subsequent disbursements. Disbursement Holds A school’s term or recon roster with payment will not be sent until the school completes reporting of attempted credits for all SG recipients by the published deadlines for any previous periods including summer. Outstanding here means that attempted credits were not reported in accordance with the criteria and deadlines set forth. For the 2013-14 academic year ONLY, PHEAA will allow a grace period from July 31, 2014 to December 1, 2014. Disbursement Holds Example ‘Outstanding’ Illustration 2013-14 Academic Year Any Academic Year or Summer term disbursements after December 1, 2014, beginning with the Fall 2014 term will be held. If the Fall 2014 term was already disbursed, then subsequent disbursements will be held. 2 Summer 2014 Term Any Academic Year or Summer term disbursements after December 31, 2014, beginning with the Winter 2014 term (2014-15) will be held. If the Winter 2014 and/or Spring 2015 terms were already disbursed, then subsequent disbursements will be held. 3 2014-15 Academic Year Any Academic Year or Summer term disbursements after July 31, 2015, beginning with the Summer 2015 term will be held. If the Summer 2015 term was already disbursed, then subsequent disbursements will be held. 4 Summer 2015 Term Any Academic Year or Summer term disbursements after December 31, 2015 will be held. If the Fall 2015 term was already disbursed, then subsequent disbursements will be held. 1 Disbursement Holds School does not have proper Automated Clearing House (ACH) paperwork completed to facilitate electronic funds transfer (EFT). PHEAA receives notification there is a change in ownership of the school. PHEAA receives notification the school closed. PHEAA determines the school lacks administrative capability. School Obligations Correcting and confirming enrollment and eligibility on PreDisbursement (if applicable) Correcting and confirming enrollment and eligibility by reviewing weekly reports; and Status Listing/Status Transmissions GPAD Partner Interface Listings Submitting timely electronic corrections through the Partner Interface or the transmission Retention of Records, Program Review Retention Minimum 5 years Final Reconciliation Roster Dates, Amounts of Awards, Term Payment identification as “PA State Grant” Auditable documents: Those that support student’s ability to meet requirements Educational costs incurred during the payment term(s) Payments/Refunds Program Review Excess Cash/Netting Clarification not a change Excess Cash – Created when student cancellations and/or adjustments made upon eligibility certification of term roster Netting Process – Using ‘Excess Cash’ to certify students who were awarded after the term’s disbursement roster Excess Cash/Netting Academic Year – May continue through Reconciliation Process but NOT on FINAL Reconciliation Summer – Must STOP at Reconciliation. Each student MUST appear on Reconciliation Roster before crediting. Academic Year to pay Summer Summer to pay Academic Year Summer 14 to pay Summer 15 (and vice versa) 2013-14 Academic Year to pay 2014-15 Academic Year (and vice versa) Excess Cash/Netting Student Roster Student Status Certification Payment Student A Fall roster $1,000 on roster Reduced to $500 (half-time) $500 Student B Fall roster $1,000 on roster Student C Fall roster $1,500 on roster Student D Not on Fall roster Awarded 9/9/2014 $1,000 Reduced to $603 (withdrawal) $1,500 – no change $1,000 based upon acceptable notification $603 $1,500 Options: 1. Use $897 excess and $103 school funds to pay 2. Mark as expecting payment and wait until next term to pay *Assumes Fall term roster generated on September 8, 2014 Excess Cash/Netting Student Roster Fall roster Not on Student A Spring roster Student A Student Roster Student A Fall roster Student B Not on Spring roster Student Status $1,000 on roster Awarded 1/2/2015 $1,000 Student Status $1,000 on roster Awarded 1/2/2015 $1,000 Certification Cancelled Not Enrolled $1,000 based upon acceptable notification Payment Not applicable School pays student with excess from Fall term Certification Payment Cancelled Not Enrolled $1,000 based upon acceptable notification Not applicable School pays student with excess from Student A and Fall term *Examples assume Fall term roster generated on September 8, 2014 and Spring term roster generated on December 29, 2014 Same Student Different Students Excess Cash/Netting Student Student A Student B Student Status $2,000 ($1,000 Fall; $1,000 Spring) Certification Difference School Action 1. School pays Student B with ($1,000) excess from Student A; and overpayment 2. School remits refund to PHEAA in the amount of $500; and 3. School requests $1,500 Adjusted reconciliation roster to show ($1,000 Fall; Spring to full$500 student changes. $500 time and Spring) $1,000 Cancelled Spring for not enrolled Excess Cash/Netting Student Roster Student A Student B Student C 1st Summer roster 2nd Summer roster Not on either roster Student Status $1,000 on roster $1,000 on roster Awarded $1,000 on 8/11/2015 Certification Payment Cancelled Not Enrolled Cancelled Not Enrolled $1,000 based upon acceptable notification Not applicable Not applicable School pays Student C with excess. *Assumes 1st Summer disbursement roster generated on July 13, 2015 and 2nd Summer disbursement roster on August 10, 2015. Defining Rosters Term reports that: Generate an Electronic Fund Transfer (EFT) Are labeled as term disbursement roster Typical Disbursement Roster Schedule Term Fall Winter Spring Semester Spring Quarter Summer Generation Period Period Mid-August through late November Late November through midFebruary Mid-December February through mid- Academic Year Mid-February through late March Early July through August Available securely through: PageCenter report repository Disbursement Transmission process Summer Defining Rosters Reconciliation Rosters are reports that: Generate an Electronic Fund Transfer (EFT), when necessary Are labeled as reconciliation roster Reconciliation Roster Schedule Disbursement Period Regular generation Period Academic Year Early April through June October 1 through December 31* Summer * Payment will not be made after this date Defining Rosters Balance Due PHEAA and Balance Due School both = 0 FG3S Amount of funding the school received matches funding disbursed by PHEAA Each student’s FINAL State Grant on Recon Roster status matches school’s records All students who were credited appear on final Recon Roster Defining Rosters Communicate with other school offices (e.g. Bursar, Business, Technical) Document Monitor all refund payments sent, received and posted to the correct program, year, and period Continue to monitor FG3S for balance changes Request funds due by deadlines Defining Rosters First Reconciliation Roster generated automatically Subsequent rosters must be requested by your school. You must request ([email protected]) when: Award/Student Mismatch Balance Is Zero But Students/Awards on Roster ≠ Students Credited Funds Due PHEAA – Your Records Do Not Agree Academic Year Funds – Request Additional Funds June 1 – Recon deadline Summer Funds – Request Additional Funds October 31 – Recon deadline Return within 30 days Defining Rosters Recon Process implemented with Summer 2014 Same rules apply for Summer 2015 First Reconciliation Roster generated automatically All students must be on Recon Roster to be paid (no netting) Subsequent must be requested In writing ([email protected]) by December 31, 2015 – funds will be sent After December 31, 2015 – must request roster for balancing but no funds will be sent Defining Rosters Pre-Disbursement Rosters are reports that: DO NOT generate an Electronic Fund Transfer (EFT) Are labeled as pre-disbursement roster 2014-15 All Business, Trade, & Technical Schools All non-Pennsylvania Schools Other Select Institutions Summer 2015 All Schools Defining Rosters Status Listing or Status Transmission PageCenter – Listing Guide to Listing in Document Library Transmission Layout and Test File in Document Library Partner Interface Student Lists Refer to PHEAA.org/training for Tutorials and User Guide GPAD Reports PageCenter - Listing 4 weeks of eligibility changes to student records since initial awarding Roster and Funds Availability Rosters PageCenter Report Repository Disbursement Transmissions Funds Approximately 12 Business Days From Roster Date Adjustment Percentage Procedure Effective 2014-15 – APPLIES TO ALL SCHOOLS 3-Year Average Usage of Disbursed Funds Do not adjust student awards based on PHEAA % Academic Year Notifications – July Summer Notifications – March Percent displays on FG3M (page 1, bottom left) Assumptions, PHEAA Collectables Student on roster - ASSUME credited Roster generated, student not on roster but awarded ASSUME credited Roster generated & student NOT on roster (no award notification) - ASSUME not credited If assumptions not correct – NOTIFY PHEAA PHEAA collects directly from student PHEAA recovers all or part of prior terms by adjusting remaining terms Assumptions, PHEAA Collectables Schools should NOT attempt collection if PHEAA Collectable/Offset Schools should contact via Special Request if: Funds not credited so PHEAA collection can be discontinued Correction is needed to record (enrollment, etc.) Student refund letter (logged on ‘Activity’ tab) Grouped at front of roster Roster Summary Page (Totals on FG3S Summary) ‘Special Messages’ on Student Record (Interface) PHEAA Reviews PHEAA will prevent disbursement where it has not occurred Notifications – Income Validation/Other Review listing GPAD – Income Validation Report Roster Certification 1. Confirm all changes/requests for changes have been submitted 2. Use electronic Certification Page/Document Library 3. Print and keep a copy for your files BEFORE submitting Roster Certification Activity will be logged Last resort- Print from PageCenter Sign, scan, and email using [email protected] address Sign and fax to (717)720-3786 Sign and mail using address on the roster FG3S – State Grant College Disbursement Display You now need to add a ‘G’ for the Program Type to view State Grant Disbursement You will use “D” for Distance Education FG3S – State Grant College Disbursement Display continue How to check to see if a refund is due PHEAA Select F10 to access Page 3 – Disbursement and Award Summary A refund is due PHEAA if an amount is displayed in the Balance due PHEAA field This will hold up future funds FG3S – State Grant College Disbursement Display continue How to check to see if a Balance is due the School Select F10 to access Page 3 –Disbursement and Award Summary Funds are due the school if an amount is displayed in the Balance due Institution field FG3S – State Grant College Disbursement Display continue How to check to see if the school has an outstanding roster Select F8 to page through the Disbursement Display Review the Status and Disb Roster Returned field The roster is considered outstanding if the status does not show ‘C’ complete and the date fields are blank o This example reflects an outstanding reconciliation roster This will hold up future funds FG3M –College /Institution Grant Specific Display A new ‘F’ key named “HOLD” will become available on SET2 of the FG3M screen. This option will eventually take you to a transaction that lists the various reasons a school may be on hold. Resources Contact State Grant and Special Programs Staff: Email [email protected] or Call 1-800-443-0646, Option 3, Option 1 Reserved for Financial Aid Administrators Resources www.PHEAA.org/training Tutorials, Webinars, User Guides, etc.