Publication Date: August 09, 2002
Award Year: 2002-2003
Summary: Summary:Change to the Federal Pell Grant Award Amount for the 2002-2003 award year
Posted on 09-06-2002
FROM: COD Operations
TO: All Destination Points
RE: Change to the Federal Pell Grant Award Amount for the 2002-2003 award year
THIS MESSAGE WILL: Discuss
the reporting of pennies in the Award Amount for the Federal Pell Program for
Discuss an error in the Federal Pell Grant Technical Reference
Discuss possible impacts this may have on system corrections for Award Amount
REPORTING OF PENNIES
Beginning with the implementation of the Recipient Financial Management System (RFMS) in 1999 schools have had the ability to report using pennies when reporting their Pell disbursements. Beginning with the 2002-2003 year and the implementation of the Common Origination and Disbursement System (COD) schools will now have the ability to also report award amounts using pennies. The inclusion of pennies aids in FSA's ability to increase program integrity. This change will also aid the schools that most often have a situation where their calculated award amounts have come to a sum that include pennies. Schools had requested this ability during the last three years of RFMS, and the implementation of COD has allowed FSA an opportunity to meet that need.
ERROR IN THE TECHNICAL REFERENCE
There is an error in the Federal Pell Grant Technical Reference on page on page 2-13 that states when calculating the Total Payment Ceiling (TPC, the maximum award amount that can be paid given the student's specific information) that when "the cents is greater than .01 the TPC is rounded up to the next whole dollar." This text was inadvertently left in the Technical Reference from 2001-2002 and should have been changed for 2002-03: If a student's TPC comes to an amount that includes pennies a school can either a) report using pennies or b) use a whole dollar amount which does not exceed the TPC. When COD corrects an Award Amounts that exceed TPC, COD will NOT round up to the next whole dollar. Rather, it will calculate to an amount that includes pennies.
CORRECTIONS TO AWARD AMOUNT
COD, like RFMS, assists schools in their delivery of the Federal Pell Grant Program by performing calculations to ensure, based on the data provided by the school, that the reported Award Amounts are correct. As in RFMS, if an incorrect Award Amount is reported, COD will correct that amount down to the proper amount and accept the record. COD will continue the practice ensuring that a maximum award based on the information provided is not exceeded. If a school reports an award amount less than the maximum allowable, COD will not perform any corrections.
Starting with the 2002-2003 Award Year, Award Amounts will also be corrected to an amount that includes pennies. So that, if a school reports an Award Amount that exceeds the maximum allowable based on the information provided by the school, COD will correct the amount down and will go out past the decimal. This is new for the 2002-2003 award year.
A school using Academic Calendar 5, Payment Methodology of 4:reports the Clock Hours in Award Year as 625 and the Clock Hours in this Student's Program of Study's Academic Year as 975. The student has a 0 EFC and a Cost of Attendance of $10,000. This would result in a student maximum award (TPC) being $2702.70. In 2001-02, a school could have reported $2703. Effective with 2002-03, the school must either report $2702.7 0 (that is with the pennies) or $2702. IF the reported amount were $2703 (that is, rounded up), the award amount will be corrected down to $2702.70, including the pennies, and returned to the school.
If you have further questions
please contact COD Customer Service support at 1-800-4PGRANT (800-474-7268)
or e-mail us at email@example.com.