May 16, 2006
Author: G. Kay Jacks,
General Manager, FSA Application, School Eligibility and Delivery Services
Pell Grant 2006-2007 Award Year Initial Authorization for Advanced Funded
Posted on 05-16-2006
The Departments of Labor, Health and Human Services, and Education, and
Related Agencies Appropriations Act, 2006 (P.L. 109-149) provides the
Department of Education (the Department) sufficient funding to cover a
longstanding shortfall in the Federal Pell Grant (Pell Grant) Program.
The Department has decided to use the shortfall appropriation to cover
part of the Pell Grant Initial Authorization for the 2006-2007 Award Year,
for schools that receive Pell Grant funds under the advanced funding method.
Because of the Federal financial and accounting requirements of the shortfall
appropriation, the funding of the Initial Authorization, known in the
Common Origination and Disbursement (COD) System as Current Funding Level
(CFL), will be slightly different than it has been in the past. The funding
will be done in two parts as follows:
- Shortly, we will
generate an Electronic Statement of Account (ESOA) that lists the amount
of a school's Initial CFL for the 2006-2007 Award Year and send it to
the school's Student Aid Information Gateway (SAIG) mailbox (Message
Class PGAS07OP). This amount will be slightly less than the school received
for the 2005-2006 Award Year.
- Later this week,
we will generate an increase and a second ESOA that will be nearly identical
to the amount the school first received. We will send the second ESOA
to the school's SAIG mailbox (Message ClassPGAS07OP). We will inform
schools via the COD Processing Update when we are ready to send the
second ESOAs to SAIG mailboxes.
- After both parts
of this process have been completed, the sum of the first amount and
the second amount should be more than a school's Initial CFL for the
2005-2006 Award Year.
An Advanced Funded
school can view its Initial CFL on the Funding Information screen on the
COD Web site (www.cod.ed.gov). This
information will not be available for viewing on the Department's Grant
Administration and Payment System (GAPS) Web site until Saturday, July
1, 2006. 2006-2007 Award Year funds will not be available for draw
in the GAPS until July 1, 2006.
As an Advanced Funded school submits actual disbursements, the total
accepted and posted amount for each disbursement is applied to the amount
of the Initial CFL. Only after the Initial CFL amount has been reached
will the school's CFL be increased to cover additional accepted and
posted disbursements. A new ESOA is sent to the school each time its
CFL amount changes.
Note: Schools participating in the Just in Time pilot
and schools on Reimbursement, Heightened Cash Monitoring 1 (HCM1), or
Heightened Cash Monitoring 2 (HCM2) will not receive an Initial CFL.
These schools are eligible for a CFL once actual disbursements have
been accepted and posted. A new ESOA is sent to a school each time its
CFL amount changes.
At this time, we want to remind schools of the following disbursement-related
If you have any questions
about this announcement, contact the COD School Relations Center at 800/4PGRANT.
You may also e-mail CODSupport@acs-inc.com.
- The earliest date
on which a school may disburse a Pell Grant for the 2006-2007 Award
Year, either with Federal funds or its own funds, is July 1, 2006. July
1st also is the date on which 2006-2007 Pell Grant funds will be available
for draw in the GAPS.
- A school may submit
common records that contain anticipated disbursement information for
2006-2007 Pell Grant awards. The Disbursement Release Indicator (DRI)
value in these records must be equal to "False" in order to
be accepted by the COD System.
- The COD System
will accept actual disbursements for 2006-2007 Pell Grant awards beginning
June 21, 2006. As noted above, the disbursement date must be July 1,
2006 or later.
o Prior to June 21st, the COD System will reject actual disbursements
(DRI value equal to "True") and send Edit 996 (Invalid Value)
to a school.
o After June 21st, an Advanced Funded school may submit actual disbursements
for 2006-2007 Pell Grant awards up to 30 days before the disbursement
date. However, the disbursements will not be posted and funded in the
GAPS until 7 days before the disbursement date.