State Grant Disbursementand

Cash Management

Segregate Pennsylvania State Grant fundsOnly use for eligible studentsMay not use for any other purpose such as:

Paying operation expensesEarning interestGenerating revenue

AccountingFinancial records must identify all State Grant transactionsIf no separate bank account:

Control systems must identify balance that is State Grant

Maintaining and Accounting for Funds

Bank AccountIdentify ‘PA State Grant’ in name of the account whether separate account or notSetting Up/Changing

ACH only Contact fmeftadmin@aessuccess.org (PHEAA’s Financial Management department) to revise ACH when you change banks, bank closes, account numbers change, etc.

Maintaining and Accounting for Funds

Cash Management

Adequate Cash Management System, adheres to:ProceduresDeadlines

PHEAA procedures in place to:Promote sound cash management of State Grant funds;Provide PHEAA disbursement information to enable budgeting and improve forecasting accuracy; andMinimize costs to the Commonwealth of making funds available to students through the schools

RESEARCH &

POLICY ANALYSIS

To Better Serve Students

Remittance Method Remit To: Remit With:

CheckPHEAA, P.O. Box 64849, Baltimore, MD 21264‑4849

payment reason identification of funds as

“Pennsylvania State Grant” academic year/period;

and/or the students’ names, social

security numbers, or PHEAA account numbers

ACH/wire transfer

Refer to banking information on disbursement roster

Refunds to PHEAA

Overaward/OverpaymentReduced and/or Cancelled Awards

Program Review Findings

Refunds to PHEAA

Period Deadline Penalties for Missed Deadlines

Academic Year

June 1 following the academic year (example: June 1, 2015 for 2014-15 year)

1. Subsequent disbursements withheld until the refund is made, and;

2. At the Agency’s discretion, as prescribed by regulation § 121.51, an interest charge applied against the outstanding refund beginning June 1 and accruing until the refund is received by the Agency.

Summer Term

October 31 following the Summer term (example: October 31, 2015 for Summer 2015)

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 requestsDO NOT label as State Grant

ORWritten permission from student to:

Apply to subsequent academic yearApply to student’s loan balance

Uncashed Student Refund ChecksAdhere to Commonwealth’s Unclaimed Property Lawhttp://www.patreasury.gov/unclaimedProperty.htmlReport to PA TreasuryConsult with school’s attorney or Treasury to insure compliance

Financial Responsibility and Program Integrity

Demonstrate Financial Responsibility of Your SchoolAdhere to Refund Deadlines Adhere to Certification Procedures and DEADLINES for term disbursement rosters

For Continued Participation

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

Fall disbursement by November 15 Winter disbursement by February 1 Spring disbursement by May 1

Summer Term

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 eligibilityTimeline: 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

Pre-Disbursement Rosters

Disbursement Holds

Pre-Disbursement Rosters – Examples

Example Outstanding Illustration

1 Current term disbursement

Outstanding Fall pre-disbursement roster prevents Fall disbursement.

2Future term disbursement within academic year period

Outstanding Fall pre-disbursement roster prevents Winter and/or Spring 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

Term Disbursement Rosters

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

Term Disbursement Rosters - ExamplesExample Outstanding Illustration

1 2013 Summer disbursement roster

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.

3 Prior Academic Year term disbursement roster (2013-14)

The Spring 2014 (2013-14) disbursement roster was not returned so the Fall 2014 disbursement and any subsequent disbursements will be held.

4 2014-15 Academic Year term roster (Fall, Winter, or Spring)

The Spring 2015 (2014-15) term disbursement roster was not returned so the 2014-15 Academic Year reconciliation roster is delayed. The Summer 2015 disbursement and any subsequent disbursements will be held.

Disbursement Holds

Reconciliation Rosters

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

Reconciliation Roster - ExamplesExample

 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

Outstanding Refunds

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

Outstanding Refunds – ExamplesExample

 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

Outstanding Credit Reporting

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

Outstanding Credit Reporting - Examples

Example 

‘Outstanding’ Illustration

12013-14 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.

2Summer 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.

32014-15 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.

4Summer 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.

Disbursement Holds

Other Reasons

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 Pre-Disbursement (if applicable)

Correcting and confirming enrollment and eligibility by reviewing weekly reports; and

Status Listing/Status TransmissionsGPADPartner Interface Listings

Submitting timely electronic corrections through the Partner Interface or the transmission

Prepare for a Disbursement

Retention of Records, Program Review

RetentionMinimum 5 yearsFinal Reconciliation Roster

Dates, Amounts of Awards, TermPayment identification as “PA State Grant”

Auditable documents:Those that support student’s ability to meet requirementsEducational 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

NO OFFSETTING FALL EFFECTIVE 2014-15

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.

PROHIBITED - MAY NOT USE EXCESS CASH FROM:

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)

EXAMPLE: NETTING BETWEEN STUDENTS IN SAME ACADEMIC PERIOD

Excess Cash/Netting

*Assumes Fall term roster generated on September 8, 2014

Student RosterStudent Status

Certification Payment

Student AFall roster

$1,000 on roster

Reduced to $500 (half-time)

$500

Student BFall roster

$1,000 on roster

Reduced to $603 (withdrawal)

$603

Student CFall roster

$1,500 on roster

$1,500 – no change

$1,500

Student DNot on Fall roster

Awarded 9/9/2014 $1,000

$1,000 based upon acceptable notification

Options:1. Use $897 excess and $103

school funds to pay2. Mark as expecting payment

and wait until next term to pay

Excess Cash/Netting

EXAMPLE: NETTING BETWEEN TERMS IN THE SAME ACADEMIC PERIOD

Student RosterStudent Status

Certification Payment

Student AFall roster

$1,000 on roster

Cancelled Not Enrolled

Not applicable

Student ANot on Spring roster

Awarded 1/2/2015 $1,000

$1,000 based upon acceptable notification

School pays student with excess from Fall term

Same Student

Student Roster Student Status

Certification Payment

Student A Fall roster

$1,000 on roster

Cancelled Not Enrolled

Not applicable

Student B Not on Spring roster

Awarded 1/2/2015 $1,000

$1,000 based upon acceptable notification

School pays student with excess from Student A and Fall term

Different Students

*Examples assume Fall term roster generated on September 8, 2014 and Spring term roster generated on December 29, 2014

EXAMPLE: NETTING DURING ACADEMIC YEAR RECON

Excess Cash/Netting

StudentStudent Status

Certification Difference School Action

Student A

$2,000 ($1,000 Fall; $1,000 Spring)

Cancelled Spring for not enrolled

($1,000) overpayment

1. School pays Student B with excess from Student A; and

2. School remits refund to PHEAA in the amount of $500; and

3. School requests reconciliation roster to show student changes.Student B

$1,500 ($1,000 Fall; $500 Spring)

Adjusted Spring to full-time and $1,000

$500

EXAMPLE: NETTING BETWEEN STUDENTS IN SUMMER

Excess Cash/Netting

Student Roster Student Status

Certification Payment

Student A

1st Summer roster

$1,000 on roster

Cancelled Not Enrolled

Not applicable

Student B

2nd Summer roster

$1,000 on roster

Cancelled Not Enrolled

Not applicable

Student C

Not on either roster

Awarded $1,000 on 8/11/2015

$1,000 based upon acceptable notification

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

TermGeneration Period

Period

FallMid-August through late November

Academic Year

WinterLate November through mid-February

Spring Semester

Mid-December through mid-February

Spring Quarter

Mid-February through late March

SummerEarly July through August

Summer

Available securely through:PageCenter report repositoryDisbursement Transmission process

Defining Rosters

Reconciliation Rosters are reports that:Generate an Electronic Fund Transfer (EFT), when necessaryAre labeled as reconciliation roster

Reconciliation Roster Schedule

Disbursement Period Regular generation Period

Academic Year Early April through June

Summer October 1 through December 31*

* Payment will not be made after this date

Defining Rosters

RECONCILIATION

Balance Due PHEAA and Balance Due School both = 0

Amount of funding the school received matches funding disbursed by PHEAAEach student’s FINAL State Grant on Recon Roster status matches school’s recordsAll students who were credited appear on final Recon Roster

FG3S

Defining Rosters

RESPONSIBILITY AND BEST PRACTICES

Communicate with other school offices (e.g. Bursar, Business, Technical)DocumentMonitor all refund payments sent, received and posted to the correct program, year, and periodContinue 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 (sghelp@pheaa.org) when:

Award/Student MismatchBalance Is Zero But Students/Awards on Roster ≠ Students Credited

Funds Due PHEAA – Your Records Do Not AgreeAcademic Year Funds – Request Additional Funds

June 1 – Recon deadlineSummer Funds – Request Additional Funds

October 31 – Recon deadline

Return within 30 days

MULTIPLE RECON ROSTERS

Defining Rosters

SUMMER RECON ROSTERS – ADDITIONAL INFO

Recon Process implemented with Summer 2014Same rules apply for Summer 2015First Reconciliation Roster generated automaticallyAll students must be on Recon Roster to be paid (no netting)Subsequent must be requested

In writing (sghelp@pheaa.org) by December 31, 2015 – funds will be sentAfter December 31, 2015 – must request roster for balancing but no funds will be sent

Defining Rosters

PRE-DISBURSEMENT ROSTERS

Pre-Disbursement Rosters are reports that:DO NOT generate an Electronic Fund Transfer (EFT)Are labeled as pre-disbursement roster

2014-15All Business, Trade, & Technical SchoolsAll non-Pennsylvania SchoolsOther Select Institutions

Summer 2015All Schools

Defining Rosters

OTHER REPORTING – ALSO REFER CERTIFICATION PROCEDURES

Status Listing or Status TransmissionPageCenter – Listing

Guide to Listing in Document LibraryTransmission Layout and Test File in Document Library

Partner Interface Student ListsRefer to PHEAA.org/training for Tutorials and User Guide

GPAD ReportsPageCenter - Listing4 weeks of eligibility changes to student records since initial awarding

Roster and Funds Availability

RostersPageCenter Report RepositoryDisbursement Transmissions

FundsApproximately 12 Business Days From Roster DateAdjustment Percentage Procedure

Effective 2014-15 – APPLIES TO ALL SCHOOLS3-Year Average Usage of Disbursed FundsDo not adjust student awards based on PHEAA %Academic Year Notifications – July Summer Notifications – MarchPercent 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

 

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

 

PHEAA COLLECTABLE:

PHEAA OFFSET:

Assumptions, PHEAA Collectables

Schools should NOT attempt collection if PHEAA Collectable/OffsetSchools should contact via Special Request if:

Funds not credited so PHEAA collection can be discontinuedCorrection is needed to record (enrollment, etc.)

Student refund letter (logged on ‘Activity’ tab)Grouped at front of rosterRoster 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

 

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

Under ‘Certifi

cation Procedures,

Workshop Materials and Roster

Certification page

Roster Certification

Roster Certification

Activity will be logged

Last resort- Print from PageCenterSign, scan, and email using sghelp@pheaa.org addressSign 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 fieldThis will hold up future funds

FG3S – State Grant College Disbursement Display continue

How to check to see if a Balance is due the SchoolSelect 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 continueFG3S – State Grant College Disbursement Display continue

How to check to see if the school has an outstanding roster

Review the Status and Disb Roster Returned fieldThe 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

Select F8 to page through the Disbursement Display

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.

DisbursementQuestions

Contact State Grant and Special Programs Staff: Email sghelp@pheaa.org 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.

Resources