5-19: Cash Management Electronic Announcement #6: Remitting Excess Interest to the Department of Health and Human Services

Posted Date: May 19, 2017

Author:  Jeff Baker, Director, Policy Liaison and Implementation, Federal Student Aid

Subject: Cash Management Electronic Announcement #6: Remitting Excess Interest to the Department of Health and Human Services

On October 30, 2015, we published the Program Integrity and Improvement final regulations. The final regulations, at 34 CFR 668.163(c), included a requirement that institutions located in a State must maintain their Title IV, HEA program funds in an interest-bearing depository account unless one of the exceptions provided in 2 CFR 200.305(b)(8) apply.

The Title IV regulations provide that an institution may keep the initial $500 in interest earned during an award year on Title IV, HEA program funds. The institution must remit to the Department of Health and Human Services (HHS), no later than 30 days after the end of that award year, any interest earned over $500.

The deadline to remit excess interest to HHS for the 2016-2017 award year is July 30, 2017. Because in early July the Department of Education will deactivate the G5 process for remitting excess interest, the remitting of excess Title IV interest must be completed using the guidance provided below.

Institutions remit excess Title IV interest to HHS’s Payment Management System (PMS) in accordance with HHS guidance found at: https://pms.psc.gov/grant_recipients/returningfunds.html.

The return of interest should be made payable to Department of Health and Human Services. Institutions must include with the remitted interest:

  • An explanation stating that the refund is for excess interest,
  • “U.S. Department of Education-Federal Student Aid” as the name of the awarding agency, and
  • The institution’s Data Universal Number System (DUNS) number in the addendum record or other correspondence.

Note that the instruction above varies somewhat with the instruction under “Returning Interest” on the above noted HHS webpage, which, for example, refers to payee account and grant numbers that do not apply here and may be ignored.

The HHS webpage offers three methods that institutions may use to remit excess interest: (1) by electronically using Automated Clearing House (ACH) direct deposit, (2) by FedWire, or (3) by mailing a paper check. The two electronic methods are preferred. Note, that the mailing address for paper checks is no longer the Rockville, Maryland address that was included in the regulations. Paper checks, if used, must be mailed to the address provided at the HHS website noted above.

If you have any questions about the information provided in this Electronic Announcement you may contact CashManagementQuestions@ed.gov.

 

Publication Date: 5/22/2017


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