Posted Date: February 15, 2011
Author: William Leith, Service Director, Program Management, Federal Student Aid
Subject: First Pell Grant Administrative Cost Allowance Payments for 2010-2011 Award Year
The Federal Pell Grant (Pell Grant) regulations at 34 CFR 690.10 provide for an Administrative Cost Allowance (ACA) payment of $5.00 to each participating school for each student who receives a Pell Grant at that school for an award year. These funds may be used only to defray the costs of administering the Pell Grant, Federal Supplemental Educational Opportunity Grant, Federal Work-Study, and Federal Perkins Loan programs.
ACA payment amounts are not included in a school’s Current Funding Level (CFL) but are direct payments made to a school based on its unduplicated student recipient information. A school’s total number of Pell Grant unduplicated recipients, used in the calculation of the ACA payment, includes students with at least one reported accepted actual disbursement (Disbursement Release Indicator or DRI equals “True”) in the Common Origination and Disbursement (COD) System. A student will be included in the calculation even if there is a full recovery of the entire Pell Grant award.
A school’s total unduplicated recipient count excludes the following students:
First Pell Grant Administrative Cost Allowance Payments for 2010-2011 Award Year
The first ACA payment for the 2010-2011 Award Year is based on records that the COD System has processed from the start of the Pell Grant 2010-2011 Award Year up to the date that we process the first ACA payments for the 2010-2011 Award Year. We began processing the Pell Grant ACA payments for all schools on February 14, 2011. Schools will begin to see these payments deposited directly into their bank accounts over the next few weeks.
Using G5, the Department of Education forwards ACA payments electronically through the Federal Reserve Bank of Richmond, VA into schools’ bank accounts. If a school has not initiated a direct deposit form (Standard Form 1199A) to establish a unique bank account for ACA payments, G5 will automatically deposit these funds into the school’s existing account. Schools do not need to acknowledge receipt of ACA payments. However, we ask that schools forward a copy of this announcement to their Business offices for inclusion in 2010-2011 Award Year records.
ACA payment amount notifications will be sent to reporting schools. Specifically, we will send an Electronic Statement of Account (ESOA) (Message Class PGAS11OP) that reflects the ACA payment amount to the reporting school’s Student Aid Internet Gateway (SAIG) mailbox. Additionally, an ACA payment amount and other ACA-related information will be displayed on the COD Web site’s School Funding Information screen. This information is as follows:
If your school needs assistance in identifying the bank account into which the ACA payment was deposited, contact the G5 Hotline at 888/336-8930.
If your school does not receive an ACA payment (and your school has submitted actual disbursements for the 2010-2011 Award Year that were accepted by the COD System), contact the COD School Relations Center at 800/474-7268. You may also e-mail CODSupport@acs-inc.com.
Publication Date: 2/16/2011