RFM S/Pell:Past,Present,and

Future
U .S.D eptofEducation

W e H elp Put A m erica Through S chool

 Presenters

★Tony Laing -PellO perations

★Jim M cM ahon -PellSystem s

★A nthony Jones -A pplication

D evelopm ent

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 O bjectives
★ 1.BriefO verview ofw hatRFM S is?
- RFM S H istory,G oals and Perform ance
★ 2.O verview ofH ow Pellis Funded
- InitialA uthorization
- A uthorization Increases
- The Electronic Statem entofA ccount
- A dvanced Funding and Just-in-Tim e
★ 3.RFM S:Presentand Future
- Schedule
- Changes for2000
- M ad D og Task Force
- Com m on O rigination/D isbursem entU pdate
★ 4.A view ofnew functionality and tools forprocessing Pell
- Reconciliation
- RFM S on the W eb
★ 5.A review ofresources available to you
★ 6.A chance to hearyourquestions and concerns

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O bjective 1:W hatis the PellG rant
Process in RFM S?
The FederalPellG rantProgram
for1999-2000
★5,132 Schools Participating in the Pell
Program

★O ver3.4 M illion PellRecipients

★O ver$8 Billion in G rants D isbursed

W e H elp Put A m erica Through S chool

 The Steps ofthe Process

★FA FSA /ISIR

★O rigination

★D isbursem ent

★D raw dow n

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 ISIR/FA FSA
★Establishes those thatare possible aid
recipients

★Provides RFM S w ith a listofeligible

applicants

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 O rigination
★Serves severalpurposes
– Identifies Possible Recipients

– Checks Eligibility

– Collects Inform ation N ecessary to Process

the D isbursem entofa G rant

– A llow s forcorrections ofthatinform ation

– Sets up fora speedy D isbursem ent

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 D isbursem ent

★Short Record w ith M inim al

Inform ation

★Based on SuccessfulO rigination

D isbursem entshould flow through

★Processing atthe studenttransaction

level:
– im proves reconciliation
– increases program integrity

W e H elp Put A m erica Through S chool

 D raw dow n

O riginations D isbursem ents Funding levels in

G A PS

W e H elp Put A m erica Through S chool

The PellG rantBusiness Process as com pared
to a hotelbusiness transaction
FA FSA /ISIR - O rigination -
A pplication process for Reservation fora
a line ofcredit(credit room /possible grant
card) w ith inform ation for
preferences,duration
ofstay etc.

D isbursem ent-A fter D raw dow n/Funding -the

arrival,based upon accounting transaction
details ofactualstay a from the disbursem entis
bill/disbursem entis sentto the credit
issues,guestpresents com pany,paym ents are
creditcard and pays m ade and creditlim its
bill. adjusted accordingly

W e H elp Put A m erica Through S chool

 Schools RFM S

R ecords:O rig.,D isb.,Spec.

D isbursem ent,etc.

A cknow ledgem ents

The FederalPell A ccting

JIT & W eb D raw -
ACA D raw - dow n G rantProgram Trans
D eposit dow n & Pm t System Flow
R equest

A uthorizations and
Paym ents

A uthorizations

G A PS Subledger
R FM S G oals atIm plem entation
★Turnaround of24-36 H ours

★M odernization
– System outdated
– ProjectEA SI/M odernization Blueprint
– Com m on O rigination/D isbursem ent

★ M ove Processing to the Transaction Levelfor

Im proved A ccounting and program integrity

W e H elp Put A m erica Through S chool

 H ave w e m etour goals?
G oals R FM S 1999-2000 R FM S 2000-2001
Turnaround of24-26 Som e Successes:
-A cknow ledgem ents back in 3.5
In Process:
hours -A cknow ledgem ents back in 3.5
-Stream line process to reduce hrs.
tim e ittakes schools to receive -D ecrease in tim e taken to receive
-Stream line process to reduce
theirfunding funding,butoriginaltargetnot
tim e ittakes schools to receive
reached
theirfunding

M odernization M etG oals M etG oals

-N ew design and technology bring -Continued Im provem ents
-Replace outdated system system up to date

-Carry outgoals ofProject -Continued to m ove ourbusiness -Im prove W eb Functionality

EA SI/M odernization Blueprint processes to follow the goals ofthe
M odernization Blueprint
-Transaction LevelProcessing -RFM S processes attransaction level -Business process thatw ould
inform the CO D w ork being
-Com m on O rigination/ -Business process thatw ould inform carried outnow
D isbursem ent(CO D ) the CO D w ork being carried outnow
-A ddress the goals and objectives
ofthe M ad D og Team

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R FM S Perform ance: H ow are w e
doing?
★ RFM S A cknow ledgem ents placed on TIV W A N
w ithin 3.5 hours ofreceiptofrecord

★ Records in RFM S (transaction level):

– A ccepted and Corrected -87.6%
– Rejected records -12.4%

★ N um berofinstitutions that have notsubm itted

disbursem entrecords:173

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 1999-2000 RFM S W eekly Volum e
Turnaround
D ata as ofApril21,2000
(Perform ance O bjective 24-36 H ours) H ours

700,000 25

600,000
20

500,000

15
400,000

300,000 10

200,000
5
100,000

0 0
5-Nov
10-Sep

24-Sep

14-Jan

28-Jan
19-Nov

11-Feb

25-Feb
8-Oct

22-Oct

3-Dec

10-Mar

24-Mar

7-Apr
17-Dec

29-Dec

21-Apr
13-Aug

27-Aug
30-Jul

Processing Day

Transactions Processed Turnaround Performance Objective

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 W hatG oals do w e stillhave
outstanding?
★D ecrease the tim e ittakes to receive
funding forPell
– Increased A utom ation
– Changes to the SubledgerProcess
– Re-evaluation ofdata flow s

★M ad dog G oals

W e H elp Put A m erica Through S chool

M ostCom m only Seen Edits in RFM S
Processing -A pril,2000
★ Edit403-R ejected
− D isbursem entR eference N um ber notV alid
★ Edit319 -W arning
− 319 -Invalid W ks.O fInst.Tim e in Program s
D efinition ofA cadem ic Y ear
★ Edit309 -W arning
− Invalid V erification C ode
★ Edit406 -W arning
− D isbursem entA m ount+ TotalD isb.is greater than
the A w ard A m ount

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M ostCom m only Seen Edits in RFM S
Processing -A pril,2000
★ Edit302 -R ejected
− D uplicate O rigination
★ Edit402 -R eject
− O rigination ID does notm atch on R FM S
★ Edit305 -W arning
− Invalid A w ard A m ount
★ Edit306 -W arning
− Invalid D isbursem entD ate
★ Edit411 -W arning
− PotentialO veraw ard

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O bjective 2:Funding in the FederalPellG rant
Program
D eterm ination of
A uthorization W hen?
Levels

Types of A ccess to the

Funding in Pell? Funding?

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 W hatis an InitialA uthorization?
★A n initialauthorizations is:
– A leveloffunding available to schools for
theirfirstPellrecipients.

– W illcoveratleast85% ofthe PellG rants to

be disbursed during yourfirstpaym ent
period

– A lim ited am ountthatis notintended to

fund Pellforthe entire aw ard year

W e H elp Put A m erica Through S chool

 H ow is InitialA uthorization
D eterm ined?
★The form ula to determ ine initial
authorization is based on three criteria:

– Previous A w ard Y ear’s D isbursem ents

– Type ofA cadem ic CalendarU sed at
Institution
– Percentage LevelA ssociated w ith A cadem ic
Calendar

W e H elp Put A m erica Through S chool

 H ow is InitialA uthorization
D eterm ined?
A n Exam ple:
★SchoolA is a sem esterschoolthatdisbursed
$100,000 in A Y 1999-2000
★Criteria:
– $100,000
– Sem esterSchool
– Sem esterSchools receive 40%
★SchoolA w ould receive an Initial
A uthorization of$40,000 forA Y 2000-2001
W e H elp Put A m erica Through S chool
 InitialA uthorization Facts
★Increased the am ountoffunding to
Institutions forthe aw ard year
– InitialA uthorization for1999/2000
5/25/99
• 5132 Institutions for$3,099,602,337.00

– InitialA uthorization for2000/2001

• 5107 Institutions for$3,139,737,054.00

W e H elp Put A m erica Through S chool

 InitialA uthorization Facts
★A uthorization Levels increased as a Y 2K
contingency
– D ecem ber,1999 4,043 schools received an
authorization increase of$2 billion

★M ay,2000 A dm inistrative CostA llow ance

D isbursem ent

★Sum m er,2000 reduce A uthorization Levels

to disbursem entlevel

W e H elp Put A m erica Through S chool

 Changes in A uthorization Levels
A ccepted D isbursem ents D rive A uthorization
Levels!!

O riginations D isbursem ents Funding levels in

G A PS

W e H elp Put A m erica Through S chool

W hatare the types ofFunding in
Pell?
★A dvanced Funding
– The vastm ajority ofPellInstitutions

★Just-In-Tim e
– Pilotin its Second Y earw ith sm allpopulation

W e H elp Put A m erica Through S chool

 Types ofFunding in Pell
★A dvance Funding
– D isbursem entRecords drive A uthorization Level
– D isbursem entD ate w ithin 30 D ays ofprocessing
– D raw dow n by program and aw ard year

★Just-In-Tim e
– D isbursem entRecords create a Paym ent
– D isbursem entD ate w ithin 5 D ays ofprocessing

W e H elp Put A m erica Through S chool

 W hatis A dvanced Funding?
★Receives an InitialA uthorization

★D raw dow n from G A PS

★M ustm eetnorm alregulatory requirem ents

★D isbursem entD ate w ithin 30 D ays of

processing

★D raw dow n by program and aw ard year

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 A D V A N CE FU N D IN G
Transaction O bligated Balance ESO A

★ InitialFunding Y es
50,000.00 50,000.00
★ D isbursem entA ccepted No
25,000.00 50,000.00
★ D isbursem entA ccepted Y es
75,000.00 100,000.00

W e H elp Put A m erica Through S chool

 JU ST-IN -TIM E FU N D IN G

Transaction Paym ent ESO A

★ D isbursem entA ccepted Y es

25,000.00 25,000.00
★ D isbursem entA ccepted Y es
75,000.00 100,000.00

W e H elp Put A m erica Through S chool

W hatis Just-in-Tim e Funding?
★N o InitialA uthorization

★D isbursem entRecords create a Paym ent

★D isbursem entD ate w ithin 5 D ays of

processing

★Funds autom atically deposited into

school’s account

★N o draw dow n from G A PS

★Regulatory relief
W e H elp Put A m erica Through S chool
 Just-In-Tim e
★Regulatory reliefunderCash M anagem ent
Regs published 11/29/96
– 3-D ay-use rule

– Excess-cash rule

– Interestbearing accountrule

– Re-verification ofeligibility

W e H elp Put A m erica Through S chool

 Just-In-Tim e
★1999-2000
– Pilot(18 Schools)

★2000-2001
– 73 Schools,including alloriginal18

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O bjective 3:RFM S Presentand
Future

W e H elp Put A m erica Through S chool

 Schedule
★2000 -2001 Im plem entation -Sum m erof2000
★Requirem ents G athering for2001-2002 -
Closes A ugust10,2000
– Focus G roups -6/28,7/13 and 7/14
– Express,H om egrow n and Third Party V endors
★Specifications Com plete -Sept.29,2000
★D evelopm entCom plete -February,2001
★Testing -February through M arch,2001
★Beta Testing -M arch,2001
★Im plem entation -A pril,2001
W e H elp Put A m erica Through S chool
 Changes for2000-2001
★System is a rolloverforthis year-M inim al
changes
★The Changes
– Cartridge and ReelN otA ccepted for2000-2001
– Batch Replacem entno longera data requestoption
– Y TD can be requested forspecific student
– A dditionalField to the SpecialD isbursem entRecord:
Totalfunds previously disbursed forthis Paym ent
Period using a RegularD isbursem entRecord
– Batch W arning to alertusers thatthey are notusing the
m ostcurrentversion ofED Express

W e H elp Put A m erica Through S chool

RFM S M AD D O G
FinalReport
to
SFA M anagem ent
Council

W e H elp Put A m erica Through S chool

 W hy M ad D og?
★ RFM S firstsystem im plem ented underPBO
★ Response to the concerns ofourcustom ers -you the
schools
• D ouble w ork
• M oney com ing slow er
• Can’tgetsystem to w ork and the help isn’tany
★ D evelopm entofa tool/m echanism to actquickly to
com m unity concerns and to analyze the success and
failures ofa system im plem entation in orderto
im prove the process

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 W hatis a M ad D og?
★ Cross FunctionalTeam from across channels and
offices broughttogetherto aggressively address
areas ofconcern

★ 90 days ofinform ation gathering

– 16 site visits
– 6 teleconferences
– 2 focus groups
– 2 conferences
– m onitoring ofCPS and RFM S CS calls
– M onitoring ofSFA TECH and RFM S CS e-m ails
W e H elp Put A m erica Through S chool
 W hatdid w e hear?

★Issues fellinto three broad categories

– Top-N otch Service
• Im prove Custom erService

– Sim plerU se
• Sim plify and im prove processes necessary to
successfully participate in the PellProgram

– BetterInform ation
• Provide inform ation thatis com prehensive and provide it
in a tim ely m anner

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 W hatare w e going to do
aboutit?
★ A ctions fellinto tw o categories
– Q uick H its -90 days orless
– Longerterm actions -m ore than 90 days
★M any ofthe actions item s are already being
addressed
– inclusion ofM ad dog issues in requirem ents
– influence on developm entschedule
– reconciliation tool
– custom erservice w orkgroup

W e H elp Put A m erica Through S chool

 Com m on
O rigination/D isbursem ent
★PBO G oalis to sim plify how a studentreceives
theirTitle IV funds
★CO D provides for:
– a single process across program s
– a single record across progam s
★G oalis to:
– m ake iteasierforthe student
– sim plify the process forthe school
– stream line and sim plify the process atthe
D epartm ent
W e H elp Put A m erica Through S chool
O bjective 4:A view ofnew functionality
and tools forprocessing Pell

W e H elp Put A m erica Through S chool

 Reconciliation
★M ad D og identified Reconciliation as an
issue

★In July w e w illbe providing a toolto all

schools to help them reconcile w ith the
departm ent

★Fixed field file sentin textm essage class

★Easily im ported into otherprogram s for

m anipulation
W e H elp Put A m erica Through S chool
 Reconciliation
★Proposed fields:
– O rigination ID (includes,SSN ,N am e Code,
A ttending PellID )
– N am e
– Transaction N um berofO rigination
– O rigination A w ard A m ount
– Scheduled A w ard A m ount
– Y TD D isbursed A m ountin RFM S

★Sortable by any field

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PellG ranton the W eb

W e H elp Put A m erica Through S chool

PellG ranton the W eb
PellG ranton the W eb

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PellG ranton the W eb

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PellG ranton the W eb

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PellG ranton the W eb

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PellG ranton the W eb

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PellG ranton the W eb
PellG ranton
the W eb

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PellG ranton the W eb

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PellG ranton the
W eb

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PellG ranton the W eb

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PellG ranton the W eb

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PellG ranton the W eb

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PellG ranton the W eb

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PellG ranton the W eb

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PellG ranton the W eb

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 O bjective 5:Resources
★ W eb based resources:
– http://w w w .pellgrantsonline.ed.gov
– http://ifap.ed.gov
– http://sfadow nload.ed.gov
– http://gapsw eb.ed.gov/
★ Training:
– RegionalTraining
★ Conferences
– Third Party Servicers
• A ugust,W ashington,D C
– Electronic A ccess Conferences
• N ovem ber13-15,D allas
• N ovem ber28-30,A tlanta
• D ecem ber11-13,Phoenix
– RegionalConferences
W e H elp Put A m erica Through S chool
O bjective 6:Q uestions and
A nsw ers

W e H elp Put A m erica Through S chool