As a reminder, to be considered successfully closed out, the school must—
- Reconcile to an Ending Cash Balance of $0 and Total Net Unbooked Disbursements of $0, as reflected on your monthly School Account Statement (SAS) Report and in your school’s internal records; and
- Complete the Balance Confirmation form on the COD Web site. The Balance Confirmation form can be completed after the school has reconciled to a $0 balance and has received a Zero Balance Letter, which is sent to the school via e-mail (default format) or paper (if e-mail address is invalid/unavailable). Once the letter is received, the school should log in to the COD Web site, click the Balance Confirmation link from the School options menu on the left-hand side of the page, and follow the instructions on the Balance Confirmation screen.
When is the closeout deadline?
The closeout deadline to submit records is 8:00 P.M. (ET) on Thursday, July 31, 2014. The COD System subsequently must accept all records submitted by the closeout deadline in order for them to be included in the school’s final Ending Cash Balance for 2012-2013. Any 2012-2013 batches or records received after the closeout deadline will be rejected and returned to the school.
Note: As a reminder, Refunds of Cash sent via G5 can take 7-9 days to process and post to the COD System. A school should consider its timing when submitting Refunds of Cash in order for these types of transactions to be reflected in its Ending Cash Balance prior to the deadline.
What if a school does not successfully close out by the deadline?
Any school that has not successfully closed out by the closeout deadline and has a positive Ending Cash Balance will be sent a Final Demand Letter requesting the return of the outstanding balance as a refund of cash. If the outstanding balance is not paid by the deadline noted in the letter, a receivable will be established, and the school will be billed accordingly.
Any school that has not successfully closed out by the closeout deadline and has a negative Ending Cash Balance will be sent a Negative Balance Letter requesting the resolution of the outstanding balance. Exceptions to these letter processes may be made for a school with processing periods that extend beyond the
July 31, 2014 closeout deadline. Once the closeout deadline has occurred, a school can request Extended Processing for closed Direct Loan award years via the COD Web site. Consistent with the Grant programs, Direct Loan users will complete this action by using the Request Post Deadline/Extended Processing link under the School menu. Requests will be approved on a case-by-case basis. A school will receive notification of approved requests via a Reopen/Extended Processing e-mail to the Financial Aid Administrator and President.
If a school has any concerns about meeting the closeout deadline, contact COD School Relations prior to the
deadline for further assistance.
Note: Though the closeout deadline is July 31, 2014, cash management, disbursement/adjustment reporting, and monthly reconciliation requirements supersede the closeout deadline. A school should be able to reconcile to a zero balance and close out within a month or two of its final 2012-2013 actual disbursements.
When is the deadline for drawdowns and/or drawdown adjustments?
Drawdowns and/or drawdown adjustments must also be requested/completed by the processing deadline of 8:00
P.M. (ET) on Thursday, July 31, 2014.
How will a school learn its final balance?
In early August 2014, FSA will produce a final 2012-2013 SAS Report and send it to all schools. A school will receive this SAS Report even if it is at a zero balance or has previously closed out for this program year. If a school has not completed reconciliation to a zero balance prior to the deadline, it is important that its reconciliation be completed using this final SAS Report. This SAS Report will serve as a final record of the school’s official Ending Cash Balance for 2012-2013 and should be kept as part of your reconciliation documentation.
What if a school needs further assistance with Direct Loan reconciliation and program year closeout? FSA offers the “Interactive DL Reconciliation Training” on the reconciliation process for the Direct Loan Program. This training consists of a 70-minute session that will review how to identify and avoid common cash and disbursement discrepancies. Schools can also view the handouts of past training sessions on the Direct Loan Program, including specific sessions for Direct Loan Reconciliation and Direct Loan Reports. Complete information about the “Interactive DL Reconciliation Training” and other Direct Loan training sessions can be found at http://www2.ed.gov/offices/OSFAP/training/specific.html.
A school may also contact the COD School Relations Center for further assistance.
DJA Clients: DJA has already ensured that many of our schools are closed out and will continue to
automatically do this for our clients soon after final disbursements have been made.