Schools which participate in the Federal Pell Grant Program are given an Administrative Cost Allowance payment of $5 for each student who receives a Pell Grant at that school during an award year. These funds may can be used to defray the costs of administering the Pell Grant, SEOG, Work-Study, or Perkins Loan programs. ACA payments used to be made directly to the school’s Federal bank account, but now a school’s ACA payment will be posted in G5 as an available balance. Once posted, you can sign in on G5 and draw the funds down.
Your School’s DPA will receive notification of the funds via an Electronic Statement of Account through your school’s SAIG mailbox which will tell you how much you can draw down. Be sure to account for these funds when you do your monthly reconciliations.
For more information about the Administrative Cost Allowance click here.
Schools that participate in the Federal Pell Grant Program receive an “Administrative Cost Allowance” (ACA) payment to defray the cost of administering the Pell Grant each year. The regulations provide for each school to receive $5.00 for each student who receives a Pell Grant. Payments are based on the number of unduplicated recipients at each school for each program award year. In the past, ACA payments were made automatically to a school’s Federal Funds Accounts via EFT/ACH. However, earlier in 2017 the process was changed. Now, ACA payments are no longer being deposited automatically. Instead your school’s accounting office will have to draw those funds down through G5 manually.
The second Pell Grant ACA payments for the 2016-2017 Award Year began on August 24, 2017.
The third and final ACA payments for the 2015-2016 Award Year also began August 24, 2017.
ACA payments aren’t just for Pell. ACA payments are intended to defray the costs of administering the Campus-Based Programs too. If your school participates in the SEOG, Work-Study, or Perkins Loan programs, the process is a little different. For the Campus-Based Programs, the ACA is not a separate allowance sent to the school as described earlier. Instead the school simply takes its campus based ACA out of its annual authorizations it receives for FSEOG, FWS programs and/or Perkins Loan fund. The maximum amount permissible is up to five percent of the sum of the loans advanced in Perkins, the total earned compensation in FWS, and the total awards to recipients in FSEOG.
The Federal 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.
There are a number of schools that have not drawn down their Pell Grant Administrative Cost Allowance (ACA) payments for the 2014-2015 Award Year, the 2015-2016 Award Year, and/or the 2016-2017 Award Year.
In January 2017 the department changed how schools receive their ACA payments. In the past
, the funds would be pushed as a deposit into the school’s federal funds accounts. Now, school’s have to actually go into G5 and draw the funds down.
If you haven’t processed a draw down of these funds in G5 you probably have some money waiting.
Federal Student Aid posted a reminder announcement to alert schools to draw down their ACA payments. According to the announcement, a school’s calculated Pell Grant ACA payment is posted in G5 as an Available Balance in the school’s ACA G5 Award Number, P063Q14#### for the 2014-2015 Award Year, P063Q15#### for the 2015-2016 Award Year, and P063Q16#### for the 20162017 Award Year. A school must sign in to the G5 website and process a drawdown transaction in G5 to receive the funds.
For more information about this change, refer to the January 27, 2016 Electronic Announcement that is posted on the IFAP website.
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The Federal Pell Grant regulations provide for an Administrative Cost Allowance (ACA) payment of $5 to schools for each student who receives a Pell Grant at that school for an award year. These funds may only be used to defray the costs of administering the Pell Grant, SEOG, Work-Study, or Perkins Loan programs. ACA payments are made directly to the school’s Federal bank account.
The second Pell Grant ACA payments for the 2015-2016 Award Year began on August 24, 2016. http://bit.ly/2brPG3K
The third and final ACA payments for the 2014-2015 Award Year also began August 24, 2016. http://bit.ly/2cjXswB
Schools have likely already received these payments and those which have not, will see these payments deposited directly into their bank accounts during the next few weeks. Please be sure to check your Federal bank account on a regular basis to confirm these deposits, and to then transfer the funds into your general bank account.