ED Encourages Monthly Pell Reconciliations
January 9, 2014
Institutions participating in the Title IV student aid programs must regularly reconcile disbursement and related cash transactions, both internally (between financial and student aid records) and externally (between institutional and Department of Education records). On January 2, ED issued an electronic announcement reminding institutions of their reconciliation responsibilities relative to the Pell Grant program, which included a Q&A with more specific information.
ED recommends that institutions reconcile Pell disbursements at least monthly. Monthly reconciliations are required by regulation for the Direct Loan program. Close coordination between the financial aid and bursar’s offices will ensure discrepancies are identified and corrected in a timely manner.
ED provides numerous tools to assist institutions with reconciliation, some of which are noted in the Q&A. In addition, a session on Title IV Reconciliation recorded at the ED’s annual Federal Student Aid Conference is available for viewing on demand. You can also download the related PowerPoint slides.
NACUBO believes regular Title IV reconciliations are vital for institutions to maintain compliance, meet end-of-year deadlines, and ensure program integrity. If business officers need additional tools or have encountered obstacles that make regular reconciliation difficult, NACUBO is interested in hearing from you.
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