SPI Podcast Session #66 Niche Site Duel 2.0 (Research Interview
Session 66
description
Transcript of Session 66
Session 66
ED Forms 2000 for Beginners: Annual
Reporting Katrina Turner
Nettie Harding
2
Loans In RepaymentCategory Calculations
AR-1 Loans Guaranteed (Except Federal Consolidation)
Minus AR-2 All Loans Cancelled (Except Federal Consolidation)
Plus AR-3 Federal Consolidation Loans Guaranteed
Minus AR-4 Federal Consolidation All Loans Cancelled
Minus AR-5 Uninsured Loans
Plus AR-6 Loans Transferred In
Minus AR-7 Loans Transferred Out
Minus AR-8 Default Claims Paid
Minus AR-9 Bankruptcy Claims Paid
Minus AR-10 Death and Disability Claims Paid
Minus AR-11 Closed School/False Certification Claims Paid
Minus AR-12 Loans Paid in Full
Minus AR-13 Federal Stafford and Unsubsidized Stafford Interim Loans
Minus AR-14 Total Loans in Deferment Prior to First Payment
Equals Loans in Repayment
3
Loans In Repayment (Con’t.)
All amounts are cumulative since the inception of the agency except for line items AR-13 and AR-14 which are amounts as of the end of the current fiscal year.
4
Federal Fund Section
Includes line items:
AR-15 through AR- 29
In accordance with 34 CFR 682.419, the Guaranty Agency Federal Fund, is a separate account that contains only funds belonging to the Federal Government.
5
AR-15 Beginning Balance (from 9/30/xx)
AR-15 should be equal to ending balance (AR-26) of the prior year.
6
AR-16 Investment Income• Amount of all investment
income recognized in the Federal Fund, including net increases/ decreases in fair value of investments
• Interest activity is reported on AR-16
7
AR-17 Reinsurance from ED• Amount of federal
reinsurance from ED• Net of Refunds• Overpayments &
repurchases for defaults• Bankruptcies• Death• Disability• Closed Schools or False
Certification
8
AR-18 Collections of Default Loans- Reinsurance Complement
• Amount of reinsurance complement from default collections
• This amount should equal the twelve months reported fiscal year to date (FYTD) on the monthly GAFR, line items MR-10 through MR-13 for the current FFY.
9
AR-19 Federal Default Fee• Effective for loans
guaranteed on or after July 1, 2006.
• The fee is equal to 1 percent of the principal amount of loans guaranteed on or after July 1, 2006
10
AR-20 Other Revenue• Include deferred revenues• Report itemized entries• For example:
– Secretary’s Share of default collections (up to 8.5% of collection costs charged the borrower) on default FFEL
– DL Consolidation loans– OIG interest penalty– Audit findings– Usage feesThese examples are not inclusive
11
AR-21 Claims Expensed to Lenders• Claims expensed during
the FFY
• Net of refunds
• Overpayments and repurchases for all FFEL programs loans
12
AR-22 Recall of Federal Funds to the Restricted Account
• Amount of the agency’s required share of the reserved fund recall, which was deposit in a restricted account
• No reporting required for this line item
13
AR-23 Transfer to Operating Fund for Default Aversion
• Report net Default Aversion expense recognized for delinquent loans which agencies receive lenders requests for default aversion assistance
• Payment is authorized under the Department’s regulation and guidance for the current FFY
• Amount should reconcile to line AR-30, Default Aversion Fee Revenue
14
AR-24 Transfer to Operating Fund for Account Maintenance Fee
• Report the transfer amount, regardless of the actual transfer, from Federal Fund for AMF for the current FY
• Amount should reconcile to line AR-33, Transfer from Federal Fund for AMF
• FY 07 No Spending Cap• FY 06
– Spending Cap $220M– Payment Methodology– Authority to Transfer Funds
Rescinded 7/1/2006
15
AR-25 Other Expenses• Other expenses which are not
reported elsewhere, such as:– provision for loan losses– SES recognized on
collections of defaulted, consolidated,and rehabilitated FFEL loans
– Guarantor retention• Report itemized entries, such
as:– Prior year accrual,
depreciation
16
AR-26 Ending Balance• The ending balance must
equal the sum of AR-15 through AR- 20 minus AR-21 through AR-26 as well as the ending balance on AR-57 (Federal Fund Balance Sheet Section)
• AR-26 must equal AR-57
17
AR-27 Amount Transferred from Federal Fund to Operating Fund for Operating Expenses (Repayable)
• Money borrowed from Federal Fund for operating expenses
• No reporting required for this line item
18
AR- 28 Amount Received from Operating Fund to Repay Advance for Operating Expenses
• Repayment of amounts borrowed from Agency Operating Fund.
• No reporting required for this line item
19
Operating Fund Section
Includes line items:
AR- 29 through AR- 42
In accordance to 34 CFR 682.423, the Guaranty Agency Operating Fund is a separate account that contains only funds belonging to the Guaranty Agency
20
AR-29 Beginning Balance (from 9/30/xx)
• AR-29 should be equal to ending balance (AR-40) of the prior year.
21
AR-30 Default Aversion Fee Revenue• Report Default Aversion Fee
(DAF) recognized for delinquent loans which agencies receive lenders requests for default aversion assistance
• Payment is authorized under the Department’s regulation and guidance for the current FFY
• Amount should reconcile to line AR-23, Transfer to Operating Fund for Default Aversion
22
AR-31 Loan Processing and Issuance Fee Revenue
• Report loan processing and issuance fee revenue recognized
23
AR-32 Account Maintenance Fee• Report account
maintenance fees recognized from the Department
24
AR-33 Transfer from Federal Fund for Account Maintenance Fee
• Report account maintenance fees recognized subject to Federal Fund settlement (AR-24, Transfer to Operating fund for Account Maintenance Fee) when amount exceeds ED’s budgetary cap
• Authority to Transfer Funds Rescinded 7/1/2006
25
AR-34 Collections of Defaulted Loans Less Reinsurance Complement
• Report collection revenue recognized from payments to GA by defaulted borrowers
• Amount reported should be your agency’s share of collections. Does not include SES of collections
• Include receipts from rehabilitated loan sales and consolidation of defaulted loans under the FFEL program
• Do not include amounts reported in AR-18
26
AR-35 Investment Income• The amount of all
investment income recognized in the Operating Fund including net increase (decrease) in fair value of investments
27
AR-36 Other Revenue• Other revenues that are FFEL and
non-FFEL not already reported elsewhere Includes:– Payments received to
consolidate loans under the Direct Loan Program
– Net Secretary’s fee• Report itemized entries Includes:
– Default aversion– VFA revenue
28
AR-37 Collections of Defaulted Loans• Formally SES was
reported in this line item
• Currently Secretary’s Equitable Share should be reported in AR-20, Other Revenue and AR-25, Other Expense
• No reporting required for this line item
29
AR-38 Operating Expense• Expenses associated with:
– Application processing
– Loan disbursement
– Enrollment and repayment status management
– Default aversion activities
– Claims processing
– Default collection activities
– School and lender training
– Financial aid awareness
30
AR-39 Other Expenditures• Report FFEL and Non FFEL
expenses
– Include amounts used for default prevention activities
• Itemized entries may include:
– Administration costs
– Transfers to federal fund
– OIG audit liabilities
– 48-hour rule
31
AR-40 Ending Balance• The ending balance must
equal the sum of AR-29 through AR-36 minus AR-37 through AR-39 equals AR-40
32
AR-41 Amount Received from Federal Fund for Operating Expenses
• Money received from Federal Fund for operating expenses.
• No reporting required for this line item
33
AR-42 Amount Repaid to Federal Fund For Operating Expenses
• Money repaid to Federal Fund from Operating Fund
• No reporting required for this line item
34
Restricted Account• The Restricted Accounts
AR-43 through AR-47 are obsolete
35
Balance Sheet (Federal Fund)
Include line items:
AR-48 through AR-57
The balances reported in this section should reconcile to amounts reported on the Guarantor’s audited financial statements as of the end of the Federal fiscal year 9/30/xx
36
AR-48 Cash, Cash Equivalents and Investments
• Report cash, cash equivalents and investment (regardless of maturity date of investments) balances.
• If applicable, report Voluntary Flexible Agreement (VFA) escrow balance
37
AR-49 Restricted Account Cash, Cash Equivalent and Investments
• Amount of Federal Fund Cash deposit on the Restricted Account as of October 1
• Do not report escrow balances
• No reporting required
38
AR-50 Net Investment in Property, Plant, Equipment, and Inventory
• Report balances of property, plant, equipment LESS accumulated depreciation
39
AR-51 Accounts Receivable from ED• Report balances owed to
the Federal Fund by ED
• For example:
– Reinsurance and other payments
40
AR-52 Other Assets• Report total balances of other
current and non-current asset accounts that were not reported in line items AR-48 through AR-51.
• Report itemized entries Includes:
– Guarantee fee receivable
– Receivable from Operating Fund
– Default aversion fee rebate
41
AR-53 Accounts Payable, Accrued Expenses and Other Current Liabilities
• Report liabilities for expenses due, other than ED, including amounts due Operating Fund
• Claim payments payable to lenders, if amount is to be paid within 12 months
42
AR-54 Accounts Payable to ED• Report other liabilities for
expenses due ED within the next 12 months
43
AR-55 Other Liabilities• Report other liabilities that are
not reported elsewhere Including:
– Outstanding federal advances due to Ed
– Remaining reserve return obligation
– To be paid more than 12 months from current date
– FY 07 Recall Amount must be reported in this line item
44
AR-56 Allowances and Other Non-Cash Charges to Federal Fund
• Report the net present value:– Expected future claims– Net recoveries– Amount to be paid on
guaranteed loans
MINUS– expected reimbursements of
these claims– Other allowances (such as
deferred unearned Federal default fees)
45
AR-57 Federal Fund Balance• The Federal Fund balance on an
accrual basis for the fiscal year being reported is calculated:
– ADD AR-48 through AR-52 and subtracting AR-53 through AR-56
• This amount should represent the equity on the audited balance sheet section of the Federal Fund.
• AR-57 must equal AR-26
46
Technical SlideWe appreciate your feedback and comments.
Katrina TurnerNettie Harding202.377-3311 202-377-3307
[email protected] [email protected]
202.275.0913