Session 61
Download
1 / 20

Session 61 - PowerPoint PPT Presentation


  • 147 Views
  • Uploaded on

Session #61. What’s going on with the Federal Fund Katrina Turner Barbara Johnson. Agenda. What is the Federal Fund Federal Fund Reporting Requirements Uses of Data Management Plan Impacts to the Federal Fund Reconciliation of Annual GAFR Data to Guaranty Agency’s Financial Statements .

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Session 61' - Mia_John


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
Session 61

Session #61

What’s going on with the Federal Fund

Katrina Turner

Barbara Johnson


Agenda
Agenda

  • What is the Federal Fund

  • Federal Fund Reporting Requirements

  • Uses of Data

  • Management Plan

  • Impacts to the Federal Fund

  • Reconciliation of Annual GAFR Data to Guaranty Agency’s Financial Statements


What is the federal fund
What is the Federal Fund

  • Federal fund reflects all assets held by the guaranty agency and is the property of the United States

  • GA’s are required to maintain fiduciary responsibility


Federal fund reporting requirement
Federal Fund Reporting Requirement

  • Annual Report

    • Data is reported as of September 30 on an accrual basis and is due by Dec 1


Uses of data
Uses of Data

  • Monitor guarantor’s financial activities;

    • Federal & Operating Fund Balances

    • Minimum Reserve Ratio

    • Projections

  • ED’s financial statements;

  • Reasonability to NSLDS data;

  • Minimum Reserve Ratio; and

  • Trigger Rate


Management plan
Management Plan

  • Guaranty Agencies are required to submit a management plan when the Secretary determines that the administrative or financial condition of the agency is in jeopardy

  • Indicators

    • Minimum Reserve Ratios

    • Declining Federal Fund

    • Operational Issues


Management plan con t
Management Plan (Con’t.)

  • What is included in a Management Plan

    • Business Overview

      • Agency description

      • Business model

      • Challenges


Management plan con t1
Management Plan (Con’t.)

  • Competitors

  • Unique characteristics and factors leading to financial instability


Management plan con t2
Management Plan (Con’t.)

  • Business Plan

    • Specific actions taken or proposed to re-establish financial stability

    • Target Dates

    • Performance Measures

    • Financial projections for Federal Fund and Operating Fund (3 to 5 yrs)


Management plan con t3
Management Plan (Con’t.)

  • Recommendations for assistance and reporting progress status to the Department

  • Audited Financial Statement for the last 2 years


Management plan con t4
Management Plan (Con’t.)

  • Next Steps

    • Submittal

    • Review

    • Approval

    • Monitor

    • Exit Strategy


Impacts to federal funds
Impacts to Federal Funds

  • Account Maintenance Fee (AMF)

    • Authority to Transfer funds was rescinded July 1, 2006


Impacts to federal funds1
Impacts to Federal Funds

  • Default Aversion Fee (DAF)

    • Permitted to Transfer DAF from Federal fund to Operating fund per lender’s request for default aversion on the loan


Impacts to federal funds2
Impacts to Federal Funds

  • Federal Default Fee

    • Requires Collection of 1% for loans guaranteed on/after July 1, 2006

    • Requires deposit of fee into GA Federal fund

    • GA may collect from borrower or pay from non-Federal sources


Impacts to federal funds3
Impacts to Federal Funds

  • Reserve Recall

    • Final installments of the $250 million Federal reserve recall as required by Section 422(i) of the HEA, (as amended) and held by GA’s were received as of Sept 1, 2007


Impacts to federal funds4
Impacts to Federal Funds

  • Under/Over reporting of Rehabilitated Loans

    • Excess payments in the Federal fund due to incorrect method of calculating the reinsurance complement for rehabilitated loans


Impacts to federal funds5
Impacts to Federal Funds

  • Incorrect reporting identified during program review or self reported by GA

  • GA must request the Department’s approval prior to transferring funds from the Federal fund to the Operating fund


Impacts to federal funds6
Impacts to Federal Funds

How to Request the Funds?

  • List of Required Documentation

    • Amounts that should have been deposited/reported vs. Amounts that

      were deposited/reported

    • Proof that the funds were actually deposited into the Federal Fund (Examples may include deposit receipts)

    • Reimbursement rate the GA used to calculated the incorrect amount


Reconciliation of annual gafr data to guaranty agency s financial statements
Reconciliation of Annual GAFR Data to Guaranty Agency’s Financial Statements

  • Requests for GA Financial Statements

    • Annually

    • 6 months after audit period ends

  • Review/Analysis


Contact information
Contact Information Financial Statements

We appreciate your feedback and comments. We can be reached at:

Katrina Turner Barbara Johnson

202.377.3311 202.377.3327

Email address

[email protected] [email protected]

Fax: 202.275.0913


ad