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User's Guide V1.1 Page 15 of 24 <br /> EDUCATION INITIATED PAYMENTS <br /> There are several grant programs in which the Department calculates the payment amount based on <br /> information provided by the recipient and initiates the payment request for the payee. These funds are <br /> deposited in the payees' bank account without the payee requesting the payments. These programs <br /> include: Impact Aid, Pell Administrative Payments and Campus Based Teacher Cancellation payments. <br /> The Department attaches the award number and program name with each Education initiated payment to <br /> assist payees with identifying the source and reason for the payments. However, it is at each bank's <br /> option as to whether they capture this additional information. Payees can view the payments that were <br /> deposited into their bank accounts on the e- Payments Web Site by accessing the activity report. This <br /> report will list all payment activity including these Education initiated payments. <br /> RETURNING FEDERAL FUNDS <br /> WHEN TO RETURN FEDERAL FUNDS <br /> Payees must return funds to the Department of Education when any of the following occur: <br /> • The payee has excess funds (excess cash on hand) <br /> • The payee owes the Department for disallowed expenditures found during an audit or program <br /> review (If the findings involve awards not yet closed, the recipient may be able to resolve the <br /> difference with a drawdown adjustment) <br /> • The payee has earned interest on its federal funds in excess of $200.00 <br /> • <br /> MANUAL METHOD <br /> Payments under $100,000 can be made by check. The payee must follow the instructions contained in <br /> the audit report. <br /> ELECTRONIC METHOD <br /> An enhancement to GAPS allows Payees to refund money to the Department of Education electronically <br /> through a link to the Mercantile Bank's Website accessible once a user has logged onto GAPS. Payees <br /> may select one or more of the following refund options: Excess Cash, Perkins, Interest, Closed Awards <br /> and Other. Once a refund has been initiated, payees will see the refund posted to GAPS within two <br /> business days. <br /> http: / /e- grants .ed.gov /gapsweb/help /intro.html 6/18/2002 <br />