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User's Guide V1.1 Page 18 of 24 <br /> MANAGING EDUCATION FUNDS <br /> When a payee submits a payment request, the Department will expense the drawn funds against the <br /> grant award at the time of draw. The payee also certifies at the time of draw that the funds will be <br /> expended within three business days of receipt for the purpose and condition of the grant. By providing <br /> this information at the time of draw, the payee is not required to provide a separate expenditure report to <br /> the Office of the Chief Financial Officer. Therefore, it is important to ensure that the information <br /> contained in GAPS accurately reflects the payee's actual disbursement of funds as captured in their <br /> internal accounting records. <br /> e- Payments Web Site provides payees with several mechanisms to assist them in managing their funds, <br /> ensuring agreement between their records and the Department's. These include: <br /> • The ability to modify payment requests before the funds are deposited in a payee's bank account, <br /> • The ability to adjust drawdown amounts between grant awards, <br /> • Tools for reconciling a payee's and the Department's records, <br /> • Ability to view payment and award histories, and <br /> • GAPS Activity Reports. <br /> • <br /> CASH MANAGEMENT REGULATIONS <br /> Cash management regulations still apply under GAPS. Funds drawn must be expended within three <br /> business days after deposit. Funds held for more than three business days are excess cash and must be <br /> returned. If possible, excess cash may be resolved by performing drawdown adjustments. <br /> The Department monitors compliance with these regulations through various program reviews. In <br /> addition, payees are required to submit year -end audits. Failure to comply with cash management <br /> regulations will result in audit findings and/or suspension of funds. <br /> MODIFYING PAYMENT REQUESTS <br /> GAPS provides payees with the flexibility to modify their payment requests before the funds are <br /> deposited in their designated bank accounts. When a payee submits a payment request, it is assigned one <br /> of the following statuses: Ready for Scheduling, Waiting Payment Office Review, Waiting Program <br /> Office Review, or Waiting Accounts Receivable Offset Determination. Payment requests that have <br /> been accepted for payment are given a status of Ready for Scheduling and can be modified or canceled, <br /> if necessary, prior to being transmitted for deposit with the payee's financial institution. Refer to <br /> Appendix A for instructions on modifying payment requests using the e- Payments Web Site. <br /> ADJUSTING DRAWNDOWN AMOUNTS <br /> GAPS payees may move funds drawn (funds already deposited in their account) between grant awards. <br /> http: / /e- grants .ed.gov /gapsweb/help /intro.html 6/18/2002 <br />