ED Forms 2000 for Beginners: Annual Reporting

1
ED Forms 2000 for Beginners Annual Reporting

• Katrina Turner
• Nettie Harding

2
Loans In Repayment

• Category 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

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Loans In Repayment (Cont.)

• 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.
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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
• Secretarys 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 fees
• These 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 agencys 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 Departments
  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 Departments
  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 EDs
  budgetary cap
• Authority to Transfer Funds Rescinded 7/1/2006

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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 agencys 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

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AR-35 Investment Income

• The amount of all investment income recognized in
  the Operating Fund including net increase
  (decrease) in fair value of investments

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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 Secretarys fee
• Report itemized entries
• Includes
• Default aversion
• VFA revenue

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AR-37 Collections of Defaulted Loans

• Formally SES was reported in this line item
• Currently Secretarys Equitable Share should be
  reported in AR-20, Other Revenue and AR-25, Other
  Expense
• No reporting required for this line item

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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

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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

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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 Guarantors
  audited financial statements as of the end of the
  Federal fiscal year 9/30/xx

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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

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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

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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)

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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

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• QUESTIONS

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Technical Slide

• We appreciate your feedback and comments.
• Katrina Turner Nettie Harding
• 202.377-3311 202-377-3307
• Katrina.Turner_at_ed.gov
• Nettie.Harding_at_ed.gov
• 202.275.0913