Frazer LLP Blog

Beware of Untimely or Incorrect G5 Expenditures Reporting

Dec 5, 2016 1:44:55 PM / by Steve Bastardi, CPA posted in Institutions of Higher Learning, G5 Expenditures, G5 Reporting

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This is the tenth in a series of 10 blog posts related to the Top 10 Audit Findings of the U.S. Department of Education.

Untimely and/or incorrect reporting of G5 expenditures is the tenth item from a list of audit findings in order of number of deficiencies found.

Regulatory background

G5, formerly known as GAPS, is a delivery system used by Federal Student Aid (FSA) that supports program award and payment (drawdown) administration. It is a component of EDCAPS, U.S. Department of Education’s (ED’s) integrated financial processing system, managed and administered by the Department’s Office of the Chief Information Officer (OCIO), and communicates with the Common Origination and Disbursement (COD) system through the Financial Management System (FMS).

There are basically two ways of receiving FSA from the ED including the advance payment method and what is known as the heightened cash monitoring method. For various reasons, the Department of Education may place institutions on a Heightened Cash Monitoring (HCM) payment method to provide additional oversight of cash management.

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