ED Forms 2000 for

Beginners: Annual
Reporting
Katrina Turner
Nettie Harding
 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

2
 Loans In Repayment (Con’t.)

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.

3
 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.

4
 AR-15 Beginning Balance
(from 9/30/xx)

AR-15 should be
equal to ending
balance (AR-26) of
the prior year.

5
 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

6
 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
7
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.

8
 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

9
 AR-20 Other Revenue
• Include deferred revenues
• Report itemized entries
For example:
 Secretary’s 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
10
AR-21 Claims Expensed to Lenders
• Claims expensed during
the FFY
• Net of refunds
• Overpayments and
repurchases for all FFEL
programs loans

11
AR-22 Recall of Federal Funds to the
Restricted Account
• Amount of the agency’s
required share of the
reserved fund recall,
which was deposit in a
restricted account
• No reporting required
for this line item

12
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
Department’s regulation and
guidance for the current FFY
• Amount should reconcile to
line AR-30, Default Aversion
Fee Revenue

13
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
14
 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

15
 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

16
 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

17
 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

18
 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

19
 AR-29 Beginning Balance
(from 9/30/xx)

• AR-29 should be equal to

ending balance (AR-40) of
the prior year.

20
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
Department’s regulation and
guidance for the current FFY
• Amount should reconcile to line
AR-23, Transfer to Operating
Fund for Default Aversion

21
AR-31 Loan Processing and Issuance
Fee Revenue

• Report loan processing

and issuance fee revenue
recognized

22
 AR-32 Account Maintenance Fee
• Report account
maintenance fees
recognized from the
Department

23
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 ED’s
budgetary cap
• Authority to Transfer Funds
Rescinded 7/1/2006

24
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 agency’s 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

25
 AR-35 Investment Income
• The amount of all
investment income
recognized in the
Operating Fund including
net increase (decrease) in
fair value of investments

26
 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 Secretary’s 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 Secretary’s
Equitable Share should be
reported in AR-20, Other
Revenue and AR-25,
Other Expense
• No reporting required
for this line item

28
 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

29
 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
30
 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

31
 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

32
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

33
 Restricted Account
• The Restricted Accounts
AR-43 through AR-47
are obsolete

34
 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
Guarantor’s audited financial statements as of
the end of the Federal fiscal year 9/30/xx

35
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

36
 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

37
AR-50 Net Investment in Property,
Plant, Equipment, and Inventory

• Report balances of
property, plant, equipment
LESS accumulated
depreciation

38
AR-51 Accounts Receivable from ED
• Report balances owed to
the Federal Fund by ED
For example:
 Reinsurance and other
payments

39
 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

40
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

41
 AR-54 Accounts Payable to ED
• Report other liabilities for
expenses due ED within
the next 12 months

42
 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

43
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)

44
 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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46
Technical Slide
We appreciate your feedback and comments.

Katrina Turner Nettie Harding

202.377-3311 202-377-3307

Katrina.Turner@ed.gov
Nettie.Harding@ed.gov

202.275.0913

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