Johnson County Community CollegeHigher Education

Finding 2021-001 ? Significant Deficiency, Compliance Federal Award No. 84.268, 84.007, 84.033, & 84.063 U.S. Department Of Education Student Financial Aid Cluster ? Special Tests And Provisions Criteria: According to the Federal Student Aid Handbook, Volume 2, Chapter 3, an institution must report changes in student?s enrollment status, the effective date of the status, and an anticipated completion date to National Student Loan Data System (NSLDS). Changes in enrollment to less than half-time, graduated, or withdrawn must be reported within 60 days of the withdrawal determination date for schools that submit roster files to NSLDS. Condition/Context: In our nonstatistical sample of 37 students, we noted that four Fall 2020 graduates were reported as graduated within NSLDS 62 days after the graduation date which was the withdrawal determination date for the College. We noted that three students who were Fall 2020 unofficial withdrawals were reported as withdrawn in NSLDS within 61 days after the withdrawal determination date, which was the day after the Fall 2020 graduation date. All seven students whose status was not updated within the 60 day requirement were updated within NSLDS on February 17, 2021. Effect: Students may not enter repayment or their grace period within the appropriate timeframe from their exit from the College or students may not receive adequate notice of the timing of their grace period. The Department of Education may not have the correct data to utilize. Identification as a Repeat Finding: This finding is not a repeat finding from the immediate prior year. Questioned Costs: There were no questioned costs to report as the finding relates only to enrollment reporting and is not related to eligibility. Cause: The College did not have proper processes and related controls in place to complete the required updates to NSLDS for reporting changes in enrollment status within the 60 day requirement. Recommendation: The Registrar and Student Financial Aid department should review and consider revisions to its processes and related controls in place to ensure completion of updates to NSLDS within the required 60-day timeframe. Views Of Responsible Officials/Corrective Action Plan (Unaudited): Management concurs with the finding, and the Financial Aid Office and Registrar Office have updated their dates to send files to the Student Clearinghouse/NSLDS based on a shorter semester. Fall 2020 was the first term to change from 16 weeks to 15 weeks. Completion Date: May 2021 Contact Person: Christal D. Williams, Director of Financial Aid

Finding 2021-002 ? Significant Deficiency, Compliance Federal Award No. 84.268, 84.007, & 84.063 U.S. Department Of Education Student Financial Aid Cluster ? Special Tests And Provisions Criteria: The College must return funds for federal direct student loans and report the reduction in Pell grant funding to the Common Origination & Disbursement (COD) system within 45 days for students who have withdrawn from the College and for whom a completed return calculation indicated that a return of and reduction in funding was required. Condition/Context: In our nonstatistical sample of 43 students who withdrew from the College, two instances were noted in which the reduction in funding was not communicated to the COD system within the 45 day requirement as required by 34 CFR 668.22(j)(1). We became aware during our testing that for two students that withdrew unofficially from the Fall 2020 semester that returns of funds were made to COD within 49 days of the withdrawal determination date which is four days past the 45 day requirement. Effect: The Department of Education did not receive the funds that were due to the Department of Education as a result of the Return to Title IV (R2T4) calculation in a timely manner. Identification as a Repeat Finding: This finding is not a repeat finding from the immediate prior year. Questioned Costs: There were no questioned costs to report as the finding relates only to timing for return of funds as the amount of the return made was properly calculated. Cause: The College did not have proper processes and related controls in place to complete the required updates timely to COD related to returns required as a result of R2T4 for the Fall 2020 unofficial withdrawals. Recommendation: The College should review its controls and procedures as described to ensure the procedure is functioning to ensure completion of the return and return notifications are made to the COD system within the 45-day timeframe. Views Of Responsible Officials/Corrective Action Plan (Unaudited): The Financial Aid Office did not receive an error report for the students that were reported outside the required timeframe. We believe it was a Banner update glitch that caused the error. We have updated our process to reconcile our COD reports to ensure that this error does not happen again. Completion Date: May 2021 Contact Person: Christal D. Williams, Director of Financial Aid

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