November 28, 2022 U.S. DEPARTMENT OF EDUCATION Ozarks Technical Community College respectfully submits the following corrective action plan for the year ended June 30, 2022. Contact information for the individual responsible for the corrective action: Ms. Jill Cox, Interim Chief Financial Officer Ozarks Technical Community College 1001 East Chestnut Expressway Springfield, MO 65802 (417) 447-7603 Independent public accounting firm: KPM CPAs, PC, 1445 E Republic Rd, Springfield, Missouri 65804 Audit Period: Year Ended June 30, 2022 The findings from the June 30, 2022, audit of the financial statements is below. The findings are numbered with the numbers assigned in the schedule. FINDINGS-MAJOR FEDERAL AWARD PROGRAM AUDIT 2022-001 Special Test and Provisions-Return of Title IV Funds Recommendation: The College implement procedures in order to strictly comply with the requirements of 34 CFR 668,173 as it relates to the return of Title IV funds. Corrective Action Token: The College has well defined policies and procedures that outline attendance requirements (policy 2.61) and the process for administratively withdrawing students (policy 2.64) who have met the criterion for 14 consecutive calendar days of non-attendance. Instructors are required to adhere to the College policies. The College has systems defined for producing a report of students who have officially and unofficially withdrawn and procedures for reviewing if a return of funds calculation is required. However, changes presented to schools with the Return of Funds regulations in early summer were difficult to understand and to incorporate pertaining to the new module language. Though we provide consistent methodology in line with our interpretations of the rules, we continued to evaluate our interpretations through various instruction from FSA handbook and webinars, NASFAA University Classes, NASFAA webinars and state association colleagues. Due to our hesitation to calculate a return of funds incorrectly, we had instances where the 45 days was exceeded. With regards to our calculations and reviews, we erred on the side of taking the needed time to confirm we had the correct calculation for the student versus calculating the percentage incorrectly and causing an increased balance for the student. We followed up with the Kansas City Department of Education Office and received final clarification of our understanding of the new rules which we have fully incorporated into our new procedures. They were consistent with our understanding and processes. Anticipation Completion Date: Fall semester 2022 and ongoing.