Heightened Cash Monitoring (HCM) Support Services

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What is Heightened Cash Monitoring and Why It Matters?

Heightened Cash Monitoring (HCM) is a funding method the U.S. Department of Education uses to provide additional oversight of institutions participating in Title IV federal student aid programs.

There are two levels of HCM:

  • HCM1: Schools must disburse aid to students first, then submit documentation for reimbursement.

  • HCM2: Schools must submit additional financial documentation before receiving federal funds.

Both methods can create significant cash flow challenges, increase administrative burden, and raise compliance risk.

Why Institutions Are Placed on HCM

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The Department of Education may place an institution on HCM for reasons such as:

  • Late or missing financial statements or audits

  • Failure to resolve prior compliance findings

  • Financial responsibility concerns

  • Program review issues

  • Significant staff turnover or leadership changes

  • Self Reporting

Financial & Compliance Risks of HCM

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Being placed on HCM can and will:

  • Delay Title IV disbursements and affect student refunds

  • Strain your institution’s operating budget

  • Increase audit and program review exposure

  • Require additional staffing for financial aid and business office operations

How JHSG Helps Institutions on HCM1 and HCM2

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We specialize in helping colleges and universities navigate the challenges of Heightened Cash Monitoring. Our HCM services include:

  • Documentation Support: Preparing and submitting reimbursement requests accurately and on time

  • Cash Flow Management: Strategies to minimize the financial strain of delayed federal reimbursements

  • Compliance Consulting: Addressing the issues that led to HCM placement and reducing risk of escalation

  • Interim Staffing: Providing experienced financial aid professionals to support your office during transitions

  • Third-Party Servicer Support: Managing Title IV processing with compliance safeguards in place

Why Partner with JH Strategic Group

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  • Expertise in Title IV Compliance — Over 10 years working with institutions under federal oversight of HCM

  • Proven Track Record — Successfully guided schools off HCM and back to regular funding methods

  • Flexible Solutions — Interim staffing, consulting, or full-service compliance support

  • If your institution has been placed on Heightened Cash Monitoring, you don’t have to navigate it alone.

  • Contact JHSG LLC today to schedule a consultation and develop a tailored strategy for your institution.

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Get Expert HCM Support Today

Interested in our services? Complete the form so a consultant can reach out to your school directly.

Jonathan@jhsgllc.com
(682) 556-3533

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