Making an acquisition in a highly regulated industry like postsecondary education means following required procedures and obtaining approvals from multiple agencies. Often, the most significant approval comes from the U.S. Department of Education (ED) because the approval can include a requirement to post a letter of credit with ED as...
On March 15, 2019, the U.S. Department of Education (ED) issued a long-awaited announcement providing guidance for the implementation of the Borrower Defense to Repayment (BDTR) regulations, which the U.S. District Court ruled was unlawful back in October. You might remember ED proposed a new set of regulations determining if...
The Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU), ASU No. 2016-1 – Financial Instruments-Overall (Subtopic 825-10), Recognition and Measurement of Financial Assets and Financial Liabilities. The objective of this ASU is to enhance the reporting model for financial instruments to provide users of financial statements with...
Confusion as to whether charges for books, supplies, kits and other related goods and services should be prorated has been an ongoing issue for years in the post-secondary education industry. The Department of Education has provided the following wording in response to the confusion. “The determining factor in whether the...
Effective for tax returns filed for tax years beginning in 2018, the Centralized Partnership Audit Regime (CPAR) takes effect for IRS audits. What does this mean for your partnership, or LLC treated as a partnership, for tax purposes? Adjustments to a partnership’s tax liability as the result of an IRS audit...
The Internal Revenue Service is now enforcing the Form 1098-T reporting changes, first introduced in 2016. The significant change requires educational institutions to report payments received for qualified tuition and related expenses (QTRE), rather than the amounts billed to students. Prior to this year, educational institutions were able to provide an...
Over the past couple of years, a handful of Accounting Standard Updates (ASU) issued by the Financial Accounting Standards Board (FASB) related to business combinations and consolidations have had an impact on our clients. Since increased merger and acquisition activity has been seen in 2018, a short summary of the...
Preparation and communication are the keys to reducing stress and unpredictability in your title IV compliance audit. To help you prepare for your next audit, McClintock & Associates has compiled some key concepts to keep in consideration. First, getting a head start on the audit process can be beneficial. Consider what...