The U.S. Department of Education (ED) has been calculating an institution’s Composite Score as part of its annual assessment of Financial Responsibility. However, new Financial Triggers can cause ED to require a school to recalculate its Composite Score making it more important than ever to really understand how it is...
Institutions of higher education, whether traditional universities or proprietary trade schools, are well familiar with U.S. Department of Education (ED) oversight. Annual filings and notification triggers are par for the course. For precisely this reason, it’s critical that we understand how the department assesses your finances so that you can prepare...
The U.S. Department of Education’s 2023 changes to the longstanding 90/10 rule introduces new hurdles for proprietary schools. Not only do the changes require schools to adopt a new model for calculating their 90/10, but they also make it more difficult to pass. Use Our Model to Stay Compliant At McClintock &...
Introduction Financial Responsibility, as defined by the U.S. Department of Education, is a condition of eligibility for a school participating in FSA programs, requiring that schools submit an audited financial statement to ED each year. Recently, the conditions for meeting these important requirements changed in ways that may add complexity to...
In response to the financial crisis in 2008, the Financial Accounting Standards Board (FASB) took action for revisiting the methodology for recognizing credit losses as the existing approach to estimating credit losses was determining whether such losses met the threshold of being “probable”, regardless of whether or not they were...
The U.S. Department of Education (ED) recently released proposed rule changes for strengthening monitoring and oversight of colleges and universities. These changes cover general standards of financial responsibility, and add new reporting requirements, among other updates reviewed below. We recommend that institutions review these changes to identify any potential issues. That...
The U.S. Department of Education (ED) published the 90/10 rule near the end of 2022 that includes significant changes beyond just redefining what funds should be included in both sides of that equation. This makes it crucial that institutions understand the nuanced changes, update their processes to calculate 90/10, and undergo...
As a parent, sending a child to school seems so far off when they are born. However, eventually the day comes, whether they (or you) are ready or not. Most parents spent multiple years preparing their child for school to make the transition a great experience for everyone: themselves, teachers,...