For higher education professionals, the annual audit process can feel like an intense period of juggling responsibilities, complying with evolving regulations, and making sure everything is in order. Under these conditions, even a dependable team can feel stretched. It’s understandable, then, that many institutions occasionally wonder if their auditor is...
The U.S. Department of Education (ED) uses an institution’s Composite Score as a key component in its annual assessment of Financial Responsibility. However, with the introduction of new Financial Responsibility Triggers, ED may now require schools to recalculate their Composite Score more frequently. As a result, it’s more important than...
In early March, I joined over 100 career education leaders in Washington, D.C. for CECU’s annual Washington Briefing and Advocacy Day. Held at the Capitol Hill Club, the event offered a timely look at the future of higher education policy, with robust participation from members of Congress, policy experts, and...
The U.S. Department of Education’s (ED) recent Dear Colleague Letter (GEN-24-11) offers critical guidance on the treatment of long-term debt and property, plant, and equipment (PP&E) in calculating an institution’s composite score for financial responsibility under Title IV. This update replaces the 2020 Electronic Announcement (except LTD Q&A 10) and...
The U.S. Department of Education’s (ED) Dear Colleague Letter issued May 16, 2024 (Implementation of Regulations Related to Financial Responsibility, Administrative Capability, Certification Procedures, and Ability to Benefit (ATB) | Knowledge Center), reinforces the proposed requirement by ED to align postsecondary institutions’ fiscal year end (FYE) with the institution’s tax...
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...