Composite Score Assessment Tool

There’s no avoiding it: the new lease standard will be going into effect for privately held postsecondary institutions. This means schools must recognize leased assets and liabilities on the balance sheet for the year ending December 31, 2020.

This new standard can drastically impact a school’s composite score, or financial responsibility ratio. The composite score represents an annually calculated figure that the Department of Education uses to gauge the overall financial health of an institution.

The new lease standard could cause your institution to fail the composite score.

McClintock & Associates, a trusted accounting expert in Title IV compliance, created an easy to use Composite Score Calculator that calculates how the lease standard would have impacted your composite score for your most recently completed fiscal year.