Whether the Mergers & Acquisitions market is hot or cautious, one truth remains constant: student accounts receivable (A/R) can quietly make—or break—a school acquisition. Unwritten write-offs inflate EBITDA and net working capital, anchoring sellers to higher valuations. Once diligence reveals the real collectability picture, the resulting price reset can be...
Insight from McClintock & Associates, Professional Accounting and Advisory Services The global education and training (E&T) sector has evolved into one of the most dynamic and resilient investment frontiers. No longer viewed solely through a philanthropic lens, education is now a high-performing asset class—combining social impact with long-term stability and scalability....
McClintock & Associates, a leading public accounting firm providing specialized services to postsecondary educational institutions and service-based industries, is proud to announce the promotion of Tom Wilson, CPA, to Technical Director. “Tom’s promotion formalizes the leadership he has demonstrated for years,” said Managing Director Dave McClintock, CPA. “His strong technical accounting...
Why ED’s “day-one” balance sheet test can upend even well-modeled deals — and how to stay ahead. The Overlooked Test That Derails Deals When a private equity fund or strategic buyer acquires a Title IV institution, the focus is often on returns, synergies, and post-close integration. But for higher education acquisitions, one...
The 2025 North American Career Education Convention at the MGM Grand in Las Vegas was the largest and most dynamic gathering of private career education professionals yet. With record attendance, a bustling exhibit hall, and a packed agenda, the energy and optimism were unmistakable. As a newly appointed member of the...
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...
Growth is exciting. Whether it’s moving campuses, opening new programs, or expanding facilities, signing a new lease often feels like progress. But for institutions that participate in Title IV funding, that lease could come with an unexpected cost: a lower Composite Score Ratio (CSR). Thanks to changes in lease accounting under...
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) 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 &...
The U.S. Department of Education (ED) published the change in ownership (CIO) rule in the fourth quarter of 2022. The rule goes into effect July 1, 2023, and impacts every step of this process. It includes new notifications that are required before any CIO, an updated approval process, and requirements...
In March 2022, the Department of Education (ED) reached consensus with non-federal negotiators on a crucial regulation for proprietary institutions: the 90/10 rule. Broadly, the 90/10 rule requires proprietary institutions to receive at least 10% of their revenue from nonfederal educational assistance sources every fiscal year. Because consensus was reached, the...
The latest negotiated rulemaking session featuring the Department of Education’s (ED) Institutional and Programmatic Eligibility Committee concluded March 18 — and I appreciated the chance to be a part of it. As a committee advisor representing compliance auditors who work with institutions that participate in Title IV, I was able to...
Got a fresh 2022 daily planner? As nice as it is to see the blank pages, it’s time to start filling them. With the new year comes a new set of financial reporting due dates and notable milestones to mark. Each month brings different challenges, and we know how difficult it...
During 2020, the Higher Education Emergency Relief Fund (HEERF), included as part of the wide-ranging CARES Act, provided a lifeline to institutions of higher education and their students. As the policy and requirements for both the student and institutional grants evolved over the year, schools were required to post regular...
If you had any personal New Year’s resolutions a year ago, it’s possible you tossed them out the window not all that long into a 2020 that veered wildly off-course. We can’t blame you for it, but from an institutional standpoint, it’s important to stay on track during a challenging...
No tricks, a major deadline looms for postsecondary educational institutions just before Halloween. The first round of quarterly reporting for the institutional portion of the Higher Education Emergency Relief (HEERF) Grant is due October 30, meaning institutions cannot delay in preparing and posting their reports. Check out this rundown concerning the...
After years of debate, the U.S. Department of Education’s (ED) new Title IX regulations took effect in August. ED’s final rule details the responsibilities of schools that receive federal funds in responding to allegations of sexual assault and harassment. Along with Title IX coordinators, all leaders at postsecondary education institutions should...
On the heels of legislation that makes the Small Business Administration loans provided through the Paycheck Protection Program easier to be fully forgiven, updated, borrower-friendly forgiveness applications are now available. Along with the new, shorter form to be submitted through participating businesses’ lenders, the SBA released an EZ version primarily...
The U.S. Department of Education (ED) released updated guidance regarding interruptions of study related to the coronavirus (COVID-19) late in the day on May 15. The update covers a wide range of topics, which are summarized here. While the announcement provided some new answers, we have included follow up questions...
As part of the continuing effort to provide relief to a higher education system that was rocked by COVID-19, the Department of Education (ED) has released information on how to apply for the institutional portion of the emergency funds provided the CARES Act. Institutions are able to use up to 50...
Following last week’s announcement of the $6 billion Higher Education Emergency Relief Fund to aid students amid the COVID-19 pandemic, the Department of Education (ED) has provided a set of resources as it prepares to disburse funds to institutions. We recommend visiting ED’s relief fund web page here. It includes: A...
More than $6 billion in emergency cash grants is being distributed to colleges and universities, the Department of Education announced Thursday afternoon, with the funds meant for students who have had their education disrupted by the COVID-19 outbreak. Part of the Coronavirus Aid, Relief and Economic Security (CARES) Act, schools are...
Higher Ed Colleagues: As we continue to work to understand the impact that the stimulus bills will have on Title IV and businesses, we want to help you do the same. In an effort to keep you informed, we’ve compiled a list of resources that expound on the CARES Act’s impact on...
Hello friends, As we begin another week, we hope you are all doing well and successfully transitioning to new circumstances. We also would like to direct your attention to the Department of Education’s (ED) updated guidance related to Title IV compliance and interruptions of study caused by the COVID-19 outbreak. The update...
The allowance for doubtful accounts related to student receivables is often the least precise measurement on a school’s balance sheet. Few items on a financial statement can have a greater influence on profitability. As an estimate of an institution’s expectation of what it will not collect from students’ accounts receivable,...
Some people make plans to read more. Others buy a gym membership with earnest (if not exactly honest) intention to go a couple times a week. At McClintock & Associates, our New Year’s resolution each year is one we know we can keep: help clients navigate the murky waters of...
Some people make plans to read more. Others buy a gym membership with earnest (if not exactly honest) intention to go a couple times a week. At McClintock & Associates, our New Year’s resolution each year is one we know we can keep: help clients navigate the murky waters of...
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...
By David McClintock, CPA At McClintock & Associates, we continually strive to provide top of the line service with added value to our clients. We seek to do this by leveraging our expertise to find and deliver new services and advice. We also look for ways to save our clients’ money....