Tuesday Afternoon Learning Opps

Look Out! Changes Coming to Financial Responsibility

  • Tuesday, August 01
  • 01:45 PM - 03:00 PM
  • Minneapolis Conv Ctr
  • 102C
  • SK

Speakers

Anne Gross

Vice President, Regulatory Affairs

NACUBO

Washington, District of Columbia

Sue Menditto

Director, Accounting Policy

NACUBO

Washington, District Of Columbia

Description

Twenty years after the rules were promulgated, change may be coming to the Department of Education’s standards of financial responsibility for nonprofit institutions that participate in the federal financial aid programs. ED recently delayed implementation of new provisions that would have added a layer of triggering events that could cause additional reporting, disclosure, and surety requirements, and a recalculation of an institution’s composite score—but announced a new rulemaking effort. At the same time, major changes to financial reporting for nonprofit entities will soon render the ratio definitions used by ED obsolete. To top it off, ED continues to misconstrue accounting standards and its own formulas for calculating those ratios. Learn about the state of play and join a discussion of ways to update the standards.

Learning Objectives

  • Share ideas for ways to protect federal fiscal interests without harming institutions
  • Explain how to relate the new nonprofit reporting model to ED’s ratio calculations.
  • Demonstrate an understanding of how additional notes in financial statements may ease the transition.