Multimedia | Data Analytics and Financial Reporting

Higher Ed Advisor: navigating the changes to ED’s financial reporting requirements to calculate composite score

Jan. 4, 2021

Welcome to Higher Ed Advisor, the Baker Tilly podcast series where we speak with higher education industry leaders from across the firm about practical and proactive guidance to help colleges and universities protect and enhance their value.

The Department of Education (ED) made changes to the calculation used to determine a higher education institution’s financial responsibility composite score. As part of this, ED is requiring colleges and universities to report additional information in their annual financial statements. The calculation measured using this data must result in a composite score of 1.5 or higher in order for a school to be considered “financially healthy” and eligible for federal financial aid grant funding. Non-compliance can result in a number of risks and consequences.

Listen to our podcast to learn about the changes and requirements, and understand the implications for colleges and universities, from recruitment to reputation, that don't comply or meet the required score.

Baker Tilly has extensive experience working with college and universities on all compliance matters, including ED compliance. For more information, or to learn how Baker Tilly’s higher education specialists can help your institution, contact our team.