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90/10 Calculation and Disclosure and Other New Requirements Under Proprietary School Audit Guide

By Eileen Keller, CPA, Partner, Salmon Sims Thomas
The U.S. Department of Education released the Guide for Audits of Proprietary Schools and for Compliance Attestation Engagements of Third-Party Servicers Administration Title IV Programs (“AG”) effective for institutions for fiscal years ending June 30, 2017, or later. Some of the significant changes outlined in the audit guide include the following: 90/10 calculation and disclosure, size of student sample tested, student confirmations and gainful employment.

The New Audit Guide and What we Learned

What Does the new Revenue Recognition Accounting Standard Mean for Your Institution?

By Jennifer L. DeBor, CPA, Audit Manager, McClintock & Associates, P.C.
The crux of the standard is that the recognition of revenue should represent the amount an entity (institution) is expected to receive for the transfer of its promised goods or services (education) to the customer (student). The standard requires an institution to apply a five-step process to an entity’s contracts with its customers.

The New Audit Guide and What we Learned

The New Lease Standard – The Perfect Storm for Failing the Composite Score Ratio

By Michael T. Wherry, CPA, Director/Shareholder and Ted Blendermann, CPA Director/Shareholder, McClintock & Associates, PC
While news stories over the past few years related to the postsecondary school sector have focused on compliance regulations, admissions processes, outcomes, and student debt, a new accounting standard set to take effect in a couple of years will have a significant impact on the U.S. Department of Education’s annual composite score ratio. As is normally the case, the potential effect on all postsecondary institutions is detrimental.

The New Audit Guide and What we Learned