Client experience: Analyzing a private college DOE score

Institutional challenge

The Department of Education issued regulations which revised the standards of financial responsibility. A determination is required to be made as to whether an institution is financially sound and administratively capable of providing the education it advertises. A private college was concerned that its composite score was declining and within a year or two would fall below the minimum required by the Department of Education.

Baker Tilly solution

Baker Tilly’s industry-focused higher education team provided the college with individuals who were familiar with the Department of Education’s regulations for calculating the composite score. Baker Tilly calculated the composite score under the Department of Education’s methodology for the current year. The college provided us with multiple revenue, expense, and other financial scenarios for the upcoming year. We used those scenarios and estimated the impact that each one would have on the composite score. 

Results

The college analyzed the different scenarios and, using this information, was able to implement a strategy that allowed them to continue to exceed the Department of Education’s minimum score.