Higher Education

By Christine Slade, CPA | A Rehmann Exclusive   Introduction Initially released in May 2014, Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers, which is codified in FASB Accounting Standards Codification (ASC) 606 with the same title, is now effective beginning with the 2019 calendar year-end financial statements of non-public companies, including not-for-profit organizations, that follow U.S. generally accepted accounting principles (GAAP). While previous GAAP required recognition of revenue based upon it being realized or realizable and earned, the new GAAP standard (ASC 606)’s core principle is that an entity would recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration the entity expects to be entitled to receive in exchange for those goods or services when (or as) it transfers control to the customer...

Educational organizations are increasingly victims of cyberattacks. In fact, according to the K-12 Cybersecurity Resource Center, a new scholastic cybersecurity incident is reported every three days. Some are highly publicized, like when a Texas school district was scammed out of nearly $2 million via email. But many incidents fly under the radar, even going unreported, despite causing significant harm...

Maximizing the publicity of intercollegiate athletics provides your institution a winning strategy. The saying that “college athletics is the front window to the institution” rings truer today than at any time in the past.  It isn’t uncommon to hear conversations about college teams or pride in one’s alma mater, whether it be in a personal or professional setting. The way our society identifies higher education institutions through the viewing of athletics and athletic success continues to surge...

For many colleges and universities, the need for increased resources is at a fever pitch. Many colleges find themselves in a fierce battle to generate enrollment numbers that will fund the growing program and financial needs of the institution. The next time you drive down an interstate highway, pay attention to who is advertising on the roadside billboards. The restaurants and auto dealerships we’re used to seeing are now joined by colleges and universities promoting higher education opportunities to prospective students...

On December 22, 2017 President Trump signed the largest tax overhaul of the U.S. tax system in 30 years. We have summarized highlights of this legislation that affect the higher education sector...

Michigan public schools and higher education institutions have been waiting for the final IRS ruling regarding the federal tax treatment of the 3 percent Michigan Public School Employees Retirement System (MPSERS) healthcare contribution. The IRS ruling determines whether the 3% contribution is taxable for Federal Insurance Contributions Act (FICA)/Medicare purposes.  In August 2016, the IRS issued a statement to some districts indicating future receipt of refunds from the protective claims filed. The Office of Retirement Services (ORS) tried to get a system-wide answer to the tax questions by filing a Private Letter Ruling (PLR) with the IRS...

According to University Business, higher education institutions have been the victims of 539 breaches involving nearly 13 million known records since 2005. With these attacks becoming increasingly sophisticated, it’s more important than ever for institutions to effectively safeguard their personal, intellectual and financial assets.  Let’s review two recent examples that may help protect your institution. Scenario 1: Vendor security A higher education institution faced a recent hacking attempt through internet correspondence...

The Department of Labor’s newly released overtime rule updates the salary level required for the exemption to rise from $455 a week/$23,660 a full year to $913 a week/$47,476 a full year, effective December 2, 2016. It’s intended to offer protections to 4.2 million workers nationwide, creating clarity and greater certainty about overtime into the future since the threshold will be updated every three years. As a result, many employees who earn less than the new threshold are entitled to overtime compensation...

If you're a parent or grandparent of a college student or soon-to-be college student, you might be interested to learn what's new in the world of higher education. Higher College Costs Total average costs for the 2015/2016 school year increased about 3 percent from the previous year: $24,061 for public colleges (in state), $38,855 for public colleges (out of state), and $47,831 for private colleges. Total average costs include direct billed costs for tuition, fees, room and board and indirect costs for books, transportation and personal expenses. Together, these items are officially referred to as the "total cost of attendance...

Higher education institutions have always had to worry about crimes such as fraud and embezzlement. But the dangers they face now are much more sophisticated — and can be far costlier. According to the Ponemon Institute's latest U.S...