Day three of NACUBO’s annual Higher Education Accounting Forum (HEAF) included another set of high-energy sessions on structural and strategic institutional reviews, grants and contributions, and an update on the status of the single audit compliance supplement.
The panel on structural and strategic change brought together perspectives from small liberal arts institutions, community colleges, research-based universities and public universities. Panelists shared how they are responding to a range of pressures, including declining enrollment, cost constraints, the need to identify new revenue streams and continued regulatory uncertainty.
A consistent theme of the panel was that when the environment feels most chaotic and the path forward is unclear, leadership benefits from stepping back, adding structure and asking a few practical questions: What is the magnitude of the impact? Which risks should we address first when conditions may change daily? What solutions can meet near-term needs while supporting longer-term strategy? How will we explain the issue, our approach and the rationale for decisions? Finally, how will the institution define progress, track it against goals and make adjustments as needed?
The next session focused on practical considerations for recording contributions and grants as donors become more informed and more sophisticated in how they structure support for institutions. A key takeaway was the value of clear gift acceptance policies supported by well-written, well-structured gift agreements. For institutions receiving gifts from donor-advised funds, the discussion reinforced the nuances of when and how those gifts can be recognized. There was also thoughtful dialogue on distinguishing between barriers that create conditions and restrictions, a topic we continue to advise clients on.
The day concluded with a discussion of Uniform Guidance, which remains an area of active focus. While there is no current timeline for issuance of the supplement, expectations are that the 2026 compliance supplement for institutions of higher education will include limited changes. Over the longer term, the Office of Management and Budget is expected to continue reviewing Subpart E, which provides guidance related to indirect costs. Any changes in this area remain among the most discussed issues in higher education finance. The session also addressed “ghost students,” an ongoing risk for many institutions and a topic we have covered in a separate article previously.
Overall, it was a strong conference with a wide range of timely content. In the coming weeks, we will take a deeper look at several of these topics. Hope to see you next year in Anaheim!
Read our recaps from the rest of the conference here:
About Schneider Downs Higher Education Services
The Schneider Downs Higher Education industry group is a dedicated team of experienced professionals specializing in serving institutions from high schools to universities. Our experience in audit and assurance, tax advisory, technology and data and more allow our professionals to stay ahead of the latest trends, developments and challenges within the education sector and provide timely and practical solutions to our clients.
