Day two at NACUBO’s annual Higher Education Accounting Forum (HEAF) underscored the pace of change across the sector.
Topics included an update from NACUBO on developments in Washington, D.C., perspectives from representatives of the FASB and GASB and other timely discussions.
The annual Washington Update explored what could unfold this fall with the midterm elections and how different outcomes may shape legislative priorities. The discussion also covered the Trump administration’s budget priorities and what they may mean for higher education. The session highlighted continued concern about indirect cost rates, which the administration has sought to limit to 15% for many agencies. Speakers also addressed ongoing negotiated rulemaking and how it may reshape the accreditation process over the next few years. Finally, the session examined the potential impact of the One Big Beautiful Bill Act, including possible changes in loan limits, proposals to sunset certain programs and the creation of new Pell Workforce Grants.
We then heard from representatives from the Financial Accounting Standards Board (FASB) and the Governmental Accounting Standards Board (GASB). For FASB institutions, the lift this year may be lighter given fewer items on the near-term agenda, while the longer-term research agenda remains robust as the board evaluates priorities and identifies opportunities to improve financial reporting for stakeholders. For GASB institutions, there was significant discussion about upcoming changes under GASB 103, which took nearly nine years to develop and issue. GASB 103 is expected to bring meaningful changes for many institutions, including updates to how revenues and expenses are classified between operating and nonoperating categories, as well as changes to how management’s discussion and analysis (MD&A) is structured and presented.
The afternoon turned to technology, with sessions on cyber risk, the use of analytics and related tools to support program optimization and the evolving role of AI in the business office. The takeaway was clear: institutions should adopt these tools responsibly to strengthen operations and decision-making. One study noted that AI can help organizations identify and contain cyber breaches 108 days sooner, a meaningful improvement in incident response. At the same time, AI is also contributing to nearly 1,800% growth in business email compromise. The core message was the importance of strong governance, including clear policies on how AI may be used, what data should never be entered into AI tools and which tools are approved by the institution. There was also significant discussion about upskilling staff and bringing teams along so there is a thoughtful plan to roll out AI across the organization.
Read our day one recap here. More to come from day three.
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.
