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FAQ: Financial Responsibility Scores and

NC-SARA

 

Q.  Is the Department of Education considering taking any actions concerning institutional
     financial responsibility composite scores in light of the COVID-19 pandemic?

A. The suspension of the financial responsibility standards (FRS) is a top priority for NAICU. NAICU has written a letter to Secretary DeVos asking for a three-year suspension of the financial responsibility scores given the financial and enrollment turmoil caused by the COVID-19 crisis. We are still waiting on a response from the Department to our letter. We believe that the Secretary of Education has broad authority to waive certain reporting requirements during times of national emergency, including the financial responsibility standards.

While the federal government has granted institutions of higher education an additional six months to file their financial reports because of federal delays in auditing requirements (including the eZ Audit), the Department has not yet taken a position on formal suspension of the regulations.
 

Q.  In light of the COVID-19 national pandemic is NC-SARA considering relaxing its
     reliance on the Federal Financial Responsibility Composite Score?

A. NAICU has written to NC-SARA to request a three-year suspension in the compact’s reliance on an institution’s federal financial responsibility composite scores for purposes of determining institutional eligibility for participation in the agreement. NC-SARA is still in the process of reviewing this request.


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