Two recent developments from the Federal government that affects Institutions of Higher Education (IHE).
1.        Normally, IHE are required to submit their financial statements and Single Audit reports to the Department of Education’s EZ Audit web portal and the Clearinghouse for Single Audits nine months after the IHE’s year end (due March 31, 2020 for June 30, 2019 year ends). The deadline for both requirements has been extended six months (September 30, 2020).
No action is needed by the IHE to activate the extensions.

2.        The Senate approved the $2 trillion stimulus package and the House of Representatives is expected to act on the bill on Friday. As with most legislation, the bill contains broad direction in which the Federal agency will provide specific guidance. Highlights affecting IHE are:
a.        Waives IHE’s share to match Federal funds for campus-based aid waivers for award years 2019-2020 and 2020-2021.

b.        Use of Supplemental Educational Opportunity grants for aid to undergraduate and graduate students that have unmet financial need because of the emergency situation.

c.        Allows payment of Federal work-study funds to students up to the amount that the student would have earned if the student worked.

d.        Adjustment of subsidized loan usage limits and extension of the Federal Pell grant duration limits.

e.        Directs the Department of Education to provide IHE and student relief from returning grant or loan assistance for student withdrawals from the IHE during the emergency period.

f.         Exclusion of attempted credits that were not completed during the emergency period from the quantitative component of the student’s satisfactory academic progress calculation.

g.        Directs the Department of Education to suspend all payments due and the accrual of interest for loans that are held by the Department of Education through September 30, 2020. Additional guidance is needed whether this applies to all types of Federal loans.

h.        Provides an option to the Department of Education to waive or modify required reporting requirements

i.          Authorizes the Department of Education to modify requirements and the use of grants
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David DiIulis
CPA, MBA
Principal

O'Connor & Drew, P.C.
617.471.1120
Steven J. Cohen
CPA, CGFM
Principal

O'Connor & Drew, P.C.
617.471.1120
Michael Cosgrove
CPA, MSM
Principal

O'Connor & Drew, P.C.
617.471.1120