NFP higher education institutions’ CARES Act accounting
Hot Topic | May 2020
Implications of the CARES Act on the accounting of not-for-profit higher education institutions.
Approximately $14 billion of relief is available to higher education institutions under the CARES Act through the Higher Education Emergency Relief Fund (HEERF). KPMG addresses the accounting for this aid.
Applicability
- All not-for-profit, non-governmental higher education institutions
Relevant dates
- CARES Act was signed into law on March 27, 2020
- $12.56 billion of general HEERF grants were made available to institutions in two parts: student aid on April 9, 2020, and institutional costs on April 21, 2020
- $1.4 billion of HEERF aid reserved exclusively for minority-serving institutions, other institutions eligible for the Strengthening Institutions Program and certain institutions with unmet needs was made available on April 30, 2020
Key impacts:
- NFP higher education institutions will account for HEERF grants as conditional contributions under ASC 958-605.
Report contents
- Background
- Key provisions of the Higher Education Emergency Relief Fund
- Accounting considerations
- Internal processes and controls considerations
Download the document:
Accounting and reporting impacts of the CARES Act for not-for-profit higher education institutions
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Meet our team
Kayla Futch
Managing Director, Dept. of Professional Practice, KPMG US
Kayla Futch
Managing Director, Dept. of Professional Practice, KPMG US