Preparing for accreditation can be one of the more stressful times for college and university leaders. The high-stakes nature of potentially losing accreditation can make a lot of teams lose sleep, especially if they have inherited processes and policies that make it difficult to respond to accreditation standards. Being able to provide your accreditor with not only the data needed to show that you are in alignment but also showing how that data influences decision making at your school is part of how Program Economic Analysis (PEA) from Forvis Mazars can help to enhance the accreditation process.
Providing Strong Evidence for Accreditation
Whether it is for regional accreditors, e.g., the Higher Learning Commission (HLC) or Southern Association of Colleges and Schools Commission on Colleges (SACSCOC), or program-specific accreditors, e.g., the Association to Advance Collegiate Schools of Business (AACSB) or Commission on Collegiate Nursing Education (CCNE), accrediting bodies want to know that schools have the resources required to sustain their programs for the long term. This has become especially important in recent years as higher education has seen an increase in the number of schools closing due to their inability to fund their operations. According to SACSCOC, among reaffirmation reviews reported in 2024, Standard 13.3, Financial responsibility,1 was one of the most cited principles of accreditation among schools.2 While the exact standard differs based on each accreditor’s standard, the requirement is essentially the same: Can you document your school’s financial standing in a way that shows that you can continue to operate while supporting students, faculty, and staff?
PEA provides a way to clearly address these financial standards. Not only does PEA allow you to show revenues and expenses quickly and easily over a period of time through dashboards like “Trend Analysis” and the “Summary” page, but it also provides a way to demonstrate in greater detail where exactly the financial strengths and weaknesses of the institution might be in the “Program Economics” and “Course Economics” dashboards. Although no one wants to admit potential shortcomings to their accreditor, knowing what those problem areas are and articulating how your school is addressing them moving forward demonstrates forward thinking and your commitment to continuous improvement. For instance, utilizing the “Program Economics” dashboards as a part of a regular program review process demonstrates that leaders are strategically taking financial responsibility into account in more than just the finance office.
In addition, PEA’s new What If Scenario Modeling dashboard allows schools to offer a forward-looking view, estimating potential outcomes of aspects such as changes in enrollment or faculty lines. Rather than vague phrases about increased revenue, schools can provide discrete numbers to support their narrative. In addition, institutions using PEA can determine the level of detail they want to examine and provide to their accreditors through dashboards like “Course Economics.” For example, if an institution is pursuing something like AACSB accreditation, PEA allows you to discern the performance of programs quickly, specifically in the College of Business, through the “Program Economics” dashboard. Or, if you’re aiming for something like CCNE, PEA allows users to drill all the way down to specific programs with the college or university.
Putting Your Money Where Your Mission Is
Knowing that you have the financial stability to stay open is one thing; showing that you are being intentional with how you are using your money to advance your institution’s mission is another. Beyond the accreditation standards that focus specifically on finances, there are several other areas in accreditation where resource allocation matters, such as strategic planning, faculty development, student support, and community engagement. PEA’s detailed breakdown of revenues and expenses across the institution can provide you with examples to support your broader narrative. Does your institution have a program that seems to be running at a deficit? Use the “Program Economics” and “Course Economics” dashboards to show a more holistic view of how general education courses might potentially benefit the school as a whole. Does your strategic plan lack solid metrics related to financial goals? Using the “Summary” page can provide a high-level picture of the school’s financial picture that can be used in conjunction with “Program Economics” or “Course Economics” dashboards to capture in more detail if a school is meeting those more specific strategic planning goals.
How Forvis Mazars Can Help
Telling the financial story of an institution is an important part of any accreditation review. Accrediting bodies want to know that your school is stable enough to weather the occasional financial storm (or drought, for that matter). A discouraging year or two of financial statements should not sink your chance of accreditation if you have a plan in place to address the root causes of those issues. PEA provides you with the tools to isolate programs that might be contributing to a deficit and demonstrate what actions you are taking to improve their outcomes. Notably, PEA helps you visualize each of the drivers of revenue and expenses, including tuition per credit hour, enrollment, class size, full-time faculty utilization, and credit hour production. Beyond that, our knowledgeable team can help you understand how to use your PEA dashboards for continuous improvement and to advance the mission of your institution.
Want more information about how PEA can help you prepare for accreditation and unlock the full potential of your academic portfolio? Request a demo with our higher education consulting team now!