NFP higher education institutions’ CARES Act accounting

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