Bethel University Passes Department of Education Financial-Responsibility Test
August 13, 2010 | 11:59 a.m.
By the Office of Communications and Marketing
Bethel University scores a 2.0 in the latest financial-responsibility test.
The Chronicle of Higher Education and other media outlets are reporting that 150 nonprofit colleges and universities have failed the U.S. Department of Education’s financial-responsibility test for the 2008-09 school year. Bethel University is not one of them, having passed the test with a score of 2.0, 2.9, and 3.0 the last three years. Those not passing the test have a score of 1.5 or lower.
“We’re pleased that Bethel has passed the Department of Education’s financial-responsibility test. The number of colleges and universities failing the test confirms that today’s economic challenges are affecting many very responsible and reputable educational institutions,” says Kathleen Nelson, Bethel senior vice president for finance and administration. “We’ve taken many steps in the last two years to put Bethel on solid financial footing. Those decisions have been difficult, but are important to ensure the university will succeed in future years.”
The National Association of Independent Colleges and Universities (NAICU) pointed out that there are many issues with how the Department of Education calculates institution’s scores. “Some schools that were initially on the list now are off because of departmental calculation errors. Others appear on the list based on the day the snapshot was taken, and today would pass the test with flying colors,” NAICU said in a statement. “For instance, some made the list because of endowment losses suffered when the recession first hit, but are now beginning to recover their losses.”
In addition, there have been many changes in accounting standards. However, the Department of Education financial-responsibility test hasn’t been updated to reflect those changes. “Few schools on the list are truly in financial straits, and we are hopeful that a new formula will soon be devised to give students and parents a more accurate portrait of the overall financial health of nonprofit colleges,” the NAICU statement concluded.
“We are committed to continuing to have an open and transparent budget process that ensures Bethel can weather the economic situation at hand, and the unknowns that the future may bring,” concludes Nelson.
