For Fiscal Year 2019–20, North Central University received a 3.0 Financial Responsibility Composite Score from the U.S. Department of Education, the highest awardable score. According to university auditors Clifton Larson Allen, “The composite score reflects the overall relative financial health of institutions on a scale from negative 1.0 to positive 3.0. A score greater than or equal to 1.5 indicates the institution is considered financially responsible.”
North Central’s score has seen an increase in the past five years, rising steadily, from 2.2 in 2016 and 2017 to the most recent 3.0 score (see chart). Brian Li, MBA, Chief Financial Officer, explained the score essentially conveys that the institution’s financial strength is verifiable; it highlights a low level of debt and effective stewardship and budget management.
Andrew Denton, Ph.D., Executive Vice President, noted that North Central’s financial strength has transcended a recent shift in university administration. “Under President Scott Hagan [inaugurated in 2017], we have delivered and maintained balanced budgets,” Denton explained, “but the seeds of NCU’s stability began well before that under the leadership of our previous president, Gordon Anderson.”
CFO Li said that the score is a result of an annual auditing process. “Each year, our auditors calculate our composite score based on our audited year-end financial statements,” Li said. “These scores are publicly available for all higher ed institutions and can give prospective students and donors a glimpse into the fiscal responsibility of each institution. We are thankful for the decades of work and leadership that have set NCU up for financial success.” The scores are reported on studentaid.gov. Li said there is a lag-time between reporting and publishing the numbers; this year’s numbers are not likely to be available on the site until 2021 or 2022. An archived page from the Department of Education website details how the score is calculated.
Denton said, “We are grateful the financial condition of our school is strong. The pandemic has certainly had an impact, and we will need to be prudent in the coming years to bring balanced budgets in light of enrollment drops and the COVID-19 impact. But we are grateful to the Lord for the position we are in. Our Financial Responsibility Composite Score is a direct result of North Central’s financial stability, spiritual stability, and academic stability—affected directly by Gordon Anderson’s presidency and Scott Hagan’s continued commitment to that legacy of financial strength.”
