FAQ.We understand that learning new software can be challenging, so we have created this FAQ page to help you get started with Foresight as quickly and easily as possible. We encourage you to review this page before contacting our support team, as you may find the answer to your question here.
If you have any questions that are not answered on this page, please do not hesitate to contact our support team. We are here to help you succeed with Foresight! |
Foresite FAQ
How do I Create a Foresite Account?
Click 'Register' on the Foresite landing page and enter all required fields. Once you complete the data entry, you will be asked to securely enter your payment information. You now have a Foresite account.
How do I Import my School's Trial Balance into Foresite?
If you are using QuickBooks online or desktop, simply export your trial balance in excel format. Drag and drop that excel file into the “Choose File” area at the top of your dashboard and you will be ready to assign your accounts. If you use other accounting software, simply download a trial balance template from the top of your Foresite dashboard and enter (copy and paste) your trial balance into the format on that template and upload. The system will then allow you to assign your accounts.
How do I assign each account on the Trial Balance to the Correct Foresite Financial Statement Group?
If you have had an audit, your auditor can provide you with a trial balance that indicates the grouping of each account on your most recent audit.
How do the Scenarios work in Foresite?
You can run scenarios based on cash contributions, distributions, increased tuition revenue and the acquisition or repayment of notes payable. These scenarios will be incorporated into your trial balance and will generate a hypothetical composite score based on your particular scenario.
Composite Score FAQ
What is The cOMPOSITE sCORE?
The Department of Education Composite Score is a financial health indicator used by the U.S. Department of Education, and has been adopted by many accreditation agencies, to assess the financial stability of postsecondary institutions participating in Title IV federal student aid programs. It measures an institution's ability to meet its financial obligations and continue operations without jeopardizing the interests of students and taxpayers. The composite score ranges from -1.0 to 3.0.
What are the Components of the Composite Score?
The Composite Score used by the U.S. Department of Education to assess a school's financial stability consists of three components:
- Primary Reserve Ratio: Measures financial strength by looking at a school's reserves as a percentage of expenses.
- Equity Ratio: Evaluates a school's modified equity as a percentage of modified assets.
- Net Income Ratio: Assesses profitability as a percentage of total revenue.
Is there a Minimum Requirement for the Composite Score?
Schools with a composite score of 1.5 or higher are considered financially responsible by the U.S. Department of Education and do not require additional oversight. Schools with a composite score below 1.5 are subject to limitations described below.
What Happens if Our School's Composite Score is Below 1.5?
Schools with scores of less than 1.5 but greater than or equal to 1.0 are considered financially responsible, but require additional oversight. These schools are subject to cash monitoring and other participation requirements.
What Happens if Our School's Composite Score is Below 1.0?
A score below 1.0 is considered to not be financially responsible. In order to continue participation, the school must submit a letter of credit of at least 50% of the FSA funds received during its most recently completed fiscal year. The school may be permitted to participate under provisional certification with a smaller letter of credit—with a minimum of 10% of the FSA funds received during its most recently completed fiscal year, and additional oversight. Although the school has these options to continue participation, the Department does not consider the school to be financially responsible under these additional/alternative methods.
Is Our School's Composite Score Above or Below Average?
There are no additional benefits afforded to schools based on the composite score in relation to any other school. A score of 1.5 or higher is considered to be financially responsible without the need for further oversight, a higher score will not be rewarded. But in case you are still wondering, the average composite score for all Institutions with a fiscal year end between 7/1/2020 and 6/30/2021 was 2.5.
How can we Increase our School's Composite Score?
The score is calculated using components of your schools financial statements. 70% of a proprietary school's score is weighted on the balance sheet, 80% of a non-profit school’s score is based on the statement of financial position.
As a result, increasing your composite score is most efficiently achieved by increasing the amount of equity (proprietary), expendable net assets/modified assets (non-profit). This happens by either keeping profits (change in unrestricted net assets) inside the business, or making a cash contribution to the business.
There are other considerations, however increasing the composite score can be easily achieved with this method.
As a result, increasing your composite score is most efficiently achieved by increasing the amount of equity (proprietary), expendable net assets/modified assets (non-profit). This happens by either keeping profits (change in unrestricted net assets) inside the business, or making a cash contribution to the business.
There are other considerations, however increasing the composite score can be easily achieved with this method.