Transforming Financial Operations for a Private College

THE CLIENT

A small, private college with a mission rooted in faith-based education. After a long-tenured controller retired following more than two decades of service, the college had difficulty keeping up with day-to-day accounting. The new controller could not manage the full workload, and the college fell about four months behind on its monthly closing process. There was no formal close process, little documentation, and the general ledger system was not designed to track restricted funds as required in higher education accounting.

 THE OPPORTUNITY

• Completing federally required Integrated Postsecondary Education Data System (IPEDS) reporting for the current year using historical audit data, and building internal capacity to prepare timely, accurate filings in future years. 

• Addressing a significant backlog in monthly close activities and establishing a consistent, formal close process. 

• Assessing and stabilizing the accounting function after a leadership transition, streamlining and modernizing systems and processes to better align with higher education compliance requirements. 

• Training and supporting the in-house accounting team and eventually assisting in the college’s hiring, onboarding, and training of a new full-time in-house controller. 

OUR APPROACH

PHASE 1: ASSESSMENT AND STABILIZATION

• Established a trusted working relationship with the school’s interim director of finance through consistent, reliable accounting support and clear communication about priorities, earning the credibility needed to expand the scope of the engagement over time. 
• Documented day-to-day processes and month-end procedures and provided a checklist with responsibilities and timelines for completion. 
• Mentored the accounting manager through hands-on training in core accounting functions, gradually increasing her responsibilities as her skills and confidence grew.  
• Assumed oversight of daily accounting operations, freeing the director of finance to focus on strategic and operational demands across the school. 
• Facilitated the annual audit, serving as the main point of contact with the organization’s independent audit firm, resulting in an on-time and clean audit opinion.

PHASE 2: ENDOWMMENT AND RESTRICTED FUND ACCOUNTING

• Cleaned up endowment accounting and developed roll-forward schedules that continue to track activity from year to year. 
• Redesigned the restricted fund accounting structure so that the college could track more than 90 donor restrictions, replacing a system with only 12 broad codes that did not provide enough detail to ensure compliance with donor intent. 
• Worked with department leaders to clarify how restricted funds could be used to help ensure spending followed donor requirements. 

PHASE 3: SYSTEMS MODERNIZATION

• Led the selection and implementation of a modern financial database, including a fund accounting system and an integrated development module, before the new fiscal year. 
• Transitioned payroll and accounts payable processes to integrated and automated systems, improving reporting, documentation, and approval workflows. 
• Implemented a digital expense management process to eliminate delays caused by paper-based credit card reconciliation. 

PHASE 4: TRANSITION AND ONGOING SUPPORT

• Trained a new full-time controller over a structured onboarding period, covering monthly close procedures, reconciliations, and reporting. 
• Provide ongoing oversight, including payroll projections and work paper review to maintain accuracy, consistency, and audit readiness. 
• Train staff on higher-education-specific processes such as IPEDS reporting, student invoicing, and compliance-related activities outside the monthly close cycle. 

THE RESULTS

• Reliable Monthly Closes: The college moved from a four-month accounting backlog and no formal close process to timely, accurate monthly financial statements supported by complete account reconciliations. 
• Modernized Financial Systems: The college replaced a 40-year-old general ledger system with a modern fund accounting platform and integrated development tools, improving efficiency, financial reporting, and data quality. 
• Accurate Fund Management: The college now tracks restricted funds across more than 90 distinct codes with clear documentation, so department heads can ensure that donor-restricted resources are being used properly. 
• Streamlined Accounts Payable and Expense Processing: Automated approvals and digital expense management replaced paper-based processes, reducing delays and strengthening audit readiness. 
• Sustainable Internal Capacity: A full-time controller was hired and trained with documented processes and tools that continue to guide financial operations long after implementation. 

Ready to get started with YPTC’s accounting services for higher education organizations? Contact us!