Annual Institutional Update (AIU) Indicators and Metrics
The Middle States Commission on Higher Education is required to monitor data annually based on the Accreditation Review Cycle and Monitoring Policy and Procedures. The Commission monitors data using indicators and metrics in four categories, student achievement, annual enrollment, financial health, and federal financial responsibility, through the required Annual Institutional Update (AIU) based on policy and procedures.
Effective beginning in 2023, Commission representatives will use the AIU indicators and metrics as one source of information that informs decision-making. Institutions should also assess their student achievement, annual enrollment, financial health, and federal financial responsibilities against the indicators and metrics.
Beginning in 2025, the Commission piloted the Comprehensive Financial Health Review (CFHR), a process in which external financial experts evaluate financial documents from the two most recent fiscal years to assess the financial health of MSCHE candidate and accredited institutions.
Download a PDF version of the Annual Institutional Update (AIU) Indicators and Metrics
Student Achievement
Two-Year Institution Metric
The Graduation Rate at 150% of the normal time available through the most recent AIU report is below 23%.
Four-Year Institution Metric
The Graduation Rate at 150% of the normal time available through the most recent AIU report is below 40%.
Student Achievement Notes
The AIU utilizes updated metrics for student achievement, which were first shared during the Presidents, Provosts, and Accreditation Liaison Officers (ALO) meeting in spring 2023.
Institutions that are graduate-only or do not serve first-time, full-time students will be evaluated based on the materials required within the AIU.
Graduation rates are calculated at the institutional level by credential level. For institutions with multiple IPEDS IDs, the adjusted cohort and completer values are summed up by credential level to the institutional level. Then a graduation rate by credential level is calculated. There will be no exclusions due to cohort size.
Annual Enrollment - FTE
Metric
The Annual Enrollment – Full Time Equivalent (FTE) has fluctuated by more than 15% during the past two years; in that when comparing the current with prior year AIU Annual Enrollment – FTE values the change (increase/decrease) is higher than 15%.
Annual Enrollment – FTE Notes
The current AIU reflects the renaming of the indicator Viability and Capacity to Annual Enrollment – FTE.
Financial Health
Metrics
- Composite Financial Index (CFI)
- Change in Net Assets
- Debt Management Planning and Strategy
- Ending Net Assets
- Financial Planning and Budgeting
Financial Health Notes
When CFI cannot be calculated, the Commission will evaluate appropriate ratios that can be calculated with the data submitted by institutions. The CFHR is a holistic financial review of institutions’ financial health. The CFI is one component of the CFHR.
Additional information on the variables used for the AIU is available in the Annual Institutional Update (AIU) Composite Financial Index (CFI) Formulas document.
Federal Financial Responsibility
Federal Metrics
Under 34 CFR 602.16(a)(1)(x), the Commission is required to monitor the institution’s record of compliance with the institution’s program responsibilities under Title IV and the following:
- Financial Responsibility Composite Score
- Cohort Default Rate
- 90/10 Revenue Percentage (for-profits only)
- Program reviews
Under 34 CFR 602.19(d) and (e), the Commission is required to monitor enrollment and significant enrollment growth defined in Commission policy and procedures:
- Significant Enrollment Growth
Under 34 CFR 602.24(c)(1)(i-iii), the Commission is required to monitor the following and request a teach-out plan and agreements:
- Audit opinions expressing doubt about the continued existence of the school as a going concern or the institution has an adverse, qualified, or disclaimed opinion
- Heightened Cash Monitoring Status
- Provisional Program Participation Agreement
Under 34 CFR 668.23, the Commission is required to monitor financial and compliance audits:
- Financial and Compliance Audits
Federal Financial Responsibility Notes
The indicator is monitored on an ongoing basis, and when there is a concern, institutions receive an Out of Cycle Supplemental Information Report (OOC SIR) request.