Measuring Financial Health with the Composite Financial Index

Overview

TIAA

This program is presented with generous support from TIAA.

The Composite Financial Index (CFI) is a sophisticated tool designed to help you think strategically about your school's overall financial health and communicate succinctly about it with school leaders. Employed by higher education institutions for decades, the CFI produces a complete picture of your institution's financial strengths and weaknesses in a single score that is based on four underlying core ratios.

To develop the CFI, experts with the Big 4 accounting firm KPMG ran longitudinal models on data from over 250 colleges. From this, the team developed a scoring scale, metric scale and weighing scale. NBOA's work with the CFI is the result of an important partnership with the National Association of Independent Schools (NAIS), in conjunction with CFI co-creator Phil Tahey.

In this class, business officers will learn:

  • The benefits of the CFI and how it can be used to guide strategic conversations and decisions in conjunction with long-range planning.
  • How to calculate the index and other tips you need to use the tool effectively.
  • How the historic trend of your CFI has been affected by past actions and estimate how your current strategic plan will affect the forecasted CFI.

Class size is limited to 35 participants.

This course is being offered in partnership between NBOA and One Schoolhouse.

Questions? Please email programs@nboa.org or call 202-407-7140.

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NBOA Financial Dashboard for Independent Schools now available to BIIS participants

Identify, understand and monitor the financial indicators that have the greatest impact on your school's financial health with this customized dashboard, populated with your school's data from the BIIS data collection platform.

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