N.H. Code Admin. R. Hedc 405.10 - Financial Resources

Current through Register Vol. 42, No. 14, April 7, 2022

The applicant shall describe its financial resources in its written plan and its financial resources shall:

(a) Be adequate for the institution to:
(1) Support and sustain its purpose;
(2) Implement its program; and
(3) Graduate its entering class as follows:
a.For institutions seeking associate degree-granting authority, this shall mean a minimum period of 4 years; and
b.For institutions seeking baccalaureate, masters, and doctoral degree-granting authority, this shall mean a minimum period of 6 years;
(b) Be sufficient to allow the institution to adequately and effectively implement, achieve, and enhance its purposes and objectives as evidenced by the following:
(1) Financial policies, procedures, and practices that ensure academic quality; and
(2) A business plan for the time period described in (a)(3)a. and b., which includes:
a.An enrollment plan which includes anticipated applications, deposits, yield and retention rates;
b.Tuition and other sources of support; and
c.Anticipated expenses;
(c) Include a budget preparation process that is inclusive, and reviewed and approved by administrators and the institution's governing board;
(d) Have a budget, sufficient in detail to identify operating expenses including categories for:
(1) Instruction;
(2) Library;
(3) Information resources and technology;
(4) Student services;
(5) Financial aid, including a calculation of the tuition discounting rate; and
(6) Operation and maintenance of the physical plant;
(e) Be administered by a chief financial officer who shall have:
(1) Expertise, education, academic degrees and an understanding of higher education finances;
(2) Responsibility for the financial and business operations of the institution; and
(3) Responsibility for its institutional budget, overseeing its formulation, revision and implementation;
(f) Provide evidence to demonstrate fiscal soundness including, but not limited to resources and a resource plan which will ensure operations through the time period described in (a)(3)a. and b., including:
(1) Unrestricted net operating income demonstrating the institution's ability to live within its resources;
(2) Resources necessary to meet covenants in any debt or other similar obligations of the institution;
(3) Expendable reserves to sustain academic quality should resources in (e)(2) not meet expenditure needs in any given year; and
(4) An existing realistic plan addressing issues raised by existing operational deficits, or in the event of a significant financial challenge or actual financial crisis to the institution or program, and reflecting significant assets to guarantee student protection;
(g) Be monitored through financial records which:
(1) Are open for inspection and audit by the commission or its agents upon demand during normal working hours;
(2) Are maintained in conformity with generally accepted accounting principles;
(3) Include audited financial statements with an unqualified opinion for at least 2 consecutive years. Audited financial statements mean independently audited and certified annual financial statements which are completed within 6 months after the end of each fiscal year; and
(4) Are kept in accordance with procedures that are sufficient to maintain financial integrity that gifts or grants given to the institution will be utilized according to the donor's or grantor's intent;
(h) Establish that insurance is carried to protect the school's financial interest sufficient to maintain the solvency of the school in case of loss by fire or other causes, and to protect it from instances of personal and public liability; and
(i) If the institution has or plans to incur debt, maintain and update, as needed, a plan covering the period such debt will be outstanding and showing:
(1) The anticipated interest and principal payments throughout the life of the debt; and
(2) The provision for payment of such interest and principal as it becomes due and payable.

Notes

N.H. Code Admin. R. Hedc 405.10

#10429, eff 10-5-1313 (See Revision Note at chapter heading for Hedc 400)

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