Tenn. Comp. R. & Regs. 1540-01-02-.10 - AUDITS

(1) Commission staff may conduct audits to ensure compliance with the Act and these rules. Audits may be performed at the authorized location or by requesting that the institution forward copies of student records to Commission staff. In the case of the latter, the provided records will be retained by Commission staff as working papers but will be destroyed when the audit is closed.
(2) Commission staff may audit an authorized institution at any time without notice to the institution. However, unless the circumstances mandate that no notice can or should be given, Commission staff should provide at least seventy-two (72) hours' notice. Notice shall be given by email to the institutional director.
(3) Failure to comply with any audit request may be an audit finding, and Commission staff may recommend that the Executive Director take adverse action, including but not limited to assessing a fine, placing the institution on conditional authorization status, or revoking authorization.
(4) Commission staff will provide the institution with an audit report that lists any findings and the frequency. The report shall require the institution to propose corrective action for all findings or to show cause why the Executive Director or Commission should not take adverse action, including but not limited to assessing a fine, placing the institution on conditional authorization status, or revoking authorization.
(5) Tuition increases that in the opinion of the Commission are excessive, unreasonable or exceed initial disclosure to students may result in an in-depth audit of the institution's financial stability.

Notes

Tenn. Comp. R. & Regs. 1540-01-02-.10
Original rule filed March 26, 1974; effective April 24, 1974. Amendment filed August 7, 1978; effective November 29, 1978. Repeal and new rule filed May 15, 1985; effective July 1, 1985. Repeal and new rule filed January 24, 1990; effective May 1, 1990. Amendment filed December 15, 1992; effective March 31, 1993. Repeal and new rule filed June 24, 1998; effective October 28, 1998. Amendment filed June 6, 2008; declared void and of no effect pursuant to Davidson County Chancery Court's October 2011 order. See also Attorney General Opinion 11-78. Amendments filed April 1, 2013; to have been effective September 28, 2013. However, a petition for a rulemaking hearing was filed June 26, 2013. The Tennessee Higher Education Commission filed a withdrawal of the rule on July 26, 2013. Emergency rules filed August 15, 2016; effective October 3, 2016 through April 1, 2017. Repeal and new rules filed December 21, 2016; effective March 21, 2017. Amendments filed September 30, 2022; effective 12/29/2022.

Authority: T.C.A. ยงยง 49-7-2005, 49-7-2006, and 49-7-2014.

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