(a) The balance sheet required in this subchapter shall,
at a minimum, reflect the following:
(1) positive equity or net worth balance;
(2) a current ratio of at least one-to-one; and
(3) stockholder's equity or net worth exceeding the
amount shown for goodwill, if applicable, under assets in the balance
sheet.
(b) All financial statements shall be accompanied by
the unearned tuition affidavit and owner's sworn statement certifying
that the unearned tuition affidavit and financial statements are true
and correct.
(c) All financial statements shall be prepared in accordance
with GAAP.
(d) All financial statement attest services shall be
completed in accordance with GAAS, or other standards promulgated
by the American Institute of Certified Public Accountants, as applicable,
and comply with jurisdictional laws.
(e) A school that maintains a financial responsibility
composite score that meets the general standards established in federal
regulations by the United States Department of Education for postsecondary
institutions participating in student financial assistance programs
authorized under Title IV of the Higher Education Act of 1965, as
amended, shall be considered to have met the financial standards of
this subchapter. A school that qualifies under an alternative standard
but not the general standard of these federal regulations will not
be considered to have met the financial standards of this subchapter
unless the school meets the other requirements stated in this subchapter.
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Source Note: The provisions of this §807.32 adopted to be effective August 16, 1998, 23 TexReg 8479; amended to be effective February 24, 2003, 28 TexReg 1651; amended to be effective November 28, 2022, 47 TexReg 7914 |