SECTION 807.32. Financial Standards  


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  • (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.

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