Current through Register Vol. 63, No. 9, September 1, 2024
(1) To retain its license a school must
demonstrate to the Higher Education Coordinating Commission that it is
financially responsible under the requirements established in this rule.
(2) The commission considers a
school to be financially responsible only if it:
(a) Is able to provide the services described
in its official publications and statements;
(b) Is able to provide the administrative
resources necessary to comply with the requirements of this subpart;
(c) Is able to meet all of its financial
obligations, including, but not limited to:
(A) Refunds that it is required to make; and
(B) Repayments to the U.S.
Department of Education for liabilities and debts incurred in programs
administered by the U.S. Department of Education.
(d) Demonstrates at the end of its latest
fiscal year, a ratio of current assets to current liabilities of at least 1:1;
(e) Had, for its latest fiscal
year, a positive net worth. For the purposes of this section, a positive net
worth occurs when the school's assets exceed its liabilities;
(f) Has not had operating losses over both of
its two latest fiscal years. In applying this standard, the commission's
executive director may consider the effect of unusual events such as natural
disasters;
(g) Has not had, for
its latest fiscal year, an operating deficit exceeding 10 percent of the
institution's net worth. For purposes of this section, an operating deficit
occurs when operating expenses exceed revenues from current business
activities; and
(h) Has not had,
as part of the documents prepared by its independent accountant on its audited
and certified financial statements for the institution's most recently
completed fiscal year, a statement from the accountant acknowledging
substantial doubt about the institution's ability to continue as a going
concern.
(3) A school
that is determined by the executive director not to be financially responsible
may be considered "at-risk," and will be required to follow the procedures
cited in OAR 715-045-0024.
(4) The
executive director may waive or modify all or part of the requirements in
subsections (1) through (3) of this rule for schools offering prelicense
programs or courses.
Stat. Auth.: ORS
345.325(8)
& 345.030
Stats. Implemented: ORS
345.325
