South Carolina Code of Regulations
Chapter 62 - STATE COMMISSION ON HIGHER EDUCATION
Article I - LICENSING NONPUBLIC POSTSECONDARY EDUCATIONAL INSTITUTIONS
Section 62-8 - Financial Resources

Universal Citation: SC Code Regs 62-8

Current through Register Vol. 48, No. 3, March 22, 2024

The adequacy of the financial resources of an institution shall be judged in relation to the basic purpose of the institution, the scope of its program(s), and the number of current or anticipated students. These resources shall be sufficient to show that the institution possesses adequate liquid assets to make potential refunds to students and to pay expenses in a timely fashion and can maintain continuity for an extended period. Evidence of adequate liquid assets for institutions applying for initial licensure may be in cash or other assets that may be readily converted into cash to buy goods and services or to satisfy obligations in an amount equal to start-up costs, expenses, and projected tuition income for the first term of enrollment. The financial management practices of the institution shall conform to the following standards:

A. Institutions shall maintain adequate financial records and exercise proper management, financial controls, and business practices.

B. All institutions must submit financial statements. If the statements are internally generated (not compiled by an independent certified public accountant or audited), a copy of the most recent income tax return must also be submitted. Accounting statements must be accrual. Institutions required to submit audited financial statements to the United States Department of Education must submit a copy of the statements to the Commission.

C. "Liabilities" shall include unearned tuition. "Current assets" shall not include any of the following:

(1) Intangible assets, including goodwill, going concern value, organization expense, start-up costs, long-term repayment of deferred charges, and non-returnable deposits, or

(2) State or federal grant funds that are not the property of the institution but are for future disbursement for the benefit of students.

D. Adequate insurance shall be carried to protect the institution's financial interests. The amount of insurance shall be sufficient to maintain the solvency of the institution in case of loss by fire or other causes, to protect the institution in instances of personal and public liability, and to assure continuity of the operation of the institution.

E. Degree-granting institutions shall maintain a sound plan for long-range financial development. The plan must be in writing and available for review.

F. Degree-granting institution's business and financial management shall be centralized under a qualified and bonded business officer responsible to the chief executive officer and charged with the supervision of the budget.

G. If the Commission determines that an institution is not financially sound, the Commission may, under terms and conditions prescribed by the Commission, require the institution to submit for its latest complete fiscal year and its current fiscal year, the following:

(1) A financial audit of the institution conducted by a licensed certified public accountant, following generally accepted auditing standards, which provides a detailed and accurate picture of the financial status of the institution since the preceding audit. The audit shall be an unqualified audit. For management issues raised by an audit, the latest audit shall show resolution of exceptions noted in the previous audit.

(2) The institution's financial plan for establishing financial responsibility.

(3) Any other information requested by the Commission.

H. If the Commission believes that the financial condition of an institution has deteriorated to the detriment of its students, the Commission may, upon thirty days notice, require the submission of monthly operating statements and/or current financial information.

I. During the period of licensure, the method of computing financial statements shall not be changed without prior approval of the Commission.

J. This regulation shall not prevent the Commission from taking any other actions authorized under these regulations.

Disclaimer: These regulations may not be the most recent version. South Carolina may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.