Standard Eight: Financial Resources

The institution is financially sound and capable of fulfilling its commitments to students.


The following criteria are used by professional staff members and evaluation committees as indicators of compliance for the standard.

  1. The institution provides the appropriate fees and surety bonding.
  2. The institution adheres to generally accepted accounting principles in the maintenance of its financial records and provides an income/expense statement and a balance sheet using the financial form provided by NPEC.


The institution provides a formal independent financial audit prepared by a certified public accountant. If the institution’s Georgia operation is a branch or subsidiary of a larger corporation, an audited financial statement for the previous fiscal year prepared and certified by an independent, certified public accountant for the corporation is provided.

  1. The authorized institution:
  • has unrestricted funds available in the amount of one year’s projected expenses;
  • is not totally dependent on an increase in fees or enrollment in order to remain solvent in the current year and the immediately ensuing year;
  • has funds to operate which are not limited to current tuition or accounts receivable.


The institution which is seeking authorization has:

  • filed a financial statement prepared prior to application for authorization by an independent, certified public accountant showing the assets and liabilities of the institution;
  • provided an estimate of income which exceeds expenses for the first year of operation, using reporting forms provided by NPEC;
  • unrestricted funds in the amount of one year’s projected expenses available.
  1. The institution keeps financial records that separately identify all income and expenditures including but not limited to tuition, fees, and income from ancillary sources.
  2. The institution that is a component of a business which also maintains non-instructional enterprises or functions ensures that income and expense records are maintained separately for the various functions.
  3. The institution whose fiscal information indicates that it is not financially sound has submitted a plan for financial recovery.