To ensure the institution is capable of satisfying commitments made to students, GNPEC will review institutional finances annually and may require additional financial documentation.
Statutory Authority: O.C.G.A. §§ 20-3-250.5(b)(2); 20-3-250.6(a)(8); 20-3-250.10(a)
1. The institution must have adequate liquid assets on hand (i.e., cash and cash equivalents, market securities, available bank line of credit) to ensure it can fulfill all commitments to students. The following liquidity standards are recommended:
Unrestricted liquid funds available in at least the amount of 30 days projected expenses for authorized institutions; or
Unrestricted liquid funds available in at least the amount of 90 days projected expenses for institutions seeking initial authorization.
2. A Certified Public Accountant (CPA) prepared financial documentation, which may include an audit or review, of the most recently completed fiscal year must be provided by institutions reporting gross tuition over $500,000.
3. The institution must provide any documentation received from its accreditor or the United States Department of Education relative to adverse actions taken against the institution.
4. The institution must provide supplemental documentation requested as part of the Financial Viability Assessment (ex. Financial Improvement Plan, Teach-Out Plan, CPA review, and/or CPA audit). In accordance with 20-3-250.10(a), this may include the requirement to obtain institutional bonding in an amount determined by the Executive Director, based on institutional revenue.
5. The institution must immediately advise GNPEC if it files a petition for bankruptcy or determines that its financial position negatively impacts its ability to satisfy commitments to its students.