Difference between revisions of "Standard 7.B"

Latest revision as of 14:59, 14 December 2007

Description

The adequacy of financial resources is judged in relation to the mission and goals of the institution, the scope and diversity of its programs and services, and the number and kind of its students.

7.B.1 The institution provides evidence that it seeks and utilizes different sources of funds adequate to support its programs and services. The commitment of those resources among programs and services reflects appropriately the mission and goals and priorities of the institution.

7.B.2 Adequate resources are available to meet debt service requirements of short-term and longterm indebtedness without adversely affecting the quality of educational programs. A minimum of three years’ history of the amount borrowed (whether internally or externally) for capital outlay and for operating funds is maintained. A five-year projection of future debt repayments is maintained.

7.B.3 Financial statements indicate a history of financial stability for the past five years. If an accumulated deficit has been recorded, a realistic plan to eliminate the deficit is approved by the governing board.

7.B.4 Transfers among the major funds and interfund borrowing are legal and guided by clearly stated policies in accordance with prudent financial planning and control.

7.B.5 The institution demonstrates the adequacy of financial resources for the support of all of its offerings including specialized occupational, technical, and professional programs.

7.B.6 The institution identifies the sources of its student financial aid for current enrollments and provides evidence of planning for future financial aid in light of projected enrollments. It monitors and controls the relationship between unfunded student financial aid and tuition revenues.

7.B.7 The institution maintains adequate financial reserves to meet fluctuations in operating revenue, expenses, and debt service.

7.B.8 The institution demonstrates an understanding of the financial relationship between its education and general operations and its auxiliary enterprises and their respective contributions to the overall operations of the institution. This includes the institution’s recognition of whether it is dependent on auxiliary enterprise income to balance education and general operations or whether the institution has to use education and general perations income to balance auxiliary enterprises.