ANNUAL FINANCIAL REPORTING

Annual Financial Reporting
In keeping with Sections 2-1-802 and 2-1-803 of the Accreditation Criteria, all ACISC™-accredited institutions must prepare and submit an Annual Financial Report (AFR), an Ownership/Control Disclosure Form (see forms below), and audited financial statements within 180 days after the end of the institution's fiscal year. An online report which includes an Income Statement (Part 1 of the AFR) must be submitted for each main campus and additional location.

The requirement exists for each institution, regardless of its corporate ownership type (profit or not-for-profit) or its location (domestic or international). Likewise, any deadlines, extensions, or requirements established by other accrediting bodies or agencies do not change the Council’s requirement.

The AFR must be submitted online. Audited financial statements should include the USDE financial ratio composite score.

Ownership Disclosure Forms:

Limited Liability Corporation
Limited Partnership with Corporate General Partner
Not for Profit Corporation
Privately Held
Publicly Traded Corporation

Late Filings
An initial late fee of $1,000 will be assessed the day after the deadline (first day late), and thereafter, an additional $100 per day will be accrued until the AFR is submitted, for up to a maximum of 20 days.

Interim Reporting
The Council occasionally requires accredited institutions to submit additional financial information based on the school’s reported financial position. This information can take the form of a Quarterly Financial Report, a Financial Improvement Plan, additional audited or compiled financial information completed by an outside accountant, or a combination of all three. Institutions in this status are considered to be on “financial review” and are prevented from initiating new programs or submitting non-main campus applications without prior permission from the Financial Review Committee.

Guidelines for Financial Reporting
Member institutions may use the Guidelines for Filing Financial Reports to prepare financial statements required by the Council and to better understand how ACISC™ monitors the financial position of prospective and currently accredited members. These guidelines also describe the restrictions that an institution’s being placed on financial review.

Restrictions on New Activities

Institutions that ACISC™ places on financial review are restricted from initiating new programs or submitting non-main campus applications without an official waiver from the Financial Review Committee.

CHANGE OF LOCATION

The Council must be notified and grant approval prior to the initiation of educational activity when an institution changes its physical location or its address. An institution is required to justify, in narrative form, reasons for a change of location, including the effect on current students, administrative staff, and faculty.

CHANGE OF NAME

The Council must be notified and grant approval when an institution decides to change its name. If the name change applies to more than one campus, a separate application must be completed for each campus (main or branch).

CAMPUS CLOSURE

The institution has an obligation to make appropriate arrangements when closing a campus.

CHANGE OF OWNERSHIP OR CONTROL

The transfer of ownership or a change in the control of an institution is reviewed through the substantive change review process. In addition, any institution or owning corporation that is contemplating a transaction that may result in a change of ownership or control must notify the Council 30 days prior to the transfer of ownership or change in control transaction. A change of ownership application is required for the main campus and each branch campus.

DISTANCE EDUCATION

Institutions are required to submit a Distance Education Application for the following changes:

• the initiation of an on-line delivery format for less than 50 percent of a program of study;

• the initiation of an on-line delivery format for 50 percent or more of a program of study.

FACULTY ENHANCEMENT

Section 3-1-543 of the Accreditation Criteria requires institutions to establish faculty development plans including in-service and/or professional growth activities to enhance faculty expertise.

EVALUATION VISITS

Prior to any evaluation visit, an institution should forward the Evaluation Visit Update Report directly to each team member at least ten days prior to the scheduled visit.

PROGRAMS

The Council must be notified prior to the start of any new program and must issue its approval before an institution advertises, recruits, or enrolls students in the proposed program.

LATE FILINGS

An initial late fee of $1,000 will be assessed the day following the deadline (first day late), and then $100 per day will be accrued until day 20 of delinquency. On day 21, the institution will be presented before the Executive Committee, who may issue a show-cause directive.