N.J. Admin. Code § 9A:2-1.4

Current through Register Vol. 56, No. 19, October 7, 2024

Section 9A:2-1.4 - Annual financial monitoring procedures

(a) The Secretary shall annually assess each independent institution's, and proprietary institution's, financial information to identify whether an institution is at risk of imminent closure.

(b) On an annual basis, OSHE shall provide institutions with a template for the fiscal monitoring report and set a submission schedule for the fiscal monitoring report. The Secretary shall set the submission schedule for each institution and shall consider the fiscal calendar of each institution when determining the schedule.

(c) Utilizing the template provided by OSHE pursuant to (b) above, each independent institution, and each proprietary institution, shall submit an annual fiscal monitoring report to the Secretary, in accordance with the submission schedule established by the Secretary pursuant to this section.

(d) In addition to the annual fiscal monitoring report, the Secretary may require the submission of additional supplemental information from an institution, if necessary, for the Secretary's assessment as to whether the institution is at risk of imminent closure.

(e) At the Secretary's discretion, the OSHE may conduct additional assessments of an institution for the purpose of identifying whether an institution is at risk of imminent closure. Such assessments may include, but are not limited to, a review of:

1. Financial and non-financial indicators from publicly available data sources;

2. Credit ratings assigned to institutions by credit rating agencies or services; and/or

3. Information obtained from other regulatory, oversight, or law enforcement entities, including, but not limited to, accrediting agencies, the U.S. Department of Education, and the New Jersey Office of the Attorney General.

(f) The Secretary shall determine if there is a risk of the imminent closure of the institution.

1. If the Secretary determines that there is a risk of imminent closure, the procedures at N.J.A.C. 9A:2-1.5shall apply.

2. If the Secretary determines that there is not a risk of imminent closure, the Secretary may request the institution to submit a risk mitigation plan pursuant to N.J.A.C. 9A:2-1.6.

N.J. Admin. Code § 9A:2-1.4

Adopted by 54 N.J.R. 491(d), effective 3/21/2022