Or. Admin. Code § 715-045-0063

Current through Register Vol. 64, No. 1, January 1, 2025

Section 715-045-0063 - Factors of Financial Responsibility

(1) To retain its license a school must demonstrate to the Higher Education Coordinating Commission that it is financially responsible under the requirements established in this rule.

(2) The commission considers a school to be financially responsible only if it:

(a) Is able to provide the services described in its official publications and statements;

(b) Is able to provide the administrative resources necessary to comply with the requirements of this subpart;

(c) Is able to meet all of its financial obligations, including, but not limited to:

(A) Refunds that it is required to make; and

(B) Repayments to the U.S. Department of Education for liabilities and debts incurred in programs administered by the U.S. Department of Education.

(d) Demonstrates at the end of its latest fiscal year, a ratio of current assets to current liabilities of at least 1:1;

(e) Had, for its latest fiscal year, a positive net worth. For the purposes of this section, a positive net worth occurs when the school's assets exceed its liabilities;

(f) Has not had operating losses over both of its two latest fiscal years. In applying this standard, the commission's executive director may consider the effect of unusual events such as natural disasters;

(g) Has not had, for its latest fiscal year, an operating deficit exceeding 10 percent of the institution's net worth. For purposes of this section, an operating deficit occurs when operating expenses exceed revenues from current business activities; and

(h) Has not had, as part of the documents prepared by its independent accountant on its audited and certified financial statements for the institution's most recently completed fiscal year, a statement from the accountant acknowledging substantial doubt about the institution's ability to continue as a going concern.

(3) A school that is determined by the executive director not to be financially responsible may be considered "at-risk," and will be required to follow the procedures cited in OAR 715-045-0024.

(4) The executive director may waive or modify all or part of the requirements in subsections (1) through (3) of this rule for schools offering prelicense programs or courses.

Or. Admin. Code § 715-045-0063

EB 13-1996, f. & cert. ef. 7-26-96; Renumbered from 581-045-0017, ODE 32-2000, f. 12-11-00 cert. ef. 1-1-01; Renumbered from 581-045-0063 by HECC 2-2014, f. & cert. ef. 4-23-14

Stat. Auth.: ORS 345.325(8) & 345.030

Stats. Implemented: ORS 345.325