Standard 4: Finance

4.1 Since the financial resources of an institution influence, in part, the quality of the instructional program, an institution shall present evidence that financial resources are available to achieve and maintain the objectives of the institution. The institution must provide evidence of the reasonable financial viability of the institution and a plan that outlines how the institution intends to continually improve its financial position. The adequacy of financial resources will be judged relative to the purposes of the institution, the scope of programs offered, and the number of students enrolled.

4.2 The governing board must accept responsibility for the financial health of the institution. The chief executive officer shall ensure that a qualified financial officer or department oversees the financial operations of the institution. The chief financial officer is accountable to the chief executive officer and provides financial information on a regular basis to the governing board. Moreover, the financial aid program is supervised by a qualified financial aid administrator.

4.3 The system of financial management needs to exhibit sound budgeting practices, employ appropriate accounting principles, and utilize financial and non-financial data. The chief executive officer, through the chief financial officer, shall ensure that the system of financial management has appropriate controls that allow reasonable assurance that material errors, omissions and irregularities can be detected without undue delay. The institution’s financial systems shall be maintained in such a manner that its fiscal position can be analyzed routinely without undue delay. An audit by a qualified accountant shall be required at least once a biennium. The institution must demonstrate that the auditors’ comments and recommendations and reports of findings are addressed promptly.

4.4 The institution must demonstrate that it has prudent financial management in both its day-to-day operation and in its handling of investments that are committed for the long-term financial strength of the institution.

4.5 The institution must develop and adhere to a published policy for tuition, fees, and other charges. This policy must contain provisions for students who withdraw from the institution. Refund provisions must be consistent with generally accepted refund policies in higher education and with the requirements of grantors of financial assistance, including but not limited to Federal financial aid regulations. Financial aid policies and practices meet state and federal regulations and are subject to periodic audits.