In order for a postsecondary career school (referred to as “school”) to receive a certificate of operation from the Executive Director of the Office of Higher Education as per section 10a 22c(d) of Connecticuts General Statutes the school must fulfill certain requirements. One such requirement is the submission of a letter of credit to the Executive Director. This letter should have an amount of $40,000 and guarantee that the school will make necessary payments to the private occupational school student protection account according to section 10a 22u.
If the school fails to make these payments or if there is a need for state reimbursement due to a tuition refund paid out under section 10a 22v then this letter of credit will be payable to the occupational school student protection account. However it’s important to note that the payment from this letter of credit cannot exceed what is owed to the account.
After 12 years from the date of approval and subject, to verification of fiscal soundness this required letter of credit will be released.
Financial Forecast
Prospective financial statements will provide an entitys projected position, operational outcomes and changes in financial standing to the best of the responsible partys knowledge and belief. A financial forecast is established based on assumptions made by the party taking into account expected conditions and planned actions. The forecast may be expressed as monetary values or a single estimate of projected results or even as a range where key assumptions are used to establish a reasonable expectation for anticipated items within that range. The forecast covers expectations for the 12 months of operation.
The preparation of the forecast is entrusted to management and it is subject to review, by a certified public accountant (CPA) or licensed public accountant. It complies with Generally Accepted Accounting Principles (GAAP). Utilizes accrual basis accounting.
Please submit the following items for review or audit;
- Footnotes or notes accompanying the statements.
- A statement of cash flows.
- A cover letter prepared by a licensed certified accountant or licensed public accountant, which should include information, about the scope of the review or audit any opinions and the standards and principles followed.
- A balance sheet.
- An income statement.
- A statement of changes in equity or fund balance.
Administrative Capability
Each school that is authorized well as each branch of the school located in Connecticut must have a director positioned at the school or branch. This director will be responsible for overseeing the operations of the school or branch.
