(a) The owners, or chief administrative officer of a private career school shall submit to the commissioner such evidence as he may require to determine the adequacy of resources beyond all indebtedness available for instruction purposes and to ensure financial viability of the school to meet its obligations to all enrolled students as defined in their enrollment agreements. Schools failing, in the judgment of the commissioner, to maintain such adequacy of resources may be subject to suspension or revocation of the school’s license, or the commissioner may require the cessation of student enrollment, pursuant to section 5001(6) of the Education Law.

1. (1) The initial application for licensure of a school organized as or owned by a corporation or partnership shall be accompanied by the following financial reports:

   1. (i) a balance sheet of the corporate entity or partnership with a certification of accuracy signed by the individual shareholders of the corporation or partners, and dated not more than 30 days prior to the date of the license application;
   2. (ii) a certificate of incorporation for the corporate entity or a partnership agreement for the partnership;
   3. (iii) a statement indicating the location and type of all bank accounts held by the corporate owner or partners in their official capacity;
   4. (iv) a projected operating statement including projected profits and losses for the school for a 12-month period;
   5. (v) such other information as the commissioner may require.
2. (2) The initial application for licensure of all other schools shall be accompanied by a financial report prescribed by the commissioner.

3. (3) Pursuant to section 5001(4)(e) of the Education Law, schools shall be required to submit to the commissioner an annual financial statement and shall meet the following requirements with respect to the submission of such annual financial statement:

   1. (i) Any school which received $500,000 or more in gross tuition or whose combined State and Federal student financial aid is $100,000 or more in a school fiscal year shall submit an audited financial statement to the commissioner for that fiscal year.
   2. (ii) Any school which received less than $500,000 and less than $100,000 in combined Federal and State student financial aid in a school fiscal year shall submit either an unaudited reviewed financial statement in a format prescribed by the commissioner or an audited financial statement to the commissioner for that fiscal year provided that a reviewed financial statement cannot be submitted for two consecutive fiscal years. An audited financial statement must be filed for the year following the fiscal year for which a reviewed financial statement was filed.

(b) Financial reports.