1. (a) Type or format of statement. Each Applicant or school shall submit financial statements which have been prepared by a licensed Certified Public Accountant or licensed Public Accountant in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. The statements shall be prepared as a "Compilation", "Review", or "Audit" depending on the school type, gross tuition level and whether or not an audit is required by another specified entity. A Compilation shall be submitted for schools that collected less than Two Hundred and Fifty Thousand Dollars ($250,000) in gross tuition for the year reported Seminars or workshops as described in 565:10-23, and new schools not participating in "Title IV Programs" through the U.S. Department of Education. The Compilation shall be certified by the school owner or proper executive officer as true and correct in content and the OBPVS shall provide an attestation sample available. All other schools shall submit a Review. If a school, seminar or workshop is required by another licensing, accrediting, or approving body to submit an audited statement, than that statement shall be submitted to this Board in lieu of a compilation or review. However, a school, seminar or workshop that is required to submit a compilation may choose to submit a reviewed or audited statement instead.

   1. (1) Financial Statements shall include:

      1. (A) A cover letter signed by the CPA or PA on the CPA's or PA's letterhead showing at a minimum, a complete address and contact telephone number.
      2. (B) A Balance Sheet
      3. (C) An Income Statement or Statement of Operations that includes a separate line item(s) showing the total tuition collected by the school as opposed to combining all possible revenue sources, and should be broken down between the main school and each branch(es), if any.

   2. (2) Audit and Reviewed statements shall include the following additional elements:

      1. (A) A Statement of Changes in Shareholders'/Owners' Equity.
      2. (B) A Statement of Cash Flows.
      3. (C) Proper and complete Notes to the Financial Statements.
      4. (D) The Internal Control report that is a part of an Audit.

2. (b) Balance Sheet. All Balance Sheets shall report specific, separate line items on the Balance Sheet. Compilation Balance Sheets may, instead, provide a notarized statement signed by the school owner or an appropriate financial officer, as an attachment, that the balance or amount is zero Dollars ($0) for each of the following:

   1. (1) Unearned tuition.
   2. (2) Unpaid, past due taxes.
   3. (3) Unpaid, past due tuition refunds.
   4. (4) Unpaid fines and assessments.
   5. (5) Unpaid judgments against the institution.
3. (c) Period of coverage. The school shall submit a Financial Statement covering their most recent fiscal year. The report shall cover a twelve (12) month period unless the school has not been in business for a full year. Schools which submit a statement for a fiscal year ending more than six (6) months prior to filing shall submit a quarterly report for their most recent quarter. An Applicant shall submit a Financial Statement which reflects their financial position at the time of application.

Added at 12 Ok Reg 2905, eff 7-13-95

Amended at 15 Ok Reg 2782, eff 7-1-98

Amended at 22 Ok Reg 68, eff 8-11-04 (emergency)

Amended at 22 Ok Reg 2609, eff 7-11-05

Amended at 32 Ok Reg 2149, eff 9-11-15

Amended at 33 Ok Reg 1796, eff 9-12-16