1. (a) The balance sheet required in this subchapter shall reflect the following:

   1. (1) positive equity or net worth balance;
   2. (2) unearned tuition as a current liability;
   3. (3) a current ratio of at least one-to-one; and
   4. (4) stockholder's equity or net worth exceeding the amount shown for goodwill, if applicable, under assets in the balance sheet.
2. (b) Compilations shall be accompanied by the owner's sworn statement.
3. (c) All financial statements shall identify the name, license number, and licensing state of the accountant associated with the statements and be in accordance with GAAP.
4. (d) A school that maintains a financial responsibility composite score that meets the general standards established in federal regulations by the U.S. Department of Education for postsecondary institutions participating in student financial assistance programs authorized under Title IV of the Higher Education Act of 1965, as amended, shall be considered to have met the financial standards of this subchapter. A school that qualifies under an alternative standard but not the general standard of these federal regulations will not be considered to have met the financial standards of this subchapter unless the school meets the other requirements stated in this subchapter.

Source Note:The provisions of this §807.32 adopted to be effective August 16, 1998, 23 TexReg 8479; amended to be effective February 24, 2003, 28 TexReg 1651.