1. (a) The prospective owner shall furnish the Commission with the following:

   1. (1) for a school owned by a sole proprietor, a reviewed personal balance sheet with notes that disclose the amount of payments for the next five years to meet debt agreements as required by GAAP; or
   2. (2) for all other ownership structures, an audited balance sheet consistent with GAAP and GAAS and certified by an accountant.

2. (b) The school shall submit a balance sheet, a list of the expected school-related expenses for the first three months of operation of the school, and a sworn statement signed by the owner affirming the availability of sufficient cash to cover projected expenses at the date of licensure. A school currently operating, or proposing to operate, on a reimbursement contract basis may request a waiver of this section from the Commission. Projected expenses may include the following:

   1. (1) employee salaries, listed by position title, including withholding, unemployment taxes, and any other related expenses;
   2. (2) lease payments for equipment listed by the name of the equipment;
   3. (3) lease payments for facilities;
   4. (4) accounting, legal, and other specifically identified professional fees; and
   5. (5) an estimate of other expenses such as advertising, travel, textbooks, office supplies, classroom supplies, printing, telephone, utilities, taxes, and sales commissions.
3. (c) The prospective owner shall also furnish such other evidence as may be deemed appropriate by the Commission to establish financial stability.

Source Note:The provisions of this §807.33 adopted to be effective August 16, 1998, 23 TexReg 8479.