The institution has a governing board policy guiding the use and limit of debt. The adequacy of financial resources is judged in relation to the mission and goals of the institution, the scope and diversity of its programs and services, and the number and kind of its students. The institution provides evidence that it seeks and utilizes different sources of funds adequate to support its programs and services. The commitment of those resources among programs and services reflects appropriately the mission and goals and priorities of the institution. A five-year projection of future debt repayments is maintained.
Financial statements indicate a history of financial stability for the past five years.
If an accumulated deficit has been recorded, a realistic plan to eliminate the deficit is approved by the governing board. The institution demonstrates the adequacy of financial resources for the support of all of its offerings including specialized occupational, technical, and professional programs. The institution identifies the sources of its student financial aid for current enrollments and provides evidence of planning for future financial aid in light of projected enrollments. It monitors and controls the relationship between unfunded student financial aid and tuition revenues. The institution maintains adequate financial reserves to meet fluctuations in operating revenue, expenses, and debt service.