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Untitled Document
The institution has adequate financial resources to achieve, maintain, and
enhance its programs and services. The level of financial resources provides a
reasonable expectation of financial viability and institutional improvement. The
institution manages its financial affairs with integrity, consistent with its
educational objectives.
A. Financial Planning
- Financial planning supports institutional goals and is linked to other
institutional planning efforts.
- Annual and long-range financial planning reflects realistic assessments
of resource availability and expenditure requirements. In those institutions
which set tuition rates, and which receive a majority of funding from student
fees and tuition, charges are reasonable in light of the operating costs,
services to be rendered, equipment, and learning resources to be supplied.
- Annual and long-range capital plans support educational objectives and
relate to the plan for physical facilities.
- Institutional guidelines and processes for financial planning and budget
development are clearly defined and followed.
- Administrators, faculty, and support staff have appropriate opportunities
to participate in the development of financial plans and budgets.
B. Financial Management
- The financial management system creates appropriate control mechanisms
and provides dependable and timely information for sound financial decision-making.
- Financial documents, including the budget and independent audit, reflect
appropriate allocation and use of financial resources to support institutional
programs and services. Institutional responses to external audit findings
are comprehensive and timely.
- The institution practices effective oversight of finances, including management
of financial aid, externally-funded programs, contractual relationships, auxiliary
organizations or foundations, and institutional investments.
- Auxiliary activities and fund raising efforts support the programs and
services of the institution, are consistent with the mission and goals of
the institution, and are conducted with integrity.
- Contractual agreements with external entities are governed by institutional
policies and contain appropriate provisions to maintain the integrity of the
institution.
- Financial management is regularly evaluated and the results are used to
improve the financial management system.
C. Financial Stability
- Future obligations are clearly identified and plans exist for payment.
- The institution has policies for appropriate risk management.
- Cash flow arrangements or reserves are sufficient to maintain stability.
- The institution has a plan for responding to financial emergencies or unforeseen
occurrences.
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