![]() You must provide a copy of the school’s annual audited or reviewed financial statements unless you meet one of the following exceptions: your school's gross annual revenue from student tuition and fees, less refunds, is $100,000 or less or your courses of instruction are less than one month in length. Exceptions to the Requirement for Audited or Reviewed Financial Statements If your statement of income reflects revenues for more than one campus, you must identify the gross tuition and fees for each school, less refunds, in the financial statement notes or in a cover letter. The statements must identify the name, license number and licensing state of the accountant or accounting firm associated with the statements. Details on requirements for those documents plus additional requirements based on the type of ownership are outlined in Evidence Necessary to Establish Financial Stability - Annual Statements. They must be in a form consistent with generally accepted accounting principles ( GAAP) and should be audited, reviewed or compiled according to generally accepted auditing standards ( GAAS). ![]() In general, statements must include a Balance Sheet, Statement of Income and Retained Earnings, and Statement of Cash Flows. ![]() Your school ownership structure – whether you are a sole proprietor, partnership or corporation – determines the type of financial statements you will submit. If the start date of your first Certificate of Approval is six months or less before the end of your school’s fiscal year, you will not submit financial statements until the close of the following fiscal year. See Evidence Necessary to Establish Financial Stability for End of First Year of Operation. Some newly licensed schools are not required to submit financial statements for the first fiscal year end. Your annual financial statements, or other financial evidence required if your school meets the exception to financial statements, are due no later than 180 days from the close of your school's fiscal year. The penalty for not submitting your financial statements by the 180th day is $750 for the first occurrence and $1,000 for any reoccurrence. Reference: TAC Rule 807.35 Financial Requirements for Renewal
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