BPSS

Bureau of Proprietary School Supervision

Financial Statements - Due July 1

The following table summarizes the Financial Statement mandates listed in Education Law and Commissioner's Regulations.
Please note that all financial statements must be completed in accordance with generally accepted accounting principles.
(actual citations are listed below the table)

Financial Statements
Type of Statement Criteria for Determining Type of Statement

Audited Financial Statement
Prepared in accordance with Generally Accepted Accounting Principles (GAAP)*

Can be used for all schools but must be used for schools which have:
  1. Gross tuition income of $500,000 or more or
  2. Combined Federal and State student financial aid in excess of $100,000 in a school fiscal year or
  3. Gross tuition income less than $500,000 but the school filed a reviewed financial statement for the previous fiscal year.

Unaudited Reviewed Financial Statement

Prepared in accordance with Generally Accepted Accounting Principles (GAAP)*

Can only be used for school which have:

1. Gross tuition income less than $500,000
or
2. Combined Federal and State student financial aid is less than $100,000 in a school fiscal year
and
3. Filed an audited financial statement for the previous fiscal year.

* Financial Statement must now be prepared in accordance with Generally Accepted Accounting Principals (GAAP).  Preparing financial statements in accordance with Generally Accepted Accounting Standards (GAAS) IS NOT ACCEPTABLE.

For more information, you may contact the Bureau regarding the type of financial statement you must submit.  Be sure to include a good estimate of your gross tuition income for the most recent fiscal year, the gross tuition income for your previous fiscal year, and the combined total amount of Federal and State student aid that you received during your most recent fiscal year.  Otherwise, BPSS will not be able to advise you regarding the appropriate financial statement that must be submitted.  

Education Law

Education Law Section 5001(4)(e) states, in part, that

(i) Licensed private career schools and candidate schools shall submit such certified statistical reports and annual
financial statements as required by the commissioner. The commissioner may require audited statistical reports upon a determination that a school has provided false or inaccurate certified statistical reports. The financial statements shall be based on the fiscal year of the school and shall also include an itemized account of tuition refunds due and owing to past or presently enrolled students. Statistical reports shall include, but not be limited to, enrollment, completion and placement data. The commissioner shall use such financial statements and statistical reports submitted for the purposes of licensure of schools, establishing fees or assessments pursuant to this article and determining standards pursuant to paragraph b of subdivision five of section five thousand two of this article. The attorney general, the comptroller and the president of the higher education services corporation shall have access to this information when it is necessary to perform their duties as required by state law.

(ii) Any school which received five hundred thousand dollars or more in gross tuition in a school fiscal year shall be required to submit to the commissioner an annual audited financial statement prepared in accordance with generally accepted accounting principles for that fiscal year. In addition, any school which has a gross tuition of less than five hundred thousand dollars in a school fiscal year but whose combined state and federal student financial aid in such year equals one hundred thousand dollars or more shall also submit an annual audited financial statement to the commissioner for that fiscal year.

(iii) Schools whose gross tuition is less than five hundred thousand dollars in a school fiscal year and which receive less than one hundred thousand dollars in state and federal student financial aid in a school fiscal year shall file with the commissioner an unaudited financial statement in a format prescribed by the commissioner, provided, however, that any such school shall file an audited financial statement the fiscal year after a reviewed financial statement is submitted. For such schools, audited financial statements are required every two years, at minimum, with reviewed financial statements allowed during the alternate year. Upon a determination by the commissioner that a school has submitted false or inaccurate statements or that a significant, unsubstantiated decline in gross tuition has occurred, the commissioner may require any such school to file an audited financial statement pursuant to this paragraph even during alternate years when reviewed statements would ordinarily be allowed.

Last Updated: May 28, 2013