Accreditation Standards Standard III.D – Financial Resources Arlitha Harmon Vice President of Finance & Administrative Services

The Standards The primary purpose of an ACCJC–accredited institution is to foster student learning and student achievement. An effective institution ensures that its resources, programs, and services, whenever, wherever, and however delivered, support student learning and achievement. Standard I - Mission, Academic Quality and Institutional Effectiveness, and Integrity Standard II - Student Learning Programs and Support Services Standard III - Human, Physical, Technology, and Financial Resources Standard IV - Leadership and Governance

Financial Planning Mission & Goals Budget Development The distribution of resources supports the development, maintenance, allocation and reallocation, and enhancement of programs and services. Budget Development The institution clearly defines and follows its guidelines and processes for financial planning and budget development, with all constituencies having appropriate opportunities to participate in the development of institutional plans and budgets.

What is financial stability? Financial stability includes a high degree of confidence that the institution will continue to fulfill its mission and responsibilities as a higher education institution and meet its contractual obligations without interruption or outside assistance. Cash Flow & Reserves Institutional Oversight Practices Contractual relationships Financial Aid Management Grants

Are institutions penalized for not having enough resources? Most accreditation reviews deal with institutional practices related to the usage of the available funds in order to maintain fiscal stability and institutional effectiveness. Mission and goals are foundational to financial planning Financial planning is integrated with institutional planning

Liabilities Level of financial resources Budget Development When making short-range financial plans, the institution should considers its long-range financial priorities. Budget Development The institution plans for and allocates appropriate resources for the payment of liabilities and future obligations,

Accreditation Questions Does the college maintain a 5% unrestricted reserve of cash or cash equivalent? Does the college have long term debt financing? Does the college have polices and procedures for purchasing? Is there evidence that planning integrates fiscal and other resources? Evidence Audit Report Program Reviews District Funding Plan Facilities Master Plan Ed Master Plan Fiscal Trend Analysis Debt Service Schedules